Council debates removing two property assessments after sales; staff recommends liens remain

Finance staff asked the council to remove two assessments placed after the city performed abatements and later assessed the properties. The two parcels cited were 7044 Hubbard Drive and 4025 Kennebec Avenue. Staff said the assessments were prepared in September but the parcels changed hands before the county received and applied the assessment to the tax roll, leaving the new owners surprised when they received tax notices.

Jim in finance explained the amounts in the legislation: one assessment was $619 and the other $3,004.14. Councilmembers spent an extended period questioning whether the city could legally pursue prior owners, whether title companies or buyers should have discovered the assessments, and whether the city should remove the liens as a matter of policy.

City staff and the city attorney explained that assessments normally attach to the property, not the prior owner, and that the county’s recording and title processes are the mechanism by which these charges are discovered at closing. Several councilmembers said the issue appears to be a private dispute between buyers and title companies in many cases. Council discussion repeatedly noted that when title companies call the city prior to closing, finance and zoning staff can confirm pending assessments.

No formal removal was approved at the work session. Staff said it would bring legislation on Monday; council discussion indicated a preference to retain liens and encourage affected owners to pursue remedies with their title company or through private means. Councilmembers also asked staff to check whether one of the parcels had been acquired via sheriff’s sale or foreclosure, which can affect buyer obligations.

The council heard that the two assessments followed city action to abate blight and recover costs, and that the city has collected similar assessments in prior years when they were properly placed on the tax roll before sale.