Council hears city may be billed for taxes on properties acquired via alternate redemption; staff to work with county

Interim City Manager John Clark told the Oberlin City Council on March 17 that the city has received a substantial county tax bill for several properties it acquired through the alternate redemption process following tax foreclosure proceedings.

Clark explained the statutory process transfers title to the municipality, but that in some recent cases tax assessments or liens remained attached to transferred parcels. "When the properties transferred...the assessments were not remitted," Clark said, describing a year‑and‑a‑half effort to straighten out the records.

Nut graf: Staff said some taxes accrued after the city acquired properties and are therefore taxable; other assessed penalties appear to be duplicates that staff will seek to clear with the county. For a number of small, nonbuildable parcels staff recommended offering them to adjoining property owners to merge with existing parcels.

What staff told council

- Smith Street parcels: City holds title but two lots are under contract to Michael Bowen’s organization; taxes that accrued after acquisition are expected to transfer to the buyer on sale.

- Kimberly Circle / North Park Street group: Parcels acquired through alternate redemption were thought resolved but a new bill has reappeared; Clark said he will pursue remittance with the county to zero out taxes up to the acquisition date.

- A particularly large arrearage: Clark said one parcel had accrued approximately $35,000 in back taxes and penalties that the city paid to prevent further penalties; he said staff expects a substantial amount will be remitted by the county after review.

- Corner lot at South Pleasant and Groveland: Council Member English said the House of the Lord Fellowship has purchased the lot immediately east of the corner lot and that development prospects make the corner lot a candidate for affordable housing rather than immediate sale; Clark confirmed buildable vs. nonbuildable distinctions and tax‑exemption depends on municipal use and timely application by finance when applicable.

Council members asked clarifying questions about reimbursement timing and which parcels are buildable. Clark said most issues appear resolvable through the county's tax remittance process and that staff will prepare a formal disposal proposal for the council's consideration for parcels that are of no municipal use.

Ending: Clark said he will work with county officials to clear improper assessments, prepare a disposal recommendation for the small, nonbuildable lots and report back to council.