Coatesville may have to take back some of the properties it sold at public auction last month because the high bids failed to cover outstanding Coatesville school tax liens.

Tuesday night the Coatesville school board voted without comment to deny the city's request to forgive some $21,000 in tax liens on five properties the city sold at a May 30 auction. Sixteen properties were auctioned off for just over $200,000. The properties were owned either by the city or the city Redevelopment Authority (RDA).

"If they (Coatesville) think that they are going to sell these properties and not pay the district, well, it's not going to happen," said School Board Member Rick Ritter who also sits on the district's finance committee. On June 5, the finance voted not to recommend to the full board it forgive the liens.

But that doesn't mean the school district wasn't willing to compromise. School Business Director Ken Lupold said in a June 12 letter to RDA Solicitor Pat O'Donnell that the district would consider a prorating the tax liens against the sale price.

". . . we think a better solution is to prorate the proceeds from the sale. So for the 337/339 Mt. Pleasant Street properties the District should receive $7,198.10, the County $920.02, the City $2,389.64, and costs to assume Tax Claim $1,492.24, for a total of $12,0000

"For the 122, 123, and 124 New Street properties, the District should receive $3,461.29, the County $441.09, the City $1,282.89, and the costs to Tax Claim $1,014.73, for a total of $6,2000."

But Tuesday night Lupold said the city never responded to his letter.

Six days after the city held the auction, O'Donnell asked the school district in a letter dated June 5, to forgive the tax liens. "The sale of the Mt. Pleasant properties and the New Street properties did not cover the outstanding taxes: 337/339 Mt. Pleasant sold for $12,000, but school tax liens were $15,000 and county tax liens another $2,000; and the 122, 123, and 124 New Street sold for $6,200, but school tax liens were $6,000 and county tax liens $1,000.

According to O'Donnell's letter, the city would be paying outstanding school taxes on the following properties: 356 S. First Ave.; 116 and 114 E. Chestnut St.; 736 Lumber St.; and 431 Coates St.

Meanwhile, Coatesville Council Member Patsy Ray told the RDA at its June 16 meeting she is getting calls from some of those who purchased the properties because they didn't get a clear title. Ray is the only city council member that regularly attends the RDA meeting.

"Why would you put something up for sale when you know other taxes were owed," questioned Ray

"We did nothing wrong," said O'Donnell. According to O'Donnell potential buyers at the May 30 auction were alerted there might be issues with some of the properties.

"It was very clear that some properties had issues and and if the buyers couldn't get a clear title in 30 days, they could walk away from the sale," said RDA Chairman Joe 'Zeke' Disciullo.

"You were not clear and no one on council got a piece of paper with all the information on it," said Ray.

For a few moments the debated turned heated with Ray lashing out at City Manager Harry Walker. "Harry, you don't want anyone asking you questions about what you do and I'm getting fed up with it," she said. Walker and Hudson double as director and assistant director of the RDA, respectively.

Coatesville council approved the list of properties for auction at its May 27 meeting, three days prior to the auction. Ray cast the lone dissenting vote. At that time Ray questioned why the administration wait just three days before the scheduled auction to get council's approval to waive tax and trash fee liens it had filed against several of the properties.

"You're just bringing this to us now. It should have been done earlier," she said at that meeting.

"Do you want to delay the auction and keep these properties," questioned Assistant City Manager Kirby Hudson.

"It should be broken down," said Ray, asking whether there were tax liens other than the city's filed against the properties. "If I was buying it, I should know what I'm buying."

Council Member Ed Simpson said it wasn't until the executive meeting held immediately before the June 9 council meeting that he was made aware there were outstanding school tax liens on some of the properties. "We were told by the administration that buyers were informed there might be some liens which they would be required to pay," he said.Simpson also said he was unaware that on some properties money from the auction would be used to pay off school and county tax liens.

"There should have been better communication," said Ray. "We should have had a list."

The force behind the auction was to take city-owned properties not strategic to the city's redevelopment efforts and get them back into the hands of private developers and back on the tax roles.