Resolution No 39-2021 - Transfer of a Certificate of Delinquent Real Estate Tax Sale Lien from The Board of Commissions - 1408 Elwood Drewrys

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INTER-OFFICE MEMORANDUM Department of Law City of South Bend 227 W Jefferson Blvd TO: Board of Public Works, Laura Hensley, Clara McDaniels FROM: Sandra Kennedy, Corporation Counsel SUBJECT: Resolution 39-2021 – Acceptance of Tax Sale Certificate DATE: December 16, 2021 Members of the Board, Ms. Hensley, and Ms. McDaniels: As you may know, the property located at 1408 Elwood, also known as the former Drewrys Brewery site, was on the tax sale list due to delinquent real estate taxes. The site has also been the subject of years’ worth of Code violations and the current owner has been ordered by IDEM to clean up the site. To date, the taxes due with regard to the site have not been paid, and St. Joseph County has agreed to transfer the tax sale certificate to the City. Once the City is in possession of the tax sale certificate, by statute we must allow 120 days for the current owner to redeem the property by paying the taxes and a penalty. If the property is not redeemed, the City may then petition the court for the issuance of a tax deed. After the tax deed is issued, the City will proceed to file a quiet title action against the property, to ensure that no other person or entity claims ownership. At the close of the quiet title action, the City will have a clear title to the property. If uncontested, this process will take approximately 9 months. If contested, it will take longer. While the above process is ongoing, the City will be performing due diligence with respect to the property, including obtaining a Phase I and Phase II environmental report, title reports, and surveys. The City intends to remediate the property under the BUILD Act of 2018, which modified CERCLA. As a part of this, the City will also seek comfort letters from EPA and IDEM pertaining to the work to be performed at the site. We are requesting that the Board of Public Works accept the transfer of the tax sale certificate for 1408 Elwood and authorize the City’s Legal Department through its Corporation Counsel, Sandra Kennedy, and the City’s Department of Community Investment through its Director of Neighborhoods, Pamela Meyer, to perform or cause the performance of any action necessary to secure a Tax Title Deed to the property.