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MINUTES/FINANCE COMMITTEE
Monday, October 5, 1998 - 2:15 p.m.

Members present: Babinchak, Brooks, Carpenter, Hamerlik.

1. Matter of cancellation of delinquent taxes on County property
which is being sold.
Doris Bring, County Auditor, 201 South 4th Street, presented request to cancel special assessments on the following properties: Lots 1 and 2, and Lots 7 and 8, Block 1, Mikkelson-Landeco 2nd Resubdivision. She reported that in 1985 the County was deeded these properties from a bank in East Grand Forks, 10 lots at that time and all sold except four lots, that these four lots have been on their books for quite some time and have tried to sell, and finally hired realtor.

Carpenter reported present.

She reported they put enough money on the lots to cover the specials but were with a realtor for quite some time and an offer was made for $3,000 commission fee, and amount to shortage is $4,283.93. She asked if they could cancel those specials that date back to 1985, 1986 and part of 1987, then apply the balance of $14,314.56 to the remaining specials, bringing up to date and put properties back on the tax rolls. She reported that lots being sold for approx. $17,600 (less $3,000 fee, quiet title action, and transfer of papers). Mr. Schmisek reported that the reason the other $4,000+ in specials isn't being paid is that there was agreement with realtors for the $3,000 fee and coming off the $17,000+ right away, and sold for about $1200 less than what would have covered the full specials.

Mrs. Bring reported lots are located on South 18th Street between 24th and 28th Avenues South (with group home in between the sets of lots). She also reported that someone is ready to move housing onto the lots; she stated they have tried to sell for quite some time.

Brooks questioned the amount of the realtor's fee of $3,000 on these lots; and it was noted that lots listed under multiple listing (Del Scholler)

Moved by Carpenter and Hamerlik to approve the request to cancel delinquent special assessments in the amounts of $4,283.92 on Lots 1 and 2 and Lots 7 and 8, Block 1, Mikkelson-Landeco 2nd Resubdivision. Motion carried/Brooks voted against the motion.

Hamerlik stated that what is happening is that lots sold for less, that there was enough money for all the specials but to pay Scholler the City is taking the loss. Mrs. Bring reported that she didn't have figures with her but the $3,000 may have included quiet title action and other paperwork.

Mr. Schmisek reported that in years past the city has done this in the past, during time when City was trying to sell 600-700 lots, started taking 80% of the value of the unpaid specials in order to sell some of those, and forgave the remainder balance to get on rolls again.

Moved by Carpenter and Hamerlik to adjourn; meeting adjourned at 2:25 p.m.

Alice Fontaine
City Clerk

Dated: 10/05/98