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County Administrator's Report 13. 12.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	06/21/2018
Issue: Default on the Purchase of County-Owned Real Property Located at Red Cedar Street (Innerarity Island)
From:	Stephan Hall
Department:	Asst County Administrator
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Default on the Purchase of County-Owned Real Property Located at Red Cedar Street (Innerarity Island) - Stephan Hall, Budget Manager, Management and Budget Services

That the Board take the following action concerning Default on the Purchase of County-Owned Real Property Located at Red Cedar Street (Innerarity Island) (Account #: 10-4461-832, Reference #: 15-3S-320-2001-017-008). This parcel is located in District 2:

A. Declare Irwin McCastle, the successful bidder of the parcel referenced above, to be in default of the terms of the Contract between him and the County for the purchase of the County-owned parcel located at Red Cedar Street (Innerarity Island), for failure to close in the timeframe prescribed by the terms of the Contract;

B. Retain the deposit made by Mr. McCastle, in the amount of $4,100, for the parcel located at Red Cedar Street (Innerarity Island); and

C. Authorize the parcel to be re-advertised for sale at another auction.

BACKGROUND:

Irwin McCastle was the successful bidder in the surplus real property auction ending February 7, 2018, wherein he bid $41,000 for the parcel located at Red Cedar Street (Innerarity Island). On February 12, 2018, Mr. McCastle completed the 10% Deposit and Purchase form and submitted his bid deposit to the County in the amount of $4,100 for the aforementioned parcel. The County Attorney's Office mailed a set of closing documents to Mr. McCastle on March 5, 2018. Mr. McCastle appeared for his scheduled closing on April 17th, where he executed the Agreement for Sale and Purchase, which was also executed by the Chairman on that same date. Mr. McCastle left the closing to go to the bank for certified checks, but failed to return. On April 18th, he requested to delay the closing for another 30 days to allow an additional investor to look at the property. The closing was extended until May 17, 2018, and Mr. McCastle was advised that the would be in default of the terms of the contract if he did not close by the extended date. Mr. McCastle did not show up for the closing, nor did he call.

On May 23, 2018, a certified letter was mailed to Mr. McCastle by the County Administrator, advising that Mr. McCastle had failed to complete the closing and that the Administrator would recommend the Board find him in default of the terms of the contract, retain the bid deposit, and authorize the property to be re-advertised for another auction.

BUDGETARY IMPACT:

The 10% bid deposit submitted by Mr. McCastle was deposited into the General Fund.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Certified Letter