Crawford County land bank receives $1.7 million

BUCYRUS - Nearly 70 homes will be demolished in Crawford County, thanks to a new $1.7 million grant.

Those homes are either dilapidated or in extreme disrepair, according to Gary Cole, chairman of the board for the Crawford County Land Reutilization Corporation, also known as the county's land bank.

Cole said the land bank was formed nearly a year ago to address the many crumbling homes throughout the county. Putting together the paperwork for the grant was one of the board's first big duties. The application was not small.

"We had to present why we needed the grant for the demolition of dilapidated and delinquent properties," Cole said. "It was about 40 pages long."

The application was reviewed by the Ohio Housing Finance Agency. Since the land bank is a countywide endeavor, the board ensured the funds would be used in multiple municipalities.

'There are equal numbers of homes in Bucyrus and Galion, plus about 11 in Crestline and four or five in Tiro," Cole said.

Before homes can be demolished, the land bank must take over their possession. Cole said that will generally happen after the county has seized a home that has either been foreclosed upon, or that has significant back taxes.

The grant allows the land bank to pay up to $25,000 for the demolition of each home.

"We have the ability to transfer it to an owner afterword," Cole said. "The grant stipulates we cannot make a big profit on it."

Most of the vacant lots that will be created after the demolition will be sold neighboring land owners for about $250, but Cole said some will be auctioned to the highest bidder. On rare occasions, the land bank will donate the plats to municipalities, or even combine them to form larger parcels to sell to developers.

Cole said most of the court costs will already be paid by the time the property is transferred to the land bank, meaning nearly all of the entity['s expenditures will go toward the demolition of the structures.

"We could actually purchase a property, too, up to a small amount," Cole said. "There are other ways of getting a property other than foreclosure."

One small catch of the grant is that the land bank doesn't receive the money up front.

"It's a reimbursement grant, so we have to pay to tear it down and then we are reimbursed," Cole said.

The land bank will be able to use a line of credit from either local banks or the state agency for the demolition of the homes. Then the grant funds will be paid directly to that lender. Cole said the land bank also receives a portion of the penalties any time someone in the county pays their taxes late.

"It's a three-year grant, and we have to use the funds in the three years," Cole said. "It could be renewed, but there's no guarantee for that. For now, this is what we have to work with."

Cole said the 70 houses are just a start, but it's a much-needed start that will help eliminate dangerous houses throughout the county.

"We want to stabilize values and make it more attractive for residents who live there," Cole said.

The board has not yet determined which houses will be torn down first, or when. That will be the topic of a public discussion scheduled for 3 p.m. Nov. 2 at the courthouse.

"We will discuss this and go from there," Cole said. "We're going to learn as we go. This is a new experience for us."

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