Approval of a four-party intergovernmental cooperation agreement has cleared all the legal obstacles for the new Altoona Land Bank’s startup.

The agreements adopted recently by the city, Blair County, the Altoona Area School District and the Land Bank call for the taxing bodies to forgive liens on properties acquired by the Land Bank and to divert half the real estate taxes generated by those properties to the Land Bank for five years after conveyance to the new owners.

All that is in the way of startup now is publicity, a web page and funding to acquire the first property, according to consultant Winnie Branton, speaking at a recent meeting of the city Redevelopment Authority, which serves as the Land Bank board.

The Land Bank will pay the city and school district’s pro-rated share of the county Tax Claim Bureau’s cost of handling the properties, according to the agreement.

Those shares will be based on the city and school district’s proportions of the total millage for the properties.

During the time the Land Bank is in possession of those properties, the city will be responsible for exterior maintenance, including cutting grass and shoveling snow, according to the agreement.

The Land Bank will need to give notice to the other parties before acquiring, rehabilitating, demolishing or conveying any property, according to the agreement. And it will need to consult with the city before developing property plans.

The agreements between the parties are for one year and renew automatically, unless a party wants to withdraw.

The city created the Land Bank to intercept selected properties that would otherwise be exposed to tax sale, keeping them away from irresponsible buyers and directing them to responsible developers for the benefit of the community.

It makes sense to start small, probably with a single property, according to Branton.

“You need to get the process right,” she said.

That process also needs to be transparent, to earn public confidence, she said.

Early success can “set the stage,” said board member Ron Beatty.

“(Operations) can become self-sustaining,” said Chairman Richard Fiore, referring to the income from conveying properties to developers and subsequent income from half the property tax revenue for five years, after such conveyances.

Maybe local banks can participate to help fulfill their obligations for community investment, Beatty said.

One local developer whose methods might align with Land Bank intentions has been buying large, dilapidated older homes and shrinking them to cottage-size to make them marketable, Beatty said.

He’s done it approximately eight times, Beatty said.

“That’s interesting,” Branton said. “it sounds like it’s sustainable.”

“There are a lot of moving pieces,” said city Community Development Director Lee Slusser, whose department provides staffing services for the Land Bank and Redevelopment Authority.

Mirror Staff Writer William Kibler is at 949-7038.