Sponsor: Property Tax, Records & Election Services
Title
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Repurchase of a Tax-forfeited Property Located at 1128 Beech Street, Saint Paul, MN 55106
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Recommendation
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1. Determine that by allowing a timely repurchase of the following property, any injustice or undue hardship caused by the forfeiture will be corrected and the repurchase will promote the use of the lands that will best serve the public interest:
Commissioner District 6
PIN: 33-29-22-12-0068
Property Address: 1128 Beech Street, Saint Paul, MN 55106
Repurchase Amount Due to Date: $25,744.51
2. Approve the repurchase of the above tax-forfeited property by Dustin Nguyen, fee owner at the time of forfeiture (“Repurchaser”), subject to the following conditions that must be met within 90 days of approval of this resolution: Repurchaser will
a) provide the required payment-in-full of all back taxes, interest, penalties, recording fees and costs, and maintenance costs (no installment payments allowed); and
b) execute a repurchase contract with the following conditions:
i. provide an executed assignment and assumption of the repurchase contract by a third-party buyer at arms’ length (such buyer to be approved by the department of Property Tax, Records & Election Services); and
ii. continue to maintain and keep the property in a secure and safe condition from the date of contract execution until the closing of the sale to and possession by a third party buyer.
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Background and Rationale
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The subject property is located at 1128 Beech Street and is an occupied multi-family house located in the Dayton’s Bluff neighborhood of Saint Paul. The repurchase applicant is Dustin Nguyen, fee owner at the time of forfeiture (“Repurchaser”). The property is a rental property and currently occupied by tenants of the Repurchaser. Property taxes for 2019 and 2020 were unpaid, and the property forfeited to the state on August 3, 2021.
The city of Saint Paul was notified of the pending repurchase application and provided opportunity to provide comments or concerns about the repurchase. The city reviewed the application for police, building, and property maintenance code violations within the past five years and has recommended the Board of Ramsey County Commissioners deny the repurchase application based on its determination that the property is a municipal problem.
Property Tax, Records & Election Services (PTRES) has reviewed the repurchase application, supporting documentation, and comments regarding the city’s recommendation, and has determined that while a municipal problem exists, the Repurchaser has experienced personal and financial hardship which eventually led to the forfeiture of the property, and that denial of Repurchaser’s application in this case directly conflicts with the County Auditor’s responsibility to administer repurchases remedially as mandated in Minnesota Statutes, section 282.241 and clarified by the Minnesota Supreme Court.
Based on these findings, PTRES recommends approval of the repurchase application, subject to the special conditions, thereby correcting any undue hardship or injustice resulting from the forfeiture due to the loss of the property and promoting the use of the land that will best serve the public interest.
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County Goals (Check those advanced by Action)
☒ Well-being ☐ Prosperity ☐ Opportunity ☐ Accountability
Racial Equity Impact
While the racial equity impact of repurchasing one parcel is unclear, targeted community data and neighborhood racial demographics provide marginal insight. This property is located in a targeted community, as defined by Minnesota Statutes, section 469.201, subd. 10. More than 67% of households in the Dayton’s Bluff neighborhood are non-White, as compared to only 43.3% of non-White households throughout all of Saint Paul, which makes this an area more racially diverse than most of Saint Paul. Investments made in this community can positively impact racial equity.
Community Participation Level and Impact
PTRES informed the city of Saint Paul about the property. The Saint Paul City Council passed resolution recommending the Ramsey County Board deny the repurchase. There is no additional community engagement with this specific board action.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Revenue from sales of tax-forfeited property is deposited into the Tax Forfeited Land Sale Fund.
Net proceeds in the Fund, after paying administration costs and assessments, are distributed 40% to the county, 40% to the Saint Paul School District and 20% to the city of Saint Paul on an annual basis.
County Manager Comments
No additional comments.
Last Previous Action
None.
Attachments
1. City of Saint Paul Resolution No. RLH OA 21-12, Dated October 6, 2021
2. Map of property located at 1128 Beech Street