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HomeMy WebLinkAbout1992-091-05/19/1992-FORECLOSURE PROCESS POLICY SALE OF PROPERTY SID SPECIAL ASSESSMENT RESOLUTION 92 - 91 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING A POLICY FOR THE SALE OF PROPERTY ACQUIRED THROUGH OR IN LIEU OF SPECIAL ASSESSMENT FORECLOSURE PROCESS WHEREAS, pursuant to the authority contained in the state statutes and Chapter 22 of the City Code, the City Council has heretofore authorized the creation of certain special improvement districts (the "Districts") and has issued certain special improvement district bonds ("the Bonds") to pay the costs of constructing and installing public improvements within the boundaries of the Districts; and WHEREAS, the Bonds issued by the City for this purpose are payable from assessments levied against the benefitted District properties, and the payment of the assessments is secured by liens against said properties; and WHEREAS, certain properties have become delinquent in the payment of assessments, and the City has foreclosed its assessment liens against said properties, resulting in the issuance of certain certificates of purchase to the City; and WHEREAS, if no redemption of such certificates of purchase is made within the period of time provided by law, the City intends to apply for and obtain title to the real properties represented by such certificates; and WHEREAS, the Council of the City of Fort Collins intends to fulfill the City's obligations to its bondholders by reselling such properties and applying the proceeds of the sales, less costs and fees, to the payment of the Bonds; and WHEREAS, City staff has proposed for Council 's consideration a sales policy which would provide guidelines and procedures to be used for the sale of such properties; and WHEREAS, the Council considers it to be in the best interests of the City to establish such a policy for marketing and selling such properties. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the "City of Fort Collins Sales Policy for Property Acquired Through or in Lieu of Special Assessment Lien Foreclosure Process," a copy of which is attached hereto and incorporated herein by this reference, is hereby adopted by the Council . Section 2. That the City Manager shall market and sell the real properties acquired through or in lieu of foreclosure of the City's special improvement district assessment liens in the manner described in said Policy. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 19th day of May, A.D. , 1992. v /Im Mayor ATTEST: W-City Cle City of Fort Collins Sales Policy for Property Acquired through Or in Lieu of Special Assessment Lien Foreclosure Process The City Manager is authorized to market, sell and convey surplus special assessment properties acquired through or in lieu of foreclosure of assessment liens. The purpose of this policy is to establish guidelines for the City to fulfill its contractual obligations to holders of special assessment bonds, to provide information to the public, and to meet the Council 's desire to actively pursue the sale of special assessment properties. I. Property Included All present and future City-owned property acquired through or in lieu of foreclosure shall be included in the Sales Policy for Property Acquired through or in Lieu of Special Assessment Lien Foreclosure Process. II. Marketing A. Marketing information will be disseminated through mechanisms such as mailings, advertisements, the City's cable television programs, press releases, Fort Collins area real estate brokers and Fort Collins Multiple Listing Services. Signs will be placed on individual properties. B. Rezoning or replatting of the property will be considered which is consistent with the optimal land usage and in the best interest of the residents of the City. The City will comply with all provisions of the City Code pertaining to such actions. III. Sale of Property The City will offer these properties 'for sale, unless, as described below, the property is retained by the City for public use. The asking price of individual parcels shall be based on market value. The City shall engage a licensed real estate appraiser to periodically review the City's inventory of property to determine a range of market value. The asking price for the property shall be set accordingly. The City may sell the property directly, without the assistance of a real estate broker or salespersons, or it may enter into an exclusive or non-exclusive listing agreement. If an exclusive listing agreement is entered into, the listing broker will be selected through the City' s established purchasing procedures set forth in the Code. Under this method of sale, the City will pay a commission upon the sale of the property to the listing broker. If the non-exclusive listing approach is chosen, any broker licensed in the State of Colorado shall be eligible to procure a purchaser. The City will pay a sales commission upon the sale of the property to the first broker that produces a purchaser who completes the purchase of the property upon terms acceptable to the City. If a listing or selling broker is used, the City shall sell the property for an amount at least equal to the appraised value of the property or if such amount cannot be obtained within a reasonable period of time, for such lower price as may be approved by the Council . If during the term of the listing agreement(s) , no acceptable offer to purchase is received by the City, or if the City decides not to list the property with a real estate agent, the City may decide to sell the property for the best price obtainable by auction, sealed bid or such other competitive process as may be approved by the Council. All such sales shall be subject to approval by the City Council. If the City Council decides that the City should retain the property for public use, it may do so by depositing 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 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. Any decision by the City to retain the property should be made: (1) before the City offers the property for sale or enters into any listing agreement for the property, or (2) after the City has attempted to sell the property and no acceptable offer has been received. The City should not decide to retain any property while offers to sell the property are outstanding or listing agreements are pending. Other governmental agencies interested in acquiring properties which are subject to this policy should be required to compete with other interested purchasers, unless the City Council determines by ordinance that the City's interests would best be served by selling the property to a particular governmental entity for a particular public use which is of benefit to the City's taxpayers, in which event the City shall pay from the General Fund or other appropriate fund any difference between the sales price of the property and its market value, as determined by a qualified appraiser. IV. Financing The City of Fort Collins will not offer financing to a prospective purchaser. V. Responsibility for Property Acquisition, Sales, and Maintenance A. The responsibility for this function shall be within Administrative Services/Finance Department. B. The City Manager's annual recommended budget shall include sufficient funding for staffing, equipment, advertising fees, appraisals, environmental audits, title work, payment of outstanding superior liens, recording fees, commissions, closing costs and maintenance of properties. C. Any property owned by the City shall be maintained in compliance with the City Code and laws of the State of Colorado. Such maintenance shall be the responsibility of the City.