Vacant & Abandoned Buildings

[Plutonic Panda]

The city is apparently beginning to address the problem according to a recent article.

City seeks to strengthen efforts to address vacant and abandoned buildings
(July 2, 2013) - Oklahoma City Council today directed staff to act on study recommendations that address the City’s growing vacant and abandoned building problem. The study revealed that there are 12,000 vacant and abandoned buildings scattered throughout the City.

According to the Census Bureau, the number of long-term vacant housing units in the City grew by 25 percent between 2000 and 2010, twice the rate of the normal housing growth.

“Vacant and abandoned homes cause a variety of problems for both residents and the City,” Planning Director Russell Claus said. “These neglected buildings strain the City’s resources, lower property values, hamper community reinvestment and infringe on neighboring property owner’s rights.”

According to the study, vacant and abandoned buildings can reduce the value of neighboring homes by 12 to 29 percent, resulting in an estimated $2.7 billion reduction in real estate value city-wide. They generate little revenue from property or sales tax, while requiring disproportionate City services through police, fire, animal welfare and code enforcement.

“Oklahoma City spends approximately $6.5 million annually to respond to the extra fire and police calls that these buildings generate,” Claus added.

The study recommends implementing a comprehensive program that includes a combination of enforcement measures, penalties and rewards. An effective program will likely require changes to state laws that will allow the City to impose liens on problem properties, recover cost and enable the City to return these properties to productive use.

City of Oklahoma City | News from OKCGOV

https://www.facebook.com/cityofokc/p...51482799897312

Here is the .pdf document for view:https://www.okc.gov/documents/Vacant...me%20Study.pdf

[Pete]

According to a recent study, there are more than 12,000 vacant and abandoned buildings scattered through the city. Now, the state's largest city will start tackling that problem.

In a city council session Tuesday, the council directed staff members to act on study recommendations that address the growing problem of vacant and abandoned buildings. According to the Census Bureau, from 2000 to 2010, the number of long-term vacant housing units grew by 25%. That rate is twice as high as the normal housing growth.


The empty buildings generate little revenue from property or sales tax, while requiring an increase of city services through police, fire, animal welfare and code enforcement. According to Planning Director Russell Clau, that costs the city roughly $6.5 million a year to respond to extra police and fire calls in those buildings.

Not only are vacant houses a drain on the city, they're a drain on the neighborhood. The study says vacant and abandoned buildings can reduce the value of neighboring homes by 12 to 29%, causing about $2.7 billion reduction in real estate value across the city.

The study recommends the city implement a program that includes enforcement measures, penalties, and rewards, which require changes to state laws to allow the city impose liens on problem properties and return the properties to productive use.


Link to Full Study


STUDY FINDINGS
Over the past decade the number of long-term vacant housing units in Oklahoma City has increased by roughly
25 percent. The primary cause is low property carrying costs, meaning that vacant buildings cost so little to
own that owners prefer to keep them vacant rather than putting them into productive use.
While the cost to VAB owners is low, the cost of VABs to the City, affected neighborhoods and owners of
occupied properties is substantial. VABs generate little or no revenue from property or sales tax, while they
utilize disproportionate public safety and other city services, lower neighboring property values, discourage
private investment, and contribute to neighborhood decline.

The Problem Quantified
• An estimated 12,000 buildings in Oklahoma City have been vacant six months or longer.
• More than half of these have been vacant two years or longer.
• The City spends approximately $6.5 million annually for services (police, fire, and animal welfare)
attributable to VABs.
• The City loses nearly $20 million in potential revenue every year because of VABs.
• VABs reduce the value of neighboring homes by 12 to 29 percent, depending on proximity, resulting in an
estimated $2.7 billion reduction in real estate value city-wide.

The Problem Qualified
• There are few incentives or disincentives to encourage VAB owners to maintain or reinvest in their
properties.
• Reinvestment in neighborhoods decreases as the number of VABs increases.
• VABs are undesirable and unwanted neighbors. They decrease the marketability and value of commercial
and residential properties. Residents living near VABs feel less safe and less secure.
• The cost to maintain, service, and secure VABs is subsidized by owners of occupied properties.

The Response
A comprehensive program that includes a combination of enforcement measures, penalties, and rewards is
recommended to address the problem. The program should be designed to incentivize reuse and rehabilitation
of properties and to uphold the property rights of all owners, including restoring the property rights of owners
near VABs.



THE PROGRAM
The study recommends a three-phased approach to implementing a fully operational program. Phase one can
be initiated immediately with City Council authorization. Additional legal authority is required to implement
phases two and three:

1. Vacant Building Registry (VBR): During this phase a database of VABs will be established; data and start-up
equipment purchased; and staff hired to identify, inspect and manage VAB cases. The VBR will allow
the City to target enforcement by address/owner and to monitor impact on adjacent properties and affected
neighborhoods. A per-building fee structure will be implemented to cover administrative costs of the
program.

2. Cost recovery fees: The VABs program assesses a cost recovery fee on VABs to offset the cost of City
services attributable to VABs. This second phase fee assessment should be further supported by fines for
unpaid administrative and cost recovery fees. Additional statutory authority (changes to state law) will be
required to institute this phase, as well as to impose liens on VABs for the value of unpaid fees and fines.
The phase two fee structure will be based on 100% cost recovery. Revenue will ensure a self-sufficient
program; surplus may be invested in phase three revitalization efforts and/or public safety and other related
city services.

3. Land Bank: Phase 3 enables the City to fully mitigate VAB issues. This phase also requires changes to state
statute, to provide the City with the legal authority to foreclose on VAB liens and establish a process for the
acquisition, maintenance, and redevelopment of VABs for private sector use. To make the land bank and
overall VABs program more effective, the City should consider utilizing incentives such as tax abatement or
fee reductions for VAB owners who reinvest in their properties or transfer ownership of their property to the
land bank.

Once fully operational, the VABs program will provide a long-term solution for reducing and preventing
vacancy, increasing property values, and revitalizing Oklahoma City neighborhoods.

[Pete]

Thought this was very interesting a good summary of the nature of the problem:

CAUSES
Vacant and abandoned buildings are not unique to Oklahoma City. However, the causes in Oklahoma City are not
related to a poor economy. In fact, the economy of Oklahoma City and the State of Oklahoma was healthier than
the country as a whole during the recession.

An imbalance between the costs of holding a vacant building versus the market-based benefit to investing in the
unit is the primary cause of the growing VABs problem in Oklahoma City. There is currently a “reverse rewards”
situation for property owners – the longer the vacancy the less it costs to keep the building vacant.

[Pete]

INCENTIVES
The following incentives may be appropriate during each of the three phases of program implementation:

• Reduced fees for initial voluntary compliance with the VBR program.
• Waived or reduced fees for owners who voluntarily transfer ownership of their property to a City-approved
redeveloper or the land bank.
• City or leveraged private/public funds in the form of grants or loans to assist with VAB housing redevelopment
and occupancy to address:
- Title clearance,
- Façade improvement or emergency repair,
- Full scale rehabilitation or reconstruction, and
- Down payment and closing cost assistance for homebuyers of VAB properties.
• Tax incentives or certain economic benefits directly provided to owners or investors of VAB properties in
specific City-designated revitalization areas.

[UnFrSaKn]

I found this one yesterday along with the really beautiful red brick one next door that is an attorney's office. Know anything about it? I took a few photos I can post once they are edited. This is right next to Central High School. I wish we could see more new development in Bricktown that shares the same style and fill all the empty lots.

Map

[warreng88]

Here is the county assessor page for the property. Looks like it has been owned by Mid Continent since 1991.

Leonard Sullivan Oklahoma County Assessor Real Property Detail Sheet

[Pete]

That's the old Merkel X-Ray building at 229 NW 9th, now for sale for $775,000 (which seems extremely high):

LoopNet - 229 9th, Office Building, 229 NW 9th St., Oklahoma City, OK

[warreng88]

That's the old Merkel X-Ray building at 229 NW 9th, now for sale for $775,000 (which seems extremely high):

LoopNet - 229 9th, Office Building, 229 NW 9th St., Oklahoma City, OK

Yeah, especially with as much work as there needs to be done with it.

[UnFrSaKn]

Abandoned building on NE 2nd St & N Lindsay Ave (March 27 2012) - a set on Flickr

[Pete]

And this is the crux of the problem...

Property owners sit on buildings and either do nothing with them, or try to sell them for absurd prices (that Merkel building is probably only worth about a third of what they are asking).

In the meantime, these buildings are left in a state of disrepair and there aren't financial incentives/penalties to do anything at all.


We really need to implement this program and start forcing change.

Imagine all those abandoned properties sold for reasonable prices to people who actually want to do something with them. Would be a huge game-changer.

[Mr. Cotter]

I found this one yesterday along with the really beautiful red brick one next door that is an attorney's office. Know anything about it? I took a few photos I can post once they are edited. This is right next to Central High School. I wish we could see more new development in Bricktown that shares the same style and fill all the empty lots.

Map

Merkel X-Ray Co. Building: The Mullet of Midtown | Midtowner

[AP]

That's the old Merkel X-Ray building at 229 NW 9th, now for sale for $775,000 (which seems extremely high):

LoopNet - 229 9th, Office Building, 229 NW 9th St., Oklahoma City, OK

A local midtown blogger, OKCMidtowner, okcmidtowner.com, refers to that building as the Mullet of Midtown.

[AP]

Never mind. Mr. Cotter beat me to it.

[Larry OKC]

One article I read a couple of years ago(?) said that part of the problem is absentee, out of state landlords. That it just wsn't worth the trouble for the City to try to enforce anything against them and as a result, only targeted local owners. Seems that would just encourage more bad out of state owners since they don't have to worry.

[UnFrSaKn]

[Pete]

One article I read a couple of years ago(?) said that part of the problem is absentee, out of state landlords. That it just wsn't worth the trouble for the City to try to enforce anything against them and as a result, only targeted local owners. Seems that would just encourage more bad out of state owners since they don't have to worry.

Where the owner lives shouldn't matter.

The property is still subject to code compliance and the owner has to make things right or be fined, or the City may even do some of the work themselves (like chop down weeds) then bill them. If they don't pay, a lien is put on the property.

Ultimately, if they don't pay the fines and taxes, the city/county can force a sale and then recover their money.


The problem is that none of this has been even remotely enforced. Hopefully that will soon change.

[UnFrSaKn]

Jewel Theatre (March 10 2012) - a set on Flickr

[CuatrodeMayo]

Maybe an urban homesteading program for residential properties similar to what Buffalo is doing? Urban Homestead Program - City of Buffalo

[PhiAlpha]

Pete, you think we could add a "Vacant and Abandoned Buildings" Summary to the summary page? It would be cool to have something similar to what you set up for deep deuce. I would do it, but don't have anything to add.

[Pete]

Pete, you think we could add a "Vacant and Abandoned Buildings" Summary to the summary page? It would be cool to have something similar to what you set up for deep deuce. I would do it, but don't have anything to add.

Very good idea.

At the very least, we could call attention to some really cool old structures before they get to the point of no return.

[PhiAlpha]

Very good idea.

At the very least, we could call attention to some really cool old structures before they get to the point of no return.

Agreed!

[UnFrSaKn]

Morgan Building (March 10 2012) - a set on Flickr









StreetView

[kevinpate]

A while back Tulsa I think took a look at some areas with old long vacant buildings and planned to institute a do something or pay fine, tax rate, etc. If memory serves, Tulsa ended up with some empty lots because owners decided to raze and then sit again rather than just sit. Possible I am remembering this wrong. It happens sometimes. too many if you ask my lovely.

[UnFrSaKn]

That reminds me... me and Steve took a tour one day of the area south of the proposed Boulevard area that was south of the old I-40. I really hope these buildings can be used for the new developments instead of laid waste to.

Abandoned area between old and new Interstate 40 (February 25 2012) - a set on Flickr



StreetView

There are many others in this Set that you can find in the same area on Google Maps.

[HangryHippo]

A while back Tulsa I think took a look at some areas with old long vacant buildings and planned to institute a do something or pay fine, tax rate, etc. If memory serves, Tulsa ended up with some empty lots because owners decided to raze and then sit again rather than just sit. Possible I am remembering this wrong. It happens sometimes. too many if you ask my lovely.

The law of unintended consequences, I suppose. Doesn't Philadelphia have some sort of tax penalty for vacant land in the core?