United States v. Patron et al

Filing 73

STIPULATED AMENDED ORDER OF SALE. (Written Opinion). Signed by Chief Judge Michael J. Davis on 8/15/11. (GRR)

IN THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF MINNESOTA
UNITED STATES,
Plaintiff,
v.
MICHAEL PATRON, et al.,
Defendants.

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Civil No. 07-1187 MJD/LIB
STIPULATED
AMENDED
ORDER OF SALE

Upon stipulation of the parties, under 28 U.S.C. §§ 2001 and 2002, the Court
enters this Amended Order of Sale directing the sale of certain real property, described
below, owned by Michael Patron in Otter Tail County, Minnesota.
IT IS ORDERED that the Patrons shall offer for sale to the U.S. Fish and Wildlife
Service that part of the below described property that the Patrons have designated as the
“non-Homestead 107.68 acre parcel” [See Docket 48, ¶¶ 4-5]. This property is located at
650 W. Centennial 84 Drive, New York Mills, Minnesota, is titled in the name of Michael
Patron, and has the following legal description:
The West Half of the Northwest Quarter of the Northwest Quarter
(W ½ of NW 1/4 of NE 1/4) of Section 7, Township 135, Range 37,
EXCEPT (I) that part of the said West Half of the Northwest Quarter of the
Northeast Quarter (W ½ of NW 1/4 or NE 1/4), described as follows:
Beginning at a right of way boundary corner designated 815 on State
Highway Right of Way Plat No. 56-16, according to the recorded plat
thereof; thence North 89 degrees 26' 36" West on an assumed bearing along
the south line of said plat, a distance of 55.34 feet; thence South 0 degrees
43' 24" West a distance of 965.00 fee; thence South 89 degrees 16' 36" East
a distance of 175 feet to the west line of the township road; thence North 0
degrees 43' 24" East along said west line, a distance of 865.51 feet to a right
of way boundary corner designated on said plat as 814; thence North 49
degrees 29' 19" West a distance of 155.72 feet to the point of the beginning;
and (ii) that part of said West Half of the Northwest Quarter of the

Northeast Corner (W ½ of NW 1/4 of NE 1/4), described as follows:
Commencing at a right of way boundary corner designated 815 on State
Highway Right of Way Plat No. 56-16, according to the recorded plat
thereof; thence North 89 degrees 26' 36" West on an assumed bearing along
the sough line of said plat, a distance of 55.34 feet to the point of beginning
of the land to be described; hence South 0 degrees 43' 24" West a distance
of 242.50 feet; thence North 89 degrees 26' 36" West a distance of 450.00
feet; thence North 0 degrees 43' 24" East a distance of 242.50 feet to said
south line of State Highway Right of Way Plat No. 56-16; then South 89
degrees 26' 36" East along said south line, a distance of 450.00 feet to the
point of beginning;
The North Half of the Northwest Quarter (N ½ of NW 1/4); the
Southeast Quarter of the Northwest Quarter (SE 1/4 of NW 1/4); and the
east 20 acres of the Southwest Quarter of the Northwest Quarter (SW 1/4 of
NW 1/4); all in Section 7, Township 135, Range 37; but excluding from the
above described land all that part thereof included in (I) the railroad right of
way of Burlington Northern, Inc., (ii), the right of ways of the township
road, county highway and state trunk highway abutting thereon.

IT IS ORDERED that upon the sale of the non-Homestead 107.68 acre parcel, all
interests in, liens against, or claims to the non-Homestead 107.68 acre parcel that are held
or asserted by all parties to this action are discharged and extinguished.
IT IS FURTHER ORDERED that the Patrons shall deposit all proceeds from the
sale of the non-Homestead 107.68 acre parcel with the Clerk of Court within 5 days of the
sale.
IT IS FURTHER ORDERED that if the proceeds from the sale of the
non-Homestead 107.68 acre parcel fail to fully satisfy the federal tax liabilities and other
costs to the United States incurred with respect to the sale of the Property, then

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IT IS ORDERED that the Patrons shall have 60 days from the sale of the
non-Homestead 107.68 acre parcel to fully pay or enter into an agreement with the United
States that provides for the full payment of the federal tax liabilities, and other costs to the
United States incurred with respect to the sale of the Property.
IT IS FURTHER ORDERED that if the Patrons fail to fully pay or enter into an
agreement with the United States that provides for the full payment of the federal tax
liabilities and other costs to the United States incurred with respect to the sale of the
Property within the time provided, then
IT IS ORDERED that the Internal Revenue Service (hereinafter referred to as
“IRS” and including its authorized agents or officers) is authorized and directed, under 28
U.S.C. §§ 2001 and 2002, to proceed forthwith, without further order or process, to offer
for sale at public auction, to advertise and sell, without appraisal and subject to any
unpaid real property taxes or special assessments, to the highest bidder, according to law
and pursuant to the terms and conditions set forth herein, the remaining 13.94 acre parcel,
the Homestead, of the Property described above [See Docket48, ¶ 2].
IT IS FURTHER ORDERED that this Order shall act as a Special Writ of Judicial
Sale, and no further order or process from the Court shall be required.
IT IS FURTHER ORDERED that this sale of real property is ordered pursuant to
28 U.S.C. § 2001, and is made without right of redemption.
IT IS FURTHER ORDERED that the IRS is entitled to recover its reasonable costs
for preparing the property for public auction on September 22, 2009, and these costs, if
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approved by the Court, will be a lien on and recoverable from any sale of the Patrons’
property.
IT IS FURTHER ORDERED that the Homestead, described above, shall be sold
pursuant to the terms and conditions set forth in this Order and as follows:
1.

The IRS is authorized and directed under 28 U.S.C. § 2001, 2002 and 2004

to offer for public sale and to sell the Property subject to approval of the Court.
2.

The IRS is authorized to have free access to the Homestead until the deed to

the Homestead is delivered to the ultimate purchaser.
3.

The terms and conditions of the sale are as follows:
a.

the sale of the Homestead shall be free and clear of the interests of

Michael and Jule Patron;
b.

the sale shall be subject to building lines, if established, all laws,

ordinances, and governmental regulations (including building and zoning
ordinances) affecting the Homestead, and easements and restrictions of
record, if any;
c.

the sale shall be held either at the federal courthouse of the judicial

district in which the Homestead is located, at the office of the IRS or on the
Homestead’s premises;
d.

the date and time for sale are to be announced by the IRS. The IRS

is permitted to enter the premises and prospective buyers shall be allowed to
inspect the interior and exterior of the Homestead at such time as the IRS
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shall determine is reasonable and convenient;
e.

notice of the sale shall be published once a week for at least four

consecutive weeks before the sale in at least one newspaper regularly issued
and of general circulation in Otter Tail County, and at the discretion of the
IRS, by any means deemed appropriate. The notice shall contain a
description of the Homestead and shall contain the terms and conditions of
sale in this order of sale;
f.

the minimum bid shall be set by the IRS. If the minimum bid is not

met or exceeded, the IRS may, without further permission of this Court, and
under the terms and conditions in this order of sale, hold a new public sale,
if necessary;
g.

the successful bidder(s) shall be required to deposit with the IRS

$10,000 by certified or cashier’s check or cash payable to the United States
District Court for the District of Minnesota, immediately upon the
Homestead being struck off and awarded to the highest bidder. Before
being permitted to bid at the sale, bidders shall display to the IRS proof that
they are able to comply with this requirement. No bids will be received
from any person(s) who have not presented proof that, if they are the
successful bidder(s), they can make the payment required by this order of
sale;

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h.

the balance of the sale price shall be tendered to the IRS by certified

funds, payable as indicated above, no later than thirty (30) days after the
sale is confirmed by the Court;
i.

if the bidder fails to pay the sales price in full, the Homestead shall

be again offered for sale by the IRS without further permission of this
Court, under the terms and conditions of this order of sale. The United
States may bid as a credit against its judgment without tender of cash; and
j.

the sale of the Homestead shall be subject to the confirmation by this

Court. On confirmation of the sale, all interests in, liens against, or claims
to the Homestead that are held or asserted by all parties to this action are
discharged and extinguished.
k.

the sale is ordered pursuant to 28 U.S.C. § 2001, and is made without

right of redemption.
4.

Until the Homestead is sold, Michael and Jule Patron shall take all

reasonable steps necessary to preserve the Homestead (including all buildings,
improvements, fixtures and appurtenances on the Homestead) in its current condition
including, without limitation, maintaining a fire and casualty insurance policy on the
property. Michael and Jule Patron shall neither commit waste against the Homestead nor
cause or permit anyone else to do so. Michael and Jule Patron shall neither do anything
that tends to reduce the value or marketability of the Homestead nor cause or permit
anyone else to do so. Michael and Jule Patron shall not record any instruments, publish
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any notice, or take any other action (such as running newspaper advertisements or posting
signs) that may directly or indirectly tend to affect adversely the value of the Homestead
or that may tend to deter or discourage potential bidders from participating in the public
auction, nor shall they permit or cause anyone else to do so.
5.

All persons currently occupying the Homestead shall leave and vacate the

Homestead permanently within 60 days from the date of the sale of the non-Homestead
107.68 acre parcel, each taking with them his or her personal property (but leaving all
improvements, buildings, fixtures, and appurtenances to the Homestead). If any person
fails or refuses to leave and vacate the Homestead by the time specified in this Order, the
IRS will coordinate with the United States Marshal for the District of Minnesota and his
deputies to take all actions that are reasonably necessary to eject these persons. If any
person fails or refuses to remove his or her personal property from the Homestead by the
time specified herein, the personal property remaining on the Homestead thereafter is
deemed forfeited and abandoned, and the IRS will coordinate with the United States
Marshal and his deputies to remove it and to dispose of it in any manner they see fit,
including sale, in which case the proceeds of the sale are to be applied first to the
expenses of sale and the balance to be paid into the Court for further distribution.
The proceeds arising from sale are to be paid to the Clerk of this Court and applied
as far as they shall be sufficient to the following items, in the following manner:
1.

To Otter Tail County for any unpaid real property taxes assessed on the
Homestead;
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2.

To the IRS for the administrative costs of the sale of the Homestead;

3.

To the United States Department of Justice to be applied to Michael
Patron’s federal tax liability;

4.

To the United States Department of Justice to be applied to Michael and
Jule Patron’s joint federal tax liability;

5.

To Creditors Service Company to be applied to the judgment lien against
Jule and Michael Patron which was filed on July 26, 2006;

6.

To United Accounts Inc., to be applied to the judgment lien against Michael
Patron which was filed on September 10, 2008; and

7.

Any remaining sale proceeds to Michael Patron.

Dated: August 15, 2011

s/ Michael J. Davis
Chief Judge Michael J. Davis
UNITED STATES DISTRICT COURT

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