RPVCCA_CC_SR_2011_08_02_E_Purchase_Tax_Defaulted_Property_Cherry_Hill_LaneMEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
CAROLYNN PETRU,DEPUTY CITY MANAGE~
AUGUST 2,2011
PURCHASE OF TAX DEFAULTED PROPERTY ON CHERRY
HILL LANE
CAROLYN LEHR,CITY MANAGER Cl9-
RECOMMENDATION
Authorize the Mayor and City Clerk to sign an Agreement to Purchase Tax-Defaulted
Property with the Los Angeles County Tax Collector for a 0.39-acre vacant parcel
located on Cherry Hill Lane in the Portuguese Bend Landslide area.
BACKGROUND
Pursuant to the State Revenue and Tax Code,properties that are determined to be in
default for unpaid property taxes for five years or more are periodically put up for sale at
public auction by the Los Angeles County Tax Collector.However,if it is determined
that the parcel is needed for public purposes,the City may request to have the parcel
removed from the auction and acquire title to the property.The cost of acquisition is
the minimum bid for the property as approved by the Los Angeles County Board of
Supervisors,plus noticing and transfer expenses.However,parcels may be subject to
removal from the auction if the owner pays the defaulted taxes or enters into a legal
process,such as bankruptcy.
DISCUSSION
Staff has received notice that three vacant parcels in the City will be offered at public
auction on October 17 and 18,2011.If the City determines that any of the properties
are needed for public purposes,the City must file a written statement setting forth the
purpose of the acquisition and the necessary agreement forms prior to August 15,
2011.
The first two properties are tiny landlocked remainder parcels embedded in existing
single-family residential areas on the east side of the City.Staff does not feel that there
would be any public value to City ownership of these parcels.However,the third
property is a vacant lot located on Cherry Hill Lane (a private street)within the active
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Topic:Purchase of Tax-Defaulted Property on Cherry Hill Lane
Date:August 2,2011
Page 2
Portuguese Bend Landslide area and the City's Redevelopment Project Area (see
attached aerial).This property is zoned OH (Open Space Hazard)and is approximately
17,010 square feet in size.The minimum bid on this parcel is $13,027.The City has
acquired a total of nine lots on Cherry Hill Lane over the years,two of which have been
through tax-default sales.Similar to those previous purchases,Staff feels that City
ownership of this parcel would be of public benefit due to fact that it could potentially be
used for landslide abatement and storm water management purposes.
FISCAL IMPACT
Initially,the City's request to purchase the tax-defaulted property must be accompanied
by a $100 filing fee.The City will incur no other expenses at this time,unless the
County agrees to sell the property to the City,instead of through public auction.
If the City eventually purcnases the property,staff anticipates the additional cost will be
approximately $20,000.In accordance with the Revenue and Taxation Code,the
purchase price for the parcel must be based on amount of property taxes due during
the month in which the parcel is eventually sold to the City.The purchase price is
currently estimated at $13,027,which is based on a projection of completing the
transfer within eight months.This estimate does not include fees for a Lot Book Lien
Report,advertising and postage charges,which will eventually be included in the City's
purchase price.The City will also need to complete a Phase 1 Environmental Review
of the property prior to finalizing the transaction with the County.The cost of such a
study is typically $4,500.The money for the purchase would come from the General
Fund and was not included in the adopted FY11-12 Budget.Therefore,if the purchase
goes forward,staff will return with a Resolution approving th~necessary budget
adjustment for Council's consideration at that time.
Attachments:
Los Angeles County Auction Notice dated July 15,2011
Tax Assessor's description &map of the subject property
V:\CAROLYNN\REPORTS\2011\2011 0802_taxsale_purchase.doc E-2
MARK J.SALADINO_.-.,
iREASURER AND TAX COLLECTQR
COUNTY OF LOS ANGELES
TREASURER AND TAX COLLECTOR
KENNETH HAHN HALL OF ADMINISTRATION
225 NORTH HILL STREET,ROOM 130
P.O.BOX 512102
LOS ANGELES,CALIFORNIA 90051-0102
JUly 15,2011
TELEPHONE
(213)974-0871
TELECOPIER
(213)680-3648
TO:
FROM:
I
SUBJECT:
Public and Taxing Agencies
Non-Profit Organizations .~
Donna J.Doss r9~Q.
Assistant Treasurer and Taxft'ollector
2011A TAX SALE
Enclosed is a list of properties (2011A Auction Book)that are tax defaulted and deemed
SUbject to Power to Sell.These properties will be offered for sale at a public tax sale by
the Los Angeles County Tax Collector on October 17 and 18,2011.Some of these
properties may be located within your area and may be needed for public purposes,Le.,
streets,parks,conservation sites,low-income housing,etc.If you qetermine that some
parcels are needed for public purpose,you may be able,under the provisions of
Division "Part 6,Chapter 8 of the Revenue and Taxation Code (Chapter 8 Agreement),
to acquire title to such properties.
Public and taxing agencies and non-profit organizations that wish to purchase any of the
properties listed must submit a request on the agency's letterhead,indicating interest in
acqurring properties through a Chapter 8 Agreement.The request must identify the
parcel number and indicate the pUblic purpose for acquisition of EACH parcel that is
requested.Along with the request,information identified on the attached sheet
must ,also be submitted.Non-profit organizations and properties requested will be
pre-qualified based on the information provided and as outlined by the State Controller's
Office.Therefore,it is important that the request for acquisition of tax defaulted
property be complete.Requests that are incomplete will not be processed until all
required information is received by this office.The request must be in our office no
later than August 15,2011.Properties requested will not be removed from the
sale prior to the public auction until all requested documents are received.
Requests and required documents received after this date will be automatically denied.
A preliminary research fee of $100 per property is a one-time fee that is required along
with your written requests to purchase.parcels from this tax sale.A $300 notification fee
per property will be added to the final purchase ,price,ofth,e property when the
agreement becomes final.State,public,non-profit organizations and taxing agencies
may remit payment for processing fees on the agency's official form of payment.
County departments may remit the processing fees on a County Warrant or a Journal
Voucher Cash Transfer (JVCT).
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Public-and Taxing Agencies
July 15,2011
Page 2
T~e ChapterS Agreement packet,along with instructions on how to complete the forms
and a checklist of additional requirements,will be provided to all pre-qualified agencies
for the elig~ble properties.Please be advised that once pre-qualified,the
Chapter 8 Agreement process will start and the entity that fails to complete the
agreement process,by not providing the additional required documentation or not
paying the agreed upon purchase price at the completion of this process,may be
banned from participation in this program and may be required to pay for costs incurred
by the Treasurer and Tax Collector.
The purchase price will be the amount of outstanding taxes and penalties that are due
dUring the month that the sale process concludes,as pursuant to Revenue and
Taxation Code 3793.1,in addition to the $300 per parcel fee indicated above.Please
be aware that the minimum price shown on the attached listing is only applicable
through October 17,2011,as that is the date of the scheduled public auction.
The enclosed list of properties is subject to change due to the taxes being paid in full or
a legal process that requires that we remove the parcel from the sale,Le.,
bankruptcy.You will be informed when a requested parcel is no longer available.
If you have questions,please contact our Chapter 8 Unit at 1-(213)974-0871.
DJD:MDL:af
2011A MM CH Notice Taxing &PublicAgencies
Attachments
..L-:
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CHAPTER 8 AGREEMENT
PRE-QUALIFICATION REQUIREMENTS
The following information and documentation is required with your initial
request to purchase tax defaulted property via a Chapter 8 Agreement sale.
PUBLIC AGENCIES:,.
1.Provide mission statement (if redevelopment agency,also provide
agency's survey map which indicates that the tax defaulted property
is located within its designated survey area (§3791.3);
2.List each parcel by Assessor's Parcel Number;and
3.State the purpose and intended use of EACH parcel,i.e.,needed for
public use to extend the freeway,etc.Must be specific.
NON-PROFIT ORGANIZATIONS:
1.Provide Articles of Incorporation;
2.List each parcel by Assessor's Parcel Number;
3.State the purpose and intended use of EACH parcel,Le.,to
rehabilitate the current substandard property to a single dwelling and
sell to low-income person,etc.Must be specific;and
4.Improved property (residential properties,commercial buildings,
etc.,),requested must be labeled as "substandard'.Requesting
agency must provide the documentation from the local building
department certifying that the property is "substandard',as defined in
§17920 of the California Health and Safety Code (§3772.5).
Please beadvised that requests without the above-required information will
not be processed until ALL the required information is received,and if the
infotmation is received after the deadline,it will be denied.
See reverse side for definitions and applicable'Revenue &Ta~ation Codes
,.1...
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PROPERTY INFORMATION
ICO
Use:RESIDENTIAL LOT
Total Value:$95,281
Land Value:$95,281
Imprv Value:
Taxable Val:$95,281
Assd Year:2010
%Improved:
Phone:
Owner Vest:
2006
$1,511.23
2010 Delinq:
7148
Elem School:
Exemptions:
Property:,RANCHO PALOS VERDES CA 90275
7572-004-032 Card#:
LOS ANGELES,CA Prop Tax:
823-C5 .Old Map:77-F3 Tax Year:
6706.00 Tract #:14118 Tax Area:
PALOS VERDES PENINSU
1)
APN:
County:
MapPg/Grid:
Census:
High School:
Comm Coli:
Subdivision:14118
Owner:STJ INVESTMENT INC
Mail:3250 WILSHIRE BLVD #2000;LOS ANGELES CA 90010-1610 C037
Owner Transfer =Rec Dt:06/28/2006 Price:Doc#:1430138
Sale Dt:06/01/2006
Type:QUIT CLAIM DEED
2nd Mtg AmtlType:
2nd Mtg RtlTypelTrm:I
Title Company:
Seller:LAND PARCEL LIQUIDATORS IN
New Construction:
Other Last Sale Info =#Parcels:
Legal BlklBldg:4
Legal Lot/Unit:9
Legal:TRACT NO 14118 LOT 9
IMPROVEMENTS
Bldg/Liv Area:
Gross Area:
Ground Fir:
BsmntArea:
$/SqFt:
Yrblt/Eff:
#Stories:
Rooms:
Bedrooms:
Full/Half Bath:
Ttl BathslFixt:
Fireplace:
Pool:
Porch Type:
Patio Type:
Construct:
Foundation:
Ext Wall:
Roof Shape:
Roof Type:
Roof Mati:
Floor Type:
Floor Cover:
Heat Type:
Heat Fuel:
Air Cond:
Quality:
Condition:
Style:
Equipment:
0.39
17,010
14,000
Pend:
Acres:
Lot Area:
Lot Width:
Lot Depth:
Usable Lot:
PRIOR SALE
10/16/1986 10/1986
$7,500 FULL
1389394
CORPORATION GRANT
Type 2:MULTIPLE
010V
RPOH&E*
Site Influence:
Amenities:
PARTIAL
County Use:
Zoning:
Flood Panel:
Panel Date:
Flood Zone:
Sewer Type:
Water Type:
SALE &FINANCE INFORMATION
LAST SALE
03/03/1994
$25,000
426599
GRANT DEED
RecordinglSale Date:
Sale PricelType:
Document#:
Deed Type:
1st Mtg AmtlType:
1st Mtg RtlTypelTrm:
1st Mtg Lender:
#Res.Units:
#Comm Units:
#Buildings:
Bldg Class:
Parking Sqft:
Park Spaces:
Garage Cap#:
Park Type:
Other Impvs:
SITE INFORMATION
Other Rms:
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