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.