COUNTYWIDE : Officials Change Rules for County Property Auction

Because the first auction of county-owned properties in June generated only modest sales, officials have decide to change some of the guidelines to entice more bidders when another auction is held next month.

Potential buyers will be able to reserve certain properties by paying the county 10% or less of the purchase price. The reservation system is designed to give buyers time to determine whether the properties meet their needs and can be adequately modified.

Chuck West, the county’s real estate director, said that during the June auction, some bidders expressed interest in properties but didn’t buy them because they were unsure of city zoning restrictions and regulations.

“This allows them the time to go to the cities where the properties are located and see if they can make the changes they need,” West said. “It helps justify the value” of the properties.

If bidders decide not to buy, the county will keep the reservation fees, West said.

“The benefit to the county is that it gets the process moving,” he said.

Selling unwanted county assets is one of several ways officials hope to dig out of bankruptcy. The June auction generated $9 million, but officials had expected $30 million. The county rejected some of the winning bids because they were considered far below market value.

The second auction will take place Oct. 27 and 28 at the Inn at the Park in Anaheim.

About 20 properties will be on the block, including the historic Howe-Waffle House in Santa Ana, a refuse disposal station in Anaheim and various other parcels and buildings across the county. Several properties are located in the Back Bay area next to Newport Beach and Irvine. The real estate values range from $150,000 to more than $4 million.