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HomeMy Public PortalAbout12214 - RELEASED BILL NO. 88-30 SPONSORED BY COUNCILMAN HALSEY ORDINANCE NO. /%05--e;‹ AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, RELINQUISHING A LIEN CREATED BY SPECIAL TAX BILL 12214. WHEREAS, Special Tax Bill 12214 was issued in favor of the E.P. Barnett Construction Company in 1959; and WHEREAS, The E.P. Barnett Construction Company is no longer in business and no successor has assumed their records; and d' WHEREAS, No records can be found concerning this Construction Company; and WHEREAS, Statute of Limitations would prohibit any enforcement actions towards collecting this Tax Bill after January 1, 1970; and WHEREAS, Owners of the lot subject to tax lien 12214 have placed in escrow with the City of Jefferson, the sum of $2, 891.25 to guarantee this tax bill for purposes of closing a real estate transaction. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Any lien created by Special Tax No. 12214 is hereby relinquished. Section 2. The City Clerk is hereby directed to release any and all liens created by Special Tax Bill 12214. Section 3. The Director of Finance is hereby ordered to refund the money placed in escrow with the City in the amount of $2, 891.25 to the people who placed the money in escrow, that being Margie Brucks, Virginia Haldiman, Wanetta Maddox and Joan Bean. Section 4. This Ordinance shall be in full force and effect from ,and after its passage and approval. Passed Approved /,/ / 9 Pf Presiding Officer .yor ' \ ATTEST: : ' City Clerk et;14. MEMORANDUM TO: Mayor Louise Gardner City Council Members A FROM: Allen Garner, City Counselor " DATE: June 9, 1988 RE: Special Tax Bill 12214, Joseph & Ida Klug In March of this year, a certain tract of real property within the City was transferred. During title examination in conjunction with this private sale, it was discovered that three tax bills had been issued against the. property which were not shown as having been paid. The sellers were able to produce proof that two of these three had indeed been paid, but had not been released on the City records. No records could be found pertaining to the third tax bill issued in favor of E.P. Barnett Construction Co. The E.P. Barnett Construction Company is no longer in business and E.P. Barnett died unmarried and without children fifteen years ago. Because of concerns involved in this real estate transaction and desire to proceed to close, it was agreed the City would be paid the amount due and owing on the remaining tax bill and would hold that money pending resolution of the liability. At the time it was agreed to hold this money it was made clear to the sellers and their attorney, Mr. Ronald Prenger, that the burden to resolve the issue would remain on them. A letter has now been received reflecting the research on the subject, including statutory authority on the duration of liens. Based on their research and my own, it appears that the statute of limitations would prohibit the City from enforcing this lien after January 1, 1969 or at the latest January 1, 1970. In order to clean up the City records on this matter, an ordinance is being prepared waiving any rights of the City to collect this amount and releasing the tax lien created by Special Tax No. 12214. If you have anyquestions or comments, please let me know. bmc LAW OFFICES OF HYDER, PRENGER, BRATTEN and NEFF 202A East High Street Jefferson City,Missouri 65101-3288 Telephone(314)634-3234 Ronald J.Prenger Robert L.Hyder,P.C. Steven J.Bratten of Counsel Christina R.Neff June 6, 1988 Mr. Allen Garner City Attorney 320 East McCarty Street Jefferson City, Missouri 65101 Re: Joseph and Ida Klug Special Tax Bill No. 12214 Dear Allen: You will recall that in early March we delivered to you a check to be held in escrow for the satisfaction of tax lien 12214. Belatedly, I am submitting to you the enclosed informa- tion relative to the position of the heirs of Joseph and Ida Klug with respect to the payment of that tax lien. First of all, I might state that Margie Brucks and the other children of Joe and Ida Klug are convinced the bill was paid in 1959 to E.P. Barnett Construction Company. To this date, we have been unable to locate any successor company or any heirs of E.P. Barnett who died unmarried and without children 15 years ago. Secondly, please consider the following research: On March 7, 1988 , real property described as Lot 26, 27 and 39 of W.A. Beck Addition to the City of Jefferson per plat of record in Plat Book 5 , Page 23, Cole County Recorder' s Office, was transferred from fee owners Margie Brucks, Virginia Haldiman, Wanetta Maddox and Joan Bean to Raul Walters. On January 29, 1988 , in preparation for the sale, a title commitment was issued to the prospective buyers. It listed as requirements to be satisfied the following special tax bills: No. 12214 December 1 , 1958 $866. 91 " d7-1e-g? No. 12365 November 14, 1960 $501. 951-1-4-a'-/3 -7'PQ No. 12366 November 14 , 1960 $501. 95 ` A/tt f-t 44141-1(VTL CAI/la/0 fie4/VW, G� . These tax bills were assessed pursuant to Section 828 Tax Bills as set forth in the 1956 Revised Ordinances of the City of Jefferson. In order that the land transfer could take place as scheduled, the amount of $2, 89). 25 was placed in escrow with the City of Jefferson to satisfy number 12214 with interest. There was at that time no proof offered nor agreement made that the money was never paid. On March 7, 1988, a short letter was received by this office from Roy A. Scheperle Construction Co. , Inc. showing special tax bills 12365 and 12366, each in the amount of $501. 95, to be paid in full. These tax bills were released by the Deputy City Clerk that same day. The 1956 Revised Ordinances of the City of Jefferson sets out the statutes applicable to third class cities includ- ing Jefferson City. The first such statute is Section 71. 010 which says that city ordinances must conform to state law. The second such statute is Section 88. 513 pertaining to public improvements. Subsection 3 of that law speaks of interest on the special tax bill and the fact that the special tax bill is a lien against the land. It also provides a statute of limitations for the special tax bill of five years unless the lien is paid in yearly installments. ' This law is from the 1948 Missouri Constitution and probably the 1949 Missouri Revised Statutes. A later revised statute dealing with special tax bills which culminate in tax liens against real estate is Section 88. 812, effective 1959. That statute provides for a special tax lien against the property for the period of a ten year limitation. The limitations of both Section 88. 513 and Section 88. 812 are long since expired on the instant case. The line on Lots 26 , 27 and 39 of W.A. Beck Addition to the City of Jefferson arose December 1, 1958 and became delin- quent January 1 , 1959. Under Section 88. 513 the limitation period of five years would expire on January 1 , 1964. Likewise, under Section 88 . 812 the ten year limitation period would expire on January 1, 1969. Using either of these special statutes of limitation, the tax lien should be barred and prevent collection efforts after January 1 , 1969 and the money presently held in escrow should be returned to the heirs of Joseph and Ida Klug. We are, therefore, requesting that you cause to be released to Margie Brucks, Virginia Haldiman, Wanetta Maddox and Joan Bean the money presently held in escrow for tax lien 12214. Sincerely, !NIDE , RENGE$r, BATTEN & NEFF C na d �: Pren RJP:bkv