The sale of township-owned property was again the topic of discussion during the meeting of the Sumpter Township Board of Trustees March 22.
In the workshop session prior to the board meeting, Supervisor Tim Bowman again suggested that the township employ the services of Braun and Helmer professional auction services to sell several pieces of property. He said the services of the auctioneer included the necessary paperwork, the title work and advertising.
“This is a better way to go about selling township properties,” he told the board members.
During the 45 minutes of discussion regarding the property sale, Trustee Matt Oddy said he would be in favor of the auction service “if individuals were allowed time to get a mortgage” which he said could potentially increase the number of bidders on the various properties as cash buyers “have an advantage.”
While Trustee Peggy Morgan suggested a “pilot program” with the auctioneers, Bowman explained that the company auctions off from “one to 19 properties, one right after the other. If the sell six of the 19, the other 13 go right back up again,” he said.
Morgan said she had some concerns about the new procedure in place which requires bidders to submit a plan for the property when they bid on it. “Is that out the door?” she said. Oddy explained that the new procedure was written allowing board members the option to change the procedure.
Bowman explained that the properties are zoned and if the zoning is residential “you have to build a house on it. Nothing else you can do.”
The board members entered into a lengthy discussion of the possible reserve price on the properties being auctioned and debated setting a minimum bid at the recently appraised price of the various sites.
Trustee and interim Deputy Supervisor Tim Rush explained that these properties also presented a liability issue for the township, noting that four-wheelers regularly used one site and that if there were to be an injury, the township could be held liable.
Trustee Don LaPorte said that he wanted to reiterate that he was not in favor of selling any of the properties, but agreed with Oddy that bidders should be allowed time to find financing if necessary.
Rush explained that with several of the sites, the township would not actually receive the funding from the sale as it would go to the state or county. The township, he said, has been maintaining the land for 30 years and would be paid by the state or county for that service from the proceeds of any sale.
While trustees agreed that the land should be sold at “the going rate” or the appraised value, Bowman assured them that the township would never receive that amount.
“The property could be contaminated. I've walked both properties and there is a tree every 2 feet,” he said. “It is not that desirable a piece of property.”
Township attorney Rob Young reminded the board members that in his discussions with the auction company, the owners clearly stated that there could be no minimum bid required or reserve.
“You can reject all bids made but if you set a price minimum, they wouldn't take on the job. If you're going to try to get the appraised amount, they aren't going to do it,” he said.
Rush suggested the board members direct Young to review the auction contract and bring it back for discussion. “We aren't going to get anywhere with this tonight,” he said.
The board members took no action on the proposal to utilize the auction service and voted to remove the item from the meeting agenda.
