Expanded authority to create land banks considered

The Urban Affairs Committee heard testimony Feb. 10 on a proposal intended to accelerate the redevelopment of abandoned properties statewide.

Currently, only metropolitan and primary class cities may form stand-alone land banks, which are tax-exempt political subdivisions that acquire, manage and develop vacant, abandoned and tax-delinquent properties. Omaha is the state’s only metropolitan class city, and Lincoln is the only primary class city.

A municipality also may join an existing land bank or enter into an agreement with another municipality to create a land bank.

LB811, introduced by Norfolk Sen. Robert Dover, would authorize all Nebraska municipalities to form stand-alone land banks.

“Communities of all sizes … across Nebraska are dealing with stalled properties that slow housing development and neighborhood reinvestment,” he said. “This bill gives those communities the same tool that larger cities already have to prepare land for redevelopment and housing construction in a timely and locally controlled manner.”

Christy Abraham testified in support of LB811 on behalf of the League of Nebraska Municipalities, saying member cities have indicated that they would prefer to form their own land banks rather than partner with others. Several first class cities, such as Grand Island, Bellevue and Hastings, have the resources to create stand-alone land banks, Abraham said.

No one testified in opposition to the bill and the committee took no immediate action on it.