DUBOIS – The City of DuBois continues its efforts to sell a house purchased at tax sale. Due to complications the City of DuBois will be resetting the bidding process and will accept closed bids till 4:00 p.m. on Sept. 8. Bids will be opened during that night’s work session.
Requirements for the property include having the property code violation free within 90 days of purchase.
The house at 6 Shaffer Road was purchased as a blighted property. The city’s intent was to use Community Development Block Grant funds to demolish this house and a second purchase at the time. Two individuals approached the city and a deal was struck to sell each house for what the city paid plus closing costs. The city opened up a bidding process on the two houses.
The Shaffer Road house had a competing bid, unlike the other. The city and original bid was $5,000 and the competing bid was $5,500 before closing costs. City Solicitor Toni Cherry, at the previous City Council meeting, felt the fair thing to do in this situation would be to have both individuals rebid as the second bidder had access to what the first bid was.
One of the bidders is now challenging the process followed. The unnamed bidder is challenging the city on the procedure used. According to the bidder, the city should have followed a process that would have required an ordinance to be written, a closed bidding process, and public advertising of the process. Cherry feels that the city does not need to go through all of that as the property lacking a lien against it makes a more streamlined process possible.
When asked after the meeting, City Secretary Bobbie Shaffer said that it costs the city $350 a day to advertise a bid, and the city runs the advertisement for three days.
“I was told along the lines that the attorney general would be notified. I welcome a call from the attorney general,” said Cherry.
“We have two prices, or two bids I should say. We had let it be known for two weeks. We have a gentlemen who was fine with the process at the time when he had the highest bid,” said Councilmember Randy Schmidt.
Diane Bernado was open to using the requested method. City Manager John “Herm” Suplizio was concerned on what would happen if this sale proceeded as normal and future similar bids were carried out under the more open method.
The council voted to have a closed bidding process open for nearly three weeks. There would be no advertising to save money. All the council members, except for Schmidt, voted in favor of this. Schmidt voted against.