The City of Toledo has a land banking program. On today's agenda, there are three ordinances to approve the sale of such properties, but for less than the listed value at the Auditor's AREIS website.
One ordinance is to sell 1624 and 1626 Dorr Street to the Brownstones project for a total of $1,000. According to AREIS, the 35% value of these two properties is $2,350 each and the 100% value is $6,700 each. So why would the city sell them for a total of $1,000?
The second ordinance is to sell three properties to Southern Missionary Baptist Church: 1236 and 1240 Pinewood and 1111 True St. AREIS lists the 35% value for the three at $1,690 and the 100% value at $4,500. The city plans to sell the three lots for a total of $450.
The third ordinance is to sell two commercial lots on North Detroit (1933 and 1935) to a contiguous property owner. AREIS places the 35% value of the two lots at $4,940 and the 100% value at $14,100. The sale price is $300.
I realize that property values in Toledo have decreased, but this much?
The Dorr St. properties are being sold for 17.5% of the 35% (taxable) value and 7.5% of the full value.
The Pinewood/True St. properties are being sold for 26.7% of the taxable value and 10% of the full value.
The N. Detroit properties are being sold for 6% of the taxable value and 2% of the full value - and, remember, these are commercially-zoned properties.
Considering that the city is trying to figure out ways to make up a $10 million deficit for 2008, should we really be selling such properties for so much less than the actual or taxable value? And who gets to decide how much those properties sell for? Why is a church paying a larger percentage of the value than a private property owner who is purchasing commercial property?
Final thought: will city council ask these questions before they vote on these items tonight?
Showing posts with label sale of public land. Show all posts
Showing posts with label sale of public land. Show all posts
Tuesday, December 16, 2008
Thursday, June 26, 2008
Why is the sale of public land an 'emergency'?
Toledo city council has an 'emergency' ordinance on the agenda for Tuesday - this one is to sell two parcels of city-owned land. According to the ordinance,
I think most people would question why this is an emergency. It's not like a first and second reading is really going to have a detrimental impact on the agreement. And the city has owned this property for a long-enough time that a couple more weeks to discuss the proposal and give the public time to weigh in on it won't really have a negative impact.
But perhaps that's the point. If this is given proper review, citizens might start questioning other things about the agreement - like the price:
According to the County Auditor's website, the current value of this property is $213,500. Why is the city selling this property for less than 5% of its stated value????
What is the cost of relocating the Toledo Police field office into this facility? Will TPD then have to pay rent to VIVA South? Was this property offered on the open market or listed with a realtor in order to see if we could get more for it? If the city got more than $10,000 for the property, could that help offset the increased prices we've been paying for gas for our police vehicles? Will any council member bother to even think of these questions when this ordinance comes before them?
City elected officials are supposed to be the custodians of our tax dollars and our public assets. That means they don't make sweetheart deals with special interest groups for their own personal reasons. In today's market, this property may not truly be worth $213,500. But I can assure you it's worth more than the $10,000 proposed sale price and city council members should insist on getting fair market value for any public property it sells.
Another thought: since the proposed business on this property is a new credit union, it will be in direct competition with existing credit unions and banks. This means that the city, by offering the land at a fraction of the value, is subsidizing with tax dollars a new competitor to existing businesses already paying taxes. This is NOT business friendly!
"The reason for the emergency lies in the fact that same is necessary for the immediate preservation of the public peace, health, safety and property, and for the further reason that this Ordinance must be immediately effective to facilitate conveyance of this property to VIVA South Toledo CDC for community re-use."
I think most people would question why this is an emergency. It's not like a first and second reading is really going to have a detrimental impact on the agreement. And the city has owned this property for a long-enough time that a couple more weeks to discuss the proposal and give the public time to weigh in on it won't really have a negative impact.
But perhaps that's the point. If this is given proper review, citizens might start questioning other things about the agreement - like the price:
SUMMARY & BACKGROUND:
The City of Toledo, through reverter interest, presently holds title to the former South Branch Library at 1638 Broadway. VIVA South Toledo CDC wishes to acquire this property from the City for the purpose of establishing the Ohio Latino Community Credit Union (OLCCU) who will also provide other economic and justice related programs such as personal finance, mortgage counseling and legal aid. VIVA South will move their offices to this facility and they anticipate that the Toledo Police will relocate their field office to this location. They will be looking to fill any remaining available space with other community oriented service providers. The sale price for this property will be $10,000.
According to the County Auditor's website, the current value of this property is $213,500. Why is the city selling this property for less than 5% of its stated value????
What is the cost of relocating the Toledo Police field office into this facility? Will TPD then have to pay rent to VIVA South? Was this property offered on the open market or listed with a realtor in order to see if we could get more for it? If the city got more than $10,000 for the property, could that help offset the increased prices we've been paying for gas for our police vehicles? Will any council member bother to even think of these questions when this ordinance comes before them?
City elected officials are supposed to be the custodians of our tax dollars and our public assets. That means they don't make sweetheart deals with special interest groups for their own personal reasons. In today's market, this property may not truly be worth $213,500. But I can assure you it's worth more than the $10,000 proposed sale price and city council members should insist on getting fair market value for any public property it sells.
Another thought: since the proposed business on this property is a new credit union, it will be in direct competition with existing credit unions and banks. This means that the city, by offering the land at a fraction of the value, is subsidizing with tax dollars a new competitor to existing businesses already paying taxes. This is NOT business friendly!
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