Dillingham council moves to sell three tax-foreclosed lots and keep a fourth

The Dillingham City Council on Thursday introduced three ordinances to sell three tax-foreclosed parcels and keep a fourth for future road and utility work. The city took title to all four through a court clerk's deed dated May 5.

One ordinance would sell two lots by sealed bid: 307 Airport Road, whose last known owner was the Estate of Charlie Franklin, with a minimum bid of $172,300, and a lot near West A Street and the Nushagak River, whose last known owner was the Estate of Julia Reed, with a minimum bid of $22,000. Each minimum matches the lot's last assessed value. Both would be sold as is, and if the bidding doesn't sell them, the city manager could sell them first come, first served for at least the minimum.

A second ordinance would sell a small, irregular leftover lot at 2002 Kanakanak Road, whose last known owner was Church of Christ, to Geraldine Cross, who owns the property next door, for at least its assessed value of $9,100. The ordinance says the lot can't be built on by itself, is used for access to her property and may have part of a residential building from her property on it. The sale depends on her merging the two lots, and the city could give her up to two years to do it.

The third ordinance would keep 1409 N. Emperor Way in the Nerka VII subdivision, assessed at $89,000, whose last known owner was Andrew Straley. The ordinance says the city needs the lot to stage future road and paving work, and that it would give the city room for water and wastewater facilities, such as pump stations, as homes are built in the subdivision.

Under state law, the owner at the time of foreclosure can buy the property back within 10 years, as long as the city hasn't sold it, by paying what was owed plus interest, later taxes and the city's costs. Keeping the Emperor Way lot for a public purpose would end that right for Straley.

When a lot is sold, the former owner can claim whatever the sale brings in above the taxes, penalties, interest and costs owed, but must file within six months of the sale. For the Kanakanak lot, the ordinance puts the amount owed as of May 5 at $2,720.10.

Public hearings on all three are set for Dec. 3 at 7 pm in the council chambers.