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RFD- 3489 Business Items   Item #   10. b.    
Regular Council Meeting Agenda
Meeting Date: 02/25/2019  
Title:    2019 Tax Recovery Public Auction Reserve Bids & Terms and Conditions - Pungur-Buick
Department: Corporate Services  
Strategic Vision Element: n/a Related Goal: Spruce Grove has a robust, growing economic base that generates increased revenues to support the City’s high standards for services and programs.

Request for Decision Summary
The purpose of this report is to have Council approve the Reserve Bid and Terms and Conditions for a tax recovery public auction scheduled for April 24, 2019.

Proposed Motion
That the Reserve Bids for the April 24, 2019 tax recovery public auction be approved as presented.

That the Terms and Conditions for the April 24, 2019 tax recovery public auction be approved as presented.

Part 10, Division 8 of the Municipal Government Act (the Act) requires that a municipality must prepare an annual tax arrears list by March 31 showing the parcels of land on which there are tax arrears for more than 1 year. A municipality must offer for sale at a public auction any land shown on its tax arrears list which remained in arrears on the following year's by March 31. 

A property need not be offered for sale in the event the Municipality and the Owner have entered into an Agreement for Payment of Tax Arrears whereby the term does not exceed 3 years. Should the Owner default on the Agreement, tax recovery actions by the Municipality resume where they left off. There is 1 property from the 2017 tax recovery list to be auctioned subsequent to the Owner having multiple default actions on their agreement signed June 13, 2018. With breach of agreement and in accordance with Section 418 of the Act, the Municipality must proceed with public auction.

For the auction to take place, the Act requires Council to 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. 

Reserve bids are for current market value and have been prepared by the City Assessor. Terms and conditions have been reviewed by the City Litigator and have not been modified from prior year.

A third party has been contracted to manage the administrative functions of the property tax arrears recovery process.
All parties who hold a registration against the title to the property will be advised of the tax recovery proceedings in accordance with legislation so that they are aware and have the opportunity to protect their interests. The auction is advertised in accordance with the requirements in the Act. Advertising takes place in the Alberta Gazette not less than 40 days and not more than 90 days before the auction date and in the local newspaper not less than 10 days and not more than 20 days before the auction date. A copy of the Gazette ad will be sent to the affected parties not less than 4 weeks before the date of the public auction. Terms, conditions and reserve bids must be approved at the February 25 Council meeting for the advertising deadlines to be met. This auction is scheduled for April 24, 2019 at 10:00 a.m. at City Hall in Council Chambers.

The Municipality must ensure that the process is completed as required by the Act. The Municipality must act in the best interest of the person responsible to pay the tax and to protect the rights of the landowner throughout the entire process. It is critical that the Municipality ensures that all steps are followed in accordance with legislation; failure to do so may result in the tax recovery process being set aside by the Courts and the Municipality being directed to begin the process all over again.

Only Council can cancel or reduce tax arrears under Section 347 of the Act.
Terms and Conditions
Reserve Bids

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