A recently vetoed ordinance to create a Shelby County Real Estate Department to offload tax delinquent properties may have never passed the Shelby County Commission as first assumed.
Members were informed of the confusion during the Wednesday, July 17 committee meetings.
Commissioners voted 8-4 to create the institution on June 17, after they were informed the ordinance would only require a simple majority to pass. However, because the ordinance would change the county’s purchasing polices, it requires a nine-vote super majority.
Shelby County Mayor Lee Harris vetoed the ordinance on June 20, to avoid added expenditures to the nearly revenue-neutral FY2025 budget. The ordinance would have added $389,575 to the total, to cover the cost of four full-time positions in the proposed department.
“The document is not structured as an ordinance, the phrasing is unclear and ultimately, the sponsor’s intent is more appropriately accomplished in a resolution format,” read Harris’ veto letter.
Currently, the exact status of the ordinance is still being scrutinized by county attorneys. On the one hand, it could remain a vetoed ordinance – or an ordinance that failed to meet the vote requirement.
Another option could be in play during the upcoming Monday, July 22 meeting.
Commissioners are scheduled to vote on the minutes from Wednesday’s committee meetings. A motion to reconsider the ordinance could be introduced before the minutes are voted on. To succeed, the vote would require a change of heart from at least one member who previously voted “no” to gain nine votes.
The county charter provides 30 days for commissioners to override a veto. Since Mayor Harris vetoed the ordinance on June 20, the upcoming meeting is the deadline to request a motion to override his veto.
County attorney Megan Smith is expected to inform members of the status of the ordinance before a decision is made.
If the veto stands – or if a motion to override fails – the ordinance can be reintroduced in 90 days.
Commissioners Britney Thornton and Erika Sugarmon are the sponsors.
A special committee meeting to override the veto was scheduled for Wednesday afternoon at 1 p.m., but it was scuttled after only five members appeared. A quorum – the number of members needed to do business – requires seven members.
Along with improved marketing to encourage sales, the proposed department would require bidders to submit plans for purchased properties – and could revoke the sales if the property is left undeveloped. Another idea under consideration is a threshold for winning bids, instead of properties going to the highest bidder.
A fee would also be added for nonprofits to partake in the bidding process. Residential properties would require $500 up front, while $1,000 would be needed to submit an offer on commercial properties.
Thornton began working on the ordinance shortly after she took office in September 2022, with an ad hoc committee making recommendations. The commissioner owns numerous pieces of the property she has bought through land bank sales.
The ordinance was introduced in 2023, following the recommendations of the Delinquent Tax Property Ad Hoc Committee. The proposal has been a familiar topic of discussion while bouncing between committee and full commission meetings.
