City plans land auction to satisfy bond debt

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By JASON COX
Of the Keizertimes

The City of Keizer has announced plans to auction three properties owned by an original Keizer Station developer.

The process is to satisfy delinquent local improvement district bond debt owed on the properties. The city is ultimately liable for the debt, but has the right under state law to foreclose on said properties if bond installments are not paid.

The auctions start at 10 a.m. Tuesday, October 16 on the steps of the Marion County Courthouse. The properties were owned by developer Chuck Sides through the companies Northwest National LLC and K-Village LLC. Sides declined comment for this story.

KEIZERTIMES/Andrew Jackson

Much of the development has since been sold to a California-based company. That firm, Donahue Schriber, is current on its payments.

The three properties in question are two located adjacent next to Interstate 5 and another behind Lowe’s. The back bond debt on the three properties totals $2.87 million, plus penalties and interest. Proceeds from the sale will go towards repaying bondholders, said City Attorney Shannon Johnson.

Prospective buyers, including the City of Keizer, would own the land free and clear of any obligation to bondholders, but would owe any back taxes levied by Marion County. Between the three properties, the county is owed approximately $171,130 in property taxes.

“If the city bids and is a successful bidder then we will take the property,” Johnson said. “If someone else bids an amount that the city believes is sufficient, then they will own it.”

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