1999-10-25 Regular Meeting and Workshop Meeting

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REOlsT FOR CITY COUNCIL AGENDA ITI AGENDA DATE October 25.1999 REOUESTED 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. 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 final bid was for $91,300. The $91,300 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 $27,335 as their pro-rata share. The City's pro-rata share will pay in-full the base tax of $12,231.37, leaving $15,103.63 to be applied to penalties, interest and attorney fees. Even though 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: APPROVED FOR CITY COUNCIL AGENDA Q~ -l \Lv_h - , - - ROBERT 1. HERRERA, CITY MANAGER 10"3.(" ,,~ DATE