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#2 Authorize sale of 3215 and 3221 Rockport Park Dr (File Res. #2011-815)CLERK-TREASURER’S OFFICE MEMORANDUM June 6, 2011 TO: City Council FROM: Jean Ann Wulf, City Clerk-Treasurer SUBJECT: Action on a proposed resolution authorizing the City Manager to sell properties located at 3215 and 3221 Rockport Park Drive. (File Res. 2011-815) 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 properties located at 3215 and 3221 Rockport Park Drive. City Manager Recommendation I recommend approval of the sale due to the fact that the City will receive greater than 75% of its special assessments on the property and will receive greater than 100% of the funds the City paid at the auction. Suggested Motion A motion to adopt File Resolution 2011-815 authorizing the City Manager to proceed with the sale of surplus properties located at 3215 and 3221 Rockport Park Drive for $32,000 to Mr. Scott Loveland. 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 $155,420 invested in these lots. Analysis A. The City of Janesville acquired the lots located at 3215 and 3221 Rockport Park Drive in October 2010 through the Rock County Tax Lien foreclosure sale. The purchase price was $28,000 and the City received $20,277 from Rock County for our special assessments levied against the property. At the date of purchase, the City has a total of $42,300 invested in these lots. The City used 2010 note proceeds for the property acquisition. B. The subject sites are developed oversized lots in the Hickory Ridge subdivision. The properties combined are approximately 1.95 acres and have a 2010 assessed land value of $89,600. C. The $32,000 bid would cover all but $10,300 of the City’s special assessment costs. cc: Jacob Winzenz, Director of Administrative Services Eric Levitt, City Manager RESOLUTION NO. 2011–815 A resolution authorizing the City Manager to proceed with the sale of surplus property located at 3215 and 3221 Rockport Park Drive. WHEREAS, the City of Janesville owns the real properties located at 3215 and 3221 Rockport Park Drive with parcel numbers of 0403400035 and 0403400036, respectively; WHEREAS, The City of Janesville acquired the properties located at 3215 and 3221 Hickory Ridge Drive in October 2010 though the Rock County Tax Lien program with Property Acquisition Funds in the amount of $28,000; and WHEREAS, the proceeds from the sale of this property will be returned to the Special Assessment Fund to satisfy all outstanding assessments and the loss would be charged against the Property Acquisition Account; 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 properties to Mr. Scott Loveland in the amount of $32,000.00; and WHEREAS, the sale of 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 these parcels of surplus property to Mr. Scott Loveland for $32,000.00 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 find necessary and/or desirable to effectuate this land transaction. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Clerk-Treasurer’s Office Prepared by: Clerk-Treasurer’s Office