Fenton Wavers On Accepting Foreclosure Land from County Because of Hefty Price Tag

Because the cost of a little more than $16,000, Fenton City Council debated the pros and cons of accepting three properties from the Genesee County Treasurer's Office Tuesday at the city's work session.

The properties, all foreclosures in the , belong to the county due to unpaid taxes.

Fenton has the option of accepting them from the county for the price of the unpaid taxes and interest — around $16,000, said city manager Lynn Markland. But he didn't recommend it because of the cost.

However, city council discussed paying $9,965 for a two- to three-acre piece of land with frontage off South Long Lake Road, because of its proximity to the Peacock Properties land for sale at the corner of Torrey and South Long Lake roads. This parcel was the only one of the three worth buying, if Fenton was going to purchase one, Mayor Pro Tem John Rauch said.

With a $10,000 to $16,000 anticipated surplus for the 2010-11 fiscal year, which ended Thursday, June 30, purchasing the $9,965 piece of land would be "cutting it close," Mayor Sue Osborn said. "I hate to lose it, though."

Markland said he would check and see how the fiscal year ended and let council know. The deadline for Fenton to notify the county is Friday, July 8.

Assistant city manager Michael Burns said the city's fund balance, accumulated from a number of fiscal years, is around $1.6 million. This money is set aside for an emergency and would keep Fenton in business for a few months, Rauch said.

If Fenton doesn't take any of the three foreclosed properties by paying the county for the taxes on them, the Genesee County Treasurer's Office will offer the land to the public in a minimum bid auction. The minimum bid is the amount of unpaid taxes on the property, Councilman Tim Faricy said.

If no one buys the land in the auction, Fenton will have the option of accepting any of the unsold properties that are in the city free of charge, Markland said. In addition to the property with South Long Lake Road frontage, the three properties in Fenton include a parcel off Eddy Lake Road and one off Valley Street.

If the city doesn't accept the land by paying the taxes and interest on it, the county will put it up for sale in a second auction, Faricy said.

This process is how Fenton received buildable land in the Orchard Hills subdivision, at no cost, Markland said. Fenton's Brownfield Redevelopment Authority is scheduled to discuss the y the city owns at its 7 p.m. Monday, July 18 meeting, at city hall.

The Brownfield Redevelopment Authority is considering options to control arsenic in two areas of Orchard Hills it now owns, present in the soil due to pesticide use on fruit trees decades ago. In December 2010, Fenton City Council decided to accept the land and address the arsenic problems, since council members feel a responsibility to residents in Orchard Hills, Osborn has said. There are around 150 lots Fenton could sell to a developer, most likely when the real estate market improves.

Previously, Fenton was going to use , from the new Fairfield Inn project on Silver Parkway, paying only the cost of hauling the dirt. Then, because of time constraints, the city planned to use the soil for a project at . Now, the hotel has decided to keep the soil on its site for its own landscaping, Markland said.

A benefit of accepting foreclosed properties in the city, from the county, is that Fenton can at some point offer the properties for sale, he said. Or, the city can make improvements and resell it.

This is the case with a house on Main Street the city accepted in 2010. Because of its condition, Fenton is demolishing the house. It will take place within the next month, Markland said. Then Fenton will probably sell the land. The property owners on each side of it have both expressed interest in having it.