BELLAIRE, Ohio – A dispute over a demolition contractor and a push to acquire a property still occupied by a homeowner with tax debt have left talks between Belmont County officials and developer Donn Sinclair at an impasse, according to Kathy Kelich, the Belmont County Treasurer and chair of the Belmont County Land Reutilization Corporation, or land bank.
Sinclair offered the land bank $200,000 through his Sinclair Foundation to pay for demolition of blighted homes in the Rose Hill neighborhood of Bellaire where he plans a new housing development of homes valued at $250,000 each.
Kelich said Sinclair wanted to choose the demolition contractor, but the land bank requires that work to proceed through a bidding process.
“Our demolition policy states that we are responsible for the demolition, including the bid process and selecting the contractor,” the county treasurer explained.
She said the Sinclair Foundation wanted to control the demolition process because it would be providing the funding.
“Mr. Sinclair’s position was, ‘This is our money. We’ll choose the contractor.’”
Kelich said the land bank board presented other options to Sinclair including transferring ownership of the property to the Sinclair Foundation before demolition, jointly developing bid specifications and allowing everyone to participate in selecting the demolition contractor, but Sinclair was not satisfied.
“Again, that was not satisfactory,” Kelich said.
Kelich added that the land bank must also meet insurance and legal requirements of properties under its jurisdiction, but one property on Washington Street that Sinclair is interested in is not even under land bank control. Kelich said the homeowner is elderly and has a delinquent tax bill but is working with the Treasurer’s Office to set up a repayment plan.
“No one owns it except the current owner. It hasn’t even been foreclosed on yet,” Kelich said.
Sinclair acknowledged his interest in that property and stated in an email to Fatula that the owner has property tax debt.
“He owes Belmont County $13,414 in taxes and fees on that property. He also owes $23,375 on another property. Total owed Belmont County is $36,789. Remember, we taxpayers all pay more when freeloaders, profiteers, speculators, and slumlords don’t pay their taxes,” Sinclair wrote.
Sinclair added that he does not believe the proposed repayment plan will satisfy the tax debt and that he believes it may make more financial sense for the homeowner to move rather than remain in a blighted property.
“If you add the cost to truly make the house livable to the already past due property taxes, would the property owner be financially ahead to find nicer and more affordable living accommodations?” Sinclair asked.
Kelich said the owner still has legal rights because foreclosure has not occurred.
“We would not even discuss it as a land bank until it has been tax foreclosed because the owner can still redeem the property.”
Kelich said that Belmont County has many properties with tax delinquencies but addressing these is a lengthy process from the time a bill goes unpaid until foreclosure happens. She added that the title work is very complex and there are now fewer attorneys in Belmont County to process it.
Kelich explained that the land bank typically acquires properties that are abandoned, tax-delinquent or vacant and targets these for redevelopment. The land bank may purchase a property after two unsuccessful sheriff’s sales. Sometimes owners donate land to the land bank. She added that the land bank’s goal is to repurpose properties, not to own them.
“We don’t look to be property owners.”
Kelich explained that Belmont County and its land bank are “two separate entities.”
“Although our board includes county officials such as the treasurer and county commissioners, the land bank is a separate quasi-governmental organization. It is not county government.”
Sinclair said his foundation has demolished six blighted Bellaire houses so far and entered into a “tentative agreement” with the Village of Bellaire on Tuesday to “expedite” demolition on other properties.
“To date, we have demolished six blighted houses on 15 acquired properties and then bundled these properties into eight buildable lots,” Sinclair said.
Sinclair believes the Belmont County Land Bank has limited experience with private-public partnerships but he would like to reach an agreement with the land bank board to move forward with demolition.
“It appears that they intended to apply their normal public land bank procedures and practices to the Sinclair Foundation private-public offer of $200,000 in demolition services.”
The Sinclair Foundation offer is that we and the board agree on and prioritized a list of target blighted houses to be demolished. Some properties Sinclair Foundation, a private, non-profit foundation, would like to “acquire at no cost,” Sinclair stated.
Kelich pointed out that the land bank board has been successful with private-public partnerships in the past, including the Great Stone Viaduct brownfield remediation in Bellaire which the EPA acknowledged with a regional award.
Kelich said the land bank board tried to work out a partnership deal with Sinclair but could not come to an agreement.
Kelich emphasized this was the board’s decision, not just hers.
“He’s presented this to the entire board. It was a board decision not to move forward.”
Kelich identified the board members as herself, Belmont County Commissioners Jerry Echemann and J.P. Dutton, Andy Sutak and Richland Township Trustee Rick Ferrell.
Sinclair stated he hopes the land bank can work with him and the Village of Bellaire to improve the community for children and families.
“Let’s stop this fussing and fighting and work together,” Sinclair said.
