Only one St. John’s property is still up for grabs of the 14 originally scheduled to go on the public auction block at City Hall March 2 as a result of back taxes. The 14 properties were associated with tax bills ranging from $565 to more than $833,000.00, and were advertised as properties about to be auctioned. However, the owners of seven of those properties settled their tax bills between Feb 26 and the date of the auction.

The most expensive property – the former Bank of ova Scotia building at 291 Water Street – remains up for grabs and will be available for less than its outstanding tax bill. Linda Bishop, senior legal counsel for the City of St. John’s, says that the property wasn’t expected to sell at the first tax sale auction because its value is less than the amount of owed taxes. “The taxes on that particular building are $833,000.00 and change,” she said. “The building itself is not even assessed at that amount, so I didn’t expect for anyone to bid $833,000.00 for that building. Now it will go to the highest bidder, so we probably won’t get $833,000.00, but we’ll certainly recover a significant component of our taxes.”

The building is assessed at $500,000.00. Bidding begins next week. Bishop said there are definitely people interested in the building and that interest will likely surface when it goes on the auction block again March 16. She figures potential buyers were at the March2 auction to scope out the competition for the second round of auctioning. “It will be interesting to see who is out there and who is serious,” she said.

Bishop said if the property is sold, some of the money is owed to the province, but she is confident the city will at least collect the principal it is owed. “I am confident the building will (sell) and I’m confident that we will collect our principle amount of the taxes,” she said.

At March 2 auction, buyers had to deposit an amount at least equal to the outstanding taxes owed. They were then given a maximum of 30 days to come forward with any additional funds that might be required to finalize the deal. Bishop said City Hall’s Foran/Greene Room was filled with potential buyers March 2. She also pointed out that the City doesn’t make any money at the auction, explaining that the City tries to recoup the taxes owing. Any additional funds that might come through the sales are used to pay off other agencies. “We don’t get to keep the extra (money)….,” Bishop said. “The City then has to pay that money to other creditors in their order of priority.”

More than $116,000.00 in back taxes was collected from the auction and from people coming forward to pay their tax bills just before the auction. The property at 291 Water Street will be on the block at 10:30 am March 16 in the Foran/Greene Room at City Hall.

The Telegram. Bradley Bouzane Monday, March 8, 2004.