Ark Valley News - Park City seeks to recoup more vacant property

Park City seeks to recoup more vacant property
By Matt Heilman
Last Updated: July 24, 2014

For now, there's not much more to it than about 20 acres of a wheat field. But with the potential for future development, the Park City council took action in an attempt to assure that a potential asset doesn't turn into a long-term liability.

In a 5-3 vote at its July 22 meeting, the council approved utilizing up to $100,000 in reserve funds to bid on 93 empty lots at a sheriff's sale likely to take place sometime in late August. The vacant lots are at the east end of the Prairie Hills addition southeast of 61st North and Hydraulic. To the west of the 93 lots, about one-third of the addition includes lots that have the utilities and paving in place for homes.

City Administrator Jack Whitson said a letter of credit was pulled on the vacant lots about two years ago and special assessments are due to the city for drainage work. The cost for the specials equates to more than $33,000 per year in all 93 lots, Whitson said.

He said if the city doesn't try to recoup the property, the lots will likely be sold at minimal costs to buyers who likely wouldn't be ready to build a new home or begin paying for the special assessments owed to the city. When property owners don't pay for specials, cities are left to foot the bill.

Last year, the city purchased about 40 lots in the Bear Hill and Saddlebrook additions to recoup what's owed in special assessments and to get the lots sold to builders interested in constructing new homes.

So far, about 10 of the 40 lots have sold, saving the city about $25,000 in special assessments, Whitson said.

Council member Tom Jones said the city would likely be able to purchase the lots in Prairie Hills for well under $100,000 and the potential for future development of the property was worth the effort to bid on it. Council member Gary Aldrich agreed, reminding his colleagues that the city would likely have to pay off the specials even if they don't take ownership of the lots.

"Basically we've got a liability we're going to pay one way or another," he said. "Any time you can trade a liability for an asset, I think you're better off. At some point somebody's gonna want the land."

Council member Chris Johns said the city could make better use of its resources, especially considering the 93 lots in the Prairie Hills addition aren't ready for home construction.

"I don't think that we need to become real estate hoarders at this point in hopes of recouping the specials," he said.

Council members George Glover and Mike Alumbaugh joined Johns in the minority against the city's plans to recoup the 93 vacant lots.

Also on July 22, the council:

•Approved a one-step final plat for the 5855 Broadway Addition.

•Approved establishing a public hearing on the 2015 budget for 7:30 p.m. Aug. 12. The proposed budget does not call for a tax increase from the 2014 mark.

•Approved an ordinance amending part of the municipal code relating to the retail sale of liquor in the city.

•Approved additional costs needed for the purchase of computers and accessories for patrol vehicles with reserve funds authorized by the council on April 22.

•Approved the list of delinquent recycling accounts and scheduled a public hearing for 7 p.m. Aug. 12.

All eight council members and Mayor Ray Mann were present at the July 22 meeting.