1999-09-27 Regular Meeting, Workshop Meeting, and Public Hearing

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REQulT FOR CITY COUNCIL AGENDA ITE' AGENDA DATE September 27.1999 REQUESTED BY Jeff Litchfield. Finance Director _ REPORT; XX RESOLUTION; _ ORDINANCE; On February 2, 1999, property located at the corner of Hazel and Bayshore Drive was offered for public bid via a "Sheriff's Sale". These properties were offered because the property owner had not paid taxes on the property for several years. When no one bid on the property, the title to the property reverted to the La Porte Tax Office as Trustee for the City of La Porte, the La Porte Independent School District and Harris County. The property comprises 5 city lots and is 125' by 125', or 15,625 square feet. The property also contains a house that appears to be in a state of disrepair. City staff has reviewed the property and prepared a report on suspected deficiencies and I have attached a copy of that report. The La Porte Tax Office has actively marketed this property for resale and received several bids on the property. The first bid was for $45,000 and the latest bid is for $75,000. The 10 day "rolling bid" period for the $75,000 bid ends at 5:00 pm today (If the $75,000 bid is bettered, this agenda item will be removed). The $75,000 bid is a joint bid by Arthur Kelly and Linda Snyder, who own property adjacent to the property being resold. The property is on the Harris County Appraisal District Roll with an appraised value of $117,000. Delinquent Taxes on the property total approximately $102,000 (20 years worth). Since the offer received for the resale is less than either of these values, The offer requires approval by each of the three taxing entities before the resale can take place. If all three entities approve, the sale will occur with each entity receiving its pro-rata share of the tax distribution. The first cost paid will be the cost incurred by the La Porte Tax Office for reselling the property. This amount is estimated at $1,000. Second, the City of La Porte has delinquent taxes due on the property of $31,757.39. If the resale is approved by all three entities, the City will receive an estimated $22,400 as their pro-rata share. The City's pro-rata share will pay in-full the base tax of $12,231.37, leaving $10,186.63 to be applied to penalties, interest and attorney fees. Even thought we are reselling this property for less than is due on the property, staff believes the absorption of the loss is necessary to get the property into the hands of a owner who will care for and maintain the property as well as pay taxes on it in the future. ACTION REQUIRED BY COUNCIL: Approve resolution authorizing the resale of the tax properties to Arthur Kelly and Linda Snyder. FUND N/A ACCT NUM: FUNDS AVAILABLE: Q'Z5-Q9 DATE