Shawnee County is set to hold its first foreclosure foreclosure sale in more than two years next week.
And leading the list of 23 properties available in public online auction is the former Red Carpet Inn & Suites, 914 SE Madison St.
The auction will take place on October 27th from 9 a.m. to 3 p.m. Bidding starts at $ 38.
An urban development plan drawn up by Topeka’s Planning Department in 2020 suggested moving the city and county law enforcement facilities – and possibly the judiciary – from their current locations to 914 SE Madison.
However, Gretchen Spiker, interim media director, said the city was not interested in buying the property.
“The City of Topeka is pleased that the building will soon be auctioned,” said Spiker. “The city has no plans to buy the building but looks forward to working with the future owner to hopefully bring new life and vision to this area.”
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The way from the Red Carpet Inn to the public auction
Built in 1969 and owned by Dickinson, ND based CPE Topeka Kansas 1031 Exchange 32984 LLC Baumann.
The white concrete and steel structure has been empty since 2005 and was gutted in 2011, about a year after the purchase by the current owner, according to the archives of the Topeka Capital Journal.
The county appraiser’s office records indicate that property taxes have not been paid for this address since 2015, with the amount owed growing to $ 252,364.78.
The city has imposed nuisance and weed control violations on the property every year since 2017, as well as a sanitation fee violation every year since 2018.
Shawnee County Commissioners Kevin Cook, Aaron Mays and Bill Riphahn voted 3-0 on Feb.27, 2020 to authorize Crowl’s office to initiate foreclosure proceedings against numerous properties, including 914 SE Madison.
The award could come straight from Topeka, another state, or even another country.
“We hope it will be used productively and optimally,” said Cook of the upcoming auction. “Until it happens, you just don’t know.”
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Crowl’s office filed a lawsuit on March 3, 2020, identifying 136 delinquent properties that are considered for foreclosure, including 914 SE Madison. Some of these properties have now been taxed and removed from the list, but the former Red Carpet Inn & Suites building has remained.
Owners can still avoid selling these properties by paying their property tax bills by 5:00 p.m. the day before the auction.
The Kansas statute allows counties to sell delinquent properties at auction if the owner fails to pay county property taxes on them within two years of the due date for commercial property owners and three years of the due date for residential property owners.
“Given the circumstances, this property reached a public auction as soon as possible,” said Jim Crowl, Shawnee County advisor. “This is a multi-step process designed to ensure that the owners have a due process. It is not a quick process.”
Each year from 2009 to 2019, Shawnee County held an auction on the first Tuesday in September selling properties that had not yet been property tax paid.
The auction last year did not take place due to COVID-19.
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How to Participate in Shawnee County’s Public Auction
All bidders must register on the Shawnee County’s website and with CivicSource prior to the auction.
Each property starts with a minimum bid of $ 38 to cover the cost of capturing the deed. The auction will close at the end time unless there are still active bids. In this case, the auction will continue until there are no more active bids for at least three minutes.
The properties are sold without warranty.
All properties must be paid for before 4:45 p.m. on the day of sale. Payment must be made by wire transfer or Automated Clearing House through the CivicSource checkout website. The buyer receives a receipt upon payment.
What other properties are available?
While the former Red Carpet Inn & Suites is the most valuable asset, the auction is estimated to be mostly residential properties valued at $ 163,580 to $ 4,060 and vacant lots.
The only other two commercial properties are 2002 SE California Ave, the former location of Tacos El Mexicano, valued at $ 85,100, and 801 SW 21 St., an old Sonic Drive-In, valued at $ 34,850.
After the auction, the successful bidders will be sent an affidavit by email that they meet the legal requirements for bidding on taxable real estate. The affidavit must be notarized and returned to the consultant’s office before the deed is released.
After the sale has been confirmed by the court, a sheriff’s deed is issued and registered with the commercial register office. The deed will be issued to the buyer as specified in the bidder registration application.
It can take up to 90 days to receive the registered deed at the property. It will also take additional time to clear the pending taxes from previous years from the property records.