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Home My WebLink AboutMINUTES - 12032002 - SD8 TO:BOARD OF SUPERVISORS 31>x FROM: S€Nano Marchesi, County Counsel By:Dennis C.Graves,Senior Financial Counsel DATE: November 25,2002 SUBJECT: Resolution forgiving portion of taxes and penalties on defaulted parcels SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION 1. RECOMMENDATION Adopt attached resolution under Revenue and Taxation Code Section 4986.3, ordering the Auditor to cancel a specified portion of the taxes and penalties on 20 tax delinquent parcels in Pittsburg, known as the Builders Industrial Park, so as to allow a workout on defaulted 1915 Act bonds, reimbursement of the County for delinquent taxes and assessments previously advanced to agencies, and a future increase in the tax base by development of the property. 11. FISCAL IMPACT Adoption of the Resolution and completion of the workout transaction will forgive approximately $615,000 of penalties on the 20 subject parcels but make the County whole by reclaiming $511,368, constituting all delinquent taxes and assessments previously advanced to public agencies under the Teeter Plan as well as interest on the delinquencies. While taxes and 1915 Act bond assessments are currently delinquent and not being paid, completion of the workout transaction will pay bondholders and allow the property to be developed so as to substantially increase future tax revenues available to public agencies in the area. Ill, BACKGROUND/REASONS FOR RECOMMENDATIONS The subject property consists of 20 parcels in the City of Pittsburg. Taxes and 1915 Act bond assessments on the parcels have been delinquent for approximately 12 years. A foreclosure action was brought by the holders of the bonds which the delinquent assessments would have paid, and a tax sale was held to enforce the Tax Collector's lien for delinquent taxes and assessments. There were no bidders on either the bond foreclosure sale or the Tax Collector's sale. The City, representatives of the bondholders, and a developer have proposed a plan for"working out' the delinquencies, developing the property, and increasing future tax revenues. Under the proposal, approximately$615,000 of penalties on the 20 subject parcels would be forgiven and the property would be cleared of all tax liens for prior tax years, but the County would recover$511,368, which is the amount of all delinquent taxes and assessments previously advanced to public agencies under the Teeter Plan as well as interest on the delinquencies. While taxes and assessments are currently delinquent and not being paid, completion of the workout transaction will make the County whole for its prior Teeter Plan losses, pay bondholders, and allow the property to be developed so as to substantially increase future tax revenues available to public agencies in the area. As required by Revenue and Taxation Code Section 4986.3, this report and recommendation constitutes written consent of the County Counsel to cancellation of the aforenoted taxes and penalties. A Resolution complying with Revenue and Taxation Code Section 4986.3 is attached as Exhibit A hereto. Upon adoption of the above Recommendation, the Resolution will be placed in escrow so that the Tax Collector can be paid the$511,368 at close of escrow. The amounts due on the parcels for the first installment of 2002-3 taxes and assessments will also be paid by the December 10, 2002 deadline. CONTINUER ON ATTACHMENT: _-YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE -APPROVE OTHER ACTION OF BOARD ON Dec• 3, 2002 APPROVED AS RECOMMENDED xx OTHER VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND UNANIMOUS(ABSENT Ngne I CORRECT COPY OF AN ACTION TAKEN AND AYES:- --NOES: I ENTERED ON THE MINUTES OF THE BOARD OF ABSENT: ABSTAIN: SUPERVISORS ON THE DATE SHOWN. ATTESTED: December 3. 2002 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS ANIS COUNTY ADMINISTRATOR By: - -17epufy. Contact:Dennis Graves(335w1833) Senior Financial Counsel cc:Ken Corcoran,Auditor-Controller THE BOARD OF SUPERVISORS CONTRA COSTA COUNTY,CALIFORNIA. Adopted this Resolution on December 3, 2002, by the following vote: AYES: Supervisors Uilkema, Gerber, DeSaulnier, Glover and Gioia NOES: None ABSENT: None ABSTAIN: None RESOLUTION NO. 200V 745 SUBJECT: APPROVING THE REDUCTION OF TOTAL AMOUNTS DUE (INCLUDING PAST DUE TAXES, INTEREST, PENALTIES AND PENALTY INTEREST) ON CERTAIN PARCELS WITHIN THE CITY OF PITTSBURG°S ASSESSMENT DISTRICT NO. 88-3, PURSUANT TO SECTION 4986.3 OF THE CALIFORNIA REVENUE AND TAXATION CODE WHEREAS, pursuant to Section 4986.3 of the California Revenue and Taxation Code ("Section 4986.3"), all or any portion of any uncollected tax, penalty, or costs, heretofore or hereafter levied, and not heretofore validly cancelled, may be canceled by the auditor on the order of the board of supervisors with the written consent of the county counsel, if levied or charged on property subject to assessment for the payment of bonds issued under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) (the "Act") where that property was acquired after the lien date by a city entitled to bring foreclosure proceedings and the governing body of the city by resolution declares that the acquisition was under foreclosure proceedings within the meaning of Section 4986.3; WHEREAS, the parcels identified in Exhibit A(the"Parcels") are located within the City of Pittsburg Assessment District No. 88-3; WHEREAS, the assessments levied by the City of Pittsburg (the "City") against the Parcels have been delinquent on the lien date for several years, resulting in the failure to make payments on bonds issued under the Improvement Bond Act of 1915; WHEREAS, the City is entitled to bring foreclosure proceedings against the Parcels in connection with such delinquent assessments and has obtained judgments in judicial foreclosure with respect to such Parcels; WHEREAS, in order to invoke Section 4986.3 the City is required to acquire title to the Parcels by foreclosure proceedings within the meaning of Section 4986.3, after the lien dates for which the parcels have become delinquent; WHEREAS, the governing body of the City has declared that it will acquire title to the Parcels in a manner that constitutes acquisition by foreclosure within the meaning of Section 4486.3, after the lien dates for which the parcels have become delinquent; WHEREAS, the City will insure that the amount of $511,368 will be paid to the Tax Collector of Contra Costa County for past due taxes and interest and related costs on the Parcels; WHEREAS, the Board of Supervisors of the County of Contra Costa (the =Board") has obtained the written consent of the County Counsel for the cancellation of all taxes, interest, penalties and penalty interest otherwise due on the Parcels, contingent upon payment of the $511,368 to the Tax Collector of Contra Costa County; NOW, THEREFORE, THE BOARD DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. This Board hereby determines that all the requirements of Section 4486.3 have been met. SECTION 2. The Board hereby orders that, upon payment of$511,368 in past due taxes and interest and related costs to the Tax Collector of Contra Costa County, the auditor cancel any remaining taxes, interest, penalties and penalty interest with respect to the Parcels for fiscal year 2001-2002 and all prior fiscal years. SECTION 3. The Board hereby orders that a certified copy of this Resolution be deposited into such escrow account as designated by the City. Y hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: JOHN SWEETEN,Clerk of the Board of Supervisors and County Administrator By: w :� k s: , Deputy C:88-3 I2 esoDCG-ssbm.doc 2 E xA 085-280-018 085-260-019 085-260-020 085-280-021 085-260-022 085-260-023 085-280-024 085-260-027 085-260-028 085-260-029 085-260-080 085-260-031 085-260-032 085-260-033 085-260-034 085-260-035 085-260-036 085-260-038 085-280-039 085-260-042