18 - Requesting the Sheriff or Constable to Re-Sell Bid-Off Tax Properties including Westgate Apartments

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Item No. 18 TO: Mayor & City Council FROM: Gene Anderson, Interim City Manager/Finance Director SUBJECT: WESTGATE APARTMENTS DATE: October 22, 2019 BACKGROUND: The Westgate Apartments are located at 635 7th N.W. in Paris, Texas. The apartments are in a state of disrepair, and the City has been working diligently to address this issue including abating the property on three different occasions. STATUS OF ISSUE: Through the efforts of the City's delinquent tax attorney, an Agreed Default Judgment was signed by a District Judge. This is the first step in the City being able to take the property to a tax sale. The property has approximately $170,000 in tax and abatement liens against it. In the tax sale, this lien amount will be the minimum bid allowed. If the minimum bid is not reached, the property will be bid off to the City. The resolution before the Council authorizes the Sheriff or a Constable to then resell the property at public auction in the event it doesn't sell for the minimum bid or higher at the tax sale. In such a resale, a bid for less than the minimum tax sale bid may be accepted. The City Manager or his designee may set a minimum bid for the resale. Due to the legal procedures required, the earliest possible auction date would be January 7, 2020. It is possible that other factors beyond our control could force the auction to be delayed passed the January 7, 2020 earliest possible date. The Resolution also authorizes the auction of thirty-seven other properties previously bid off to the City or other taxing entity. BUDGET: The city could possibly receive its prorated share of delinquent taxes plus recover some or all of its abatement expenses. RECOMMENDATION: Approve Resolution authorizing the Sheriff or a Constable to re -sell bid -off tax properties in accordance with the Texas Property Tax Code.