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Director urges mortgage protections for $1 property sales as town weighs options
Summary
The community economic development director recommended adding mortgages to future $1 sales so the town recoups funds if properties sell; staff cited past bankruptcies and title issues in support of the change.
The community economic development director told the committee she will recommend the town place a mortgage on certain $1 sales to ensure the town is paid first when properties are resold. She said staff will place the item on the council agenda for Thursday and that the measure is intended to protect town finances after earlier transactions left the town in a second position.
"It's gonna be my recommendation to put a mortgage on it, and when it's sold, the mortgage gets paid 1st and the town gets its money," the community economic development director said. She described past examples — including a building that went through bankruptcy and left the town with unpaid taxes — as the reason for increasing legal safeguards.
Committee members said the dollar-sale program can work with appropriate legal protections. One member cautioned that the town should not become a real-estate operator and that realtor-assisted sales can remain preferable in many cases. The director said the recommended mortgage will be presented to the full council for a final decision.
