SUNDRE – One of two commercial properties that had recently been scheduled to be sold at an upcoming auction is no longer in the tax recovery process.
Council had previously set reserve bids of $5.53 million and $317,000 as well as an auction date in December for a couple of commercial properties that had fallen several years behind in taxes owed to the municipality through a tax recovery process that is strictly regulated.
The decisions had come by way of two separate motions carried unanimously on Sept. 30 during a regular meeting.
Chris Albert, director of corporate services, said the matter was a continuation of similar motions carried earlier this past summer pertaining to residential properties that were also delinquent.
“We did have to wait on the appraisals for the two commercial properties that were on the list,” Albert told council.
Strictly regulated by the Municipal Government Act, the process can only begin once a property has been in arrears for a minimum of three years, he explained.
“The owners of the properties on the attached list have failed to pay the tax arrears for taxes owing in 2021, 2022, 2023 and 2024,” reads a portion of the background outlined in council’s agenda.
“They had until March 31, 2024 to pay the arrears prior to the requirement of the Town of Sundre to offer the property for sale at public auction this year,” it reads, adding notifications by letter from the town’s taxation department were subsequently sent both in 2023 and again in January 2024.
The appraisals for the two commercial properties in question were secured from Soderquist Appraisals to determine current fair market value.
“Council may decide not to hold a tax sale in which case there is no incentive for the property owners to pay the outstanding tax arrears and the decision should be applied consistently in the future,” reads part of the background.
The motions set the auction date and reserve bids as determined by the appraiser. As well, they outlined the terms and conditions of the sale. Either cash or certified cheque would be due upon acceptance of the winning bid that requires a 10 per cent deposit with the remaining balance plus any proportioned amount of the current year taxes to be paid by the new owner due within 30 days of the auction or the deposit is forfeited and the next bid considered.
Albert told council administration sought to set the auction date on Wednesday, Dec. 18 at 9 a.m. at the municipal office.
Council unanimously carried a motion setting a reserve bid of $317,000 for the property under Roll No. 615.003 with the legal address Lot 4, Block F, Plan 2574JK – or the former Zim’s Mini Mart – on the recommended date with terms and conditions as outlined.
A second motion was also carried unanimously setting a reserve bid of $5.53 million for the property under Roll No. 2272.000 with the legal address Lot 8, Block 3, Plan 1810863 – or the former Candre cannabis production facility – on the same date with identical terms and conditions.
Seeking clarification from administration, Coun. Jaime Marr asked whether the properties are identified by lot and block numbers for confidentiality.
“It is also for legal purposes,” said Albert. “That is the official description, whereas the (street) address can be a little more vague. This is the official legal description.”
The property owners have until right before the auction date’s scheduled start time to settle the outstanding taxes owed.
“Typically, accounts are rectified before we have to actually hold the auction,” Albert previously told the Albertan on Oct. 18 in response to follow-up questions.
Debbie Hilts, the municipality’s taxes and utilities coordinator, later told the Albertan on Nov. 4 that the property under Roll No. 2272.00, the larger of the two values, was no longer undergoing the tax recovery process.
In June, council had previously set reserve bids and an auction date of Oct. 23 for three residential properties that had fallen in arrears. While that tax recovery sale ultimately occurred as scheduled, there remained only one property at the auction and there were no bids placed.
