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Council keeps full assessments on tax-forfeited 514 6 Street parcel pulled from auction
Summary
Council decided to leave full assessments in place on a tax-forfeited property pulled from auction after staff reported a missed notice to lienholders; members discussed options to tie assessment reductions to development timelines but reached consensus to retain assessments while remaining open to future arrangements with developers.
Council reviewed a staff report that a tax-forfeited property (the old school with adjacent parking, referred to at 514 6 Street) had been pulled from auction because the county had missed a required notice to lienholders. Staff advised that the property carried assessments for highway improvement work totaling about $8,741.57 and approximately $661 in unpaid utility charges. By law, lienholders must be notified and have up to 60 days to respond, so the auction was paused while that process proceeds.
Council members discussed options for handling the assessments after sale. Suggestions included a 50% reduction or conditional waivers tied to an explicit development plan and a 24-month build timeline; members also proposed creating a consistent city policy to apply criteria rather than deciding case by case. Several members warned that deep discounts risk buyers acquiring property and leaving it undeveloped, which would not serve community goals.
After debate, the council reached consensus to leave the full assessments in place and to communicate a willingness to work with a future buyer — for example, by entering an agreement to release assessments if the buyer meets an agreed development timeline. Staff was asked to prepare a clear policy and to provide prospective bidders with the city’s position to avoid surprises at auction.
No reassessment or waiver was granted at the meeting; the council’s vote left the legal assessments intact while preserving discretion to negotiate with a purchaser who presents a concrete development plan.
