4G, Adopt Resolution to Request that Tax-Forfeited Property be Withheld from Sale

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If the City does not acquire the land, it will go on public auction. Given the parcel's location nearby Lake Josephine, it is likely that someone will buy the land and come forward with a development proposal. Neighbors have opposed past proposals. The trees on the parcel provide a good buffer from Highway 51. This parcel was assessed $58,293.00 in 2003 as part of a PMP project. The property owner made four payments of$5,829.30 each, but then stopped paying in 2007 with a remaining assessment of$34,975.80. In 2012, the assessment balance including interest and fees was $43,632.31, but that was voided through the forfeiture process. The City may reassess that amount to a new owner. According to Ramsey County Property Records and Revenue, however, when tax- forfeited property is sold at auction, the new owner typically walks away from the property if it is reassessed unless it is a high-value property that can support the amount of assessment. Acquisition of Tax-Forfeited Property Acquiring the parcel would obligate the City to the following costs: • Cost of a Phase I Environmental Site Assessment(ESA) estimated at $2,500; • Below market value acquisition price estimated at $2,000 to $4,000; • Maintenance costs, if any, during the withholding period and after acquisition; and • Write-off of remaining PMP assessment balance of$43,632.31 (as discussed above, this is likely to be a City cost regardless, unless a private development proposal actually moves forward). Acquiring the parcel would have the following benefits to the City: • Preserve the land in its natural state; • Provide an opportunity for regional stormwater treatment; • Provide certainty to adjacent property owners that the property will not be developed; and • Save City resources and staff time that would be spent evaluating development proposals if the property were sold at public auction. Staff Recommendation Staff recommends that the City Council approve Resolution 2012-050 requesting that Ramsey County withhold tax-forfeited property located at 3208 Hamline Avenue North from public sale. Attachments A. Map of 3208 Hamline Avenue North B. City of Arden Hills Resolution 2012-050 City of Arden Hills City Council Meeting December 10, 2012 Page 2 of 2