IRON MOUNTAIN – More information regarding the issue of land banks was offered at the Dickinson County Board of Commissioners’ meeting on Monday.

A land bank is a public authority created to efficiently hold, manage, and develop tax-foreclosed property, according to County Treasurer Lorna Carey.

Establishing a local land bank or simply having the county treasurer opt-in to the tax reversion foreclosure process would allow auctions on local tax-foreclosed properties to be held locally instead of downstate.

County Controller Sonya Pugh presented the board with some additional information in response to issues raised at a recent Iron Mountain City Council meeting. Iron Mountain has been pressing the county to establish a land bank.

Although there is a concern that these local properties sold downstate are more often purchased by people out of the area, continue in disrepair, and are more likely to go through the foreclosure process again, Pugh said that is not necessarily the case.

Information from Carey showed that out of nine parcels that were foreclosed in Iron Mountain this year, only one had appeared on the foreclosure list in the previous decade. In addition, out of the seven properties sold at the first auction, five were purchased by local residents.

Pugh added that since municipalities have the first right of refusal, they already have the ability to acquire properties before they go to auction. If the properties are not sold at the first or second auction, the municipality has another opportunity to acquire the property with the second right of refusal, she said.

Reasons cited by Carey for the county to remain opt-out of the tax reversion foreclosure process include: the state would be responsible for the foreclosed properties in the county that are of little value; liability to the county, particularly regarding old mine property and maintaining properties at taxpayer expense; and pending legislation that would eliminate most of the monetary advantage of a land bank.

“While it is appreciated that the city of Iron Mountain is interested in helping the county ‘increase its revenue sources,’ the fact remains that establishing a land bank requires start-up funding, a budget, and staff – and currently the county is not in a position to provide any of these,” Pugh concluded. “If, in the future, the county does make the decision to establish a land bank, very specific agreements outlining the responsibilities and expectations of all municipalities would be mandatory to avoid the county and taxpayers being financially responsible for the maintenance of foreclosed properties until that time when and if they would be sold.”

In other business, the board:

– Heard from Equalization Director Sid Bray that Verso Corporation and Wells Township in Delta County recently came to a stipulated agreement regarding their Michigan Tax Tribunal case. Bray said that the agreement results in a $8.5 million loss in taxable value. He added that something similar could happen in Verso’s case with Breitung Township, but he did not know any details.

– Heard from Board Chair Henry Wender that there is no truth to a rumor that the county is closing Ford Airport in Kingsford.

– Heard from Commissioner Barb Kramer that courthouse employees are concerned about the front stairway making noises when used. A motion by Kramer to close the stairway until repairs can be made died for lack of support.

– Granted a request to transfer Bob Baldinelli’s $400 per month lease at Ford Airport for Avis Rent A Car to KAS Enterprises. KAS Enterprises recently purchased the Avis license and 23 rental cars from Baldinelli.

– Appointed Dickinson County Circuit Court Judge Mary B. Barglind to serve as chair on a new courts’ collections committee. Pugh will serve as the board’s liaison to the committee.

– Approved the appointments of Jack Bomberg of Grede, Mark Gregory of Verso, John Gaudette of Breitung Township, and Barb Kramer of the county board to the Dickinson County Solid Waste Planning Committee. The terms expire on June 1, 2016.

Nikki Younk’s e-mail address is nyounk@ironmountaindailynews.com.