03-28-16 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM March 28, 2016March 28, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Kathy PowellKathy Powell Requested By:Requested By: Account Number:Account Number: FinanceFinance Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Resolution Resolution 2. Second Sale P282 Second Sale P282 SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS If a property is sold or struck off to a taxing unit that is party to the judgment, the taxing unit may sell the If a property is sold or struck off to a taxing unit that is party to the judgment, the taxing unit may sell the property at any time by public or private sale. property at any time by public or private sale. The City of La Porte has had these properties on the The City of La Porte has had these properties on the public resale list for more than an adequate amount of time, and there has been no interest in public resale list for more than an adequate amount of time, and there has been no interest in purchasing the property at the minimum bid amount set by the judgment.purchasing the property at the minimum bid amount set by the judgment.At this time, staff is asking the At this time, staff is asking the City Council to pass a resolution to lower the minimum bid by 50% to $9,375, which matches the offer City Council to pass a resolution to lower the minimum bid by 50% to $9,375, which matches the offer received, so that the City can have a second public sale by the constablereceived, so that the City can have a second public sale by the constables office.s office. The State of Texas The State of Texas will not approve struck off property that is sold at private resale; therefore, staff is recommending the will not approve struck off property that is sold at private resale; therefore, staff is recommending the second sale, since it would be the cleanest way to close out all jurisdictions.second sale, since it would be the cleanest way to close out all jurisdictions. At the second sale, the At the second sale, the City will hopefully get an interested party that will purchase these properties, so that they can be taxable City will hopefully get an interested party that will purchase these properties, so that they can be taxable again and possibly developed.again and possibly developed. Section 34.05 (c) of the Tax Code states that the taxing unit purchasing the property by resolution of its Section 34.05 (c) of the Tax Code states that the taxing unit purchasing the property by resolution of its governing body may request the sheriff or a constable to sell the property at a public sale. governing body may request the sheriff or a constable to sell the property at a public sale. If the If the purchasing taxing unit has not sold the property within six months after the date on which the ownerpurchasing taxing unit has not sold the property within six months after the date on which the owners right of redemption terminates (these properties have past the redemption period), any taxing unit that is right of redemption terminates (these properties have past the redemption period), any taxing unit that is entitled to receive proceeds of the sale by resolution of its governing body may request the sheriff or a entitled to receive proceeds of the sale by resolution of its governing body may request the sheriff or a constable in writing to sell the property at a public sale.constable in writing to sell the property at a public sale. On receipt of a request made under this On receipt of a request made under this subsection, the sheriff or constable shall sell the property at a public sale as provided by Subsection subsection, the sheriff or constable shall sell the property at a public sale as provided by Subsection (d). The minimum bid was arrived at by either the amount of costs in the judgment or a percentage of the The minimum bid was arrived at by either the amount of costs in the judgment or a percentage of the HCAD value. HCAD value. The goal is to get the property back on the tax roll as taxable property.The goal is to get the property back on the tax roll as taxable property. P282 Lots 29 & 30 Block 85Town of La Porte (50% of HCAD value)Lots 29 & 30 Block 85Town of La Porte (50% of HCAD value)