11 - Private Re-Sale of a Tract of Tax Foreclosed Property - Westgate Apartments

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For additional information, the City of Paris delinquent tax on the property was $29,986.51 (tax years 2013-18), as well as $15,560.30 for nuisance abatement costs and $4,112.06 in legal fees. It should be noted that when a property goes up for auction, the end result is not always full compensation of delinquent taxes. More importantly, having the property in the hands of an owner who will pay future taxes as well as maintain the property is a desired outcome. We believe such to be the case in this situation. If the City Council approves of the sale, the Lamar County, Paris Junior College, and Paris ISD must each also approve the sale as all four entities are joint owners of the property. The Pounders Law Firm and Staff would take necessary actions to present this to each of them. BUDGET: The City does not pay the Pounders Law Firm directly for its work, but rather their fee comes out of the sale of the property. The City therefore has no direct expense other than time of staff. If the sale is approved by all four taxing entities, then the City's final revenue is estimated to be $14,000 which is a prorated share with the other three taxing entities. OPTIONS: 1. Approve the Resolution as drafted, authorizing for the sale of the property, 2. Request additional information. 3. Edit the Resolution. 4. Counter the offer. 5. Reject the offer, the City will continue to list the property for sale as Trustee on behalf of the City, County, Paris ISD, and Paris Junior College. RECOMMENDATION: Approve Resolution authorizing the sale of a tract of tax foreclosed property known as the Westgate Apartments to Rain Financial Services, Inc. in the amount of $75,000, and authorize the mayor to execute the deeds.