#5 Authorize to sell 3123 Rockport Park Drive
CLERK-TREASURER’S OFFICE MEMORANDUM
October 31, 2010
TO: City Council
FROM: Jean Ann Wulf, City Clerk-Treasurer
SUBJECT: Action on a motion authorizing the City Manager to sell property
located at 3123 Rockport Park Drive.
Staff Recommendation
Staff recommends that the City Council support a motion to authorize the City
Manager or his designee to proceed with the sale of surplus property located at
3123 Rockport Park Drive.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
A motion to authorize the City Manager to proceed with the sale of surplus
property located at 3123 Rockport Park Drive for $18,751 to Mr. Tim Adams.
Background
Earlier this year the City was noticed by Rock County that 9 lots in the Hickory
Ridge Subdivision were going on the Rock County Tax Lien foreclosure sale.
The developer of these lots did not pay the property taxes nor the special
assessments for improvements. The City invested $126,974 in providing utilities
and street access to these lots. By Council direction, staff bid on 8 lots and did
not bid on the outlot. The auction bids did not reach the maximum bid amount
set by the Council and the City purchased 8 lots at a total cost of $79,500. Of
that amount, we will receive back $58,307 in special assessments and Rock
County will retain $21,193 for back taxes and foreclosing costs. The City now
has a total of $155,420, which includes estimated 2010 taxes, invested in these
lots.
Analysis
A. The City of Janesville acquired the lot located at 3123 Rockport Park Drive
in October 2010 through the Rock County Tax Lien foreclosure sale. The
purchase price was $14,250 and the City will receive $10,719 from Rock
County for our special assessments levied against the property. To date,
the City has a total of $17,521 invested in this lot. The City used 2010
note proceeds for property acquisition to acquire the lot.
B. The subject site was a developed lot in the Hickory Ridge subdivision.
The property is approximately 0.51 acres and has an assessed land value
of $29,700.
C. At the auction, staff was bidding against two parties for the property
located at 3123 Rockport Park Drive. Both bidders approached staff after
the auction and requested information on how they could purchase the lot
from the City. We requested that they submit a bid for the property by
Friday, October 29, 2010.
D. We received two bids to purchase this lot. The first bid was from Tim
Adams in the amount of $18,751 and the second bid was from James and
Jamie Austin in the amount of $18,000.
E. The $18,751 bid would pay off the remaining special assessment principal
($2,497), pay the estimated 2010 taxes ($774), repay the property
acquisition account ($14,250), and provide a net gain of $1,230 to the
property acquisition account.
cc: Jacob Winzenz, Director of Administrative Services
Eric Levitt, City Manager