ROCKLAND, Maine — The city council will be asked to decide Monday night whether to sell a tax-acquired house to the highest bidder or to neighbors.

The city received three sealed bids on Aug. 21 for the property at 106 Thomaston St., which is slightly more than 1 acre with a 972-square-foot, one-and-a-half-story home on it that was built in 1861.

The city has the property assessed at $107,800.

The city acquired the land and home in March after previous owner Roy Allen failed to pay $1,107 in property taxes that had been levied in 2012.

Before the city acquired the property it sent out notices to Allen and met with him. The city also again offered to return the property to him after the automatic foreclosure occurred in March but he was not able to pay the money owed.

A high bid of $50,000 for the property was submitted by Ryan Lawrence of Rockland. Craig and Vicki Gamage of Warren bid $21,100 and Allen’s nephew Joseph Allen of Rockland bid $10,000.

The Gamages sent a letter to the city the day after the bids were open, asking that the council consider their bid even though it was not the highest. Vicki Gamage stated in the letter that her parents own an adjacent property and that 106 Thomaston St. would be a place for the extended family to gather. She said her great-grandfather once owned 106 Thomaston St. and that her father grew up and raised his own children at the neighboring home he now owns.

Gamage spoke at Wednesday night’s council meeting to reiterate her request that the family’s bid be approved.

Interim City Manager has proposed, however, that the council vote Monday night to award the property to Lawrence as the high bidder.

The price for the property is generally well below the assessed value because the city only issues municipal quit claim deeds rather than warranty deeds. Banks sometimes will not finance properties that only have quit claim deeds — meaning the city quits its claim to the property.

Also on the agenda for Monday night is a proposal to sell a city-owned parcel at 224 Old County Road, known as the Engine Quarry, to former city attorney Greg Dorr of Rockport in exchange for property he owns at 45 Rankin St.

Dorr’s property is a half acre assessed by the city at $7,100. Dorr maintains, however, that the property is worth more than $30,000, citing the values placed on nearby smaller lots. Dorr stated in an Aug. 2 letter to the city that his land on Rankin Street could be used as a retention pond to reduce flooding along Lindsey Brook.

The 224 Old County Road property consists largely of a former lime quarry. The 14 acres is valued by the city at $21,600.

The Engine Quarry is located west of Old County Road and adjacent to Thompson Meadow Road. Dorr did indicate in his request what he wanted to do with the quarry property.

At this week’s council meeting, resident Susan Barbour presented the council with a surveyor’s report done for the city in 2006 which questioned whether the city had full claim to the quarry and noted that Barbour purchased interests in some of the property which dates back to the former Rockland-Rockport Lime Company.

Barbour questioned how the city could sell the land if she has a legal claim to it.

City Attorney Kevin Beal said the proposed sale is still on for action for Monday night.

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