Highland County land bank board approves latest building demolition grant application

Members of the Highland County Land Reutilization Corporation (land bank) board welcomed a new board member and heard about progress with grant-funded projects during their Thursday, Oct. 15 meeting.

At the start of the meeting, it was announced that Scott Grooms, a code enforcement officer with the city of Hillsboro, has been appointed to replace Lauren Walker as the city’s representative on the board. Walker had served in that position since being appointed in November 2021. 

Also on Thursday, land bank administrator Jason Johansen updated the board on a couple of bid changes for projects in the 2026 iteration of the state’s Building Demolition & Site Revitalization Grant program.

After reviewing bids, the board voted to award the projects to the apparent low bidders at their September meeting. 

For two of the parcels — 7451 Fenner Lane in Hillsboro and 15 West Water Street in Sinking Spring — the apparent low bidder has declined the projects and “has agreed to pay a $500 penalty per property,” Johansen said. As a result, both projects were awarded to the second-lowest bidder, Evans Landscaping, in the amounts of $12,440 and $11,325, respectively. Combined, that increases the cost of the parcels by over $9,000, counting the $1,000 penalty, Johansen said.

In other discussion, Johansen reported that the land bank still has $38,633.73 in unused funding from the 2024 round of the Building Demolition & Site Revitalization Grant program, after their initial projects and replacement projects have been both completed. He asked for “the board’s blessing” on speaking with the state on whether they can continue to use those leftover funds. Johansen added they will also have funds left over from 2026, although he is unsure of the amount as projects are still pending.

“I’m not sure if ODOD is going to grant any more extensions with [the 2024] program,” Johansen said. “We originally had $131,000, roughly, in leftover funds to use. We chose 13 projects because we were averaging right around $10,000 per demolition. We ended up getting 12 done. One was withdrawn from the program, and so we spent $92,506.57. 

“We have that roughly $40,000 that we can start conversations with ODOD, try to get four or five more done, maybe one or two big ones. We don't want to leave that on the table unless they tell us that we have to."

Board president Terry Britton asked if Johansen had  “any updates” on a property on Main Street in Highland as a possibility for that leftover funding. At the land bank’s September meeting, a citizen in attendance asked if the land bank had any “emergency processes in place for structures that might be falling down currently” and posed a danger to the public in reference to the Highland property. 

“We have that to go into the fiscal year 2027 [program],” Johansen said. “That's just so that when we submit that application, which is due tomorrow, we can have as many properties as we can submit under that, since it is on economic merit. 

“There's nine under that program. They all could be denied, if they don't see the economic output of those projects, and if that's the case, then we would swing those over into the fiscal year 2024-25, and into the ’26 program.”

In related action, the board approved the list of nine properties for the 2027 application. The list includes seven Hillsboro properties, one in Greenfield and the aforementioned one in Highland.

Of those nine parcels, Johansen said the Highland property is contingent upon the land bank obtaining ownership of the property, and one of the Hillsboro parcels, 435 Hazel Street, was dependent upon receiving an access agreement from the property owner.

As discussed in September, the new grant cycle has several changes, with no guaranteed set-aside for counties and a 25-percent match requirement for all properties. After Johansen said that the property owners for the 2027 application also agreed to the 25-percent match requirement from the state with their access agreements, both Britton and board member David Daniels asked if Johansen had spoken to the property owners about paying more than 25 percent.

“I have not,” Johansen said. “The last meeting, I think we had discussed that the 25 percent was so that they had some skin in the game, and we talked about how that would probably suffice. There was never a vote taken on it to require a 50-percent match or to raise that.”

Daniels said they should vote to give Johansen “some direction” on raising the match requirement “so that the land bank gets something back.” Johansen pointed out that the land bank has already entered agreements with the property owners for the application based on the 25-percent match.

“Essentially, what we're going to be doing is taking that 25 percent from the property owner, and instead of us keeping it, we're now giving it to the state,” Johansen said. “We're not going to be out anything, but we aren't going to get anything out of it, either.”

“I understand, but the idea to begin with was that we had some revenue coming in with these projects to continue to further the land bank’s mission,” Daniels said. 
 
Johansen said that if the board preferred, they could try to fund the nine projects using the leftover funds from 2024-25 or 2026 instead of seeking the 2027 grant.

“That 25 percent we would keep because there is no 25-percent requirement [from the state],” Johansen said. “But I will say, as properties keep coming in, I think it's always good to try to get ahead, get that funding claimed, and then you'll still have that funding to do other properties. If we take this nine and swing them over, that funding goes away tomorrow, and we don't get anything.”

The board agreed that they should continue with the 2027 grant application.

For an update on the Brownfield Remediation Grant projects, Johansen said the land bank will receive a combined $90,162 in administrative funding for the seven projects on their list.

Johansen read an email from TetraTech regarding the latest progress on the Rocky Fork Truck Stop, which was funded in 2024 and 2025.

“Currently, we are finalizing the tier II evaluation report, which is groundwater modeling and risk assessment, for submittal,” the email says. “As it stands currently, the groundwater plume extends offsite approximately 150 feet.

“I know this doesn't sound good, but it's expected. What we are going to do after the submittal of the tier II evaluation report is calibrate the groundwater model, which will allow us to modify the groundwater model with more site-specific parameters that will hopefully allow us to model out the groundwater impacts offsite. Realistically, I'd like to collect another round or two of groundwater in late 2026 or early 2027 if an extension is granted. The offsite groundwater impacts are extensive, but I think it's worth pursuing groundwater modeling since we completed two injection rounds and have started to see some degradation of the plume.”

However, the email also says that property owners can continue with the “proposed redevelopment” of the property, as Johansen said it appears “the work that’s ongoing is offsite now.

“We don't have an NFA [no further action letter from EPA] yet because they won't give that to you unless all contamination is under the numbers, and that's everywhere, off-site, on-site, from the impact,” Johansen said. “We still have plenty of funding in that grant cycle to get that work done.”

For the other Brownfield projects, Johansen said the land bank “received approval from BUSTR [Bureau of Underground Storage Tank Regulations] to complete an after-the-fact closure assessment for the site in pursuit of an NFA” for the former Spruance Road gas station, where drilling and assessment work is continuing. Underground tanks were located and removed at that site, but none were found at former Greenfield gas station, Johansen said. 

Soil and groundwater investigation and “extensive” drilling is scheduled to begin in the coming weeks for a former Hillsboro gas station, while a former Belfast gas station has been demolished and cleared and is now awaiting environmental investigation.

A “subsurface investigation” on the former machine shop and preliminary assessment of the former Elliott Hotel property, both in Greenfield, have also been completed by TetraTech, Johansen said. 

In other discussion:

• In other property updates, Johansen discussed several parcels on the land bank’s radar, including the previously mentioned Highland property.

“It is going to require a new survey for us to transfer it into our name, and there are some Department of Taxation liens that Todd said he can handle,” Johansen said of the Highland parcels. “There were some defects in the previous deed, like I talked about, so those issues will need satisfied with affidavits. 

“The owner has been very responsive. They just want the property out of their hands. The tax delinquency is $28,000 on those two parcels. The structure is crumbling and is a must-go for the village of Highland, so we are going to put it into that demo program, but are working through that donation, and based off what we saw, we think we can get it done.”

For 11410 Cathy’s Court at Rocky Fork Lake, which the land bank voted in August to list for sale after cleaning up the property, Johansen said there is an “issue” with utilities.

“According to the Highland County Water Department, there is no water tap for that property, and so we have the ability to tap in for $4,200, but there is no recorded well,” Johansen said. “I’ve spoken to both neighbors, who have said that they are not sure how the structure was receiving water. 

“These were parcels that were split into like 11 different parcels, and so I'm not sure if during that time, when they split them off, that lot just didn't get a water tap.”

Johansen asked if the board wanted to pay for a new water hookup.

“We’re not getting out of these properties what we’ve got in them,” Daniels said. “I don’t know that we get our tap fee back if we go and put it in to begin with. Let the new buyer. 

“I think we need to let him know that there's no water, there doesn't appear to be a water tap on the property, but I think — I mean, would we get $4,200 additional out of that if we put the tap in?”

After a discussion, the board voted not to pay for the water tap.

For 10635 North Shore Road, also at Rocky Fork Lake and listed for sale by the land bank, Johansen said that a fallen tree “is being cleaned up,” while he is awaiting the final cost for the grinder repair, which was damaged a result of a grant-funded demolition.

“The grinder is officially repaired as of last Friday,” Johansen said. “It was originally [$8,000] to $12,000. It's going to be substantially less than that. They didn't have to do nearly what they had intended to do.”

Johansen and legal counsel Todd Book said they also received a report of “drainage issues” on the property, which they are going to “investigate further.”

• Book presented a new investment policy for the board, which was unanimously approved. 

“You guys have had a substantial amount in your bank account for quite some time,” Book said. “I know it's been making interest, but it's been making very little interest. We have other options when it comes to how to invest that money, whether it's very safely through some type of state-authorized program or even further investments that this board would want to do.”

Under the new policy, Book said that “the president and the treasurer” would be responsible for proposing investment ideas, “and then the board would make a make a final decision on how that money could be invested.”

Board member and county treasurer Vickie Warnock suggested that STAR Ohio or Meeder Investments (formerly STAR Plus) would be safe options that also offer “immediate availability” for their cash, with “at least three or three and half percent” interest rates. 
 
• The board approved the financial report as presented by Johansen. He reported a beginning balance of $148,049.42 and ending balance of $242,154.34 for September 2026, although he said the land bank is awaiting over $329,000 in pending reimbursements from the state for various grant projects.

Also approved, in a separate motion, was the payment of unpaid bills, which total $80,274.36. That includes legal charges, mowing fees, salaries and expenses and rent, with most of the charges involving work at grant-funded demolition or brownfield properties.