HomeMy WebLinkAbout[04d] Tax-Forfeited Lots
Council Agenda Item 4d
MEETING DATE: January 6, 2020
AGENDA ITEM: Tax-Forfeited Lots
SUBMITTED BY: 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. In 2019, the four remaining Liberty Pointe single family
lots had assessments reduced to $7,000 per lot (down from $13k-$14k per lot) to be more marketable.
BACKGROUND INFORMATION: The inventory of foreclosed lots in the City of St. Joseph is very
low. Currently, five parcels remain tax-forfeited per Stearns County. The four single family lots remain
in Liberty Pointe and a smaller multi-family lot along Hill Street W. The Hill Street multi-family lot has
had some interest. The lot is conducive to a smaller unit which can drive up costs versus return on
investment. The construction costs along with the unpaid 2005 street assessments on the lot are deterring
development.
Stearns County has asked if any reductions in the street assessment can be made. The original assessment
was $40,082.00; $7,533.21 was paid before lot foreclosed giving a remaining balance of $32,548.79.
With accrued interest, the current balance due is $50,048.84. The final payment for the 2005 project will
be in 2020. The bonds have the funds to make the final payment in 2020 without this assessment. Since
the lot was in foreclosure, the City has had to cover this assessment non-payment.
To help the property with marketability, staff is requesting to reduce the assessment to the principal
balance due of $32,548.79 and to discontinue accruing interest. Further, the assessment would be due
over five years once re-assessed when the lot sells per the previous council action.
BUDGET/FISCAL IMPACT: $17,500.05 uncollected, $32,548.79 collected
plus added back to the tax rolls once property sells
ATTACHMENTS: Request for Council Action – Tax-Forfeited Lots
Map of the forfeited lots
st
REQUESTED COUNCIL ACTION: Consider reducing re-assessed costs on 714 – 1 Ave SW to
$32,548.79, forgiving the $17,500.05 uncollected costs and allowing the re-assessed costs to be paid over
a 5-year period interest free upon sale of the lot.