Discussion on foreclosing and selling Garland Brothers Funeral Home parcels tabled after committee questions

The Audit and Finance Committee discussed a proposal to foreclose on liens for two county-owned parcels at 75 and 77 Clinton Ave and sell them back to the Garland Brothers Funeral Home family for $200,000, but tabled the item after members asked for more detailed accounting of principal, interest and the distribution of proceeds.

County staff said the Garland family, which has operated the funeral home since 1929, has $200,000 available to resolve delinquent taxes. Under the proposal staff said the county would foreclose on the lien and then sell the parcels back to the family. Staff said the county would retain $187,000 of the $200,000 and set aside $13,000 in a budget line to cover potential claims following recent court decisions (staff referenced Tyler v. Hennepin County and related state-level litigation) that may allow a new owner to sue for differences between sale price and other valuations.

Committee members pressed for a clearer accounting of how much of the $200,000 represents principal versus interest and whether the committee was effectively forgiving interest. One member said, “If we're giving up, you know, dollars 70,000 worth of interest on 1 parcel and we don't seem to be able to know what the interest is on the second parcel … I think we're creating a precedent here.” Staff agreed to provide exact numbers and additional documentation from the bankruptcy court proceedings cited in the backup materials.

A motion to table the item passed unanimously so staff can return with full interest and principal breakdowns and any court documentation. Member Greg Rotten was referenced during discussion as the lawyer staff should consult; Jeff Neal was mentioned as someone who could provide accounting details.