Mayor Mike Foley, who proposed changes to the city’s delinquent tax policies in 2020, noted at Monday’s City Council meeting that selling tax-acquired properties will now come under consideration every year in Westbrook. Screen shot / Westbrook Community TV

The Westbrook City Council has preliminarily approved the sale of tax-acquired property, a change from previous years that saw no action on delinquent taxes.

Councilors voted unanimously Monday night to OK the sale of 48 foreclosed properties if delinquent taxes are not paid. Included are three residential properties and 45 vacant pieces of land, according to information provided by the City Council.

The real estate parcels have not yet been taken over by the city; owners have been sent 60-day notices to tell them they have two months to pay the back taxes and retain their properties. The process for a property to get to this point takes upwards of two years.

About 35 of the properties are owned by MWB LLC, Osaka Street LLC and Mitchell Farms Development LLC, with MWB being the majority holder.

As part of the measure, the city has also offered a 90-day amnesty period, during which the owner of an owner-occupied, residential tax-acquired property could pay all back taxes and fees with the interest waived.

Four property owners have taken advantage of the amnesty program, paying off taxes that included about $50,000 in interest.

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After the amnesty period, a committee composed of the mayor, city administrator, tax collector, finance director, director of planning and economic development director reviewed the list of remaining tax-acquired properties to decide which are to be sold or what else could be done with the properties. The city council reviewed the recommendations in an executive session June 21.

Selling tax-acquired property was part of tax reforms of August 2020, although the city has taken no action on delinquent taxes until now.

“The city did not deal with these properties until we got under the leadership of our newer tax collector Dena Lebeda,” Mayor Mike Foley said at the meeting.

Since then, the city has collected nearly $1 million in back taxes, Foley said.

Prior, there was no defined policy on what the city could do with seized properties, but the new policy allows the municipality to use or sell the property to recoup some of the money owed.  Westbrook will keep the amount owed as well as related fees, according to the policy.

The number of foreclosed properties in the city dropped from 87 to 48 since the amnesty program and other measures were taken. The largest dollar value owed on a single property is $86,818 and some delinquent taxes go as far back as 1998.

The policy has caveats sparing certain people from having their homes sold, according to City Administrator Jerre Bryant.

“The city isn’t taking homes from anyone struggling, these are mostly undeveloped or vacant lands, and we continue to work with property owners on this,” Bryant said.

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