HomeMy WebLinkAbout1992-09-30 92-453 ORDERCOUNCIL ACTION 92-653
Item No.
Date September 30. 1992
Item/Subject: Authorizing Execution of Municipal Quitclaim Deeds
-- Real estate Located at 1730 6 1732 Ohio Street
Responsible Department Legal
Commentary:
The City of Bangor currently holds tax title to two, vacant
parcels on Ohio Street, constituting the former Chase family farm.
See attached sketch. The two parcels, totalling some 67.6 acres,
have a combined assessed value for tax purposes of 889,400 (FY 1993
valuation). The City has held tax title to the two parcels since
1987, when the City foreclosed a number of real estate tax liens
dating back to 1982. The property has not been on the City's tax
rolls since FY 1988. The current balance owed on account of the
City's 1982-88 tax liens, plus interest, exceeds $1O,,000, and would
approach $20,000 if taxes had been assessed for FY 1989-1993.
In December, 1987, by Council Order 88-50, copy attached, the
City Council authorized a public sale of the property. That sale
CONTINUED ON NEXT PAGE
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Associated Information: Order, Sketch, Council Order #88-50,
Memo dated 6-21-89, Letter dated 8-19-92.
Budget Approval
Finance Director
Legal Approval:
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Introduced For
X Passage
First Reading
Referral Page 1 0£ 9
was deferred to allow the various .Chase heirs interests to redeem
the property for the outstanding taxes. See Memo from Bob Miller
dated .lune 21, 1989, copy attached. Unfoxtunately, the various
Chase interests who had been in contact with the City Solicitor's
office were unable to arrangea
redemption of the property, and
nothing came of their efforts.
Recently, City staff have been attempting to formulate a
disposition plan for sale or other City use of this property.
Those efforts have generated a number of purchase requests from
City residents in the Ohio Street area, and have stirred various of
the Chase heirs to new efforts to redeem the property. Peter Chase
of Glenburn and James M. McLeod are among the heirs who have asked
that the Chase family be allowed to redeem the property for taxes
owed. A copy of Mr. Mcleod's letter dated August 19, 1992 is
attached. At the Municipal Operations Committee's consideration of
this item on September 15, the McLeod interests renewed their
request, as did Peter Chase.
The Municipal Operations Cosmdttee made no recomendation on
this item. The Council is free, inits discretion, to either grant
or deny the Chase heirs' request. The attached Order, if adopted,
would allow a redemption of the property, which would run to all of
the Chase heirs concerned, rather than to any particular individual
or group. If the City elects to retain title and later sells the
property, a modest am unt of additional legal work would be
required prior to sale to confirm the marketability of the City's
tax title.
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Introduced by C, cilor Seal, December l9Fi
CITY OF BANGOR
(TITLE.) 1(PTDert Pelletizing sal f Tax Acquired Property
_ . _
......._ __.......
-- Ohio Street -
BY 014 City Calmed Of thm City OfItamyar: -
ORDERED,
THAT the Purchasing Agent is hereby authorized to take all
necessary action for purposes of providing for the sale by public
bid of certain tax -acquired property located on Ohio Street,
Bangor, designated as Lots Nos. 4 and 5 on Assessor's Map No.
R-13; and be it further -
ORDERED,
THAT the City Manager is hereby authorized and directed, on
behalf of the City of Bangor, subject to final approval by the
Finance Committee, to execute all necessary deeds and other
documents transferring title by Municipal Quitclaim Deed to said
property to the successful bidder.
MEMORANDUM
June 21, 1989
T0: Bangor City Council
FROM: Robert E. Hiller, City Solicitor
RE: Tax -Acquired Property: Property on Ohio Street
For a period of several yeas I have attempted to resolve a
long-standing tax problem concerningn
two lots located a t
r Ohio Street.
One of the lots is listed as being owned by the John C. Chase Heirs The
other is listed as being owned by the Alexander H. Chase Heirs. These
gentlemen, who were related, died many years ago. The list of their known
heirs is quite large and is growing each year.
Over the yea various members of the family haveattempted to
solve the title problems witthe lots. We have worked with them without
success to date.
The City has liens running back to 1982. In 1988, 1 was
notified that efforts by family members to e the title problems had come
o
an end. At that time, it appeared no further action would be taken by the
heirs of either gentlemen. Therefore, I recommended that the City Council
authorise sale of the property. By Council Order No. 88-50, adopted December
14, 1987, the Council directed the Purchasing Agent to take all necessary
eces ary
action for purposes ofconductinga public sale of the property.
The matter was held in abeyance until the following Spring when
it was expected that there would be a sale of other surplus City -owned
properties. In the meantime, I r communications further counications from family
members Wishing to resolve the title issues.
Last e
eek I received another telephone call from ember of
the family who hasexpresseda sincere interest in paying off the back taxes
and attempting to get the title matter straightened out. I informed bar that
we would not permit o x liens to be used to displace any person having an
interest in the property, a and therefore any conveyance back would be to the
"Alexander H. Chase Heirs" and "John C. Chase Heirs" without trying t
identify who they might be. In addition, I indicated that such action would
require City Conseil action and was discretionary on the pert of the City.
She stated that she understood our position and asked that I proceed to get
the necessary authority and to give her a statement as to the outstanding
taxes due. -
I bring this matter to your attention at this time because It
now appears the back taxes will be paid If weare authorised to accept them.
I recommend that such authority be granted.
We have always operated under the principle that the purpose of
the [ax lien process s to Insure the payment of t and n o be used to
acquire property. Furthermore, the title acquired by virtue of our liens is
somewhat questionable. A racier decision of the Maine Supreme JudicialCourt
construing the tax lien statute
o suggests that notices must be given c all
persons having an interest in the property a may be determined by a
reasonable search. In this particular case, as
are likely 60 or 70 persons
having a w
interest in the property. Although most of the family £s of
the tax problem. I expect that the Tax Collector has not given formal notice
to each and every one of them. In order to perfect our title, such notice
would have tobe given, and there would be a 3 -month redemption period.
Unless any member of the Council has any questions o
objections, I will proceed to ork out the final details for receipt of
payment of the back taxes, plus interest, costs. etc. Upon completion of the
payments,will askthe Council for authority to convey the property back a
indicated above. If this last effort to take c of the tax problem does not
come to fruition, then I will proceed to take additional action to try t
Identify all remaining persons having an interest in the property, give notice
to them and if the taxes are not paid within the redemption period, to
proceed with the previously -authorized sale. -
R.E.K.
to
cc City Manager
Treasurer
f
y orea- .
AUG20 i332. - -
August 19, 1992
Bangor City Caucil M•' -•F-^'.'•
73 Harlow Street
Bangor, Pit 04401
Dear Members of the Bangor City Coucil,
I am writing on behalf of the heirs of the Chase property located on
Ohio Street in Bangor. In particular I represent my folks Sohn and
Marion McLeod who reside at 1397 Ohio Street, Bangor.
For a number of years now the heirs of Chase property have been attempt-
ing to clear the title to this property. As you can well imagine the
task has been very complicated, expensive, and time consuming due to the
years in which the property has been with no clear title.
Me McLeods, Blaisdells, Chases and several other heirs to the property
began the process of clearing the title in earnest several years ago.
This task was undertaken after discussions with the city lawyer, Bob Miller,
both by our lawyer and family members. At that time the indication was
that the city desired to return the land to the active tax roles and would
allow the family to reclaim it for the back vases owed. Based on that
understanding we have now arrived at the point where we posses a substantial
portion of quick claim deeds required to clear the land. These deeds
will be registered with the city under H. Marion McLeod of 1397 Ohio St.
Recently I spoke with Erik Stumpfel to update the city on our progress.
He mentioned that the city desired to acv on finalizing the situation in
the near future.
Considering all that has transpired with the family efforts, I earnestly
request that the city release the land as soon as possible forthe current
taxes owed. We are prepared to pay those back taxes at this time. We
will then proceed to clear the last portion of the title in court. At
the point of the back taxes being paid the McLeod family will maintain
the yearly property taxes from that point on.
As life long residents of Bangor, and faithful city tax payers we
- -
sincerely hope that the council will grant this request and we thank
the city for its patience in allowing us time to deal with this matter.
Sincerely,
�%a..,aL,). M£A'O
James W. McLeod
92-453
Awib eA to Councilor Soucy, 9cpccmbcr 30, 1992
CITY OF BANGOR
(TIRE) gp_fDeT ' Ruttlorising Execution of Muni ipal QuitclaiM Deeds
Vtl r r.........; ....
-- Real Estate Located at 1730 a 1732 Ohio Street
By AAs CBy Caami!of As Cfh'ofRanyM:
ORDERED, -
TWT Sohn Quarters=, Finance Director, is hereby
authorised and directed, on behalf of the City of Bangor, to
execute Municipal Quitclaim Deeds, in a fora approved by the
City Solicitor, releasing any interest the City may have in
two parcels of land located at 1730 and 1732 Ohio Street by
virtu&0f,undischarged tax liens recorded against said parcels
+ in the, nobscot Registry of Deeds for the tax years 1982-1988.
Said deeds shall be delivered to the representatives of the
respective Chase Beira upon payment to the City of .Bangor of an
amount equal to taxes and accrued interest assessed against said
properties for the period 1982-1988 and the amount of taxes and
interest that would have accrued bad the property been currently.
assessed on the City's tax calls for the period 1989-1993.
In City Council September 30, 1992
Passedsmended -
Mmended by adding the following
e City Idenager shall deliver a Quitclaim
Deed or Deeds to Representatives
of the Chase Heirs only upon payment
or said Taxes and interest and only
if paid in fall within 60 days it= the
date of this order
Cyt— y CleyyO
9s-453
ORDER
Title,
Authorising Execution of Municipal �!
„Qu#tClaim Ireed Real 6etate Located at
1930 & 1732 Ohio St
......................................
AssignM to
(,J Coweilmen