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HomeMy WebLinkAbout063 - 06/02/1992 - AMENDING CITY CODE PERTAINING TO THE ENFORCEMENT OF SPECIAL IMPROVEMENT DISTRICT LIENS ORDINANCE NO. 63, 1992 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CERTAIN SECTIONS OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE ENFORCEMENT OF SPECIAL IMPROVEMENT DISTRICT LIENS WHEREAS, the City is empowered by both state and local law to construct local improvements through the creation of special improvement districts and to assess the costs of such improvements upon the property especially benefitted thereby; and WHEREAS, the levy and collection of assessments for local improvements is a matter of purely local concern; and WHEREAS, the City Council wishes to amend certain sections of the City Code pertaining to the calculation, collection and waiver of penalty interest on delinquent assessments; the sale or use of properties acquired through the foreclosure of assessment liens; and the foreclosure of certificates of purchase. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1 . That Section 22-95(c) of the Code of the City of Fort Collins is hereby amended to read in its entirety as follows: Sec. 22-95. Payment of assessments in installments. (c) Failure to pay any installment, whether of principal or interest, when due, shall cause the entire remaining principal balance and accrued interest to become due and collectible immediately. The entire remaining principal balance and accrued interest shall draw penalty interest at the rate of one (1) percent per month. Such penalty interest shall be in addition to the ordinary interest specified in the assessing ordinance and shall accrue from the date of delinquency until the date upon which the property in default is sold to enforce the city's special assessment lien. At any time prior to the day of sale, the owner may pay the amount of all unpaid installments together with accrued interest thereon and penalty interest, and shall be restored to the right to pay in installments in the same manner as if default had not occurred. The Financial Officer shall have the discretion to waive or otherwise adjust the amount of penalty interest due hereunder; provided, however, that any such waiver shall not restore to the owner any right which has been waived under the provisions of § 22- 94 and shall occur only when: (1) prior to the annual sale of property in default, a written protest for waiver has been filed with the Financial Officer stating the amount of the requested waiver and the reasons therefor and, at the time of filing said protest and request for waiver, the property owner has paid all portions of the installment payment of the assessment, excluding only the disputed amount of penalty interest; and (2) the Financial Officer finds that the proposed waiver of penalty interest is necessary to avoid a manifest injustice to the property owner, to correct an error in the calculation of the penalty interest or to resolve a good faith dispute regarding the amount of penalty interest due. Notwithstanding the foregoing, no more than one-third (1/3) of the total amount of penalty interest due on a delinquent installment may be waived unless the Financial Officer finds that such waiver is necessary to correct an error in calculation. In determining whether a requested waiver of penalty interest should be granted to avoid a manifest injustice to the property owner or resolve a good faith dispute, the Financial Officer shall consider the circumstances under which the default occurred, the payment history of the property owner and the best financial interests of the city. Upon granting any waiver of penalty interest under this subsection, the Financial Officer shall forthwith inform the City Council of the amount of such waiver and the reasons therefor. The fact that a payment of penalty interest has been withheld by a defaulting property owner for the purpose of requesting a waiver under this subsection shall not prevent the city from exercising its right under subsection (a) of this Section to sell the property in default for the full amount of the city's assessment lien, including principal , interest, penalties and costs of collection. Section 2. That Section 22-97(d) and 22-97(e) of the Code of the City of Fort Collins are hereby amended, with remaining subparagraphs renumbered accordingly, to read as follows: Sec. 22-97. Receiving of payments; sale of property for default. (d) Cumulatively with all other remedies, if the city is the owner of property by virtue of a tax deed or is the owner of property otherwise acquired in satisfaction or discharge of the liens represented by certificates of purchase, it may sell such property for the best price obtainable at public sale or auction or by sealed bids, or by such other method of sale which may be approved by the City Council . In lieu of selling any such property, the City Council may determine by ordinance that the property should be retained by the city for a particular public use, in which event the Financial Officer shall forthwith deposit into the appropriate special assessment fund an amount equal to the remaining principal balance of the unpaid assessment against the property, plus any accrued interest thereon, excluding any penalty interest. In addition, if the city has incurred costs in connection with the 2 enforcement of its assessment lien against the property, the City Council may require that the fund from which such costs were paid be reimbursed. Such costs may include, without limitation, publication costs, title insurance costs, appraisal or marketing costs, fees paid to the County Treasurer and any general taxes paid by the city on the subject property. (e) Cumulatively with all other remedies, if the city is the holder of a certificate of purchase for a parcel of undeveloped real property having a market value less than the total of the city's assessment lien against such property plus all costs incurred by the city in enforcing such lien, then the City Council may at any time authorize the commencement of a civil action to foreclose such certificate of purchase, joining as defendants all persons holding record title, persons having or claiming any interest in the property or in the proceeds of foreclosure sale, all governmental taxing units having taxes or other claims against said property, and all unknown persons having or claiming any interest in said property. Properties shall be considered to be "undeveloped" within the meaning of this provision unless permanent buildings or structures have been constructed thereon, and the value of such buildings or structures is equal to or greater than the value of the unimproved real property described in the tax certificate, including the improvements funded through the creation of the special improvement district. For purposes of this provision, the market value of the property in question, including any buildings or structures thereon, shall be determined on the basis of the records of the Larimer County Assessor's office or such other records or information as the Financial Officer may deem appropriate, and such determination may be made at any time after the date of the tax sale at which the certificate of purchase to be foreclosed was obtained by the city. Any number of certificates may be foreclosed in the same proceeding. In such proceeding, the city, as plaintiff, shall be entitled to all relief provided by law and actions for an adjudication of rights with respect to real property, including the right to obtain title to such property after the expiration of such period of redemption as is set forth in Part 1 of Article 38 of Title 38, C.R.S. Section 3. The authority to foreclose certificates of purchase referred to in Section 2 of this Ordinance shall apply to all certificates of purchase held by the City which meet the requirements of said Section, regardless of whether such certificates of purchase were acquired before or after the effective date of this Ordinance. Section 4. Nothing herein shall be construed as invalidating any prior proceedings or administrative actions heretofore undertaken by the City or its officers or employees in imposing or collecting special improvement district assessments, and the validity of all such proceedings and actions is hereby ratified and confirmed by the Council , including, without limitation, the Financial Officer's practice of calculating penalty interest in addition to the 3 accrual of ordinary interest for delinquent assessments, and the Financial Officer's application of the penalty interest rate of one and one-half (1 112) percent per month to existing special improvement districts. Section 5. All ordinances, resolutions and regulations of the City in conflict with this Ordinance are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any ordinance, resolution or regulation, or part thereof, heretofore repealed. Introduced, considered favorably on first reading, and ordered published this 19th day of May, A.D. 1992, and to be presented for final passage on the 2nd day of June, A.D. 1992. Mayor ATTEST: (�ity Clerk Passed and adopted on final reading this 2nd day of June, A.D. 1992. A 1 Mayor ATTEST: City Clerk 4