14 - Private Re-Sale of Multiple Tracts of Foreclosed PropertiesItem No. 14
TO: Mayor & City Council
FROM: Gene Anderson, Interim City Manager/Finance Director
SUBJECT: PRIVATE TAX RE -SALES
DATE: March 30, 2020
BACKGROUND: Through a previously rarely used provision of state law, The Pounders Law
Firm has arranged for the private sale of six tax delinquent properties that failed to get bids
during previous public tax sales.
STATUS OF ISSUE: These three tracts were foreclosed upon and sold by tax warrant and
struck -off to the City of Paris, Trustee, at the March 2017 tax sale. They have been offered for
re -sale at three public auctions without a bid being offered. The offer of $2,550.00 from Blue
Ocean Partners LLC is the only offer received for these three properties. The $2,500.00 purchase
price has been received and is on deposit into The Pounders Law Firm trust account. Approval
from the City of Paris, Paris Junior College, Lamar County and Paris ISD is required to move
forward with private re -sale.
BUDGET: The city will receive its prorated share of delinquent taxes.
RECOMMENDATION: Approve Resolution Approving the Private Re -Sale of Three Tracts of
Bid -Off Tax Foreclosed Properties.
RESOLUTION NO.
A RESOLUTION APPROVING THE PRIVATE RE -SALE OF MULTIPLE
TRACTS OF TAX FORECLOSED PROPERTIES, AND AUTHORIZING
THE MAYOR TO EXECUTE DEEDS
WHEREAS, numerous tracts of real property (the "Trustee Properties") were previously
bid off to the City of Paris as Trustee for itself, Lamar County, Paris ISD and Paris Junior
College; and
WHEREAS, Texas Property Tax Code Section 34.05(i) provides that the Trustee
Properties may be sold by private sale in lieu of a public sale under Texas Property Tax Code
Section 34.05(c) & (d) with the approval of all taxing units entitled to receive proceeds from the
sale, being the City of Paris, Lamar County, Paris ISD and Paris Junior College; and
WHEREAS, private offers to purchase several of the Trustee Properties have been
received by the City of Paris (the "Private Sale");
NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of
Paris, Texas, that:
Section 1. The following offers to purchase the following tracts of real property, being
the highest bids received, are hereby accepted and the Private Sales are hereby approved:
• LCAD #3 93 79 —'CITY OF PARIS, BLOCK 198, LOT 15' to Blue Ocean Partners LLC for
$639.00
• LCAD #19538 — `SMITH'S IST ADDITION, BLOCK 5, LOT 10-11-12' to Blue Ocean
Partners LLC for $1,105.40
• LCAD #102150 —'CITY OF PARIS, BLOCK 44-A, LOT 4-A' to Blue Ocean Partners LLC
for $805.60
Section 2. Subject to the Private Sales also being approved by Lamar County, Paris ISD
and Paris Junior College, and the receipt of the monies bid for the Trustee properties, the Mayor
is hereby authorized to execute a tax deed conveying the Re -Sale Properties to the Purchaser or
designee. Any prior approval to re -sell this Trustee Property is hereby withdrawn.
Section 3. The proceeds of the Private Sale shall be distributed in accordance with the
Texas Property Tax Code and the orders of the District Courts of Lamar County, Texas.
Private Pro erty Tax Re -Sale Resolution, Page 1 of 2
PASSED AND APPROVED this 13th day of April, 2020.
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Private Prog erty Tax Re -Sale Resolution, Page 2 of 2