In a recent transaction in Oakland, a piece of land covering approximately 15,000 square feet and valued at nearly a million dollars exchanged hands for a symbolic $10. However, alongside taking ownership of the land, the new owner will also inherit financial burdens including around $1.7 million in back taxes, fines, and city liens.
Reports from various media outlets state that the Alameda County Board of Supervisors this week approved the sale of the property located at 8215 MacArthur Blvd. in Oakland to the non-profit organization known as the Black Cultural Zone Community Development Corporation (BCZ) for $10.
BCZ focuses on community revitalization and affordable housing projects. The organization has expressed its long-term goal of constructing affordable housing on the site, although specific development plans are yet to be finalized. In the short term, they intend to clear the site, improve the environment, and consider offering it for community use.
This particular piece of land has been vacant for nearly 30 years, overrun with weeds, and serving as an illegal dumping site, causing longstanding dissatisfaction among nearby residents. Within a half-mile radius of the area, several other pieces of land also remain vacant.
The property fell into tax delinquency in 1995. Approximately ten years later, the county government sold it to a non-profit organization with plans to build affordable housing, but this organization never completed the development and dissolved in 2013.
As the tax debtor was a defunct legal entity, the accumulated debt has continued over the years. As of June 30th this year, the total amount owed in back taxes, fines, and city liens adds up to around $1.7 million.
A recent appraisal report indicated the land’s market value at approximately $900,000. However, the debt attached to the property far exceeds its actual value, making it challenging to sell through conventional means.
In 2013, the county attempted to auction off the property with a starting price of $634,255, but no buyers emerged. A subsequent auction in 2023 also failed to attract interest.
According to regulations, once a real estate owner falls delinquent on taxes for at least five years, the property is deemed to be in tax default status, allowing the county to auction it off publicly. If the owed amount exceeds the property’s market value, it may qualify for a special sale under Chapter 8 procedures.
Completing a transfer under Chapter 8 with all necessary conditions is uncommon. Farmer, an official from the county, mentioned that the last time such a transaction was completed in Alameda County was in 2016, involving several small plots owned by the city of Oakland.
Officials from the county stated that previous nearby organizations had declined to acquire the land due to factors such as its size, development complexity, and potential restrictions posed by a large billboard on the site.
Alameda County Councilman Nate Miley expressed that the county has long aimed to convert tax-delinquent properties into land for affordable housing, and this transaction could serve as a model for handling similar lands in the future.
Davis, the Deputy Executive Director of BCZ’s real estate department, mentioned that the organization became involved in negotiations after two local residents brought the vacant land to their attention and recommended BCZ to the county.
The county hopes that this unique $10 transaction will breathe new life into the long-abandoned, debt-laden land, improve the surrounding environment, and potentially add housing or other public use spaces to the community. ◇