Adopt resolution approving a waiver of the $150 total Tax Segregation & Application Fees for the Muller Property Dedication. (No general fund impact) (Haynes)

Adopt resolution approving a waiver of the $150 total Tax Segregation & Application Fees for the Muller Property Dedication. 

On January 9, 2024 the Board of Supervisors approved the transfer and dedication of real property for the Muller property. The Mullers were required to dedicate to the County, in fee, roughly 98 acres consisting of reclaimed habitat and lake at the Muller Site (APNs 025-350-032 and 025-350-030). The actual size of the Muller Property dedication is 100.597 acres. The dedication was made pursuant to Development Agreement No. 96-286 (Section 2.2.8) for the Teichert Aggregates (Woodland) Long-Term Off-Channel Mining Permit.

The dedication of real property was made and recorded via a Grant Deed on March 5, 2024. The grant deed will eventually reduce half the value of the property to zero since it is now County property. However, due to the timing of the transfer of the real property, the property tax bill for parcels 025-350-030-000 and 025-350-032-000 included the full value of the property for the July 1, 2024 to June 30, 2025 period, which will have to be paid in November and April.  The exempt portion would eventually be refunded.

Segregation of the property will allow Assessor's staff to take parcels 025-350-030-000 and 025-350-032-000 and create four (4) new parcels for property tax purposes: two (2) now owned by the County and two (2) to continue with Muller ownership.  Once this process takes place, the Mullers can proceed to pay for their proportionate share of property tax bills. The alternative would be that the Mullers pay the entirety of the property tax bill and then the County would have to refund the Mullers for the prorated portion of the paid taxes attributed to the portions of the property transferred to the County.

Segregating the assessments entails a $150 fee. Since the dedication was for the benefit of the County, staff recommend that the County waive the fee associated with ensuring the owner pays the correct amount of taxes. By granting the waiver of the fee, staff can expedite the segregation process and the Mullers will only be responsible for their parcels. They retain ownership of the parcels and pay the appropriate property tax bills for them.

Over the last three (3) years, County staff from the Department of Community Services and the Office of the County Counsel have worked closely with the Mullers for the dedication to take place.