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RFD- 3077 Business Items   Item #   11. a.    
Regular Council Meeting Agenda
Meeting Date: 08/14/2017  
Title:    Tax Recovery - Goodwin
Department: Corporate Services  
Strategic Vision Element: n/a Related Goal: Spruce Grove has a robust, growing economic base that generates balanced revenues to support the City’s high standards for services and programs.

Information
Request for Decision Summary
The purpose of this report is to have Council approve the terms and conditions and reserve bids for the 2017 tax recovery public auction scheduled for November 15, 2017.

Proposed Motion
 
It was moved by Alderman Steinburg on July 17, 2017 that the terms and conditions for the 2017 tax recovery public auction be approved as presented. The motion was referred to administration and remains on the floor.
 
 
That the reserve bids for the 2017 tax recovery public auction be approved as presented.
Background/Analysis
The Municipal Government Act requires that a municipality must annually prepare a tax arrears list showing the parcels of land on which there are tax arrears for more than one year as of March 31. Any parcel of land shown on the 2016 tax arrears list which remained in arrears on March 31, 2017 must be offered for sale at public auction between April 1, 2017 and March 31, 2018. Additionally, Council must set a reserve bid that is as close as reasonably possible to the market value of each property and any terms and conditions that apply to the sale, hence the second motion requested above.

Schedule 1 sets out the terms and conditions that apply to the sales. Prohibited participants have been considered by the Province and are set out in 429(1) of the MGA. Legislation does not prohibit the municipality from adding to the list of prohibited participants. Administration has considered the inclusion of "immediately family" to those parties listed as prohibited participants and does not recommend this action as there is an inability to verify this and ensure conformance to the term.

Schedule 2 lists the reserve bids at the market value of each property, as determined by the City Assessor.

 
Options/Alternatives
To approve the terms and conditions but with a revision to term #5 so that it reads; "The auctioneer, aldermen, the chief administrative officer and the designated officers and employees of the municipality must not bid for or buy, or act as an agent for buying, any parcel of land offered for sale. This exclusion is extended to include immediate family of these prohibited participants".
Consultation/Engagement
A third party has been contracted to manage the property tax arrears recovery process.
Implementation/Communication
Both the City and the contractor have issued correspondence throughout the process to advise property owners of the pending auction if arrears are not paid in full. In compliance with the MGA, the Alberta Land Titles office has sent notices (prior to August 1, 2016) to all registered property owners and caveat holders stating that if tax arrears are not paid before March 31, 2017 the municipality must offer the parcel for sale at public auction. The 2017 public auction is scheduled for Wednesday, November 15, 2017 at 10 a.m. in Council Chambers. This auction will be advertised in accordance with the requirements in the MGA.

Terms, conditions and reserve bids must be approved at the August Council meeting for the advertising deadlines to be met. 
Impacts
n/a
Attachments
Schedule 1 - Terms
Schedule 2 - Reserve Bids

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