Chapter 15.130 RIVERDALE MUNICIPAL LAND BANK

The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

“Department” or “public works” means the village of Riverdale public works department.

“Director” means a member of the Riverdale municipal land bank board of directors.

“Land bank” means the Riverdale municipal land bank, created by the ordinance codified in this chapter pursuant to the village’s home rule powers.

“Land bank board” means the Riverdale municipal land bank board of directors, as composed in RMC 15.130.100.

“Person” includes a natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or the manager, lessee, agent, servant, officer, or employee of any of them.

“Real property” means all land and the buildings thereon, all things permanently attached to land or to the buildings thereon, and any interest existing in, issuing out of, or dependent upon land or the buildings thereon. (Ord. 2021-33 § 4, 2021)

15.130.020 Creation and legal status of the land bank.

The village of Riverdale hereby establishes and creates the Riverdale municipal land bank under its authority as a home rule municipality as a division of the village to implement the functions, services, and responsibilities contemplated by this chapter. (Ord. 2021-33 § 4, 2021)

15.130.030 Purpose.

The Riverdale municipal land bank will be a division of the village. The village will use its authority for the common public purpose of combating community deterioration. The land bank will achieve this by using available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use. Specifically, the land bank will focus on strategies to return property to productive use, improve quality of life, stabilize the tax base, and create opportunities for public and private investment in open space, housing, commerce, industry, and employment for village residents. (Ord. 2021-33 § 4, 2021)

15.130.040 Duties.

In carrying out its purpose, the land bank shall, in accordance with applicable laws, codes, policies, and procedures approved by the land bank board and otherwise without limitation, acquire, manage, and dispose of certain real property and perform other functions, services, and responsibilities as may be assigned to the land bank by the village. (Ord. 2021-33 § 4, 2021)

15.130.050 Title to land bank assets.

Except as otherwise provided in the Riverdale Municipal Code, the village of Riverdale shall hold title to all real property acquired and controlled by the land bank. (Ord. 2021-33 § 4, 2021)

15.130.060 Compliance with law.

The land bank shall comply with all applicable federal and state laws, rules, regulations, and orders. (Ord. 2021-33 § 4, 2021)

15.130.070 No third-party beneficiaries.

Except as otherwise specifically provided, this section does not create in any person or entity, other than the village, and is not intended to create by implication or otherwise, any direct or indirect benefit, obligation, duty, promise, right to be indemnified (such as contractually, legally, equitably, or by implication), right to be subrogated to the village’s rights under this chapter, and/or any other right or benefit. (Ord. 2021-33 § 4, 2021)

15.130.080 Exclusive authority.

As stated herein, the purpose of the Riverdale municipal land bank is to address urban renewal matters and redevelopment. According to case law, “urban renewal matters and the means by which redevelopment sales are entered into are matters of local concern which pertain to the affairs of the municipality wherein the problem necessitating the urban renewal efforts exist.” City of Carbondale ex rel. Ham v. Eckert, 76 Ill. App. 3d 881, 888 (5th Dist. 1979). The village has the authority to enact its own solutions to problems of local concern. See People v. Jaudon, 307 Ill. App. 3d 427, 444 (1st Dist. 1999). Pursuant to that authority and its home rule powers, the Riverdale municipal land bank shall be the exclusive governmental or quasi-governmental land banking organization operating within the boundaries of the village. Further, pursuant to Article VII, Section 6(c) of the Illinois Constitution, the provisions of this section shall preempt Cook County Ordinance No. 13-O-07 and any similar Cook County ordinance that acquires and disposes of real property for redevelopment and urban renewal purposes within the village. (Ord. 2021-33 § 4, 2021)

15.130.090 Powers of the land bank.

The village board hereby confers upon the land bank, to the full extent of the village board’s constitutional and statutory authority, the authority to do all things necessary or convenient to implement the purposes, objectives, and provisions of this chapter, and take all related actions. Among other powers, the land bank shall have the following powers, subject to village board approval and oversight:

A. Acquire by purchase, donation, or other transfers and hold, lease, manage, and dispose of real property of every kind and character, or any interest therein, in furtherance of the public purposes of the land bank;

B. Sell real and personal property held by the land bank to any entity, including, but not limited to, other governmental units and private third parties;

C. Discharge and extinguish real property taxes and tax liens owed to the village or to a party, pursuant to an agreement with such party, that encumber real property owned by the village through the land bank, to the extent permitted by law;

D. Pay any tax or special assessment due on real property acquired or owned by the land bank;

E. Exercise statutory authority to take removal action, lien property, foreclose on liens, and petition a circuit court for a declaration of abandonment pursuant to 65 ILCS 5/11-31-1(d);

F. Enter into contracts and other instruments in any capacity, necessary, incidental, or convenient to the performance of the land bank’s duties and the exercise of its powers, including, but not limited to, documents with other local governments regarding the disposition of land bank properties, and agreements with parties for the joint exercise of powers, which may include contracts for the performance of services by a party on behalf of the land bank or by the land bank on behalf of a party;

G. Enter into contracts with nonprofit community land trusts, including, but not limited to, long-term lease contracts;

H. Acquire, accept, or retain equitable interests, security interests, or other interests in any real property or other fixtures by loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, pledge, conveyance, contract, lien, or other consensual transfer in order to secure the repayment of any moneys loaned or credit extended by the land bank;

I. Use any real property or fixtures or any interest therein to rent, license, or lease such real property to or from others or make contracts with respect to the use thereof, or to sell, lease, exchange, transfer, assign, pledge, or otherwise dispose of or grant options for any such real property in any manner as it deems to be in the best interests of the land bank and the public purpose thereof;

J. Fix, charge, and collect rents, fees, licenses, and charges for the use of real property of the land bank and for services provided by the land bank;

K. Grant or acquire a license, easement, lease (as lessor or lessee), or option with respect to real property of the land bank;

L. Remediate environmental contamination on any real property held by the land bank;

M. Finance (by loan, grant, lease, or otherwise), refinance, construct, erect, assemble, purchase, acquire, own, repair, remodel, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage real property or rights or interests in real property, and to pay the costs of any such project from the proceeds of revenue bonds, loans by persons, corporations, partnerships, whether limited or general, or other entities, all of which the land bank is authorized to receive, accept, and use;

N. Borrow money from private lenders, from cities or counties, from the state or from federal government funds, subject to the approval of the village board, to further or carry out the land bank’s public purpose by executing leases, trust indentures, trust agreements, agreements for the sale of notes, loan agreements, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, and such other agreements or instruments as may be necessary or desirable, in the judgment of the land bank, to evidence and to provide security for such borrowing;

O. Solicit and accept gifts, grants, labor, loans, and other aid from any person or entity, or the federal government, the State of Illinois, or a political subdivision of the state of Illinois, or any agency of the federal government;

P. Make application directly or indirectly to any federal, state, county, or municipal government or agency or to any other source, whether public or private, for loans, grants, gifts, guarantees, labor, or other aid or financial assistance in furtherance of the land bank’s public purpose and to accept and use the same upon such terms and conditions as are prescribed by such federal, state, county, or municipal government or agency or other source;

Q. Extend credit or make loans to any person subject to limitations established by the village board, for the costs of any land bank projects or any part of the costs of any land bank projects which credit or loans may be evidenced or secured by loan agreements, notes, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, or such other instruments, or by rentals, revenues, fees, or charges, upon such terms and conditions as the land bank shall determine to be reasonable in connection with such extension of credit or loans, including provision for the establishment and maintenance of reserve funds, and, in the exercise of powers granted by the village through this section in connection with any land bank projects, the land bank shall have the right and power to require the inclusion in any such loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument such provisions or requirements, including but not limited to: guarantee of any obligations, insurance, construction, use, operation, maintenance, and financing and such other terms and conditions, as the land bank may deem necessary or desirable;

R. As security for repayment of any note, or other obligations of the land bank, pledge, mortgage, convey, assign, hypothecate, or otherwise encumber any property of the land bank, including, but not limited to, real property, fixtures, and revenues or other funds, and to execute any lease, trust indenture, trust agreement, agreement for the sale of the land bank’s notes, or other obligations, loan agreement, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other agreement or instrument as may be necessary or desirable, in the judgment of the land bank, to secure any such notes, or other obligations, which instruments or agreements may provide for foreclosure or forced sale of any real property of the land bank upon default in any obligation of the land bank, either in payment of principal, premium, if any, or interest or in the performance of any term or condition contained in any such agreement or instrument;

S. Procure insurance or guarantees from the general assembly or federal government of the payments of any debts or parts thereof incurred by the land bank, and to pay premiums in connection therewith;

T. Procure insurance or another method to reduce loss in connection with the property, assets, or activities of the land bank;

U. Enter into partnerships, joint ventures, and other collaborative relationships with municipalities and other public and private entities for the ownership, management, development, and disposition of real property;

V. Invest money of the land bank, in instruments, obligations, securities, or property which are permitted investments of a unit of local government;

W. Employ legal and technical consultants, other officers, agents, or employees, to be paid from the funds of the land bank. The land bank shall determine the qualifications, duties, and compensation of those it employs. The land bank board may delegate to one or more officers, agents, or employees any powers or duties it considers proper;

X. Contract for goods and services and engage personnel as necessary, to be paid from the funds of the land bank;

Y. Study, develop, and prepare any reports or plans the land bank considers necessary to assist it in the exercise of its powers under this chapter and to monitor and evaluate the progress of the land bank under this chapter;

Z. Enter into contracts for the demolition of, the maintenance, management, and improvement of, the collection of rent from, or the sale of real property held by the land bank;

AA. Organize and reorganize the executive, administrative, clerical, and other departments of the land bank and to fix the duties, powers, and compensation of all employees, agents, and consultants of the land bank;

BB. Adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business; and

CC. Do all other things necessary or convenient to achieve the objectives and purposes of the land bank or other laws that relate to the purposes and responsibilities of the land bank. (Ord. 2021-33 § 4, 2021)

15.130.100 Land bank board composition.

The land bank shall be governed by the Riverdale municipal land bank board of directors, which shall consist of five members. The following representatives shall serve as directors to ensure that the commitments made herein are met:

A. Village president.

B. Fire chief.

C. Senior village trustee.

D. Two representatives from village neighborhoods who represent neighborhood interests, appointed by the village president and approved by the village board of trustees.

All land bank board directors shall serve until resignation or replacement by the village board. (Ord. 2021-33 § 4, 2021)

15.130.110 Meetings.

The land bank board shall set an annual meeting schedule and determine the place, date, and time of the meetings in accordance with all applicable Illinois laws. To the extent it applies, meetings shall be held in compliance with the Illinois Open Meetings Act, 5 ILCS 120/1 et seq. A quorum shall be necessary for the transaction of any business by the land bank board. A majority of the directors of the land bank board shall constitute a quorum. The land bank board shall act by a majority vote of the directors at a meeting at which a quorum is present and thereafter shall submit a report and recommendations to the village board. (Ord. 2021-33 § 4, 2021)

15.130.120 Chairperson duties and powers.

The village president will serve as the chairperson of the land bank board. The chairperson shall be the principal executive officer of the land bank and shall preside at all meetings of the land bank board. Subject to any policies adopted by the land bank board, the chairperson shall have the right to supervise and direct the management and operation of the land bank and to make all decisions as to policy and otherwise which may arise between meetings of the land bank board, and the other officers and employees of the land bank shall be under the chairperson’s supervision and control during such interim. The chairperson shall give, or cause to be given, notice of all meetings of the land bank board. The chairperson’s duties shall include execution of all deeds, leases, and contracts of the land bank authorized by the land bank board. The chairperson shall perform such other duties and have such other authority and powers as the land bank board may from time to time prescribe. The land bank board will provide a monthly report to the village board detailing the status of all transactions and recommendations for future action. (Ord. 2021-33 § 4, 2021)

15.130.130 Records of meetings.

Minutes shall be transcribed at all meetings, approved by the land bank board, and maintained by the land bank. (Ord. 2021-33 § 4, 2021)

15.130.140 Fiduciary duty.

The directors of the land bank board have a fiduciary duty to conduct the activities and affairs of the land bank in the village’s best interests. The directors of the land bank board shall discharge their duties in good faith and with the care an ordinarily prudent individual would exercise under similar circumstances. (Ord. 2021-33 § 4, 2021)

15.130.150 Compensation.

The directors of the land bank board shall receive no compensation for the performance of their duties related to serving on the land bank board. The land bank may reimburse directors of the land bank board for actual and necessary expenses incurred in the discharge of their actual duties. (Ord. 2021-33 § 4, 2021)

15.130.160 Conflict of interest.

No director of the land bank board shall vote on any matter in which such director or any parent, spouse, child, partner, employer, client, or similar business or personal relationship or entity has an interest in any property or business that would be affected by such action. Directors shall annually disclose all known conflicts of interest. In the event that a director abstains from a specific vote due to a conflict of interest, the conflict shall be identified in the land bank board’s meeting minutes. (Ord. 2021-33 § 4, 2021)

15.130.170 Land bank board responsibilities.

The land bank board shall:

A. Ensure that all operations including contractual matters are conducted free from any political interference;

B. Ensure efficiency in service delivery and sound fiscal management of all aspects of the land bank;

C. Ensure all money specifically earmarked for the land bank is spent in relation to the duties of the land bank; and

D. Make decisions on transactions as determined elsewhere in this chapter. (Ord. 2021-33 § 4, 2021)

15.130.180 Land bank board actions.

The land bank board shall do all of the following not inconsistent with Illinois law:

A. Adopt, amend, and/or repeal rules and policies and procedures governing the land bank board and its actions and meetings, and adopt, amend and/or repeal policies and procedures to implement day-to-day operation of the land bank, including policies governing any staff of the land bank;

B. Provide for a system of accounting;

C. Submit annually to the village board a proposed budget;

D. Commission, collect, and receive data from public, private, professional and volunteer sources to compile an inventory and analysis of desirable properties for acquisition; and

E. Organize and reorganize the executive, administrative, clerical and other divisions of the land bank and fix the duties, powers and compensation of all employees, agents, and consultants of the land bank. (Ord. 2021-33 § 4, 2021)

15.130.190 Employment and compensation of staff.

The village of Riverdale shall provide staffing services for the land bank, unless and until the village board votes to employ any additional staff deemed necessary to carry out the duties and responsibilities of the land bank. (Ord. 2021-33 § 4, 2021)

15.130.200 Annual reports.

Not less than annually, the land bank board shall prepare a report detailing the results of activities set forth herein for the previous year and goals for future action of the land bank. The report will be presented to the village board on an annual basis. (Ord. 2021-33 § 4, 2021)

15.130.210 Freedom of Information Act.

The Illinois Freedom of Information Act (FOIA), 5 ILCS 140/1 et seq., applies to the land bank. The chairman shall be the designated FOIA officer for all requests. (Ord. 2021-33 § 4, 2021)

15.130.220 Acquisition of property.

Subject to the limitations contained in RMC 15.130.090:

A. The land bank may acquire real property or rights or interests in real property by gift, bequest, transfer, exchange, foreclosure, purchase, purchase contracts, lease purchase agreements, installment sales contracts, land contracts, tax sale, scavenger sale or otherwise, on terms and conditions and in a manner the land bank considers proper.

B. The land bank may acquire any property conveyed to it by the state of Illinois, a foreclosing governmental unit, a unit of local government, an intergovernmental entity created under the laws of the state of Illinois, or any other public or private person, including, but not limited to, property without clear title.

C. All deeds, mortgages, contracts, leases, purchases, or other agreements regarding property of the land bank, including agreements to acquire or dispose of real property, shall be approved by and executed by the land bank, in the name of the village.

D. The land bank shall have the right to purchase properties, in the name of the village, at tax sales conducted in accordance with the Property Tax Code, 35 ILCS §200/1-1 et seq. The land bank may tender a bid at a tax sale that is a credit bid, consisting of the obligation of the land bank to satisfy the component parts of the bid by payments to the respective political subdivisions.

E. The land bank shall have the right to make offers to purchase properties that are subject to a listing agreement; said offer or purchase of a property by the land bank that is subject to a listing agreement shall not extinguish any legal rights existing under the listing agreement. (Ord. 2021-33 § 4, 2021)

15.130.230 Execution of legal documents relating to property.

All deeds, mortgages, contracts, leases, purchases, or other documents regarding property of the land bank, including documents to acquire or dispose of real property, shall be approved by and executed in the name of the village of Riverdale, a body corporate and politic. (Ord. 2021-33 § 4, 2021)

15.130.240 Holding and managing property.

Exercising the home rule authority of the village of Riverdale, the land bank, on behalf of the village, may control, hold, manage, maintain, operate, repair, lease, convey, demolish, relocate, rehabilitate, or take all other actions necessary to preserve the value of the property it holds or owns. The land bank shall maintain all such real property in accordance with applicable laws and codes. Such real property shall be inventoried and classified by the land bank according to suitability for use. The inventory shall be maintained as a public record and shall be filed electronically and in the principal office of the land bank. (Ord. 2021-33 § 4, 2021)

15.130.250 Property disposition.

Subject to the limitations contained in RMC 15.130.090, on terms and conditions, and in a manner and for an amount of consideration the land bank considers proper, fair, and reasonable, including for no monetary consideration if appropriate, the land bank may convey, sell, transfer, exchange, lease as lessor, or otherwise dispose of real property or rights or interests in real property which the land bank controls and the village holds a legal interest to any public or private person. The transfer and use of property under this section and the exercise by the land bank of powers and duties under this section shall be considered a necessary public purpose and for the benefit of the public. (Ord. 2021-33 § 4, 2021)

15.130.260 Criteria for conveyance.

Real property shall be conveyed by the land bank in accordance with this chapter and according to the policies and procedures adopted by the village board, as well as other provisions of the Riverdale Municipal Code. The land bank board may adopt policies and procedures that set forth priorities for a transferee’s use of real property conveyed by the land bank, including, but not limited to, affordable housing. (Ord. 2021-33 § 4, 2021)

15.130.270 Transactions.

Transactions shall be structured in a manner that permits the land bank to enforce contractual agreements, real covenants, and the provisions of any subordinate financing held by the land bank pertaining to development and use of the real property. (Ord. 2021-33 § 4, 2021)

15.130.280 Disposition of proceeds.

Any proceeds from the sale or transfer of real property by the land bank shall be retained, expended, or transferred into a fund as designated by the village board in accordance with applicable laws and agreements. (Ord. 2021-33 § 4, 2021)

15.130.290 General.

Notwithstanding any provision of this chapter to the contrary, individuals who serve as directors, officers, board members, employees, and agents of the land bank shall have all rights of indemnification and defense provided under law. (Ord. 2021-33 § 4, 2021)

15.130.300 Third-party actions.

The land bank shall hold harmless, defend, and indemnify any person or director who was or is a party, or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the land bank) by reason of the fact that he, she, or it is or was a director, officer, director, employee, or agent of the land bank, or who is or was serving at the request of the land bank as a director, officer, employee, or agent of another land bank, partnership, joint venture, trust or other enterprise, against any amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding, if such person acted in good faith and in a manner he, she, or it reasonably believed to be in, or not opposed to, the best interests of the land bank, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in, or not opposed to, the best interests of the land bank, with respect to any criminal action or proceeding, that the person had reasonable cause to believe that his or her conduct was unlawful. (Ord. 2021-33 § 4, 2021)

15.130.310 Insurance.

The village shall provide insurance for the land bank. (Ord. 2021-33 § 4, 2021)

15.130.320 No waiver of government immunity.

No provision of this chapter is intended, nor shall it be construed, as a waiver by the village of any governmental immunity provided under any applicable law. (Ord. 2021-33 § 4, 2021)

15.130.330 Tax-exempt status.

The village declares that the activities of the land bank are governmental functions carried out by an instrumentality or political subdivision of the state of Illinois as described in Section 115 of Title 26 of the United States Internal Revenue Code, or any corresponding provisions of any future tax code. The village also intends the activities of the land bank to be governmental functions carried out by a political subdivision of this state, exempt to the extent provided under Illinois law from taxation by this state, including, but not limited to, the ad valorem property tax exemption pursuant to Property Tax Code, 35 ILCS 200/1-1 et seq. (Ord. 2021-33 § 4, 2021)

15.130.340 Nondiscrimination.

The land bank shall comply with all applicable laws prohibiting discrimination.

A. The land bank shall not provide services in a manner that discriminates against an individual because of the actual or perceived status, practice, or expression of that person’s race, color, sex, age, religion, disability, national origin, ancestry, sexual orientation, marital status, parental status, military discharge status, source of income, gender identity or housing status; or the actual or perceived association with such a person.

B. The land bank shall not fail or refuse to hire, recruit, promote, demote, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment because of the actual or perceived status, practice, or expression of that person’s race, color, sex, age, religion, disability, national origin, ancestry, sexual orientation, marital status, parental status, military discharge status, source of income, gender identity or housing status; or the actual or perceived association with such a person. (Ord. 2021-33 § 4, 2021)