PEORIA, Ill. — The Peoria City Council Tuesday night received and filed a first reading of a proposed land bank in the city.
A land bank is an entity created by a governmental body to help manage and dispose of vacant properties, vacant land, or tax-delinquent properties so they can be redeveloped for more productive use.
“[Land banks] typically work in cities where the real estate market is not working in the way you would expect in parts of the city,” said Director of Community Development Ross Black. “Properties are not being fixed-up by property owners because there’s no profit incentive to do so.”
Black said land banks have also been successful in shortening the cycle before a home has to be demolished, but can instead be renovated.
The Illinois Housing Development Authority approached the City of Peoria with funds available about setting up the first city-managed land bank in the state of Illinois.
“In total, there’s $300,000 available for this pilot program to get the land bank off the ground and see what difference we can make in the community,” said Black.
If approved at the May 11 City Council meeting, a Land Bank Board would be established to oversee business.
Historically, land banks have converted areas of vacant properties into positive economic development for the area by maintaining, demolishing, or selling the land for redevelopment.
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