Charles County Ice Rink Fiasco Where's The Missing Money?

Hey, folks. Check this one out. As many of you know, I am a real estate attorney. I sent this letter yesterday to the Charles County Commissioners:

Commissioner President Wayne Cooper
Commissioner Al Smith August 24, 2006
Commissioner Bob Fuller
Commissioner Candice Quinn Kelly
Commissioner Edith Patterson
VIA HAND DELIVERY

Dear Commissioners:

Since the details of the Capital Clubhouse acquisition have not been made available to the general public, I have made Public Information Act requests to the County for the relevant documents. After the passage of 74 days, I have received some of the documents, but many I have not received. By this letter, I request that the County expedite the process of providing documents. I have been patient in waiting. The standard recognized by the courts is essentially that the documents must be provided as expeditiously as possible, but normally within 30 days. I know that Commissioner Smith has called for all of the documents to be revealed to the public long ago, sometime in June.

From the documents that I have been given, I see something troubling that required further explanation. The issue involves the property taxes on the Capital Clubhouse.

It seems that in 2004, 2005, and at the time of the transaction in 2006, property taxes were never paid that were in fact due and owing. The amount currently due exceeds $260,000.00 by the accounting of the Treasurer. By my reckoning, it is closer to $150,000 to $175,000. How is it that this property had delinquent taxes for two-plus years, but the property did not get sold at tax sale? My clients whose property has been sold at tax sale were not given this special treatment, and I think that we as taxpayers have a right to know why the law is not being equally applied to all people.

Next, why haven’t the delinquent taxes been paid? It is mandatory that the delinquent property taxes be paid at time of settlement. It is my understanding that this sale was settled in May. Yet the deed has not been recorded, and the taxes have not been paid. Whatever someone thinks of the rest of the deal, this results in the County being short $150,000-$175,000 to which it was rightly entitled, and which is long overdue. Indeed, some of this money has been due since 2004.

Is there a reasonable explanation for this? I have read through the contract of purchase for the property, and I see nothing that absolves the sellers of their responsibility to pay the delinquent taxes. They were due in 2004, more were due in 2005, and they were all due at settlement in 2006, and they have not been paid.

Is the lender aware that the deed conveying the property has not been recorded? Normally this creates a situation in which the lender can call the loan due immediately.

In short, something is very wrong with what I see in this transaction regarding the payment of delinquent property taxes. It appears right now that despite the fact that the County has tendered its purchase money, it has not obtained clear title to the property due to the fact that the long delinquent property taxes have not been paid.






It would also appear that no deed conveying the property has been recorded in the land records, because the parties are aware that the delinquent taxes have not been paid. In other words, it appears at this point that the County has been shorted some $150,000-$175,000 in tax money in this transaction. Some of this money has been owed for several years. If I am in error, please explain to me where I have erred. If I am not in error, then please investigate this matter, and I would appreciate an explanation of how this happened, and how it will be rectified. Regardless of whether someone is in favor of or against the purchase of this property, everyone wants to see the County get all the tax money to which it is entitled, and also to see the County get good title for what is has purchased at such a high price.

Thank you for your prompt attention to these important matters.


Sincerely,


Kurt W. Wolfgang


SO, The County is missing $150K, and does not have good title to the 8+ Million dollar ice rink it purchased. What is going on? Anyone know something that I don't know about this?

Kurt Wolfgang

wolfgangcommissioner.com
 
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