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Regular Agenda Item 3. F.

Regular BOS Meeting

Meeting Date:	02/04/2020
Submitted For:	Jefferson Dalton
Submitted By:	Jefferson Dalton, Deputy County Attorney, Civil Bureau Chief
Department:	County Attorney
Fiscal Year:	2020-2021	Budgeted?:	No
Contract Dates Begin & End:	2020	Grant?:	No
Matching Requirement?:	No	Fund?:	New

Information

Request/Subject

Approve the County Attorney's application for the use of money from the County Anti-Racketeering Fund to pay a tax lien on real property subject to seizure for forfeiture in order to prevent foreclosure of the property and preserve the state's right to a percentage of the net proceeds of sale of the property.

Background Information

The Gila County Attorney filed a Notice of Seizure for Forfeiture and Notice of Pending Forfeiture Making Uncontested Forfeiture Available on Gila County Parcel No. 305-40-031. The County Attorney litigated the matter in the Arizona Superior Court, Gila County, Case No. SO400CV201600117. The Court entered the Stipulated Settlement Order on April 28, 2019. Under the Settlement Order, the property is to be sold and the net proceeds divided between the state (which will receive 65 percent of the net proceeds) and the owner of the property (who will receive 35% of the net proceeds). However, there is a tax lien against the property and the time is at hand when a foreclosure action could be filed. In order to protect the state's interest against possible foreclosure, it is necessary to advance the money to pay the tax lien from the County Anti-Racketeering Fund and then repay the fund from the proceeds of the sale. There should be sufficient funds from the proceeds of the sale to repay the fund because the property has been estimated to be worth at least $70,000 and the tax lien is $8,010.93.

Evaluation

A.R.S. § 13-2314.03 provides that “...before the county attorney’s office may use any monies from the fund, the county attorney shall submit an application that includes a description of what the requested monies will be used for to the board of supervisors. The board of supervisors shall approve the county attorney’s use of the monies if the purpose is authorized by this section, section 13-4315 or federal law.” Section 13-4315(C) authorizes: “Monies in any anti-racketeering fund .... may be used ..... for .... payment of any expenses necessary to .... protect, maintain, [or] preserve the availability of ... property that is subject to forfeiture and that is seized ..... pursuant to this title .... "

Payment of the tax lien against parcel number 305-40-031 would protect, maintain, and preserve the availability of the property for forfeiture proceedings; therefore, the use of the monies for this purpose is an authorized use.

Conclusion

The payment of the tax lien against this parcel is necessary to prevent foreclosure of the property to preserve the state's right under the settlement agreement to receive 65 percent of the net proceeds of the sale of the parcel.

Recommendation

The County Attorney recommends that the Board of Supervisors approve the County Attorney's application to use monies from the County Anti-Racketeering Fund to pay the tax lien against Gila County parcel number 305-40-031 to prevent foreclosure of the property and preserve the state's right to 65 percent of the net proceeds of sale as set forth in the settlement order.

Suggested Motion

Information/Discussion/Action to approve the Gila County Attorney's application to use monies from the Gila County Anti-Racketeering Fund pursuant to A.R.S. § 13-2314.03 to pay the outstanding tax lien against Gila County parcel number 305-40-031 to prevent foreclosure of the property and then to reimburse the fund for the tax lien payment from the proceeds of the sale of the property. (Jeff Dalton)

Attachments
STIPULATED SETTLEMENT ORDER