UPDATED: Hartland Township Buys Three Tax Delinquent Properties

Hartland Township spent more than $50,000 to buy three properties at the state's tax foreclosure sale Wednesday in a move designed to aid the finances of the sewer system, according to a news release.

The purchase of the more than 120 acres allows the township to absorb the loss in unpaid taxes and fees over three years — an amount that could be recouped when the land is sold.

The loss is about $1 million and most of that is from sewer assessments needed to pay off a 2005 expansion.

“The purchase of these three properties is an important investment in the financial health of our sewer system,” Supervisor Bill Fountain said in the release.

“Without the township’s acquisition, the properties would likely be developed in piecemeal fashion and further undermine the special assessment district’s ability to repay its debt obligations. Now, we will have the opportunity to seek solid development plans for the township and recover at least part, if not all, of the past delinquency losses down the road.”

The township assessment department says the undeveloped land is worth $1.7 million. The parcels are:

• 18 acres at the northeast corner of Clyde Road and U.S. 23.
• 29 acres at the northwest corner of M-59 and Fenton Road.
• 79 acres at the soutwest corner of M-59 and Pleasant Valley Road.

Had the township not bought the land, the loss in sewer assessments would have had been reassessed on the property owners within sewer special assessment districts — a move the township had to do this year in one such district after more than $720,000 had to be reassessed in August.

The decision angered the some of the remaining property owners who argued if they become responsible for the nonpayment of others.

“That was a painful experience for us and we are glad to avoid that from happening again next year by having the township purchase these properties," Fountain said.

The sewer assessments, along with connection fees, pay for the bonds sold to expand the system at its three edges.

But the souring economy led to a slowdown in development and nonpayment of taxes — losses the township originally forecasted would have cost about $2 million in cash flow over the next five years.

Township Manager James Wickman said that number will likely drop thanks to the move, along with a deal where Livingston County has bought two pieces of land out of tax foreclosure adjancent to the septic receiving station in a deal that brings the township more than $500,000.

The tradeoff is all the land is off the future tax rolls, although Wickman said the money likely wouldn't be collected until buyers are ready to develop the parcels. Instead, the township avoids penalities and interest for nonpayment of taxes.

Officials said the strategy of purchasing properties has already been employed by other municipalities in the county including Handy, Howell, Marion and Oceola townships.

Editor's note: This story was updated Thursday to add information from Hartland Township Manager James Wickman.