Buhl Council Targets Nine Undeveloped Lots, Unpaid Taxes and Utilities

Nine city lots in the Damian and Stubler Addition are in noncompliance with development agreements, costing Buhl an estimated $3,000 per year in lost property tax and utilities for each parcel, city officials said at the Feb. 3 council meeting. The council discussed enforcement options and approved a change to utility billing policy intended to limit losses from abandoned properties.

City Clerk/Treasurer Robecca Jaeger told the Mesabi Tribune that the nine properties were sold under resolutions that "state that they would build." Jaeger said the city granted a two-year extension to each property owner because of COVID, and "Those extensions have now passed." Jaeger also reported that "Of those nine, one property is in the beginning stages of the building process, and one property will be conveyed back to the city." The status of the remaining lots was not detailed at the meeting.

Mayor Jim Matthews framed the sales and their fiscal impact, saying the parcels "were never advertised, except through word of mouth" and that "some of the lots were sold for $500 and often were purchased on 'a whim' by people who thought they were going to build a house." Matthews also provided the council's estimate of lost revenue: "For each year that one of these properties did not have a house built on it, the city lost an estimated $3,000 in tax revenue and utilities."

In response, council members adopted a monthly building policy for utilities that includes ending billing on abandoned properties after 12 months. The measure is aimed at stopping ongoing utility charges when properties are clearly inactive, but the council did not release full policy language or a timeline for implementation during the meeting. Beyond the single parcel the city expects to reclaim and the one now under early construction, the council discussed additional enforcement and recovery options; specifics were not provided in the public discussion.

The council also approved a $1,802 donation to the Buhl 125th Committee. Committee member Mary Pervenanze told the council the funds will be used to purchase 150 commemorative T-shirts to be sold to raise money for the June 26-27 celebration, with more shirts to be ordered if sales warrant. The committee has held multiple fundraisers and is also selling commemorative pins and magnets to offset fireworks and other event expenses.

For residents, the issue touches both municipal revenue and neighborhood development. Undeveloped lots reduce the property tax base and delay new housing, while unpaid utility charges can shift costs onto other ratepayers. The council's utility billing change may reduce ongoing losses, but several key questions remain unanswered: the full inventory and legal status of each parcel, the exact terms of the original sale agreements and COVID extensions, how the $3,000 estimate was calculated, and what formal enforcement steps beyond one planned conveyance the city will pursue.

Expect follow-up from city officials as they finalize the utilities policy and clarify enforcement actions. Residents with interest in parcel details or the council's enforcement plan should request the meeting minutes and the text of the new utility/building policy when those documents are posted.