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Regular Council Meeting September 26, 2011 Rage 5 Council Member Pickle said that he had asked that items 15 and 16 be placed on the Agenda and that he would to combine the two items for discussion. It was a consensus of City Council to combine items 15 and 16. Council Member Pickle said the City had a lot of vacant lots that they had to mow, and 13 9 9 that he would like to for people to have the opportunity to purchase the lots at a trustee sale. He also said that when individuals purchase the property, that he would like the property to be free of any tax liens, mowing liens and/or maintenance liens. Council Member Pickle said this would put property back on the tax rolls. He recommended that if the person made improvements on the property that the tax valuation not include the improvements for a period of up to five years. Once the term ended, the property would go on the tax rolls for its actual value. Council Member Grossnickle asked if there was a minimum bid. City Attorney Kent McIlyar said that the delinquent tax collection law firm that conducts the auctions on the tax foreclosure properties does look at each property and determine a base value. Council Member McCarthy asked if this was a deal for builders and contractors to take advantage on properties. Council Member Pickle said only if they outbid someone. Council Member Avilla and Council Member Wright both said they thought it was a good deal. Council Member Wright favored a three year term instead of five years. Council Member Frierson said he liked the idea, because it was an incentive for people to come into the City and the he favored a three year tax freeze. Mayor Hashmi said it was a very good idea. City Attorney Kent McIlyar said that Mr. Bolster with Linebarger Gogan was at the meeting to answer any questions that Council may have regarding these ideas. Mr. Bolster explained the Tax Code required that tax delinquent property be offered for sale the first time for the appraised value of the property as set by the Lamar County Appraisal District or the amount of taxes owed against it, whichever is less. He said frequently that sum of money does not generate bidders and the property gets struck off. Once the property gets struck off, the ownership of the property passes to the governmental entities in proportion to the amount of taxes that are owed to them on the property. He said Paris I.S.D. probably owns the largest percentage of the property, because the school district tax rate is so much higher than everyone else. Mr. Bolster said when the property gets struck off for taxes; there is not an issue on mowing and/or maintenance liens. He said as the owner of the property you cannot have a lien on what you own. He said if the property gets struck off, then the property is owned by the entities as trustees and there are no more liens on the property. Mr. Bolster said when the property is re- sold it is automatically sold free and clear of liens. He also said the area where liens were issues is the very first sale, and that he believed that the properties had a better chance of being sold at the first sale if there were no liens. He said when property goes to any kind of tax sale; the City might want to consider releasing its liens. Mr. Bolster said prior to property being sold at a tax sale, they were required to notify all other lien holders of record. He also said if the property went to a tax sale, it was sold free and clear of their liens. Mr. Bolster noted that the Code does provide any money that the City has to spend on lots while it is struck off in an entity owned state and prior to re -sale, the City would get the money before taxes. He gave an example of a lot where the City was forced to go in and do some type of clean-up for public safety reasons. He said that the City Attorney's Office provided him with information regarding these occurrences.