Residents piled in to the Wiscasset Board of Selectmen’s Tuesday, Oct. 6 meeting to hear about potential action the town would take on its foreclosed-on properties. After a legal overview and review of the town’s tax-acquired property policy by attorney Wendy J. Paradis, selectmen failed to reach agreement on a course of action to take to exercise their right to dispose of property long-delinquent on its tax bills.
A motion to send a notice to property owners that the town would exercise their right to dispose of vacant lots if payment of back taxes was not made by Nov. 30 failed in a 2-1 vote with one abstention.
Chair Ben Rines and Selectman Jeff Slack voted in favor, Judy Flanagan was opposed, and David Cherry abstained with no explanation, despite questioning from Rines.
The board of selectmen will wait until after the Nov. 3 election, when it is once again a five-member board, to come to a conclusion on how to proceed with the 34 foreclosed-on properties in Wiscasset that are costing the town approximately $400,000 in lost tax revenue.
The property owner responsible for initiating the discussion on how to dispose of the town’s foreclosed-on property, Currier Langley, has paid his delinquent property taxes in full, selectmen said.
Abutters to Langley’s vacant lot previously attended a selectmen’s meeting with interest in purchasing the property, which was long-delinquent in a tax payment agreement made with the town. Selectmen issued a letter to Langley on Sept. 22 giving notice the town may decide to pursue its right to dispose of the property if payment was not received by Oct. 6.
In her presentation on the legalities involved in disposing of tax acquired property, Paradis warned how easily the discretion allowed for in the town’s tax-acquired property policy could turn into a claim of discrimination if it was not consistently applied.
Selectmen Judy Flanagan and David Cherry expressed concern about voting to send a similar letter to other landowners before discretionary guidelines to govern the application of the policy were developed.
Flanagan also expressed concern that the board was considering taking action before opening the floor to residents in attendance because the town sent notice foreclosed-on property would be discussed.
“No one wants to take anyone’s land away, but this is getting out of hand,” Rines said. “We’re noticing it on a budgetary level.”
The complications involved in taking ownership and disposing of vacant lots, non-residential lots, or second homes are not as difficult or distasteful as the town assuming ownership of a residential lot and evicting a family, Paradis said. Those should be the first for the town to go after, she said.
According to Paradis, selectmen have discretion in determining how to proceed with landowners on tax liens, in striking deals with them to resolve outstanding tax bills and in timelines around exercising their right to sell the property.
Selectmen should be consistent in the use of their discretion to avoid complaints from residents about discrimination in the application of the policy, Paradis said.
The town currently has 34 tax-acquired properties, Town Manager Marian Anderson said – 11 with agreements for payment of the delinquent amount and 23 with no agreements. The outstanding amount of tax revenue is $400,000, she said.
Following a discussion of issuing a letter to vacant lot owners with delinquent or no tax-payment agreements, Rines made a motion to send notice to owners of vacant lots, non-residential lots, and second homes the town would exercise its right to dispose of the property if taxes were not paid in full by Nov. 30.
Cherry expressed concern about how quickly the selectmen were ready to take binding action on a motion that incorporated non-residential lots and second homes, a change in the discussion that happened just moments before the motion was made.
The motion was amended to send notice to just vacant lot owners, which Cherry said he supported, but ultimately chose not to vote on. Flanagan opposed taking action, especially before residents had the opportunity to speak, she said.
Selectmen will meet to develop discretionary guidelines once a new member joins the board, they said. When residents did have an opportunity to speak, where to direct payments, if landowners current on their delinquent tax payment agreements needed to worry, and how to enter into an agreement with the town were the questions asked.
Landowners current on their tax agreements will not be affected by the future action selectmen will take, the selectmen said. Since her time as town manager, Anderson has not entered into any delinquent tax payment agreements with property owners, she said.
Selectmen advised she not enter into any more until they develop firm guidelines on how to proceed with the delinquent agreements they already have.
