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#2 Authorize sale of property at 3115 Rockport Park Drive (File Res. #2011-765)CLERK-TREASURER’S OFFICE MEMORANDUM December 31, 2010 TO: City Council FROM: Jean Ann Wulf, City Clerk-Treasurer SUBJECT: Action on a proposed resolution authorizing the City manager to sell property located at 3115 Rockport Park Drive. (File Res 2010-765) Staff Recommendation Staff recommends that the City Council support a motion to approve File resolution 2010-765 which authorizes the City Manager or his designee to proceed with the sale of surplus property located at 3115 Rockport Park Drive. City Manager Recommendation The City Manager requests approval. Suggested Motion A motion to approve File Resolution 2010-765 which authorizes the City Manager to proceed with the sale of surplus property located at 3115 Rockport Park Drive for $16,000 to James and Jamie Austin. Background 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. The City had invested $126,974 in special assessments in these lots. By Council direction, staff bid on 8 lots and did not bid on the out lot. The auction bids did not reach the maximum bid amount set by the Council and the City purchased 8 lots at a cost of $79,500. Of that amount, we received back $58,307 in special assessments and Rock County retained $21,193 for back taxes and foreclosing costs. The City now has a total of $155,808 invested in these lots which includes the special assessments, back taxes, foreclosing costs and the 2010 property taxes. Analysis A. The City of Janesville acquired the lot located at 3115 Rockport Park Drive in October 2010 through the Rock County Tax Lien foreclosure sale. The purchase price was $5,250 and the City received $3,818 from Rock County for our special assessments levied against the property. To date, the City has a total of $15,443 invested in this lot. The City used 2010 note proceeds for property acquisition to acquire the lot. B. The subject site was a improved lot in the Hickory Ridge subdivision. The property is approximately 0.53 acres and has an assessed land value of $30,200. C. At the auction, staff was the only bidder for the property located at 3115 Rockport Park Drive. D. We received an offer to purchase from James and Jamie Austin in the amount of $16,000 for this lot. E. The $16,000 bid would pay off the remaining special assessment principal ($9,398), pay the actual 2010 taxes ($796), repay the property acquisition account ($5,250), and provide a net gain of $556 to the property acquisition account. cc: Jacob Winzenz, Director of Administrative Services Eric Levitt, City Manager RESOLUTION NO. 2011 – 765 A resolution authorizing the City Manager to proceed with the sale of surplus property located at 3115 Rockport Park Drive. WHEREAS, the City of Janesville owns the real property located at 3115 Rockport Park Drive with the parcel number of 0403300029; and WHEREAS, The City of Janesville acquired the property located at 3115 Rockport Park Drive in October 2010 though the Rock County Tax Lien program with Property Acquisition Funds in the amount of $5,250; and WHEREAS, the proceeds from the sale of this property will be returned to the Property Acquisition Fund to satisfy all costs incurred and the Special Assessment Fund to satisfy all outstanding assessments; and WHEREAS, this property is now surplus and no longer needed for any public purpose; and WHEREAS, the City of Janesville has negotiated an agreement to sell the property to James and Jamie Austin in the amount of $16,000.00; and WHEREAS, the sale of this surplus property is in the best interest of and benefit to the City and community; and NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville that the City Manager and others on his behalf are authorized to sell and convey this parcel of surplus property to James and Jamie Austin for $16,000.00 on behalf of the City of Janesville; and to negotiate and execute such documents, papers, and forms as the City Manager may, from time to time, determine necessary and/or desirable to effectuate this transaction and the intent of this Resolution; and BE IT FURTHER RESOLVED that the City Manager and his designee(s) are hereby authorized to take whatever other actions and to make whatever other changes that may be necessary and/or desirable to effectuate this land transaction. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Tim Wellnitz, Assistant City Attorney Proposed by: Clerk-Treasurer’s Office Prepared by: Clerk-Treasurer’s Office