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RFD- 3676 Business Items   Item #   10. b.    
Regular Council Meeting Agenda
Meeting Date: 08/12/2019  
Title:    2019 Tax Recovery Public Auction Reserve Bids and Terms and Conditions - Frostad
Department: Corporate Services  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life 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 bids and terms and conditions for the 2019 tax recovery public auction scheduled for November 6th, 2019.

Proposed Motion
That the reserve bids for the 2019 tax recovery public auction be approved as presented.
That the terms and conditions for the 2019 tax recovery public auction be approved as presented.
Part 10, Division 8 of the Municipal Government Act requires that a municipality annually, by March 31, prepare a tax arrears list showing the parcels of land on which there are tax arrears for more than one year, that is, they are unpaid a year from January 1 following the year the taxes were imposed. If the taxes have not been paid, an action (e.g., public auction) has not been started, and a tax agreement providing for the payment of arrears is not reached between the municipality and the landowner, the municipality must offer for sale at a public auction any land shown on its tax arrears list. Any parcel of land  shown on the 2018 tax arrears list which remained in arrears on March 31, 2019 must be offered for sale at public auction between April 1, 2019 and March 31, 2020. Designated mobile homes are dealt with in a similar manner under Part 10, Division 8.1 of the Act, with the exception that a tax recovery lien (statutory charge) is registered against the property and notice is issued to the mobile park operator.

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 legal counsel and have not been modified from the prior year.
A third party has been contracted to manage the property tax arrears recovery process.
Both Administration 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 Act, the Alberta Land Titles office has sent notices (prior to August 1, 2018) to all registered property owners and caveat holders stating that if tax arrears are not paid before March 31, 2019 the municipality must offer the parcel/property for sale at public auction. The 2019 public auction is scheduled for Wednesday November 6th, 2019 at 10:00 a.m. in Council Chambers at City Hall.

All parties who hold a registration against the title to the property must be advised of the tax recovery proceedings 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. The municipality must send a copy of the Gazette ad 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 August Council meeting for the advertising deadlines to be met.
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. Therefore, it is critical that the municipality ensures that all steps are followed. Failure on the municipality’s part to do this 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.

The Act provides specific direction on steps the municipality can take should the properties be unsold at the auction.

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

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