Land sale do-over

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November 4, 2009

By DENISE A. RAYMO The Press Republican Thu Nov 05, 2009, 05:01 AM EST

MALONE — Franklin County is taking a mulligan with its auction of tax-delinquent properties in hopes of getting a better price on some of the parcels.

Legislators say increasing land-sale proceeds could lower the 18-percent hike in the tentative 2010 tax levy.

A second budget public hearing is at 4 p.m. today in the fourth-floor Legislative Chambers of the County Courthouse. The first was held Wednesday in Saranac Lake.

Legislators used budget work sessions to discuss drastic cuts and changes that would lower the tentative tax rate to between 4 and 5 percent. But none of those revisions have been implemented yet.

The tentative budget is currently $112,760,673, an increase of 5.06 percent from this year.

The amount to be raised by taxes is $13,469,536, an increase of 18.1 percent.

The tax rate per $1,000 of assessed-property value averages to $3.61, which is up 14.92 percent from this year's average of $3.15.

A home assessed at $100,000 would have a tax-bill increase from $314.53 to $361.45 under the tentative budget, if its assessment remains the same.

The county applied $2.2 million from the fund balance and $1.3 million in special-reserve accounts to reach the tentative numbers.

Every $112,000 in spending saved or revenue found trims the projected tax increase by 1 percent.

The second land auction is set for 10 a.m. Friday, Nov. 20, at the Greater Malone YMCA.

Legislators had hoped the Oct. 7 land sale would take in $1 million and slash the proposed tax increase to 9 percent.

But the 81 parcels sold only brought in about $500,000, County Treasurer Bryon Varin said.

Many went for under $500, so legislators rejected all bids under $500 and placed about 30 properties for sale again.

Haroff Auction and Realty Inc. will again handle the land sale. Information packets are available online at www.nysauctions.com.

The packets include highway-location maps, tax maps, real-property-tax service printouts, deed description and photographs.

Winning bidders have 18 months from the sale's closing date to bring the property up to state and local building-code standards.

Originally, 108 parcels were to be sold in October, but that was lowered to 81 due to owner redemptions or municipality interest.

But this year, the county wants to know what the towns and villages intend to do with the land.

If it is used for public purposes, such as a parking lot or an addition to existing government buildings, the municipality would be charged back for the taxes owed.

If it is to remove blight, the township or village would need a memorandum of understanding with the county to tear down the building and sell the land.

Once sold to a new owner, the municipality gets its debris-removal money back, the county gets its back taxes paid, and any money left goes to the municipality.

Tupper Lake, Bombay, Malone, Chateaugay, Waverly and Fort Covington got letters concerning the parcels they want.

E-mail Denise A. Raymo at: draymo@pressrepublican.com