Should broke cities give land away for free?

There’s a new call to speed economic recovery in Detroit through implementation of a homestead act.

Read more below from Forbes:

A recent report by the Detroit Blight Removal Task Force calculated there were likely 72,000 blighted structures and over 6,000 vacant lots within the city of Detroit. Their latest estimate of the cost of addressing this problem is $850 million for the residential structures and between $500 million and $1 billion for the industrial sites. That is a lot of money for Detroit, and if they can come up with the money it would take a long time to complete the task. A better solution would be a city homestead act.

Much of the United States was settled under various versions of homestead acts. Depending on the location and time period, a settler could obtain 160, 320, or 640 acres for free subject to the requirement to live on and improve the land. From 1862 until homesteading was finally ended in 1976 1.6 million Americans gained ownership of 270 million acres, equal to about 10 percent of the entire nation’s land mass. While the U.S. gave away vacant, pristine land, Detroit can do a modern variant and give away blighted properties.

For example, Detroit could allow contractors and developers to claim up to ten acres of blighted residential land or a single blighted commercial or industrial parcel. For residential sites, in exchange for the land, people would be required to clear the site within six months and either begin construction of new homes within two years or turn the land into a publicly accessible park until they are ready to build. For industrial sites, the claimants would be required to submit a plan for remediating the site to the city and have the plan approved within two years. If claimants do not follow through on their part of the deal, the land would revert to the city.

So, what did the “Cashin’ In” panel have to say about this? Find out in the video above.