12 - Tax Sale - Foreclosed PropertiesItem No. 12
TO: Mayor & City Council
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BACKGROUND: The City has contracted with Tracy Pounders and thd,:.
Law Firm to act and
s1_4w,w%)Loff.r Delinitpent Tax Attorn addressinp all matters involvi ith delin4,,ueuLX_rQaertri
taxes. In addition to his general delinquent tax collection duties, over the last several years Mr. Pounders
has been working through a lengthy list of abandoned parcels of land (accounts with combined
necessary legal steps to seize and sell these properties-, among other things, seizing and selling these
he propertiestobe returned to the gay.Lag,
tax roll and into the hands of families and businesses that will use and maintain them. This list has shrunk
drastically since Mr. Pounders first began working on them in 2013, although it remains an ongoing issue
as additional abandoned properties are identified each year. Additionally, according to Mr. Pounders, more
than half of these properties may also have existing nuisance abatement liens on them, as well as curren)
code enforcement violations. Therefore, it continues to be a priority that the City work closely with Mr.
Pounders so these abandoned properties can be identified, seized and sold. To this point, Mr. Pounders
regularly identifies a list of abandoned properties to seize and sell by tax warrant (or other legal process).
ryrW_r,_Pwt -.-r ants necessam to seizq
and sell these abandoned properties:
1, Identify abandoned properties in the delinquent tax roll.
2. Work with Code Enforcement to prioritize which the properties are to be seized and sold.
3. Work with potential buyers — properties with interested buyers are given priority.
4. Submit the list of properties to a professional title abstractor to provide the property's legal
description, current title history/condition and identify all necessary parties (no cost to the City of
Paris),- review the abstractor's data and make corrections/adjustments as needed
5. Gather supporting documents and evidence
6. Submit the list to Lamar CAD's Chief Appraiser (acting as the City of Paris's Tax Collector) for
comment and approval
T Draft and publish the Notice of Intent to Seize
& Mail or serve other required notices on other parties as required by statute
9. Submit the Application for Tax Warrant with the supporting affidavits and other evidence to the
Lamar County District Courts for approval
10. Upon issuance of the Court's orders and the Tax Warrant, the Sheriff seizes the tracts and turns
possession over to the Lamar CAD Chief Appraiser in anticipation of selling them
11. Consult with the Lamar County Sheriff on the procedures and date for conducting the tax sale by
public auction at the Lamar County courthouse.
12. Draft the required notices of sale and have them published no less than three times on a weekly
basis, the first notice being at least 20 days in advance of the tax sale
13. Sheriff conducts the tax sale with Mr. Pounders' assistance — properties not sold are "bid -off ' (aka
"struck -off") to the taxing units
14. Conduct a "Re -Sale" of bid -off properties to buyers by private sale or public auction.
15. Draft the sale and re -sale deeds, assist the Sheriff in their execution, and promptly file them with
the County Clerk — this process usually takes 10 business days or less, but delays are always
possible.
16. The Court Order issuing the tax warrants and subsequent sale or re -sale of a property may foreclose
a nuisance abatement lien filed by the City of Paris against that property if that lien was filed with
the County Clerk prior to the date of the Court Order; if so, the lien must be released upon request.
Mr. Pounders receives each lien release request, reviews each request for legal compliance, drafts
the release documents, assists the Code Enforcement Supervisor in executing them, and makes sure
the proper party receives the executed release.
STATUS OF ISSUE: Mr. Pounders has performed the preliminary steps to seize 75 tracts of real property
and to sell them at a public auction tentatively scheduled for December 1, 2020. Some of these tracts will
not sell at the initial public auction, but will be bid -off to the City of Paris as trustee for itself and the other
taxing units. The Texas Property Tax Code provides that these bid -off properties may be re -sold at any
time following the initial tax sale. This resolution authorizes the necessary parties to conduct a public re-
sale following the tax sale - to re -sell properties that were bid -off to the City at the initial tax sale.
This resolution is substantially similar to previous resolutions the City has approved for past tax sales and
re -sales conducted by Mr. Pounders for the City of Paris.
BUDGET: NA
OPTIONS:
1. Approve the Resolution requesting that a re -sell occur for struck -off ("bid -off') properties
following the December 1, 2020 tax sale.
2. Do not approve the resolution and/or request additional information.
RECOMMENDATION:
Approve the Resolution requesting that a re -sell occur for struck -off ("bid -off') properties
following the December 1, 2020 tax sale.
RESOLUTION NO.
A RESOLUTION REQUESTING THE SHERIFF OR A CONSTABLE TO SELL
TAX FORECLOSED PROPERTIES AND TO RE -SELL BID -OFF TAX
PROPERTIES IN ACCORDANCE WITH THE TEXAS PROPERTY TAX CODE;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the properties identified in Exhibit "A" (the "Properties") are parcels of
real property which have been identified for foreclosure and sale pursuant to judgments and
orders issued by the District Courts of Lamar County; and
WHEREAS, the City of Paris (the "CITY") desires that the Sheriff or a Constable sell
the Properties at public auction in accordance with the Texas Property Tax Code, as directed
by the City Manager or his designee;
WHEREAS, if the Properties are offered for sale at a Tax Sale as authorized by the
Texas Property Tax Code, some or all may be bid -off to the CITY, rather than sold to a private
bidder; and
WHEREAS, should any of the Properties be bid -off to the CITY, the CITY desires that
the Properties, along with the Struck Off Properties, be promptly re -sold by public re -sale in
accordance with Texas Property Tax Code Subsections 34.05(c) and (d), subject to any
remaining rights of redemption and other rights or privileges provided for by law or court
order;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in
all things approved.
Section 2. The Sheriff or a Constable is hereby requested to sell the Properties by
public sale in accordance with Texas Property Tax Code Subsections 34.05, as directed by
the City Manager or his designee.
Section 3. The Sheriff or a Constable is hereby requested to promptly re -sell the
Properties by public sale in accordance with Texas Property Tax Code Subsections 34.05(b),
(c) & (d), to the extent that a Property is bid -off to the CITY, as otherwise permitted by the
Texas Property Tax Code, and as directed by the City Manager or his designee.
Section 4. That the City Manager or his designee is hereby authorized to set a
minimum bid for each property subject to public re -sale, and to withdraw any individual
property (in whole or part) from public sale if it is in the best interests of the CITY.
Tax Re Sale... Resolution, Page I of 4
Section S. This Resolution shall take effect immediately from and after its passage in
accordance with the provisions of the law.
PASSED AND APPROVED this 26th day of October, 2020.
CITY OF PARIS, TEXAS
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Tax Re.. -Sale Resolution_, Page 2 of 4
Exhibit "A" - "Properties"
• No. 11529 -'GIBBONS-BRADEN ADDITION, BLOCK 2, LOT 5'
• No. 11900 -'GIBBONS PARK, BLOCK 8, LOT 12'
• No. 12367 -'HULL ADDITION, BLOCK 2, LOT 3'
• No. 12368 -'HULL ADDITION, BLOCK 2, LOT 4'
• No. 13830 -'CITY OF PARIS, BLOCK 32-B, LOT 7'
• No. 13832 -'CITY OF PARIS, BLOCK 32-B, LOT 9'
• No. 13833 -'CITY OF PARIS, BLOCK 32-B, LOT 10, ACRES 0.227'
• No. 13870 -'CITY OF PARIS, BLOCK 33-A, LOT 9, ACRES .1490'
• No. 14115 -'CITY OF PARIS, BLOCK 48, LOT F
• No. 14129 -'CITY OF PARIS, BLOCK 48, LOT 15'
• No. 14168 -'CITY OF PARIS, BLOCK 49, LOT 14'
• No. 14180 -'CITY OF PARIS, BLOCK 50, LOT 11, 305 NW 11TH'
• No. 14252 -'CITY OF PARIS, BLOCK 54, LOT 4-A'
• No. 14264 -'CITY OF PARIS, BLOCK 55, LOT 6'
• No. 14294 -'CITY OF PARIS, BLOCK 56, LOT 13'
• No. 14306 -'CITY OF PARIS, BLOCK 57, LOT 4'
• No. 14327 -'CITY OF PARIS, BLOCK 59 LOT 9'
• No. 14342 -'CITY OF PARIS, BLOCK 59, LOT 24'
• No. 14379 -'CITY OF PARIS, BLOCK 60, LOT 29'
• No. 14407 -'CITY OF PARIS, BLOCK 60-A, LOT 11'
• No. 14412 -'CITY OF PARIS, BLOCK 60-A, LOT 15'
• No. 14594 -'CITY OF PARIS, BLOCK 67-A, LOT 6'
• No. 14772 -'CITY OF PARIS, BLOCK 70-C, LOT 17'
• No. 14875 -'CITY OF PARIS, BLOCK 73, LOT 14'
• No. 14891 -'CITY OF PARIS, BLOCK 73-A, LOT 8'
• No. 14952 -'CITY OF PARIS, BLOCK 74-D, LOT 8'
• No. 14995 -'CITY OF PARIS, BLOCK 75-A, LOT 14'
• No. 15000 -'CITY OF PARIS, BLOCK 76, LOT 2'
• No. 15001 -'CITY OF PARIS, BLOCK 76, LOT 3'
• No. 15065 -'CITY OF PARIS, BLOCK 79, LOT 10 & 11'
• No. 15109 -'CITY OF PARIS, BLOCK 81, LOT 5'
• No. 15179 -'CITY OF PARIS, BLOCK 84, LOT 12'
• No. 15189 -'CITY OF PARIS, BLOCK 84, LOT 22'
• No. 15195 -'CITY OF PARIS, BLOCK 84, LOT 27-A'
• No. 15200 -'CITY OF PARIS, BLOCK 84, LOT 31'
• No. 15255 -'CITY OF PARIS, BLOCK 88, LOT 26'
• No. 15311 -'CITY OF PARIS, BLOCK 90A, LOT 3'
• No. 15349 -'CITY OF PARIS, BLOCK 92, LOT 3 & 19'
• No. 15355 -'CITY OF PARIS, BLOCK 92, LOT 8-A'
• No. 15357 -'CITY OF PARIS, BLOCK 92, LOT 10'
• No. 15365 -'CITY OF PARIS, BLOCK 92, LOT 18'
• No. 15366 -'CITY OF PARIS, BLOCK 92, LOT 20'
• No. 15427 -'CITY OF PARIS, BLOCK 95, LOT 4'
• No. 15445 -'CITY OF PARIS, BLOCK 96, LOT 1'
• No. 15451 -'CITY OF PARIS, BLOCK 96, LOT 6'
• No. 15457 -'CITY OF PARIS, BLOCK 96, LOT 12'
• No. 15461 -'CITY OF PARIS, BLOCK 97, LOT 3'
• No. 15462 -'CITY OF PARIS, BLOCK 97, LOT 4'
Tax Re -Sale Resolution, Page 3 of 4
• No. 15482 -'CITY OF PARIS, BLOCK 99, LOT P
• No. 16217 -'CITY OF PARIS, BLOCK 136, LOT 12'
• No. 16218 -'CITY OF PARIS, BLOCK 136, LOT 13'
• No. 16223 -'CITY OF PARIS, BLOCK 136, LOT 18'
• No. 16357 -'CITY OF PARIS, BLOCK 144, LOT PT 16-A'
• No. 16687 -'CITY OF PARIS, BLOCK 163, LOT 8'
• No. 16744 -'CITY OF PARIS, BLOCK 171, LOT 6'
• No. 16769 -'CITY OF PARIS, BLOCK 174, LOT 8'
• No. 16781 -'CITY OF PARIS, BLOCK 174-A, LOT 6'
• No. 16809 -'CITY OF PARIS, BLOCK 175, LOT 12,1065 NE 11 TH'
• No. 17077 -'CITY OF PARIS, BLOCK 190, LOT 6'
• No. 17078 -'CITY OF PARIS, BLOCK 190, LOT 7'
• No. 17220 -'CITY OF PARIS, BLOCK 199, LOT 10'
• No. 17572 -'CITY OF PARIS, BLOCK 227, LOT 10'
• No. 17681 -'CITY OF PARIS, BLOCK 230, LOT 6'
• No. 17705 -'CITY OF PARIS, BLOCK 231, LOT 5'
• No. 17745 -'CITY OF PARIS, BLOCK 233, LOT 12'
• No. 17746 -'CITY OF PARIS, BLOCK 233, LOT 13'
• No. 18376 -'CITY OF PARIS, BLOCK 269, LOT 12'
• No. 19103 - 'PICKARD ADDITION, BLOCK 3, LOT PT OF 4'
• No. 19138 -'PINE BLUFF ADDITION, BLOCK 2, LOT 19'
• No. 20430 -'WALKER'S 2ND ADDITION, BLOCK 1, LOT 6, & CITY BLOCK 49, LT P
• No. 22183 -'CITY OF PARIS, BLOCK 89A, LOT 10'
• No. 22213 -'CITY OF PARIS, BLOCK 232, LOT E/PT OF 4'
• No. 53716 -'CITY OF PARIS, BLOCK 297, LOT 27, A1024 WATSON SURVEY, ACRES .46'
• No. 119607 -'CITY OF PARIS, BLOCK 131, LOT PT LT 15, ACRES 0.1148'
• No. 15253 -'CITY OF PARIS, BLOCK 88, LOT 24'
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Tax,, Re Sale, Resolution, Page 4 of 4