Sec. 2-14. - Sale of tax title and treasurer's auction property by the city.

(a)

Whenever a request is made to the city treasurer to purchase the tax title to a lot which is held by the city, including any parcel held pursuant to a treasurer's deed, which lot is located in a residentially zoned area, the prospective purchaser shall submit the offer to purchase in the form of a written purchase and sale agreement which shall be submitted to the city treasurer.

(b)

The purchase and sale agreement shall contain the following provisions, and other terms and conditions as shall be approved by the city solicitor:

(1)

The minimum purchase price shall be the sum of the outstanding taxes, interest and tax sale expenses on the subject parcel, or the assessed value of the subject parcel, whichever is higher, plus the estimated costs of clearing the title to the subject parcel, pursuant to G.L. § 44-9-25 or G.L. § 44-9-40 (as estimated by the city solicitor), plus taxes and interest which shall accrue between the date of the offer and the closing on the sale of the parcel plus the actual costs of clearing the title in excess of the estimated costs plus sewer assessment fees that may be due and the costs to administratively merge the subject parcel with the adjacent parcel owned by the purchaser.

(2)

The deposit shall be equal to the estimated costs of clearing the title to the subject parcel with a provision that the deposit shall be nonrefundable upon commencement of work to clear the title; but shall be refundable prior to the commencement of the title examination or genealogy work necessary to file the court action to clear the title. Said deposit shall be submitted to the treasurer at the time of submission of the purchase and sale agreement.

(3)

The deed shall contain a restriction that no building or structure shall be allowed on the subject parcel except that which is permitted as a residential accessory use by the city zoning ordinance without variance or other relief from said ordinance, including but not limited to, a shed, a pool, a driveway, an addition to an existing house, or a fence.

(4)

In the event that the lot is adjacent to a parcel owned by the prospective purchaser the lot shall be merged administratively into the purchaser's existing lot.

(c)

Upon receipt of the signed purchase and sale agreement with the payment of the deposit by the prospective buyer, the treasurer shall determine if the deposit required under subsection (a)(2) has been tendered. If so, the treasurer shall retain the proposed purchase and sale agreement in a secure location and send notice of the offer to purchase to owners of lots which are directly adjacent to the subject parcel. A copy of the notice shall also be sent to the councilperson in whose ward the parcel of land lies. The notice shall contain the assessor's plat and lot, and the minimum purchase price as calculated under subsection (a)(1). An owner of any lot which is directly adjacent to the subject parcel may, within 30 days of the date of notice from the treasurer, submit an offer to purchase the subject parcel under the terms and conditions outlined in subsection (a). The treasurer shall also send a notice with a request for a recommendation as to whether the city should relinquish its rights to the subject parcel to the director of the planning department, the city conservation commission, the clerk of the zoning board, the tax assessor, the city engineer, the land trust and the finance director. The recommendations must be returned to the treasurer within 30 days of the date of the notice from the treasurer. Upon receipt of the recommendations and any other timely offers to purchase the subject parcel, the treasurer shall send the proposed purchase and sale agreement(s) and the recommendations to the city clerk who shall place the matter on the docket for the next business meeting of the city council. The offers to purchase shall be considered at the city council's public properties committee meeting and all offers and the recommendations of the city departments shall be considered. The city council may adopt a resolution approving or denying the sale of the subject parcel at any time after all offers have been considered pursuant to this section. In approving a sale, the highest bidding offeror, who is ready; willing and able to complete the purchase in a reasonable time, shall prevail. However, in the event that two or more eligible parties have submitted identical offers for the subject parcel, then those parties may submit counter-offers in the form of amended purchase and sale agreements within ten days of the committee consideration of the original proposals. Any counter-offer shall be delivered to the treasurer and considered along with any other counter-offers to purchase the subject parcel at the next scheduled meeting of the city council's public properties committee (subject to the rules of the city council and the Rhode Island Open Meetings Act). This process shall be repeated until a highest bidding offeror, who is ready, willing and able to complete the purchase in a reasonable time, may be identified. Notwithstanding the foregoing, upon receipt of and consideration of the recommendations of the city departments, the city council may adopt a resolution denying the sale of the subject parcel at any time, or approving the division of the parcel of land between abutting property owners to be sold in a proportion agreeable to said abutters, the total purchase price of which shall be equal to the highest bid, payable by the purchasers in proportion of the percentage of the entire parcel they are to receive.

(d)

Upon adoption of the resolution approving the sale of the subject lot, the treasurer shall execute the purchase and sale agreement on behalf of the city and shall deposit into the city's accounts the deposit check submitted by the prevailing party. All other deposits shall be returned to the offering parties. Thereafter, the city solicitor shall proceed to clear, or cause to be cleared, the title of the subject lot and upon entry of the judgment clearing the title to the subject lot not subject to appeal, or as otherwise may be acceptable to the purchaser, it shall be conveyed to the purchaser in accordance with the terms of the purchase and sale agreement.

(e)

Whenever a request is made to the city treasurer to purchase the tax title to a lot which is held by the city, including any parcel held pursuant to a treasurer's deed, which lot is located in an area which is not residentially zoned, the prospective purchaser shall submit the offer to purchase in the form of a written purchase and sale agreement which shall be submitted to the city treasurer The purchase and sale agreement shall contain the following provisions, and other terms and conditions as shall be approved by the city solicitor:

(1)

The minimum purchase price shall be the sum of the outstanding taxes, interest and tax sale expenses on the subject parcel, or the assessed value of the subject parcel, whichever is higher, plus the estimated costs of clearing the title to the subject parcel, pursuant to G.L. § 44-9-25 or G.L. § 44-9-40 (as estimated by the city solicitor), plus taxes and interest which shall accrue between the date of the offer and the closing on the sale of the parcel plus the actual costs of clearing the title in excess of the estimated costs plus sewer assessment fees that may be due and the costs to administratively merge the subject parcel with the adjacent parcel owned by the purchaser.

(2)

The deposit shall be equal to the estimated costs of clearing the title to the subject parcel with a provision that the deposit shall be nonrefundable upon commencement of work to clear the title; but shall be refundable prior to the commencement of the title examination or genealogy work necessary to file the court action to clear the title.

(f)

Upon receipt of the signed purchase and sale agreement with the payment of the deposit by the prospective buyer, the treasurer shall determine if the deposit required under subsection (e)(2) has been tendered. If so, the treasurer shall retain the proposed purchase and sale agreement in a secure location and send notice of the offer to purchase to owners of lots which are directly adjacent to the subject parcel. A copy of the notice shall also be sent to the council-person in whose ward the parcel of land lies. The notice shall contain the assessor's plat and lot, and the minimum purchase price as calculated under subsection (e)(1). An owner of any lot which is directly adjacent to the subject parcel may, within 30 days of the date of notice from the treasurer, submit an offer to purchase the subject parcel under the terms and conditions outlined in subsection (e). All proposed purchase and sale agreements for the subject parcel shall be considered by the city council's public properties committee. The treasurer shall also send a notice with a request for a recommendation as to whether the city should relinquish its rights to the subject parcel to the director of the planning department, the city conservation commission, the clerk of the zoning board, the tax assessor, the city engineer, the land trust and the finance director. The recommendations must be returned to the treasurer within 30 days of the date of the notice from the treasurer. Upon receipt of the recommendations and any other timely offers to purchase the subject parcel, the treasurer shall send the proposed purchase and sale agreement(s) and the recommendations to the city clerk who shall place the matter on the docket for the next business meeting of the city council. The offers to purchase shall be opened at the city council's public properties committee meeting and all offers and the recommendations of the city departments shall be considered. The city council may adopt a resolution approving or denying the sale of the subject parcel at any time after all offers have been considered pursuant to this section. In approving a sale, the highest bidding offeror, who is ready, willing and able to complete the purchase in a reasonable time, shall prevail. However, in the event that two or more eligible parties have submitted identical offers for the subject parcel, then those parties may submit counter-offers in the form of amended purchase and sale agreements within ten days of the opening of the original proposals. Any counter-offer shall be delivered to the treasurer considered along with any other counter-offers to purchase the subject parcel at the next scheduled meeting of the city council's public properties committee (subject to the rules of the city council and the Rhode Island Open Meetings Act). This process shall be repeated until a highest bidding offeror, who is ready, willing and able to complete the purchase in a reasonable time, may be identified. Notwithstanding the foregoing, upon receipt of and consideration of the recommendations of the city departments, the city council may adopt a resolution denying the sale of the subject parcel at any time, or approving the division of the parcel of land between abutting property owners to be sold in a proportion agreeable to said abutters, the total purchase price of which shall be equal to the highest bid, payable by the purchasers in proportion of the percentage of the entire parcel they are to receive.

(g)

Upon adoption of the resolution approving the sale of the subject lot, the treasurer shall execute the purchase and sale agreement on behalf of the city and shall deposit into the city's accounts the deposit check submitted by the prevailing party. All other deposits shall be returned to the offering parties. Thereafter, the city solicitor shall proceed to clear, or cause to be cleared, the title of the subject lot and upon entry of the judgment clearing the title to the subject lot not subject to appeal, or as otherwise may be acceptable to the purchaser, it shall be conveyed to the purchaser in accordance with the terms of the purchase and sale agreement.

(h)

In adopting this section, the city council wishes to express its desire and intent that the funds realized through this procedure be allocated and budgeted to pay the costs and to sustain the procedure for selling tax title land as open space

(Ord. No. O-03-4, § I, 3-17-03; Ord. No. O-04-18, § I, 8-3-04; Ord. No. O-07-13, § I, 7-10-07; Ord. No. O-12-14, § I, 7-10-12)