NORWALK, Conn. – An investment made by Norwalk Tax Assessor Michael Stewart has been called “an error in judgment” by his supervisor, Finance Director Thomas Hamilton. Mayor Harry Rilling concurs, Hamilton said.
Stewart was the winning bidder on a property in Norwalk’s tax sale in July. This was recently called to NancyOnNorwalk’s attention in an email from a regular reader.
Stewart’s bid for 4 Hawkins Ave. was $215,000, according to the city’s website. The East Norwalk property is owned by Alexander Hay, with $27,245 in outstanding taxes at the time of the sale. Hay, or any lienholder on the property, has until Jan. 21 to pay the minimum bid – the $27,245 – and the interest on Stewart’s bid if he wants to keep the property. A clerk in the tax collector’s office said Wednesday that the property has not been redeemed.
Tax Collector Lisa Biagerelli was unavailable for comment.
Stewart works under Hamilton. Asked about the situation by email Wednesday, Hamilton responded:
“Neither the Mayor nor I were aware of the fact that Mr. Stewart was planning to participate in the tax sale as a bidder. We both learned about it after the tax sale had concluded. While I am not a lawyer and cannot offer a legal opinion, to the best of my knowledge the City does not have a specific policy that prohibits City employees from participating in the Tax Sale as a bidder. I would also note that the Tax Sale is an open and transparent public auction process, which is conducted fully in public view. I would further note that the Tax Sale is conducted entirely by the Tax Collector and her staff; the Tax Assessor plays no role in determining what properties are to be included in the sale, nor does he play any role in administering the Tax Sale.
“Nevertheless, both the Mayor and I are concerned that having a high-ranking City official involved as a bidder in the Tax Sale presents the appearance of a potential conflict of interest and may raise concerns about the integrity of the process among members of the public. Appearances in the public sector matter.
“If consulted prior to the Tax Sale, both the Mayor and I would have advised the Tax Assessor to refrain from bidding. Subsequent to the Tax Sale, both the Mayor and I counseled Mr. Stewart that we believe his participation as a bidder in the tax sale was an error of judgment on his part, despite the fact that there was no explicit City policy which would prohibit his participation. Both the Mayor and I conveyed that we were disappointed in this error in judgment, and we admonished him to exercise better judgment in the future when such issues arise.
“I also spoke with the Tax Collector, Lisa Biagiarelli, concerning this matter, and indicated to her that prior to any future tax sales, we would like her to develop written guidelines which exclude certain City employees from participating as a bidder in such tax sales, so that this sort of situation does not arise again.”
Zillow.com estimates that the house is worth $487,255. It has been assessed by Vision Government Solutions at $229,200 and appraised at $327,430. This is a significant drop from the previous valuation, when it was assessed for $311,640 and appraised at $445,200.
A man who came to the door at the home Wednesday said he did not know Hay’s whereabouts.
Correction, 3:43 p.m., deadline for repayment is Jan. 21
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