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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 7664029 / FAX: (651) 766-4048 <br />www.ci.1ittle-ca nada. mn us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: December 12, 2014 <br />RE: Tax Forfeiture Repurchase Application — 2801 Country Drive <br />MAYOR <br />13111 13lesener <br />COUNCIL <br />Rick Montour <br />John I<eis <br />Michael McGraw <br />Shelly l3oss <br />ADMINISTRATOR <br />Joel R. Hanson <br />ttached is a repurchase application filed by TCF Bank for the property at 2801 Country Drive which <br />-.ley hold the mortgage to. This property went "tax forfeit" on August 1St this past summer. TCF claims <br />the notice went to the wrong department which prevented them from making the past due payments. If <br />they are not able to repurchase, they would lose their mortgage interests. <br />In talking with Ramsey County, it appears very likely they will grant this repurchase request due to the <br />onerous results if they do not. From our standpoint, we will collect our share of outstanding taxes, but <br />certified costs (refuse, water, & sewer) may not be fully recovered due to the fact the County recovers its <br />administrative costs in the tax forfeiture process before payout out costs beyond property taxes. <br />I am told this house is in poor condition. It is also in the County Drive redevelopment district and has <br />been a target for acquisition to help complete redevelopment of that area. I have discussed the TCF's <br />intentions if they regain title to the property. They would need to complete foreclosure action and they <br />may be willing to discount the outstanding mortgage balance to generate a faster sale. (We can't pursue <br />that option at this time given they need to regain title first.) <br />Staff would recommend we approve the repurchase application conditioned upon our receipt of all <br />outstanding certified/uncertified costs for refuse, water, and sewer (this appears possible based on the <br />attached application documentation). We will prepare a resolution documenting this position that <br />includes all of the accounting details for Monday's meeting. <br />1 <br />