Lansdale vetting draft of vacancy fee code

 A draft code meant to address vacant properties in Lansdale is one step closer to being on the books.

Council’s code committee heard an update in early February on a draft vacant property code, one that could be up for council discussions soon.

“I think we’re at a point where we need to get it in front of council, and move it along,” said Director of Community Development Jason Van Dame.

The vacancy discussion started in early 2022, then was spurred by the closures of the downtown Rite Aid and Wells Fargo branches in summer 2023, the longtime Wilson’s Hardware that closed in 2022, and the former National Auto store at Main and Wood Streets that’s been empty since 2017.

The code committee has discussed a possible vacancy tax or fee meant to spur owners of vacancies to submit plans or sell, and saw an updated color-coded map listing various vacancies and info on those properties, ahead of a vote that August to update the borough’s codebook to add a new “downtown core” area with new development options.

The code committee has reviewed how third-party companies could help enforce such an ordinance, and collect a part of the fees or fines it would establish. In December, the code committee heard from Hera Property Registry on ways that company contacts banks and courts to track down similar property owners, and in January council voted to direct staff to work with Hera to develop a draft ordinance for further talks.

During the Feb. 5 code committee meeting, Van Dame gave an update on new developments since the January presentation, including a draft code developed based on input from Hera, and feedback he’s heard since.

“We’ve been back and forth a little bit with Hera to amend their draft ordinance. We’ve updated several of the recommendations that council has brought forth, and they are in that copy,” he said.

That draft was shared with the code committee ahead of their February meeting and would be publicized for input from residents if council votes to advertise the ordinance, before any final vote to adopt it. Van Dame added that he’s heard from an owner of two properties on Main Street about the impact the code could have on him.

“There are tenants he really would prefer not to put in there. He stressed this is the kind of ordinance that would maybe incentivize him to move in some of those more common tenants, into the spaces,” Van Dame said.

“The businesses he said approached him include a mosque, two smoke shops, a tattoo business, and a dispensary, none of which he really wanted to pursue as Main Street businesses,” he said.

Property owner Phil Janke asked if the latest draft could charge a fee annually or more often, and how much; Van Dame said the latest code would be triggered based on either a foreclosure of a property or 90 days of vacancy, and that property would then be charged $300 every six months, with the fee split between Hera and the borough.

“They recommend charging on a six month basis, because they want to stay on top of the properties, to make sure they haven’t changed status, and to incentivize them in some way to move quicker on trying to get a project underway, or a tenant lined up,” Van Dame said.

Resident Jean Fritz asked if the code would affect a friend who lives in Lansdale but migrates to Florida for several months each year, and Mayor Garry Herbert said language in the draft exempts such snowbirds. Van Dame then read specifics, noting that it requires a property much be actively listed for sale with a licensed realtor, be under active rehabilitation or reconstruction, and have a current building permit; exemptions would be allowed for those damaged by fire and deemed uninhabitable, or for those “where the owners are temporarily absent,” such as those who travel seasonally, “but the property is secured and in full compliance with all other ordinances and regulations.”

Janke asked if a property would be charged if it’s listed for lease, and Herbert said a lease exemption is not included, prompting a question from resident Carole Farrell.

“That doesn’t make sense: if I own, and don’t want to sell, but I’m trying to lease it and I can’t get a renter, I’m going to fall under the penalty?” she said. Code committee member Mike Yetter replied that such a property would have to register, and demonstrate an active listing or face the fee.

“The benefit to the borough at that point is that we do have contact info, you are in contact with us every six months,” Yetter said.

Yetter than added he’s seen similar redevelopment efforts have some success at one of Philadelphia’s most-discussed addresses; the former Market East development, now known as the Fashion District, that was the site of lengthy talks about a possible new arena for the Philadelphia 76ers before that team’s owners pivoted back to their sports complex.

“That’s one that I know, because I walk through it every day. It’s very nice right now: the developers have done a very nice job. Any empty storefront is decorated, usually it’s an art display of some kind,” he said.

Similar efforts could be done in partnership with Lansdale’s economic development committee, with the fee revenue going toward such efforts, he said. Janke countered that from a property owner’s perspective, that’s an added cost, for a site that’s already not generating revenue.

“Not only are you carrying an empty building, but you’re ‘donating’ another $275 for economic development. It seems like that should come from somewhere else. Let the poor guy trying to fill the space, fill the space, don’t place another $600 a year on him,” he said.

Herbert countered that the vacant properties bring costs to the town, such as for inspections and emergency response, that aren’t offset by tax or utility revenue when they sit empty.

“The burden of an empty building is not just borne by the taxpayers. It’s also suffered by the taxpayers,” Herbert said.

“There are bigger things at play here than just this ordinance, such as the housing market, mortgage rates, many other things. The market will be what the market is. The desire of this ordinance is to maximize the opportunity for the borough to ensure they have a really good registry of what is, and is not filled, so it is safe, and we have people inspecting it when appropriate,” Herbert said.

Janke and Yetter sparred over what the code would accomplish.

“It’s more an issue of finding and tracking down noncompliant, nonresponsive people. I think that’s the real burden here. Do we not need a mechanism to do that?” Janke said, and Yetter answered: “I would argue this is that mechanism.”

“I have a lot of people approach me, about what they would like to see in downtown, and what they would not like to see. The struggle I have is, that’s great, but it’s not up to the borough to open a business. Somebody needs to be willing to step up and open a business,” Yetter said.

Code committee member Rich DiGregorio asked how the code would handle foreclosures, and Van Dame said when a bank files a foreclosure action, the bank would be required to register the property and pay a fee, and Hera or another outside firm would collect.

“I think they’re reasonable concerns. I will also say, there isn’t a better option right now. There hasn’t been a better option put forward on what to do, other than to continue to further subsidize development in this borough via taxpayer dollars,” Herbert said.

“There are buildings that have been empty for 15, 20, 30 years, and they haven’t filled it. I think this will give us an opportunity to get inside that building, and find what’s wrong with it, and get it up to code. And we will grant them an ability to waive the fee to fix their building, so someone might actually take it,” he said.

Van Dame added that borough staff regularly conduct safety inspections through the town’s fire marshal on those properties that are occupied, but encounter obstacles when an owner can’t be found.

“This tool is not for your buildings that are well maintained, and taken care of. These are tools for the buildings that have an absentee landlord, someone that’s not responsive, someone not in the borough. This would be a tool for those properties we have challenges with,” Van Dame said.

That latest draft will be vetted by the borough’s solicitor, and code committee chair Rafia Razzak asked that any councilmember, resident or business owner with input share their comments with code department staff and/or council members ahead of the March committee and council meetings.

Council’s code committee next meets at 7:30 p.m. on March 5 and full council meets immediately afterward at 8:30 p.m., both at the borough municipal building, 1 Vine Street. For more information visit www.Lansdale.org.

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