Dallas City News

Blight-targeting land banks used their trump bid power to acquire 19 tax-delinquent properties so they won’t be listed in Luzerne County’s Thursday free-and-clear auction.

Authorized by 2012 state legislation, land banks take possession of rundown parcels and attempt to get them back into productive hands.

With trump bids, land banks have authority to acquire the free-and-clear sale properties by paying the starting bid, which removes them from the auction.

Formally known as a judicial sale, Thursday’s auction sells properties cleared of liens and back taxes because they were not purchased at a first-stage upset sale. As a result, the starting bids are set at lower amounts to recoup only the tax claim costs to bring the parcels to auction.

According to Thursday’s auction listing, 13 properties will be acquired by the Lower South Valley Land Bank in Nanticoke, Wilkes-Barre, Kingston and Newport and Hanover townships.

The remaining six will be purchased by the North East Pennsylvania Land Bank Authority in Dupont, Pittston and Jenkins and Plains townships, the listing said.

The South Valley Land Bank acquisitions, along with the listed address and purchase price:

• 41 Rutter St., Hanover Township, $1,223.

• 65-69 Third Ave., Kingston, $7,722.

• 420 E. Washington St., Nanticoke, $3,025.

• 101 Newport St., Newport Township, $2,626.

• 97 Newport St., Newport Township, $1,989.

• 64 W. Ross St., Wilkes-Barre, $5,394.

• 31 Academy St., Wilkes-Barre, $5,214.

• 448-450 S. Franklin St., Wilkes-Barre, $4,866.

• 444-446 S. Franklin St., Wilkes-Barre, $5,190.

• 440-442 S. Franklin St., Wilkes-Barre, $5,891.

• 240-242 Brown St., Wilkes-Barre, $2,578.

• 126 Carlisle St., Wilkes-Barre, $10,374.

• 25-27 E. Main St., Wilkes-Barre, $7,028.

Those purchased by the North East Pennsylvania Land Bank, the list said:

• Coolidge Street, Dupont (no numeric address listed), $1,212.

• 422 S. Main St., Jenkins Township, $1,072.

• Rear Main Street, Jenkins Township (no numeric address listed), $1,371.

• 54 Laurel St., Plains Township, $2,024.

• 396 N. Main St., Pittston, $1,515.

• 18 George St., Pittston, $3,719.

Eighteen properties were removed from last year’s August free-and-clear due to land bank trump bids.

Advocates say the trump bid power prevents blighted properties from ending up in the hands of tax sale buyers who may not commit to needed repairs or demolition. Critics say the government shouldn’t interfere with open competition because many auction buyers fulfill their promise to use private funds to fix up properties.

Due to increased popularity of auctions, bidding competition often escalates the free-and-clear purchase price, in some cases high enough to end up covering all outstanding delinquent taxes and liens.

Trump bids must be accepted from established land banks under the state’s real estate tax law, officials have said.

Newport Township Manager Joseph Hillan said the two township properties the South Valley Land Bank purchased are adjacent lots in the Glen Lyon section. The municipality had to use demolition grant funding to tear down a double-block on one of the lots because it was an unsafe eyesore.

The land bank can vet prospective buyers to ensure the lots will be used for residential development in line with the township’s ongoing efforts to revitalize neighborhoods, Hillan said.

Wilkes-Barre Mayor George Brown said the land bank will own the properties and determine the best use. Some of the parcels the land bank purchased in his municipality had structures that were torn down because they were deteriorated and a danger to the public, he said.

“I’m glad the land bank is purchasing them because they’ll make sure they get in the right hands to develop them and put them back on the tax rolls,” Brown said.

Conducted by county tax-claim operator Elite Revenue Solutions, Thursday’s auction starts at 10 a.m. at the King’s College Scandlon Gymnasium auxiliary gym in Wilkes-Barre. More than 130 properties are listed. Bidders had to register in advance due to an application and review process required by state law.

The South Valley Land Bank is a “win-win” initiative of multiple municipalities joining together to address blight.

County council demonstrated its support for land banks by earmarking $500,000 in federal American Rescue Plan funding to each of the three established in the county, which also included the Hazleton Land Bank.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.