DATE: May 1, 2018
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Hearing on Rescission of March 2014 Tax Sale of APN 487-150-26S
RECOMMENDED ACTION(S):
TITLE
1. Conduct hearing on rescission of the County's sale of APN 487-150-26S, located at 2696 S Maple Fresno, at the County's March 7 - 10, 2014 sale of tax-delinquent properties; and
2. Make the findings required by Revenue and Taxation Code section 3731 and adopt a resolution approving the rescission of the County's sale of APN 487-150-26S.
REPORT
During the County's annual sale of tax-defaulted properties on March 7 - 10, 2014, the County sold property identified by APN 487-150-26S (Property). The Property is contaminated by hazardous materials and the purchaser sued the County for the cost of cleanup (estimated to exceed $500,000). The purchaser alleges that the County undertook an obligation to notify prospective purchasers of the contamination, but did not do so.
ALTERNATIVE ACTION(S):
The purchaser of the Property at the County's March 2014 tax sale has sued the County for damages for breach of contract in this matter, as described below. If your Board chooses not to rescind the sale, that lawsuit would proceed, also as described below.
FISCAL IMPACT:
If the Board rescinds the sale, then the County would be required to issue a refund to the purchaser, JHS, JCH, & DBH Family Limited Partnerships (Purchaser) of the amount paid as the total purchase price at the tax sale ($460,000.00), plus interest at the greater of 3% annually or the County pool apportioned rate from the date of the purchase of the property at the tax sale until the date of the rescission. The tax sale proceeds for this property are being held in the Property Tax Collection Fund (Fund 1150, Subclass 19210). The interest due will be distributed from the Tax Loss Reserve Fund (Fund 1150 Subclass 19240). Interest due through April 30, 2018 is estimated to be $57,271.1...
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