HomeMy WebLinkAbout[04d] Tax-Forfeited LotsCouncil Agenda Item 4d
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MEETING DATE: April 1, 2019
AGENDA ITEM: Tax -Forfeited Lots — Requested Action: Reduce the assessment/fees for
parcels 84.53550.0093, 84.53550.0094, 84.53550.0099, 84.53550.0100
to S 7,000 per lot.
SUBMITTED BY: Administration/Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None
PREVIOUS COUNCIL ACTION: Council approved allowing sold foreclosed lots to be re -assessed at
0% interest rate, and to pay over a 5 -year period.
BACKGROUND INFORMATION: The inventory of foreclosed lots in the City of St. Joseph is very
low. Currently, six parcels remain tax -forfeited per Stearns County of which two are guided and zoned
for R3 Multiple Family. As the City discussed on March 19, 2019 Sand Properties is interested in
purchasing Outlot C in Liberty Pointe to develop through the Tax Credit program. The second R3 lot on
the foreclosure list is in the Foxmoore Hollow Addition adjacent to Hill Street and CR 121 and is not
receiving much interest. The remaining four lots are located in Liberty Pointe and designated for single
family home construction. These lots are all located on Jefferson Lane (the private road), are small lots
and part of the homeowners association.
The properties have been on the tax -forfeited rolls since 2013. To be tax forfeited by Stearns County, the
taxes must be unpaid for six years. There has been some interest in the past couple years to buy the lots,
but the assessments to add back to the properties make undesirable to prospective buyers.
At the request of the Stearns County Auditor, staff brought forward to the Council at the workshop
meeting on March 25 the pending fees and if the Council would be willing to reduce the fees to try and
remove the property from the tax forfeiture list. It is the intent of the County to bundle the four lots,
establishing a minimum price for all four lots that would potentially be purchased by a developer, placing
them back on the tax rolls. The parcels include: 84.53550.0093, 84.53550.0094, 84.53550.0099,
84.53550.0100. Since the debt has been retired for the development, the City is not reliant upon the past
assessment to make a debt payment. The proceeds received will be placed in the debt service relief fund.
BUDGET/FISCAL IMPACT: $27,806.14 uncollected, $28,000 collected
plus added back to the tax rolls
ATTACHMENTS: Map of the forfeited lots
REQUESTED COUNCIL ACTION: Authorization to reduce the outstanding fees/assessments for
parcels 84.53550.0093, 84.53550.0094, 84.53550.0099, 84.53550.010 to a flat fee of S 7,000 per lot.