HomeMy WebLinkAboutResolution No. 2008-24Suggested by: Administration
CYTY ®F KENEII
RES®LUTION N®. 2008-24
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
TRANSFERRING $13,200 IN THE GENERAL FUND TO PAY TAXES DUE ON
MOMMSEN SUBDIVISION PROPERTY DESCRIBED AS LOTS 1 - S, BLOCK 10,
MOMMSENS SUBDIVISION REPEAT OF ADDN. 1 & 2 (PARCELS 039-103-01
THROUGH 039-103-OS).
WHEREAS, the City of Kenai acquired certain Mommsen Subdivision property through
foreclosure; and,
WHEREAS, land described as Lots 1 - S, Block 10, Mommsens Subdivision Replat of
Addn. 1 & 2 (Parcels 039-103-01 through 039-103-OS) have been offered to a third
party; and,
WHEREAS, taxes on the property must be paid prior to the transfer of ownership; and,
WHEREAS, the City expects to be repaid for the taxes and will obtain security for
repayment of the taxes; and,
WHEREAS, funds are available in the General Fund Contingency account.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the following budget transfers be made:
General Fund
From: Non-Department -Contingency $13,200
To: Land -Miscellaneous $13,200
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of
May, 2008.
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P T PORTER, MAYOR
ATTES~T:~ ~
~~^%~i- i
Carol L. Freas, City Clerk
Approved by Finance:
(04/23/2008) hl
MEMORANDUM
To: City Council
Through: Rick Koch, City Manager
''t
From: Larry Semmens, Finance Director
Date: April 10, 2008
Subject: Resolution 2008-24 paying taxes on foreclosed property
Ordinance 2300-2008 -transfers foreclosed Mommsen Subdivision
property to the Amundsen Foundation. The property has taxes and
assessments due. The taxes need to be paid prior to the transfer of
ownership.
The agreement with the Amundsen Foundation is that they will pay the taxes
and assessments due at the time they sell the improved property.
Since the taxes have to be paid prior to that date, the City will have to pay
them and wait for reimbursement. This is a good deal for the City because
this property has not sold at foreclosure sales, but the improved property
probably will sell. This will put the property back on tax roll at a much
higher value.
The worst case in this is if the Amundsen Foundation does not build or sell
the houses that they have planned and the City gets the property back. We
would again try to sell the property at foreclosure sales. If the property did
sell, the City would be able to keep all of the proceeds since the taxes would
have already been paid.