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Assembly reviews ordinance to sell tax-foreclosed properties; staff flags potential liabilities and minimum-bid rules

June 17, 2025 | Fairbanks North Star (Borough), Alaska


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Assembly reviews ordinance to sell tax-foreclosed properties; staff flags potential liabilities and minimum-bid rules
Treasury and budget staff, joined by Joanne Pascoe, presented an ordinance authorizing disposition and sale of properties the borough acquired through tax foreclosure. "We took 108 properties in the tax deed for the 2022 tax year... we have 19 properties left over that we have not sold that we've taken in previous years," the Treasury representative said.

Assemblymembers asked for context and safeguards. Committee members requested historical foreclosure counts; staff said the number taken this year was "about average" when the borough had skipped tax-deed the prior year, putting typical annual takes between 45 and 55. On property condition and liability, one member asked whether the borough screens for distressed buildings or environmental issues that could leave neighborhoods with problematic properties if a buyer abandons them. Pascoe said staff do wintertime drive-by inspections prior to taking tax deed, but full inspections on private property are generally limited until title is taken. She acknowledged that some parcels appear to have abandoned mobile homes or other distressed structures, but said nothing on the list resembled the unique, post-fire Colligan property discussed as a cautionary example.

Minimum-bid procedures and statutes were discussed. An assemblymember asked whether the borough could set minimum bids lower than the back taxes and fees to encourage sales of properties where taxes exceed market value. Pascoe responded: "State statute, no, we have to follow. Minimum bid is what is owed to the borough." The committee also discussed the borough's 10-year rule: properties held longer than 10 years may be transferred to the borough's Department of Natural Resources for over-the-counter sales at potentially different pricing.

Staff said property owners may redeem tax-deeded properties up to the time of sale; the deadline noted for repurchase was 5:00 p.m. on September 10 (the tax sale date) for the current cycle. Staff indicated that the minimum bids listed in the sale packet will reflect back taxes, foreclosure processing costs, and fees.

Ending: The assembly asked staff to provide historical foreclosure count data and to include clearer notation in future packets about which parcels may carry environmental or structural liabilities. The ordinance to move foreclosed properties to sale was discussed and will proceed through the normal ordinance process; no final vote was recorded at this committee meeting.

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