The Gardner City Council has established a land bank in a renewed push to revitalize blighted parts of the city and give potential landowners a chance to purchase land without inheriting delinquent taxes on the properties.
The council, during its Nov. 5 meeting created the land bank which will allow the city to acquire property sold at tax sale without having to pay the delinquent taxes.
“If a city is a successful bidder at a tax sale, the city is required to pay delinquent taxes. In contrast, when a land bank acquires property, the county treasurer must remove from the tax roll all taxes, charges, penalties and interest,” said Larry Powel, director of economic development.
Powell said that through a land bank the city can abate or re-amortize delinquent special assessments.
“If there are tax and special delinquencies on properties that are impending development, a land bank provides a vehicle for taking title to the property and cleaning up these encumbrances so that the new owner starts with a clean slate,” he said.
Steve Shute, mayor, said the establishment of the bank should not be construed to mean the council is doling out corporate welfare.
(Read more: Gardner News)