Irricana council tabled a motion to set a date and reserve bid for the auction of a property that has been in tax arrears for three years, April 2.
Council chose to hold off the decision until the next council meeting because of potential liability issues.
In his request, CAO Alvin Melton suggested a reserve bid at 25 per cent below market value for the property.
“The Municipal Government Act (MGA) says the (reserve bid) has to be as close to market value as reasonable,” said Mayor Lisa Constantini.
Deputy Mayor Larry Martin expressed concern the MGA doesn’t state a dollar amount for what “reasonable” is.
“If we sell (the land) at auction for the minimum amount, the homeowner can’t come back and say we sold too low?” Martin asked.
Melton suggested by having the open sale at auction, the bidding would constitute market value.
“Usually we see (Irricana sales) somewhere in the 95 per cent range of the list price,” said Martin, a Realtor by trade, adding list price is based on the real market value and not the assessed value.
However, Martin said he was pleased to see the suggested reserve bid was below market value because no one showed up to the last Irricana auction.
The owner of property in question has not paid taxes for three years and the MGA states the land must be offered for sale at public auction, according to Melton.
Melton said the landowner has approached administration and provided them with four post-dated cheques for the amount owing.
He added the Town will continue planning the auction in case the cheques don’t clear.
A second leak has been found on Gib Bell Close, Melton told council.
He said an investigation to determine the source of the leak would be conducted starting April 3. Melton said they have a good idea where the leak is but the investigation will still require the removal of more pavement.
He said the investigation will start by workers digging in the same hole they dug for the first leak in early March but have about a 20 foot span to examine. Martin inquired about water consumption since the repair of the first leak.
Melton said before the repairs, the Town’s consumption was between 400 to 600 cubic metres of water per day. The total is now about 200 cubic metres per day.
Council accepted the recommendation from the Irricana and Rural Municipal Library Board to appoint former board chair Trudy Whitfield to the role of library trustee.
“Trudy has been involved with the library board forever it seems,” Martin said.
“Her wealth of knowledge is just so vast, when she offered to come back we jumped at the opportunity.”
Whitfield resigned from the board last year, but recently decided to come back, he said.
