City to lot owners: ‘Build it or move it’

By Charles Sercombe
The city’s new property tax fees for vacant lots have hit property owners.
And, predictably, they are not pleased with the increased fees.
At the Jan. 23 city council meeting, several property owners complained about the increase. Some vacant lot owners are being hit with a $200 fee every six months.
Latrello Sephers flat out said: “I’m not paying the fee” for his lot.
He also accused the city of “singling vacant lot owners out,” and warned that, if the city holds to this policy, there will be a class action lawsuit.
“We’ll take your butt to court,” he added.
One man said it’s a matter of affordability for many, some of whom “are just getting on their feet. … People are trying to go to college.”
The increases ranged upwards of several hundred dollars for some lots.
A couple of months ago, the city council agreed to increase fees on those who own undeveloped lots that have just been left sitting for lengthy periods of time.
The new fee schedule calls for charging 3 percent of the property’s assessed value for the first couple of months, and then up to 9 percent if it’s been vacant for at least 37 months or longer.
That special fee is not applied to homeowners who own a lot next to their house, nor to community gardens. Lots that are already undergoing development are also exempt from the fees.
City Manager Max Garbarino explained that “Bottom line, property is expensive in Hamtramck, and is at a premium.”
Garbarino said the goal of the fee is to motivate lot owners to develop the site, or sell it to someone who will.
“My suggestion is, build it or move it,” he said.
For many years, people purchased lots thinking that, sometime in the future, they would be worth more.
However, with a housing shortage here and nationwide, developers have been buying up city-owned lots when they go up for auction with the condition that they have to develop housing units on the property.
Some of the new builds are multiple units and three stories tall.
The blowback by some property owners had some on council, as well as the mayor, second-guessing their agreement to increase the fees.
Mayor Amer Ghalib even called for “reconsidering” the fee.
Councilmember Muhith suggested that the city should first issue warnings to property owners that they will face paying more unless they develop the lot. He said the city could give lot owners six months to act.
“It’s a lot of money for families,” Muhith Mahmood said about the increase.
Posted March 1, 2024