No smiles at auction today
By Tim Gallagher Journal staff writer | Posted: Tuesday, October 30, 2007
VERMILLION, S.D. -- There won't be many smiles gracing the Clay County Courthouse steps this morning. At least not at 9:30 a.m., when a sheriff's auction for seven properties owned by James and Carolyn Johnson commences.
The Johnsons let their taxes pile up. Today's sale is the consequence.
"It's a sad situation, but in our government you have to pay your taxes," said Mary Jensen, a member of the Clay County Board of Commissioners, which approved having the sale.
James and Carolyn Johnson spent Monday moving items out of the brick house at 419 Park Lane, their home for the past 35 years. It's where they raised two sons. It's where Carolyn battled leukemia and James fought lung disease. Both are 69.
They also bought a lodge in the Black Hills that James tried to manage. They lost the business, a $100,000 investment, thanks to what he termed a poor tourist season. They purchased a storied bank building in downtown Vermillion and had it listed on the National Register of Historic Places. They earned rent as a state agency occupied the top floor. The agency moved. They never recouped that income.
And the unpaid taxes piled up.
James buried his head in his hands Monday while movers carried matching chairs out the front door. "If my wife had never married me, she'd be a lot richer," said Johnson, an attorney who served time in prison for misappropriating a client's funds and ultimately gave up his right to practice law in 1991.
"I don't want to hurt my family any more than I have," he said.
Valuable home
The old bank could fetch a decent price. It's at a prime intersection, but the building needs work. So does the couple's two-story brick home overlooking a picturesque valley south of Vermillion. James estimated the home is worth $200,000 but needs at least $100,000 in work.
Their other properties are at 408 Cottage Ave., 410 Cottage Ave., 412 Cottage Ave., 8 Center St., 418 Canby St., 425 Canby St. and 12 Court St.
"It's a tax deed sale the sheriff will conduct," said Clay County Treasurer Katherine Powell. "It's a quit-claim deed. My understanding is that we're assigning our (the county's) interest in the property to the buyer."
The saga dates back years. Powell said the Johnsons didn't pay taxes several years ago and the county took deed to their property. "There were some mitigating circumstances, as he filed bankruptcy when he started going delinquent," Powell said. "When someone takes bankruptcy, we can't touch them."
In time, the couple paid down their debts and the commissioners proceeded with the sheriff's sale, thinking it would be easier for a buyer to clear the titles now.
The Johnsons attempted to save their home from the auction block last week. Commissioners called a special meeting Oct. 22 after learning James Johnson had scraped enough money together to pay the taxes owed.
"He was there, but he didn't have the money in hand," Powell said. "He said he could have it that afternoon."
Already well beyond a Sept. 25 deadline, commissioners decided to pass on his offer, which Powell said amounted to more than $70,000.
James Johnson and next-door neighbor Neil Melby showed up at the courthouse with money orders the next day. "They wouldn't take the money, as the redemption period had ended," said Melby, who added that the Johnsons have been incredible neighbors.
"That's what's so tragic," Melby said.
Returning a favor
Nick Baird, a student at the University of South Dakota, showed up Monday afternoon to help move the couple's possessions from their home. Carolyn has served as an adviser to him in college. "Carolyn is the most helpful person in the (criminal justice) department for me," said Baird. "I'm here returning the favor to her and because they need the help."
Volunteers hauled end tables, a sofa and boxes of books out the door to a trailer backed up near the front steps. A Christmas tree showing its lights waited to be carted away.
James Johnson placed a call to his auctioneer, confirming the time for a sale of their personal household items Sunday. The Johnsons are downsizing to a one-bedroom cabin in Spirit Lake, Iowa.
"I know I'm not blameless in this situation," he said. "I know in the commissioners' eyes they thought I was ignoring this, but I wasn't."
"This isn't pleasant," said Powell, who has helped conduct four or five such auctions in her 14 years as county treasurer. "I don't like to see anybody lose their home. But it's not fair to other taxpayers. What if everybody decided to do this?"
Private sale
James and Carolyn Johnson are selling their private household and business items at an auction at 1 p.m. Sunday at 1222 W. Cherry St., Vermillion, S.D.
The Johnsons let their taxes pile up. Today's sale is the consequence.
"It's a sad situation, but in our government you have to pay your taxes," said Mary Jensen, a member of the Clay County Board of Commissioners, which approved having the sale.
James and Carolyn Johnson spent Monday moving items out of the brick house at 419 Park Lane, their home for the past 35 years. It's where they raised two sons. It's where Carolyn battled leukemia and James fought lung disease. Both are 69.
They also bought a lodge in the Black Hills that James tried to manage. They lost the business, a $100,000 investment, thanks to what he termed a poor tourist season. They purchased a storied bank building in downtown Vermillion and had it listed on the National Register of Historic Places. They earned rent as a state agency occupied the top floor. The agency moved. They never recouped that income.
And the unpaid taxes piled up.
James buried his head in his hands Monday while movers carried matching chairs out the front door. "If my wife had never married me, she'd be a lot richer," said Johnson, an attorney who served time in prison for misappropriating a client's funds and ultimately gave up his right to practice law in 1991.
"I don't want to hurt my family any more than I have," he said.
Valuable home
The old bank could fetch a decent price. It's at a prime intersection, but the building needs work. So does the couple's two-story brick home overlooking a picturesque valley south of Vermillion. James estimated the home is worth $200,000 but needs at least $100,000 in work.
Their other properties are at 408 Cottage Ave., 410 Cottage Ave., 412 Cottage Ave., 8 Center St., 418 Canby St., 425 Canby St. and 12 Court St.
"It's a tax deed sale the sheriff will conduct," said Clay County Treasurer Katherine Powell. "It's a quit-claim deed. My understanding is that we're assigning our (the county's) interest in the property to the buyer."
The saga dates back years. Powell said the Johnsons didn't pay taxes several years ago and the county took deed to their property. "There were some mitigating circumstances, as he filed bankruptcy when he started going delinquent," Powell said. "When someone takes bankruptcy, we can't touch them."
In time, the couple paid down their debts and the commissioners proceeded with the sheriff's sale, thinking it would be easier for a buyer to clear the titles now.
The Johnsons attempted to save their home from the auction block last week. Commissioners called a special meeting Oct. 22 after learning James Johnson had scraped enough money together to pay the taxes owed.
"He was there, but he didn't have the money in hand," Powell said. "He said he could have it that afternoon."
Already well beyond a Sept. 25 deadline, commissioners decided to pass on his offer, which Powell said amounted to more than $70,000.
James Johnson and next-door neighbor Neil Melby showed up at the courthouse with money orders the next day. "They wouldn't take the money, as the redemption period had ended," said Melby, who added that the Johnsons have been incredible neighbors.
"That's what's so tragic," Melby said.
Returning a favor
Nick Baird, a student at the University of South Dakota, showed up Monday afternoon to help move the couple's possessions from their home. Carolyn has served as an adviser to him in college. "Carolyn is the most helpful person in the (criminal justice) department for me," said Baird. "I'm here returning the favor to her and because they need the help."
Volunteers hauled end tables, a sofa and boxes of books out the door to a trailer backed up near the front steps. A Christmas tree showing its lights waited to be carted away.
James Johnson placed a call to his auctioneer, confirming the time for a sale of their personal household items Sunday. The Johnsons are downsizing to a one-bedroom cabin in Spirit Lake, Iowa.
"I know I'm not blameless in this situation," he said. "I know in the commissioners' eyes they thought I was ignoring this, but I wasn't."
"This isn't pleasant," said Powell, who has helped conduct four or five such auctions in her 14 years as county treasurer. "I don't like to see anybody lose their home. But it's not fair to other taxpayers. What if everybody decided to do this?"
Private sale
James and Carolyn Johnson are selling their private household and business items at an auction at 1 p.m. Sunday at 1222 W. Cherry St., Vermillion, S.D.
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