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: