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HomeMy WebLinkAbout04 - Purchase of Tax Defaulted Real Property - 2173 Orchard DriveITEM 4 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: Resolution 2001 -_ Authorizing the Purchase of Tax Defaulted Real Property in Santa Ana Heights (APN #439 - 341 -01, 2173 Orchard Drive) RECOMMENDED (a) Adopt Resolution 2001 -_ authorizing the Mayor to execute a Sale by ACTIONS: Agreement for tax - defaulted real property at 2173 Orchard Drive in Santa Ana Heights (APN #439 - 341 -01); and (b) Direct staff to begin the neighborhood consultation and planning process associated with a public use of the subject parcel within two years. BACKGROUND: When a property owner neglects to pay property taxes for at least five years, the County Tax Collector may sell the property to recoup the outstanding taxes ( §3691 of the Revenue and Taxation Code). Prior to any sale of the tax - defaulted property to the general public: "... the state or city or any taxing agency or revenue district may file with the county tax collector written objection to the sale of along with all application to purchase ... any property that is or may be needed for public use. The written objection shall specify ... the public purpose to which file property is intended to be devoted." Section 3695.4 of the Revenue and Taxation Code On March 12, 2001, the County of Orange notified the City that a parcel addressed at 2173 Orchard Drive (Assessor's Parcel Number 439 - 341 -01) in Santa Ana Heights (on the northern side of Orchard Drive between Cypress and Birch) had tax - defaulted. The outstanding property taxes are $12,800.00. This tax - defaulted parcel today contains a small, dilapidated residence and may contain a portion of horse stalls and a riding ring associated with an equestrian center. While Public Works staff confirmed this understanding based on the legal description of the parcel, a full survey of the subject parcel will better ascertain its boundaries. Subject Parcel Newport Beach City Council Page 2 Photos of Current Use Because the City has an interest in using land in Santa Ana Heights for governmental purposes including, but not limited to, a site for a permanent fire station or for increasing the park acreage within Santa Ana Heights, I consulted with the City Manager and formally "objected" to the sale of the subject parcel on March 23, 2001 (letter attached as Attachment B). With the objection noted, the County is prepared to sell the subject parcel to the City - as long as the City uses the parcel for "the public purpose" for which we acquired the parcel within two years - for $12,800 plus the nominal cost of noticing the parcel's sale in the newspaper. The County requires that the City adopt a resolution stating its intent to purchase the property. We must do so no later than May 17, 2001. Should the City not use the property for a public purpose within two years, State law directs that the property return to the "party who was assessed with the property prior to the imposition of the County Tax Collector's Power to Sell." In preparation for the Council's consideration of this item, I have notified representatives of the Santa Ana Heights Project Area Advisory Committee (PAC) to solicit their views on this matter. I also asked Code Enforcement Supervisor Jim Sinasek to visit the subject property. I will report any comments to the Council at the May 8, 2001 meeting. THIS AGENDA This Agenda Item asks the City Council to adopt a resolution authorizing the ITEM Mayor to execute the Sale by Agreement associated with the subject parcel (APN 439 - 341 -01) and to direct staff to proceed with a planning process associated with the parcel's public use. ATTACHMENTS: Attachment A - Resolution 2001 -_ Attachment B - Agreement to Purchase Tax - Defaulted Real Property (APN 439 - 341 -01) Attachment C - City's March 23, 2001 Letter to County of Orange Page 3 Attachment A Resolution 2001- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH RELATING TO A SALE BY AGREEMENT FOR TAX - DEFAULTED REAL PROPERTY IN SANTA ANA HEIGHTS WHEREAS, the City of Newport Beach has filed for an annexation of territory within its Sphere of Influence known as Santa Ana Heights; and WHEREAS, the City is desirous of adding to public spaces and public amenities in the Santa Ana Heights area; and WHEREAS, in March of 2001, the Orange County Treasurer -Tax Collector issued a notice to the City of the County's intent to sell certain tax - defaulted real property (APN #439 - 341 -01) at or near 2173 Orchard Drive in Santa Ana Heights ( "subject parcel "); and WHEREAS, the amount of delinquent taxes is $12,800; and WHEREAS, in March of 2001, the City formally objected to the sale of this tax - defaulted real property and stated the City's interest in acquiring the property for public purposes; now, therefore be it RESOLVED by the City Council of the City of Newport Beach that it hereby authorizes the Mayor to execute a Sale by Agreement for the subject parcel for $12,800 plus any noticing and /or escrow costs associated with the parcel's sale. ADOPTED this 8th day of May, 2001. GAROLD B. ADAMS Mayor ATTEST: LAVONNE HARKLESS City Clerk AGREEMENT TO PURCHASE TAX- DEFAULTED PROPERTY This Agreement is made this day of , 2001, by and between the Board of Supervisors of Orange County, State of California, and the City Council of the City of Newport Beach ( "PURCHASER" and "CITY "), pursuant to the provisions of Division 1, Part 6, Chapter 8, of the Revenue and Taxation Code. The real property situated within said county, hereinafter set forth and described in this agreement is tax - defaulted and is subject to the power of sale by the tax collector of said county for the nonpayment of taxes, pursuant to provisions of law. WITNESSETH WHEREAS, there is situated in unincorporated Santa Ana Heights that certain real property described in Exhibit "A," attached hereto and made a part hereof, which has been tax - defaulted for five (5) years or more, and WHEREAS, the taxes which are levied on said property include taxes which will, upon annexation, be collected on behalf of CITY by the Orange County Tax Collector, and WHEREAS, CITY needs the property described in Exhibit "A" for a public purpose and intends to devote the property to said purpose two (2) years from the date of this agreement becomes effective. TERMS AND CONDITIONS It is mutually agreed as follows: I. That as provided by Section 3800 of the Revenue and Taxation Code, the cost of giving notice of this agreement shall be paid by the PURCHASER, 2. That the PURCHASER agrees to pay the sum set forth in Exhibit "A ", under the heading "PURCHASE PRICE," within 45 days after the date this agreement becomes effective. Upon payment of said sum to the tax collector, the tax collector shall execute and deliver a deed conveying title to said property to PURCHASER. 3. That for two (2) years following the date upon which this Agreement becomes effective, CITY will not offer said property for sale. 4. That within two (2) years from the date this Agreement becomes effective, CITY will either devote said property to public purposes, or execute a rescission of the tax deed as provided for in paragraph 4, herein. 5. That in the event CITY fails to devote said property to public purposes within two (2) years after the date of recordation of the deed, or if CITY desires to divest itself of said property within said two (2) year period, and not within any extension period approved by the Board of Supervisors, CITY shall execute a rescission of the tax deed which conveyed such property to CITY, and the status of such property will return to that of tax - defaulted real property. 6. That as provided by Section 3808 of the Revenue and Taxation Code, the amount of the "Purchase Price" paid pursuant to this Agreement to the Orange County Tax Collector shall be deposited, like tax collections, in the delinquent sale trust fund and shall be distributed pursuant to Section 4671 et seq. of the Revenue and Taxation Code. 7. This Agreement shall become effective on a date determined by the Orange County Tax Collector, but no sooner than 5:01 p.m. on the 21' day after the first publication of the Notice of Agreement. 8. If all or any portion of any individual parcel listed in Exhibit "A" is redeemed prior to the effective date of this agreement, this agreement shall be null and void as to that individual parcel. This agreement shall also become null and void and the right of redemption restored upon the PURCHASER'S failure to comply with the terms and conditions of this agreement. The undersigned hereby agree to the terms and conditions of this agreement and are duly authorized to sign for said agencies. ATTEST: (Purchaser) (seal) ATTEST: BOARD OF SUPERVISORS Clerk of the Board of Supervisors By_ Deputy By ORANGE COUNTY, CALIFORNIA a Chairman Pursuant to the provisions of Section 3775 of the Revenue and Taxation Code, the governing body of the City of hereby agrees to the sale price as provided in this agreement. ATTEST: CITY OF M Deputy (seal) Mayor Pursuant to the provisions of Section 3795 of the Revenue and Taxation Code, the Controller approves the foregoing agreement this day of 12001. KATHLEEN CONNELL, CALIFORNIA STATE CONTROLLER 0 EXHIBIT "A" First Year Default Purchase Description Delinquent Number Price Parcel 439-34 1-01 $1504.64 94- 010098 $12,800.00 THE REAL PROPERTY IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS: THE SOUTHERLY 125 FEET OF LOT 133 OF TRACT NO. 706, HARBOR VIEW ADDITION TO SANTA ANA HEIGHTS, AS PER MAP RECORDED IN BOOK 21, PAGE 25 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY. TOGETHER WITH THE NORTHERLY ONE HALF OF LOT 152 OF SAID TRACT NO. 706. TOGETHER WITH THE SOUTHWESTERLY ONE HALF OF LOT 151 OF SAID TRACT NO. 706. EXCEPT THEREFROM THE SOUTHERLY ONE HALF OF SAID LOT 151. k4wo-,wc G CITY OF NEWPORT BEACH M March 23, 2001 Ms. Renee Harvey Tax Deed Property Specialist Post Office Box 1438 Santa Ana, California 92702 RE: NOTICE OF INTENT TO SELL TAX - DEFAULTED PROPERTY 2173 ORCHARD DRIVE, SANTA ANA HEIGHTS APN 439 - 341-01 Dear Ms. Harvey: Per Section 3700 of the Revenue and Taxation Code, this letter formally notifies your office that the City of Newport Beach hereby pb ects to the sale of the subject property. We intend to meet the minimum bid requirement ($12,800.00) for APN 439 - 341 -01 and intend to devote the subject property to a public purpose within two years of the date of purchase. Please direct any questions you may have about this matter to me at 949 -644 -3002. Sincerely, ff l� VG1\ Dave Dep uty City Manager cc: Mr. Homer L. Bludau, City Manager Tim Riley, Fire Chief City Hall . 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768 ORANG NT E COUNTY Box 1438 SaOnta Ana, CA 92702 TAX COLLECTOR Telephone (714) 834 -5701 Fax (714) 8344342 March 12, 2001 City of Newport Beach Attn: David A. Kiff, Asst. to the City Manager 3300 Newport Blvd. Newport Beach, CA 92663 -8915 Enclosed is a copy of a Resolution of the Board of Supervisors approving the sale of certain tax - defaulted property in the City of Newport Beach. (See attachment). This is sent to you to comply with Section 3700 of the Revenue and Taxation Code. We require written notification by 3/26/01, regarding either consent or objection to this sale. If you object to the sale, you may purchase the property for the amount of the minimum bid shown on the attached sheet. You are hereby notified that the terms of the "Sale by Agreement" for purchase include the following: That within two (2) years from the date of purchase, the City will devote said property to the public purpose for which they acquired it (Section 3807.5 of the Revenue and Taxation code); that in the event the City fails to devote said property to the stated public purpose within two (2) years, the City attempts to sell the property for any reason, the terms of the agreement and deed will automatically revert the property from the ownership of the City to the ownership to the party who was assessed with the property prior to imposition of the County Tax Collector's Power to Sell. Should you have any questions, please call me at (714) 834 -3527 or Mrs. Laguna at (714) 834 -3808. Si erely, r 1�JU�QSL� 111 Renee Harvey Tax Deed Property Specialist JMWM: RL: rh