1997 AGN FEB 18 I28 - Laserfiche WebLink

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41 1 OWEN 9098748973 P.12 STATEMENT of REASONS FOR ADOPTION OF RESOLUTION OBJECTtNG TO TAX SALE RECOMMENDATION. Staff rccommendsuhat the City Council adopt (Ile enclosed resolution formally objecting to the tax sale of cedain real property loc&t,d District No. 90-1 for purpoges within CORIMUnity Facifitleq of Presc-rying the city's lien of the delinquent cial t sp-Xes O"Ved to such Community racilities District. . %, % BACKGROUND.- In 1990, the City fOnned 'Comnaunity Fa6lities District No. go. -I for the Purpose Offmancing certain public infraitlucturc in. cunl=don with the Las C,lorjas shopping t„ellter. The City issued special Tax bondspunuantto the, M L _ ello-Ross CommllnitY Facilities Act for tlle PuXPON offmmeins those improvements. in connection with the bond issue, the City cove nanted , for the benefit of tile bondholders, that it would Me and pursue foreclogure actions in the avlmt that any property owner failed to pky the special taxes when deco. One Of the owners (Lebanoff- N14QKnight Gencral Partu.-rship), never paid any taxes mdthfi:t the District. The City theref0tr filed a foreclosure complaint and obtained judgment in 1995. The City also ' Mccessfully defended the cross-ComPlaint filed against it by Lebanoff-McKxdght- Appamnitly, Lebanoff-MeKlug IIt di,J no t pay certain ad valorem es property taxtoe CO . [aunty -ill connectionwith its Ownership of the subject prvperty, As a rmult, the City's 9pecial counsel receivede attached of Int t S Dlaulted Pmperty thtthd "ent o ell Tic ef with respect to each of the three (3) Parocls which -ACrc the Subject Of the foreclosure action. The tax sale is scheduled to be held on March 3, 1997 and March 4, 1997. 'Undcr Rcvenue and Taxatior, Code section 3712, the Tax Collector's deed will colivey title to ally purchaser, free of all encumbmces Of an kind existing before the safe, except for certain entimeratcd cxccptions. 0Dc Of the exceptions is on account of any lien fbr installments of taxes and sPccial assessments which become payable after the time of gale. (Rev. & Tax. §3 712(a)) Another excePtiot, preservc5 the interest of delincluciit special assessments levied under the Tmp v 11 Borid Act of 1915. (Re -v, & Tax. § 3712( , ro el ent ,0) There is no Similar provision for delinquent: Wlo-Rocs SpMial taxes. There is, however, an exception for "the lien for taxes or assessments or other lights of ally taxing agency which does not consent to the sale under [this] chapter.” It is therefore important that the City, in order to presetyc the lien Of (the &Jiuquent installments of special =cs levied in CFD 90-1, not consent to the salt, To do so would potentially =eel the film for the delinquent special taxes and might arguably violatv a duty to the bondholders, Under Revenue and Taxation Godc scction 3695, consent is imputed unlcss the City adopts a resolution objecting to the sale and delivers certifled copies thereof to the Board of Supervisors and the'rreasurer-Tax Collector of the County, at least one day before the date of sale. That section provides, in pertinent part, as follows, "If the governing body Of any W-tng agency does not, before. the date of Elle with the Tax Collector and the l3oard Of Superyi3ors, cAutified copies of a resolution