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HomeMy WebLinkAbout1992-099-06/02/1992-CERTIFICATES OF PURCHASE DEBT SERVICE FUND RESERVE FORECLOSURE SID SPECIAL ASSESSMENT RESOLUTION 92-99 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE FORECLOSURE OF CERTIFICATES OF PURCHASE WHEREAS, the City, acting pursuant to state and local law, has previously authorized the construction of certain local improvements through the creation of special improvement districts, and has financed such improvements through the issuance of special improvement district bonds and has assessed the property owners within such districts in order to pay the principal and accrued interest on the bonds; and WHEREAS, certain property owners have elected to pay their assessments in installments and are in default in the payment of the same; and WHEREAS, pursuant to the applicable provisions of law, the City has advertised and sold certain of the district properties which are in default in the payment of assessments and presently holds approximately $7.5 million in certificates of purchase issued by the Larimer County Treasurer; and WHEREAS, the City, by Ordinance No. 34, 1990, has established a Special Assessment Debt Service Fund Reserve ("the Reserve") for the purpose of satisfying certain bonded indebtedness of the City with respect to special assessment bonds until such time as the City is able to obtain clear title to the properties for which certificates of purchase are presently held; and WHEREAS, it is in the best interests of the City to aggressively pursue the acquisition of title to such properties as expeditiously as possible; and WHEREAS, the provisions of Section 31-25-532(4) , C.R.S. , enable any municipality which is a holder of certificates of purchase to bring a civil action for foreclosure thereof in order to realize the greatest possible amount from such property for the benefit of all persons and tax bodies having liens thereon; and WHEREAS, the City Council has approved on second reading Ordinance No. 5_3__, 1992, which also authorizes the foreclosure of certificates of purchase held by the City under certain circumstances. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1 . That the City Attorney is hereby authorized to commence such foreclosure actions as are available by law and to foreclose all , or any portion, of the certificates of purchase presently held by the City or which may subsequently be acquired by the City which are eligible for such foreclosure under the provisions of the City Code. The City Attorney is directed to consult with the City Manager and the Financial Officer to identify those properties which should be included in such foreclosure actions in order to restore such delinquent property to the tax rolls and realize the greatest possible amount from such property for the benefit of the City's taxpayers. Section 2. That the Financial Officer is hereby directed to utilize the Reserve to pay all costs and fees associated with the enforcement of the City's special improvement district assessment liens, including costs and fees associated with the aforementioned foreclosure actions and any subsequent sale of the subject properties. Such costs and fees shall include, without limitation: publication costs; service of process fees; attorneys' fees; title insurance costs; appraisal and marketing costs; fees paid to the County Treasurer; and any general taxes due or past due on the subject properties. Upon the sale of any properties acquired through such foreclosure actions, all costs and expenses incurred by the City in maintaining such actions shall be reimbursed to the Reserve from the proceeds of such sales, with the balance of such proceeds to be deposited into the appropriate special improvement district bond fund or surplus and deficiency fund or utilized in such other fashion as may subsequently be approved by the Council by ordinance. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 2nd day of June, A.D. 1992. Mayor ATTEST: City Clerk