HomeMy WebLinkAbout4G, Adopt Resolution to Request that Tax-Forfeited Property be Withheld from Sale �- EN HILLS
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Request for Council Action
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Prepared By: Jill Hutmacher, Community Council Meeting Date: December 10, 2012
Development Director
Adopt Resolution to Request that Tax-Forfeited Property be Withheld from Sale
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
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
Supporting Documents:
1. Memorandum dated December 10,2012, from Jill Hutmacher, Community Development Director.
2. Attachment A—Map of 3208 Hamline Avenue North.
3. Attachment B—Resolution 2012-050.
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EN HILLS
MEMORANDUM
DATE: December 10, 2012
TO: Honorable Mayor and Councilmembers
Patrick Klaers, City Administrator
FROM: Jill Hutmacher, Community Development Director
SUBJECT: Acquisition of Tax Forfeited Land j4
Requested Action
Approve Resolution 2012-050 requesting that Ramsey County withhold tax-forfeited property
located at 3208 Hamline Avenue North from public sale for a period of up to six months while
the City considers acquisition of the property.
Background
The City has received notice that property located at 3208 Hamline Avenue North(map
attached) has become tax forfeited.
Recent legislation on tax forfeited land acquisition by public entities removed the option to
acquire public open space lands at no cost. However, cities may acquire conservation land that
will be used to create or preserve wetlands, manage stormwater, and preserve land in its natural
state. As part of the acquisition, a restrictive covenant is placed on the land for 30 years, and
within that time period cities may not sell or develop the land.
Although cities could previously acquire tax-forfeited land for public open space at no cost, now
cities must pay "below market value" which is based on the parcel's value as conservation land.
Ramsey County will assess the parcel and notify the City of the "below market value". For
similar parcels, the value has been around $2,000.
The City has until January 16, 2013, to officially request via resolution that that the parcel be
placed on hold and not sold at public auction. The City would then have an additional six
months to acquire the parcel if the City Council so desires.
City of Arden Hills
City Council Meeting December 10, 2012
Page 1 of 2
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
Attachment
Map of 3208 Hamline Avenue North
December 10, 2012, City Council Meeting
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Attachment
Resolution 2012-050
December 10, 2012, City Council Meeting
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,AR`EN HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 2012-050
A RESOLUTION REQUESTING RAMSEY COUNTY TO WITHHOLD TAX-
FORFEITED LAND FROM PUBLIC SALE
WHEREAS,the City of Arden Hills has been notified that property located at 3208
Hamline Avenue North with a property identification number of 34-30-23-31-0012 has become
tax-forfeited as of August 1, 2012; and
WHEREAS, Ramsey County has notified the City that the parcel is eligible for
acquisition by the City as conservation land; and
WHEREAS, the City may request Ramsey County to withhold the land from public sale
for a period of up to six months; and
WHEREAS, if the City were to acquire the land it would need to complete due diligence
including a Phase I Environmental Site Assessment; and
WHEREAS, if the City were to acquire the land, Ramsey County would determine the
property's acquisition price based on its value as conservation land; and
WHEREAS, prior to making a final decision on property acquisition, the City needs to
complete due diligence and be notified by Ramsey County of the purchase price.
NOW THEREFORE, BE IT RESOLVED that the City Council of Arden Hills,
Minnesota requests that Ramsey County withhold the property from public sale for a period of
up to six months to allow the City to evaluate property acquisition.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS
101h DAY OF DECEMBER, 2012.
David Grant, Mayor
ATTEST:
Patrick Klaers, City Administrator