NEWS PHOTO COLLIN GALLANT The Home Stay Inn & Suites, on Seventh Ave., S.W., is listed as one of a dozen properties in Medicine Hat that could move to a tax-recovery auction sale in late March. The hotel management states that debts should be covered before then as new investors are coming into the business. Reserve bids were presented to a city hall committee on Tuesday.
cgallant@medicinehatnews.com@CollinGallant
A well-known hotel in the city tops the list of properties that could move to a tax auction sale next month, though the owners say new investors are ready to bring tax arrears up to date and avoid the process.
That is the common run-of-events at the annual exercise that municipalities use when payments fall four years behind – few auctions have been held in Medicine Hat in recent memory, and only one bid received in 20 years.
City of Medicine Hat administrators officially introduced the 2020 list and corresponding reserve bids to a council committee Tuesday.
It lists five single-family residences, six mobile homes and one substantial commercial property, namely the Home Stay Inn & Suites, located on Seventh Street SW. Amounts owing are not made public.
The facility was originally known as the Callaghan Inn prior to a sale a number of years ago, and a more recent rebranding to Home Stay.
The current manager told the News on Tuesday that the plan is to bring in new non-operating partners to the entity.
“It will be all done by the end of next month,” stated Praveen Joshi.
“It should happen shortly, and that’s why we’re not too worried.”
Among the other properties listed are ones in the Flats, South Hill, Crestwood and the northeast community of Terrace. The mobile homes are located at various trailer parks throughout the city.
Administrators noted on Tuesday that actual sales are the exception as property owners or their creditors such as mortgage holding banks, typically step in to protect their investments.
“(The process) is designed to give ample time for owners to be aware of the situation and rearrange their affairs or even develop a repayment plan with the city,” said Dennis Egert, the commissioner of corporate services.
Committee chair Coun. Robert Dumanowski said the city must follow the rules when it comes to taxation as a matter of fairness to those who do pay their taxes.
“There’s an extremely flexible process, but nobody wants to see a property in this situation,” he said.
Reserve bids are minimum bids that will be accepted and are set at what’s considered as fair market value.
If sold, the proceeds are forwarded to the property owner once tax amounts, any liens and debts, such as mortgages, are extinguished.
If there is an auction this year, it will be held at 9 a.m. on March 31.
There was no tax auction last year as six property owners on the official list released a month earlier made arrangements before the sale was held.
In 2018, three properties advanced to a sale, including two condominium parking stalls that moved forward from the previous year, though neither received bids.
