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
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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.
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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 `
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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
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