The McMinn County Commission has agreed to enlist the services of an outside firm to sell a large group of mostly undeveloped subdivision properties.
By order of its Chancery Court, McMinn County government owns a group of delinquent tax properties within the Rarity Meadows subdivision, which is located at the intersection of County Roads 279 and 316 on the south side of Highway 68, and along the western side of Interstate 75 and exit 60.
McMinn County Mayor John Gentry is responsible for selling delinquent tax property that is not sold at the Chancery Court delinquent tax sale and is placed in the county’s possession. Traditionally, delinquent tax properties are individual unconnected parcels and the sale of the property is administered by county staff.
McMinn County is currently in possession of approximately 70 lots in the Rarity Meadows subdivision and has received increased levels of interest in the property as a whole.
According to a resolution passed unanimously by the commission on Monday, “the McMinn County Mayor and members of the Commission’s Delinquent Tax Committee believe it’s in the best interest of the county to employ an online auction service to more effectively handle the sale of the 70 lots. … Delinquent tax land sales are atypical and experience in the process is highly valued.”
The delinquent tax committee recommended to the full commission entering into a contract with GovEase Auction, LLC, to perform the auction. According to the resolution, GovEase performs online delinquent tax auctions in 10 states and 18 counties in Tennessee.
The opening bids for the individual lots will be the amount of taxes owed. The agreement requires that GovEase be paid $175 for each parcel it sells. The fee will be passed on to the buyer and will be assessed once GovEase receives the surplus property list, at which time the parcels will be posted on the company’s online auction portal.
“They send it out to everybody in their database. They’ve got it all set up to do the incremental bids and meet the law,” said Gentry during Monday’s delinquent tax committee meeting. “Like good entrepreneurs, they found something that all governments have to do and they developed the software for it.”
Gentry noted that GovEase could be utilized for other delinquent tax sales in the future.
“This may be the way that people can do it from all over the country and get the (sale) price up,” he said.