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Governing body approves special-assessment penalty abatement for three Lawrence Bay lots; county tax-foreclosure filing complicates options
Summary
Council approved an ordinance that waives city special-assessment penalties in exchange for payment of past-due taxes and specials on three Lawrence Bay lots owned by Marney Properties LLC; staff warned the county has included the lots in a tax-foreclosure sale, and commenters pressed for clarity about lost tax revenue and transparency.
The governing body on Sept. 16 approved an ordinance to accept payment from Marney Properties LLC for past-due taxes and special assessments on three vacant lots in Lawrence Bay Estates and to abate the city’s special-assessment penalties as part of that agreement.
Deputy City Manager Braxton Copley explained staff had negotiated a deal in which the owner would pay past-due property taxes (including penalties) totaling $10,416 and past-due special assessments totaling $82,593; in return the city would waive penalties on the specials. Copley told the council the waiver of penalties would not financially harm the city because, if collected, those penalties would be retained by Shawnee County rather than the city.
Copley told the body the three lots are currently included in a county tax-foreclosure petition filed the prior week. He advised the council that if the offer were rejected, the lots would go to auction at the county sale and the city would face the alternative of bidding to protect its special-assessment liens, buying the lots, and then placing them into the land bank and seeking to recover costs through future sales.
Daniel Twamlo, a public commenter, urged greater transparency and argued the city had lost property-tax revenue from vacant lots that were never developed. Twamlo said adjacent homeowners had paid specials and taxes while the three lots remained vacant and added that the public would like clearer information about lost tax revenue and whether the lots paid readiness-to-serve charges for utilities.
Council debate focused on whether the city should accept the payment and settle the specials or allow county foreclosure and potentially acquire the lots. Councilman Dobler framed the choice bluntly: “You can get something or you can get nothing,” urging the council to accept the payment to recover a portion of the amount owed. Several council members said they preferred accepting the owner’s payment as the fiscally pragmatic option.
A motion to approve the ordinance accepting payment and abating the city’s penalties passed on an 8–1 vote, with Councilwoman Valdivia Acala voting no. Council members noted staff recommended acceptance and that county action made timing urgent.
Clarifying details recorded in the meeting: three Lawrence Bay lots were included in the county’s tax-foreclosure petition; the owner offered to pay $82,593 in past-due specials and $10,416 in back taxes including penalties; staff said the county would retain any special-assessment penalties if collected. The ordinance includes no requirement that the property owner complete development on the lots after paying the assessments.
What’s next: staff will process the payments if received and effect the penalty abatement as authorized by the ordinance; if the payment is not made, the city may need to evaluate whether to bid at the county tax-foreclosure sale to protect its lien interests.
