re: FOR SALE: Corner of Bluebonnet and Jefferson

quote:

---

And why wasn't the owner of the property paying attention? Do they just auction away property without having any idea as to what the property is worth? It seems like it.

---

quote:

---

That initiated a push by Heck to shed some of the city-parish land in his district that was not being used, citing a “fiduciary responsibility.” If the city could sell the land and then reap the property taxes, it would be a win-win for the cash-strapped local budget, he reasoned.

One of those pieces was the Jefferson Highway and Bluebonnet Boulevard corner site, which the city had obtained during the construction of Bluebonnet Boulevard.

---

quote:

---

It was posted in the Advocate, the New Orleans Advocate, and the Acadiana Advocate on 11/21/16, 11/28/16. and 12/5/16.

Nobody was paying attention.

---

quote:

---

The Louisiana Legislative Auditor is investigating East Baton Rouge Parish for its handling of land sales after a developer bought a 50,000-square-foot corner lot at Jefferson Highway and Bluebonnet Boulevard for just $10,000 at auction last year.

“It’s definitely got the eyebrows raised,” says Legislative Auditor Daryl Purpera, who launched an investigation after reading about the unusual sale in Daily Report on Monday.

The sale closed in February and was the latest move by the city-parish to shed land the Metro Council deemed surplus. But because the city-parish did not get an appraisal done for the property, there was no floor price for the tract when the city held an auction late last year.

Developer Radu Cosman was the only person who showed up for the auction and walked away with the land after his $10,000 bid was accepted. Cosman got the land for roughly 20 cents per square foot, and the Metro Council subsequently approved the sale unanimously and without discussion. Former Metro Councilman Ryan Heck, who represented the area in which the land is located, carried the deal through the process. He denies there was anything improper about the deal and has said he was only trying to carry out his “fiduciary responsibility” to sell surplus property in his district.

“Our reading of the law is that they can declare it surplus, but they have to sell it for market value,” Purpera says. “I don’t know how you do that short of an appraisal.”

Parish Attorney Lea Anne Batson says state law backs up the city-parish. As long as the land is sold at auction and not at a private sale, she argues, the city doesn’t have to appraise the land or set a floor price.

But ultimately, the Louisiana Constitution prohibits “things of value” of political subdivisions from being donated, Purpera says, except in certain circumstances. He says Baton Rouge is at odds with that provision by selling land at what amounts to a steep discount.

He says the city-parish failed to create an atmosphere of competition at the auction if only one bidder showed up—and with a $10,000 sale, taxpayer dollars were essentially given away.

“If the land is worth $100,000 and you sell it at $50,000 just because your process was not good, you gave away $50,000,” Purpera says. “You can’t do that.”

Purpera points to the state law and also state Attorney General opinions that he says require municipalities to sell land at fair market value—and if they don’t, to justify why they are selling it for cheaper.

While it’s unclear how much the plot of land is worth, local real estate experts say Cosman got an incredible deal. Cosman plans to build a light commercial or office development on the property.

Planning Director Frank Duke says the tract is currently zoned residential, but he fully expects someone to request it to be rezoned for development.

“The narrow depth of the parcel is going to create something of a design challenge,” Duke says. “I think it can be overcome, but you’re going to have to be creative in how you do it.”

A slightly larger corner lot directly across the street from Cosman’s tract sold last year for nearly $1 million, or around $15 per square foot. Covington-based Resource Bank is now developing the property.

---

quote:

---

This stinks and the taxpayers in the city ought not let this slide. This literally took ~$900k out of our parish budget.

---

quote:

---

The owner was notified through certified mail accordingly, I would assume.

---

quote:

---

Kudos to the guy that found it, and he doesn't owe the parish/city another cent if the state laws were followed.

---

quote:

---

Know how I know you didn't read the link?

---

quote:

---

What Is Adjudicated Property?

In general terms, adjudicated property is property that has been placed in state or local government hands because property taxes have not been paid. Louisiana law allows the governmental body having jurisdiction over the property to sell the property.

May The Parish Sell All Adjudicated Property?

The Parish is authorized to only sell property which has been adjudicated since January 1, 1975, that is abandoned (vacant or not lawfully occupied) and that is considered surplus or no longer needed by the Parish for a public purpose. The Louisiana State Land Office External web link not maintained by City of Baton Rouge manages property that was adjudicated before January 1, 1975.

---

quote:

---

I wonder too if Heck and the Council had to approve the sale

---

quote:

---

When the sale went before the Metro Council, no one batted an eye. In fact, the council had to approve several measures to allow the land to be designated as surplus, go to auction and approve the auction,

---

quote:

---

Perhaps our administration is do into that stuff like this is easily explainable.

---