Highland County land bank board awards demolition bids, discusses future of program

Members of the Highland County Land Reutilization Corporation (land bank) board discussed the present and future of state grant programs during their September meeting, including opening and awarding bids for 2026 Building Demolition & Site Revitalization Grant Program projects. 

After reviewing bids, the board voted to award the projects to the apparent low bidders, “subject to vetting” by land bank administrator Jason Johansen, as board member David Daniels said.

During the Sept. 17 meeting, Johansen conducted the bid opening for the 15 properties included in the 2026 grant cycle, with the land bank receiving bids from Aster Oilfield Services, Banks Construction and Excavating, Evans Landscaping and KC Demolition. 

“Just so everyone knows, we did have a pre-bid meeting, and 13 contractors showed up,” land bank attorney Todd Book said. “They needed to be at the pre-bid meeting to be eligible to to bid, and we got four of the 13 that were that actually submitted bids.” 

The apparent low bidders were as follows: for 429 Eastern Avenue in Leesburg, Aster Oilfield Services ($6,200); for 7931 Main Street in Highland, KC Demolition ($9,600); for 10831 S.R. 72 in Hillsboro, Banks Construction ($9,000); for 7380 Hightop Road in Hillsboro, Evans Landscaping ($6,315); for 6196 Panhandle Road in Hillsboro, KC Demolition ($8,000); for 121 W. Beech Street in Hillsboro, KC Demolition ($9,650); for 7030 Ervin Road in Hillsboro, KC Demolition ($8,900); for 520 N. East Street in Hillsboro, KC Demolition ($9,500); for 7451 Fenner Lane in Hillsboro, KC Demolition ($6,250); for 12220 Petersburg Road in Hillsboro, Evans Landscaping ($5,415); for 13094 Barrett Mill Road in Bainbridge, Evans Landscaping ($8,417); for 6490 Lucas Lane in Hillsboro, Banks Construction ($5,750); for 12358 Butters Road in Hillsboro, Evans Landscaping ($7,522); for 15 W. Water Street in Sinking Spring, KC Demolition ($7,050); and for 10201 Davis Road in Hillsboro, KC Demolition ($6,250).

Johansen also announced that asbestos abatement “will be done by the end of the month” on two of those properties that were held up, one due to needing electric disconnection and one due to bees having to be removed from the home.

For the next round of the Building Demolition and Site Revitalization Program, Johansen said the land bank has 10 properties — seven with Hillsboro addresses and three in Greenfield — as possibilities for the 2027 grant application. He is also looking into two other Hillsboro properties for possible inclusion.

“Next meeting, I’ll want an approval for the fiscal ’27 demolition program,” Johansen said. “The application portal's open. It was open on Tuesday, and it's going to be open for a month. 

“What's different with this 2027 program, all projects are competitive and scored off of an economic merit or output. There is no set-aside funding for any county with the 2027 demolition funds. Each project is going to require a 25-percent match. That's also new. We've already implemented our own 25-percent match that we do, that we charge the property owner.”

Johansen asked the board if they wanted to increase their requirement to a 50-percent match from the property owners.

“Essentially, if we don't up that, the 25 percent, the land bank's not going to get anything,” Johansen said. “The property owner is going to pay the 25 percent of what the state won't reimburse.” 

Book pointed out that the goal was to make sure the property owners “have skin in the game,” which is still accomplished through the 25-percent requirement to the state.

“I would think if we were short on money when it comes to the grant funds, we may want to think about trying to increase it, but I don't really feel like that's a problem right now,” Book said.

Daniels said he agreed but that they should “reevaluate” matters “if by some chance future funds become limited.” Board president Terry Britton said that he wanted “more stringent” requirements for property owners to outline “what they're going to put back on” the properties once the lots are cleared.

“Then we draw a little bit more from the tax side of it to try to make up the difference that our 25 percent is going to the state now,” Britton said.
 
Book said that with a new budget cycle and a new state administration pending, the criteria could become "more competitive because we're going to rely on our own funds when it comes to doing projects.”

Also discussed was the other state grant program, the Brownfield Remediation Grant. For the oldest project still active in the program — the Rocky Fork Truck Stop, funded in 2024-25 — Johansen said that environmental consultant Matt Wagner of TetraTech advised “the second round of groundwater testing is complete” and that they are working toward submitting reports to the state by the end of the month.

The 2026 projects include a former gas station on East Main Street in Hillsboro. After some issues between the land bank and owner, Johansen said the land bank has “access to the site” and can proceed with work.

“Tetra Tech is scoping the property to determine where monitoring wells will go, hoping to start drilling at the beginning of October,” he said. 

Johansen also gave updates on several other former gas station sites that are funded through the program, including a former gas station on Spruance Road, for which asbestos testing is being performed. 

“TetraTech is coordinating with BUSTR (Bureau of Underground Storage Tank Regulations) to see what path they would like them to take with the assessment process,” Johansen said.

Similarly, for the former gas station on South Washington Street in Greenfield, Johansen said TetraTech will “determine the next steps in the assessment phase” based on investigation drilling. A former Belfast gas station was scheduled for demolition starting Sept. 28, followed by drilling.

Johansen added that TetraTech continues “planning” for sites in Greenfield, including a former machine shop and the former Elliott Hotel, that “don’t have the grant agreement yet” from the state.

In other discussion:

• Daniels asked Book to give an update on the purchase of tax liens. Book said that “the liens have been purchased. 

“It's now just the process of doing the actual foreclosures on the properties,” Book said.

Daniels asked if they could “look at some other properties” now that they have “purchased our first set.
 
“The reason I ask is internally with the sewer department, we've got several properties out there that we deem to be abandoned,” Daniels said. “We've got, I think, a list of eight to 10 of them

“Just wondering if that isn’t a possibility that we can take a look at here. I’d be happy to give you that list of what we consider to be delinquent or abandoned properties.” 

Book said he would look into the matter.

• 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. 

Johansen said the land bank has access to funding that could help with demolition of the property in Highland, but the issue is urgency, as “this demo program can be pretty lengthy” with meeting all of the state regulations. The fastest option would be to submit it as a replacement project from the 2024 grant cycle of the Building Demolition and Site Revitalization Program, for which he said they had approximately $30,000 left in funding, assuming they can obtain access to the property.

• At the recommendation of Book, the board voted to approve a memorandum of agreement with Merchants National Bank for the deposit of public funds, effective Nov. 1, 2026-Oct. 31, 2030. Book said this is an agreement that is due every four years.

Book also said that “on that same subject,” he would like to see the land bank “come forward with an investment policy that would allow us to take some of those unused funds that we don't really have access to and put it over into some type of an account that can draw a little bit more interest.

“On that kind of a balance, of $400,000 to $500,000, you expect to make more than $17,” Book said. “I’ll have an investment policy for us next time to discuss.”

• Book also reported that the land bank received a request and offer to purchase 9955 U.S. 62 in Samantha for $5,000.

“I told Jason we'd send him a note back, subject to board approval, saying that we're not in a position to to sell at this time,” Book said. 

The board agreed to reject the offer.

• Johansen reported that a damaged grinder at a North Shore Road property, which he had previously discussed, is in the process of being repaired. The property is owned by the land bank, and the grinder was damaged as a result of a grant-funded demolition.

• The board approved the financial report as presented by Johansen. Johansen reported a beginning balance of $235,643.19 and an ending balance of $148,049.42 for August, with three deposits and 11 checks cleared. 

“The ending balance you're going to see is pretty low,” Johansen said. “We have a bunch of reimbursement requests from the state coming in here in September, so next meeting, I hope to have that balance more at the usual $400 [thousand] to $500,000 range.”

In a separate motion, the board approved the payment of unpaid bills totaling $36,419.03. That includes legal fees, mowing expenses, rent and salary, a $750 payment to repair fence damage during a demolition, contractor fees to Tetra Tech and other miscellaneous costs.