City Council
MEETING DATE: 4/8/2015
TITLE:
Title
Resolution - Authorizing the Purchase of Assessor Parcel 670-213-009-4 for Stormwater Control
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FROM:
John A. Corella, City Engineer
RECOMMENDATION:
Recommendation
Staff recommends the City Council adopt a resolution authorizing the City Manager to formally object to Riverside County Tax-Default Property sale of Assessor Parcel 670-213-009-4 and execute an application and agreements necessary to Purchase the Property from Riverside County for the approximate amount of $29,715.90 plus noticing, application and administrative costs.
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BACKGROUND:
Pursuant to State Revenue and Taxation Code, properties that are determined to be in default for unpaid property taxes for five years or more are periodically put up for sale at public auction by the Riverside County (County) Treasurer and Tax Collector. However, if it is determined that a parcel is needed for public purposes, Cathedral City (City) may formally object to the sale of the parcel and request to have the parcel removed from the auction and acquire title to the property. The cost of acquisition is the minimum bid for the property as approved by the County Board of Supervisors, plus noticing, application and transfer costs. However, parcels may be subject to removal from the auction if the owner pays the defaulted taxes or enters into a legal process, such as bankruptcy.
DISCUSSION:
Staff has received notice from the County that there are parcels in the City that will be offered at public auction by the County on April 30, 2105 through May 5, 2015 as part of Tax-Defaulted Property Sale No. TC-203. Staff determined that one of these properties can be utilized for public purposes. This one parcel is located at the northwest corner of Ramon Road and El Toro Road. Assessor's Parcel No. 670-213-009-4 is a 9,726 sq. ft. lot adjacent Ramon Road and is within one of the many City areas where land is needed to construct facilities to capture stormwater and drainage surface flows as a result of increased infill build out.
Staff has determined that this parcel would be a public benefit due to the fact that it can be used for stormwater and drainage management purposes. In addition, Staff also determined that the fair market value of the Property is in excess of the Acquisition Cost and is very likely well in excess of the Acquisition Cost.
As a result of Staff research, the City proceeded with the first step in the Tax-Default Property Acquisition process to determine if the City is eligible to purchase the Property and filed a written statement with the County setting forth the purpose of the acquisition and the necessary Chapter 8 Agreement forms prior to the County set deadline of March 18, 2015. Included with this package were maps showing the location of the Property within the City limits and the City's "Mission Statement." The County responded with an updated sale price and requested a Resolution from City Council authorizing the Property purchase.
Submitting an Application to Purchase Tax-Defaulted Property from the County does not commit the City to purchase the Property, nor does it guarantee purchase approval. By objecting to the sale, the Property is withheld from public auction and allows for further Property investigation. The City may submit a letter to the Tax Collector requesting to withdraw their Application to Purchase at any time during the process. If the City were to withdraw from the purchase process the City would be required to reimburse the Tax Collector for the cost incurred for preparing the property for sale to the City.
If the City Council authorizes Staff to pursue the acquisition of this property, there may be additional steps to complete the acquisition, including an investigation of the past uses of the property.
If the City Council approves Staff's recommendation, Staff will submit to the County all required documentation necessary for the purchase.
FISCAL IMPACT:
Funding is available in General Fund 100-911-8804 for the purchase of properties for Stormwater and Drainage Management. The total cost will be approximately 29,715.90 plus noticing, application and administrative costs.
ATTACHMENTS:
1. County Treasurer Letter dated March 26, 2015
2. Letter of Objection package with Application, maps with City Limits shown and City Mission Statement dated March 25, 2015.
3. County Tax Default Sale No. TC-203 with Property identified.
4. Resolution No. 2015 - ___ , with Exhibit A ("Legal Description")