Wilmington City Council appeared to choose reform over dissolution for the Neighborhood Conservancy Land Bank Corporation at its July 10 meeting.
Council member Shané Darby initially proposed an ordinance last month pushing for the dissolution of the Land Bank.
The organization’s purpose is to acquire abandoned properties and redistribute them to developers who can then sell or rent the properties at affordable rates.
Darby's proposal said the Land Bank “strayed from its initial goal” and acted as a “property-shelter for developers.” It referenced Gibraltar as one example. Had Council members passed that ordinance, the Land Bank would have had to shut down within 60 days.
That did not receive enough support. Darby is now sponsoring an ordinance seeking to increase transparency and accountability within the Land Bank, including the appointment of a director.
Council member Christian Willauer presented the ordinance on behalf of Darby July 10. Willauer, who previously served as Land Bank executive director in 2017, said she believes it has an important role to play.
“I think that the goal is really just to make sure that the land bank is meeting all the requirements that were set up for it when the city set it up,” Willauer said.
Willauer added that bringing vacant properties back into use is an essential task.
“The legislation that Council is considering right now is giving the Land Bank the opportunity to prove again that it's the best organization to perform that function,” Willauer said. “And I think that the Land Bank needs to take seriously the requirements to be effective and transparent.”
The Land Bank’s 2024 performance audit cites staffing concerns and issues with timeliness and accuracy in financial statements. Willauer called those findings are worrying.
“Historically and presently, internally the Land Bank has not produced timely and accurate monthly financial statements that accurately reflect financial performance,” the audit said. “The year-end 2021 and 2022 audited financial statements were completed in June of 2024. As of July 2024, the year 2023 transactions are not completely posted so that the 2023 annual audit cannot yet commence.”
Of the 33 balance sheet accounts, only six were reconciled and considered accurate as of March 2024.
The audit also found that the finance director should not have the authority to approve invoices. That role should be under the operations director, according to the audit.
Of the eight categories reviewed in the audit, all were ranked as needing significant improvement, the lowest score.
“The current state of the Land Banks financial reporting is not acceptable and must improve immediately…” The audit concluded. “[These] issues can be easily and quickly resolved by a financial professional that possesses the correct accounting education and work experience.”
The Community Development and Urban Planning Committee is currently reviewing the ordinance before it goes to Council for a vote.
