04. Tax-forfeited property in Argusville update

MEMORANDUM TO: Cass County Commissioners FROM: Tracy J. Peters Chief Deputy Attorney Cass County State's Attorney DATE: November 5, 2021 RE: Forfeited property in Argusville * * * * * * * * * * * * * * * * * * * * * At the commission meeting on November 1, 2021, a public hearing was held on a number of tax forfeited properties including two properties in Argusville, ND. These properties are scheduled for public auction on November 16, 2021. The abandoned school building on these two properties is in poor condition. The cost to demolish it, including the cost of asbestos removal, is estimated by the city of Argusville to be between $250,000 and $450,000. Under N.D.C.C. 57-28-28, “if property sold by the county under [Chapter 57-28] is sold for less than the total amount of the taxes due and the costs to improve salability of the property which were incurred by the county in cleanup, repairs, demolition, or other action necessary because of damage, neglect, or waste by the prior owner, those costs incurred by the county to improve salability which were not recovered by the county from the sale constitute a lien on any real property owned, or later acquired, in the county by that prior owner.” In this case, the county commission could elect to leave the property on for public auction on November 16, 2021. If the property does not sell, the county could elect to complete the demolition, cleanup, and/or repairs and sell the property. The county commission could also forgo selling the property at the November 16th sale and elect to complete the demolition, cleanup, and repair prior to any sale. If the county incurs the expense of demolition and removal of the building on the property, the difference between the cost of demolition, cleanup, and repairs plus the amount of taxes owing to the county and the purchase price would become a lien on any real property in Cass County owned by the previous owners.