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8.10 Dispose Tax Sale Property CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 12/19/1988 4:00 P.M. AGENDA SECTION: Administrotion ORIGINATING DEPARTMENT: APPROVED FOR NO. 8 City Clerk AGENDA: ITEM ND. 10 BY:Robert K. Biles //4~. BY: ~ Disposition of properties purchased at the December 6, 1988 Tax Sale. The City of Salina owns 11 lots in the Mayfair Addition and 51 lots in the Meyer Addition as a result of the Commissionls decision to actively participate in the December 6, 1988 tax sale. By participating in the tax sale, the Commission intended to insure lots would sell at a price which would cover the back taxes due. For lots which did not sell for the back taxes due, then the City wanted ownership of the property. By owning the property, the City could continue efforts to recoup the taxpayers~ investment in the property and consider alternative uses for the property. With this in mind, City staff discussed the disposition of thes'e properties and makes the following recommendations: A. Sale or Retention of property 1. Mayfair Addition Staff feels there is no public purpose 'served by retaining ownership of these properties and .recommends offering all 11 lots for sale. 2. Meyer Addition ¢ As shown on the .attached map, staff feels lots 11 - 13, Block 5, and Lots 1 - 4 and 24 - 30, Block 6 may serve a public purpose as a neighborhood park. Staff recommends the Parks and Recreation Advisory Board review the potential of using this area for a neighborhood park and return its recommendation to the City Commission before March 31, 1989. COIv~ISS ION ACTION IVlOTiON BY SECOND BY TO: cITY OF SALINA REQUEST FOR COI~41SSION ACTION DATE TIME AGENDA SECT I ON: OR I G I NAT I NG DEPARTMENT: APPROV ED FOR ND. AGENDA: City Clerk NO. BY:Robert K. Biles BY: Disposition of property Page 2 As the construction of Fredrich Drive depends upon this recommendation, City staff also recommends not offering Lots lq - 16, Block 5 and Lots ;Zl - 23, Block 6 for sale at this time. Should the decision be made to reserve the lots mentioned above for a park, these lots will require replatting. Thus staff feels it would be best to hold these properties until the park question is resolved. Staff recommends all other properties in the Meyer Addition be offered for sale. B. Sale price City staff has prepared the attached worksheet which lists the taxpayer's investment in each of the properties which the City owns. This investment includes back taxes, tax sale costs and the 1988 taxes. Based upon the initial purpose of entering the tax sale, City staff recommends the City Commission give City staff the authority to sell each lot at an amount equal to or above the taxpayers' 'investment plus closing costs of, $50.00 until March ;31, 1989. Should the buyer decide to pay off future specials on the property, the escrow agreement process implemented this summer could be utilized. The amount shown in the right column reflects the amount due during January 1989 to recoup the taxpayer's investment and prepay future special assessments before adding in closing costs of $50.00. After March ;31, 1989, staff recommends utilizing the services of a real estate agency to market any properties which have not sold and adding this cost to the price of the lots. · COlvNISS ION ACTION MOTION BY SECOND BY TO: CITY OF SALI, NA REOUEST FOR COI~ISSION ACTION DAT~,, TIME 4;(i0 r.n. AGENDA SECT I ON: OR I G I NAT I NG DEPARTMENT: APPROV ED FOR NO. AGENDA: City Clerk NO. BY: Robert K. Biles BY: Disposition of property Page 3 Staff recommends accepting offers on the property on a first come, first served basis with a 10% nonreturnable earnest check required. The earnest money would grant the buyer a thirty day period in which to close the purchase of the property. It is also recommended that the Director of Finance and the City Clerk be given the authority to accept qualifying offers on behalf of the City. Information sheets will be prepared for each lot giving pertinent information regarding utilities, future assessments, zoning, etc. These sheets are now available for each property. Summary. At the tax sale $12,$25 of back taxes were collected on 15 properties purchased by other parties. The City's presence at the tax sale insured the collection of these amounts. Future assessments on these 16 properties of $37,534' are also more certain to be collected. Selling the 43 properties recommended by City staff will meet the goal of recouping the taxpayer!s investment in these properties ($$0,583) while providing greater assurance the remaining special assessments ($110,9~,3) are paid. Six or eighteen properties would be sold after a decision is made on the desirability of using 12 lots to establish a neighborhood park. Recommended action Approve the City staff recommendations regarding disposition of properties acquired at the Decembc~ 6, 1988 tax sale. C01v~ISS tON ACTION r~DTION BY SECOND BY TO: