Sponsor: Property Tax, Records & Election Services
Title
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Reinstatement of a Sales Contract for Deed for a Tax-forfeited Property Located at 759 Cook Avenue East, Saint Paul, MN, 55106
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Recommendation
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Approve the Reinstatement of the Sales Contract for Deed with EH KA Nyaw Ray for the following tax-forfeited property, subject to the execution of a Reinstatement Contract and receipt of payment in full upon execution of the contract within 30 days of approval of this resolution:
Commissioner District 6
PIN: 29-29-22-14-0029
Property Address: 759 Cook Avenue East, Saint Paul, MN 55106
Reinstatement Amount Due to Date: $6,860
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Background and Rationale
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The subject property is located at 759 Cook Avenue East and is an unimproved, vacant residential lot in the Payne-Phalen neighborhood of Saint Paul. The property originally forfeited to the state for unpaid property taxes on August 2, 2016.
At a public auction held May 19, 2017, Ramsey County, acting on behalf of the State of Minnesota, sold the property to EH KA Nyaw Ray (“Purchaser”) on a Sales Contract for Deed. That contract was cancelled by Ramsey County on April 14, 2020, pursuant to Minnesota Statutes Section 559.21, for failure of the Purchaser to pay the 2018 property taxes and assessments, and for failure of the Purchaser to pay contract installment payments and interest, conditions of default under the terms of the Sales Contract for Deed.
The Purchaser has requested a reinstatement of the Sales Contract for Deed and has agreed to pay the outstanding balance of all installments and interest that would have accrued in the absence of cancellation, together with an amount equal to all unpaid taxes, penalties, interest, fees, and maintenance costs up to the date of the reinstatement, and the taxes and assessments that would have been levied and payable but for the cancellation, in full, in accordance with Minnesota Statutes Section 282.341.
Pursuant to Minnesota Statutes Section 282.341, subd. 1, reinstatement of the Sales Contract for Deed requires approval by the County Board, as the Purchaser had paid less than 50% of the original purchase price at the time of cancellation.
The department of Property Tax, Records & Election Services has reviewed the request and recommends approval of the reinstatement of the Sales Contract for Deed if full payment is received. If the reinstatement of the Sales Contract for Deed is not paid in full within 30 days of approval of the County Board resolution, the Sales Contract for Deed will not be reinstated, and the property would remain in the tax-forfeited land inventory for future disposition.
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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 purchasing one parcel is unclear, 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 70% of households in the Payne-Phalen 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 may positively impact racial equity.
Community Participation Level and Impact
There is no community engagement for this this board request.
☐ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
All payments received pursuant to the Reinstatement will be 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 school district in which the property is located and 20% to the city in which the property is located on an annual basis. This property is located within the City of Saint Paul and School District #625.
County Manager Comments
No additional comments.
Last Previous Action
On April 18, 2017, the County Board authorized the County Auditor to offer the property located at 759 Cook Avenue East for sale to the highest bidder (B2017-090).
Attachments
1. Map of property located at 759 Cook Avenue East