The city hasn't held a public auction of tax-title-seized properties since 1976.
Holyoke City Councilor Joseph M. McGiverin wants council to have say in property auctions.
Marcos A. Marrero, director of Holyoke Office of Planning and Economic Development
HOLYOKE – More than 60 properties currently doing nothing could become productive tax-revenue generators if officials can agree on a public auction process.
“What we want to do is get these out to responsible people and get them back on the tax rolls,” City Treasurer Jon D. Lumbra said at a recent meeting of Citizens for the Revitalization and Urban Success of Holyoke, or C.R.U.S.H.
How to proceed with such auctions has been a topic of the City Council Ordinance Committee. Some councilors are concerned an auction process would treat all properties the same when some might need special consideration.
The plan is to auction properties similar to Springfield’s process in which dozens of properties seized for nonpayment of taxes in that city are offered up to a roomful of qualified bidders several times a year.
The understanding is the winning bid won’t equal what the municipality is owed in taxes. But the purchase price gets the city or town at least something, gets taxes coming in again on the property and helps neighborhoods by getting vacant properties occupied.
The properties ready for auction have been through state Land Court and the city now owns them. Another 347 properties are active Land Court cases, Lumbra said, at the July 26 C.R.U.S.H. meeting.
While seizing properties whose owners have failed to pay taxes is the proper step, he said, the city doesn’t benefit by being long-term owners of such non-tax-generating properties.
The city hasn’t held such property auctions since 1976, he said.
“So we’ve been a little behind,” Lumbra said.
Marcos A. Marrero, director of the city Office of Planning and Economic Development, said to a questioner at the C.R.U.S.H. meeting auctioning properties so they can be reused wasn't gentrification, which is a rebuilding with the middle-class or affluent to displace the poor.
"I don't think it's displacing anyone....There has to be repercussions for not paying your property taxes," Marrero said.
Councilor at Large Joseph M. McGiverin is among those who have questioned the process. A 32-year councilor, McGiverin said Thursday the council should have the authority to sign off on all properties before they are placed in the auction queue.
The reason, he said, is not all properties should be treated the same way. Councilors might be aware that an apartment building in a certain neighborhood might be best reused in a particular way that might be lost at a public bidding process. Or the Holyoke Redevelopment Authority might be the avenue for another property, he said.
His way might be more cumbersome than just allowing all tax-title-seized properties to be publicly auctioned, he said.
“I really think the more people involved with a vote, the better the process is,” McGiverin said.