17 - TAX DELINQUENT PROPERTY AND OLD POLICE STATIONItem No. 17
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: TAX DELINQUENT PROPERTIES & OLD POLICE STATION
DATE: June 18, 2015
BACKGROUND: Our delinquent tax attorney, Tracy Pounders, is currently working on a list of
877 properties, plus a number of delinquent accounts for personal property, which have never
been worked before. He recently concluded a successful private sale of certain properties for
which there were already known buyers, and we will have a traditional sheriff's auction in the
next quarter. In addition, Mr. Pounders has opened a part-time office in Paris, and has been
contracted by Paris Junior College to handle their delinquent tax work, both of which will make
him more efficient in his local efforts on our behalf.
STATUS OF ISSUE: Mayor Hashmi has also expressed an interest in selling the old police
station on Bonham. This property is not a tax delinquency, so it must be sold at public auction or
through sealed bids. The city must receive as a minimum the fair market value, which has
previously been determined to be $175,618. It seems extremely unlikely anyone would pay this
kind of money for the old building; however, when we negotiated a sale to a Chicago developer
in 2013, we had agreed to credit to the purchase price the cost of asbestos abatement, which at
that time was estimated at about $150,000. If the council gives direction to market the property,
we will work out the details of such a public provisional sale and move forward.
BUDGET: NA
RECOMMENDATION: Take action and direct staff as appropriate.