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Council approves multiple foreclosure waivers, late-redemption deed and surplus refund
Summary
The council voted to waive foreclosure on four properties where owners are working with the tax office, approved a request to deed a tax-acquired parcel back to an owner who paid past-due taxes, and authorized $124,192.49 in surplus proceeds be returned to a prior owner.
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Tax Collector Sue McLean appeared before the council to request foreclosure waivers for four properties where owners were actively working with staff on payment plans or sales. McLean said she had held automatic-foreclosure notices for the four properties because the owners were cooperating; councilors moved and approved each suggested motion individually.
On a related item, McLean described a late-redemption case: a property that had been foreclosed for FY2023 taxes was paid in full by the prior owner and McLean asked the council to authorize returning the deed. Council discussed charter and ordinance language, redemption periods and the unusual administrative history; a motion passed to accept payment and authorize the city manager to execute a quitclaim deed returning the property to the owner.
Finally, on a separate parcel that produced surplus proceeds when sold, the city manager explained that legal analysis following a recent U.S. Supreme Court ruling required consideration of takings and surplus distributions. The city proposed dispersing $124,192.49 from fund-balance reserves to refund the surplus proceeds plus interest to the prior owner; council voted to authorize the manager to make the dispersal.
Councillors thanked McLean for working with owners to find alternatives to foreclosure and noted the council must balance legal constraints with equitable outcomes for residents.

