I just recieved 2 emails from Craig Malin about the tax sale. The second email was forwarded by a Cathy Hult. These are explainations I recieved when I emailed about the tax sale.
Alan Guard would be able to provide better details, but here is my understanding:
We are not directly responsible for paying property taxes on the Adler Theater as it is owned by the RCPA, LC. However, we do have some agreement with the RCPA that obligates us to help reimburse them for their operating losses – this arrangement was in exchange for them taking on the renovation of the building. So, if there is a loss we will be making a payment to the RCPA and thereby indirectly paying the property taxes.
I checked the Scott County website and noted that the taxes for parcels L0008-21B and L0008-21D that comprise the Adler Theater were sold on June 15, 2009 (roughly $75,000 total plus interest and costs). Alan will need to follow up with the RCPA.
Parcel L0008-21D was part of the Mississippi Hotel that was split from the hotel and added to the theater in order to accommodate the stage expansion. I believe that is the genesis for the incorrect statement that the hotel is not paying its taxes.
I received the documents. The tax sale is nothing to be overly concerned about at this point. Basically, you have two years in which to either resolve the taxes with the taxing authority or pay this off before there are any dire consequences (other than interest accruing). Below is a summary of the law.
Iowa Code Chapter 446 covers tax sales. The buyer holds a certificate of purchase (446.29) which can be redeemed by the owner for a certain period of time. The certificate holder has paid the taxes and is earning interest at 2% per month. The owner can redeem at any time by paying the treasurer the amount of the taxes paid plus the interest and costs of the certificate. Redemption of tax sale certificates is covered under Iowa Code chapter 447. After 1 year and 9 months have passed from the date of sale the holder of the tax sale certificate can send a written notice to the owner that the right to redeem is set to expire and that they are going to request a deed. The notice must be sent regular and certified mail to the person who gets tax notices. After 90 days have passed from service of the notice, then a tax deed may issue and then, the owner has lost the property.
Please note the date of the sale on your calendars (JUNE 15, 2009). We will have the tax appeal resolved before a tax deed is a concern (2011). However, please keep a very close watch on the mail and notify me immediately if you receive any documents/letters/etc. which refer to the expiration of a right to redeem or to a tax deed.
If you have any questions please call.
Comments are always welcome.