Procedures questioned for commissioners sale

A request previously granted by the Putnam County Commissioners with nary a murmur was called into question at their most recent meeting.

With the agenda seemingly wrapped up at their Tuesday, Jan. 20 meeting, the commissioners' delved into an extended discussion of the sale of undeveloped lots at Heritage Lake via commissioners' certificate sales. Some strong opinions were expressed on both sides of the issue.

A commissioners' sale is the final method the county has of disposing of properties with delinquent taxes. Following a tax sale, the liens of all unsold properties are awarded to the commissioners.

Such a sale differs from a tax sale in that there is no requirement of paying the back taxes on the property. Simply produce the asking price (generally $25) and the property is yours, free and clear.

While the process may seem counterintuitive, the idea is for the county to simply sell the property in the name of getting it back on the tax rolls in future years.

In past years, Kathy Deer of Clear Creek Conservancy had requested and was granted permission for Clear Creek to purchase all undeveloped lots eligible for commissioners' sale at Heritage Lake prior to the sale.

From Clear Creek's perspective, the idea is that it's a way to minimize its losses. In most cases, the cancellation of tax debt that goes along with moving from tax sale to commissioners' sale is merely a loss to the county, with the commissioners' deciding to cut the county's losses and move on.

In the case of these properties at Heritage Lake, part of the tax debt being canceled is unpaid sewer assessment and therefore a loss to the conservancy district, not the county.

Instead, someone else can come along and purchase the property for an extremely low fee and then have access to a sewer system even though the parcel in question did not pay its part.

"The problem we have is when we get to the end and the district hasn't gotten the money on that sewer, (the new owners) shouldn't have the sewer," Deer said.

"We have the largest amount of money in what's going to get written off," she added later.

Previously, the commissioners granted this request, allowing Clear Creek to buy the properties (only undeveloped parcels) for the $25 minimum.

The idea for Clear Creek was to the either sell the properties to future interested parties to recoup the sewer funds lost or in turn, clean up the land and turn it into green space for the community.

However, at least two parties are now interested in the land at issue.

One man, a Heritage Lake landowner, expressed his desire to buy one of the lots in question.

In this case, he has no desire to develop the land or access the sewer. Instead, he hopes to buy the land adjacent to his house for a shared family area with the neighbor on the other side.

He further expressed the idea that, even with the past lost assessments and taxes, both the county and the conservancy district could collect money in the future.

Greencastle attorney John Zeiner offered some procedural arguments about the land in question. Representing a client interested in one of the other parcels, Zeiner questioned the legality of the commissioners selling the land before it goes to auction.

"This is an auction. People have the right to come and bid," Zeiner said. "I would question whether you can take those properties off (the sale list)."

He further questioned the point of selling to Clear Creek, since the land would no longer be taxable.

"The process doesn't allow, as far as I can tell, for a gift back to the town or community," Zeiner said.

With the next commissioners' sale set for Feb. 24, County Attorney Jim Ensley is further examining the issue, in conjunction with SRI Inc., the Indianapolis-based company that conducts the county's tax sales and commissioners' sale.

Options besides selling the properties to Clear Creek before the sale include simply allowing the conservancy to bid on the properties or assigning them to Clear Creek following the sale.

There also may be the possibility of selling the properties with stipulations, such as that the sewer assessment must be paid before taking possession of the property or at least before sewer service is set up.

The commissioners are likely to reconsider the issue at the Monday, Feb. 2 meeting. This will allow District 2 Commissioner Rick Woodall, who was out Tuesday following foot surgery, the chance to take part in the decision.

It also gives all parties involved plenty of lead time before the Feb. 24 commissioners' sale.

In other business:

* Commissioners David Berry and Don Walton briefly discussed the 2015 Economic Development Income Tax (EDIT) plan. The EDIT plan will also be back before the commissioners for approval on Feb. 2.

* The county will host an employee campaign for the United Way of Putnam County. This practice has taken place in the past, but has fallen out of practice.

County employees will have the chance to pledge a contribution to the United Way, which will then be payroll deducted.

United Way Executive Director Jennifer Edwards assured the commissioners there will be no pressure, simply the distribution of information, which includes pledge cards.

* Representative of Buzzi Unicem notified the commissioners of blasting set to take place at its shale mine on Burma Road near Cloverdale.

When Buzzi bought the land back in 2007, blasting was identified as a possibility, but company officials also pledged to notify the county if the blasting was ever going to become a reality.

Thus far, they have avoided blasting and hope to continue. Some recently purchased equipment may do the trick without blasting.

Buzzi officials want to simply cover their bases, should blasting be necessary.

"It sounds to me like you're well within your rights," Berry said. "It seems like you're being a good neighbor and being proactive."

* Two men were approved for the openings on the Animal Control Advisory Board. Joe Mann of Cloverdale will fill the open at-large seat, while Cloverdale Town Marshal Mike Clark will represent the town.

The Fillmore spot on the board is vacant, but new Fillmore Town Councilman Meredith Trusty has apparently expressed interest.