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Ellsworth staff outline process and modest revenue prospects for demolitions and tax‑acquired properties
Summary
Staff described how the city bills owners for dangerous‑building demolitions, the potential to place unpaid demolition costs on tax bills as special assessments, and an RFP to market tax‑acquired properties; staff estimated modest near‑term recoveries and said owners receive 90 days’ notice before sale.
City staff told the council they are consolidating approaches to fund dangerous‑building demolitions and manage tax‑acquired properties so that costs are recovered more predictably.
Staff said when the city demolishes a building deemed dangerous it bills the owner; if unpaid the cost can be placed on the following tax bill as a special assessment (subject to legal/process checks) and ultimately recovered if the property is foreclosed through standard tax‑collection mechanisms. Staff acknowledged past litigation and court costs when sales occurred too soon and said recent statutory changes have made the process clearer.
An RFP is underway to contract marketing and sales of tax‑acquired properties. Staff said they will give prior owners 90 days’ notice before sale; initial conservative revenue estimates are modest (staff cited an illustrative $20,000–$30,000 recovery figure for the current fiscal year) and that proceeds typically first cover the city’s expenses.
Councilors asked staff to confirm exact statutory timelines and to consult MMA legal guidance to ensure the special‑assessment and accounting treatment is correct before the final budget. No formal policy change was adopted at the workshop.
