Tyler

From Staff Reports

The 2005 Home and Garden Television Dream Home will be auctioned off piece-by-piece starting at 10 a.m. Saturday.

First on the block is the 5,500-square-foot, two-story house with attached master suite, three-car garage, in-ground pool, Jacuzzi, and two-story boathouse with a bedroom, bathroom and mini-kitchen. The house is appraised at close to $2 million, and annual property taxes are estimated to be around $25,000.

Homeowners Don and Shelly Cruz, of Chicago, Ill., won the home in a sweepstakes sponsored by HGTV. The Cruz's had trouble paying taxes on their prize, so they contacted Beard Auction Service, of Jacksonville, to sell the home to the highest bidder.

Auctioneer Wesley Beard said there's no minimum requirement for bids on the mansion, but the winning bid is subject to the homeowner's approval.

Greg Morgan, director of utilities and public works for the city of Tyler, said that the one-acre plot of lakefront property on which the mansion sits will not be up for auction. The city owns all of the land surrounding Lake Tyler, and homeowners lease the properties for an annual fee.

"The reality is they are buying the improvements on land leased from the city of Tyler," Morgan said.

He said the estimated yearly fee for the dream home property is a little more than $700. He added that the winning bidder has to have the lease transferred from the Cruz's name into his or her own name and must agree to abide by lease restrictions.

One of those restrictions, which the Cruz's found out the hard way, is that homeowners cannot rent out their homes or use them as a bed and breakfast.

During the two years the Cruz's lived in the dream home, they contacted the city of Tyler about using the boathouse for just such a purpose, so they could use the income to pay taxes on their winnings. City Council members ultimately rejected the request due to the terms of the land lease, Morgan said.

The public will also have the opportunity to bid on every piece of furniture, every appliance and every decoration within the home. Bidding on those items will begin after the house is auctioned off.

The home, which is located at 15920 East Side Road, will open for public viewing at 8 a.m. and will close at 10 a.m., once the auction begins. Beard said the auction is open to the public, and there are no reserves on any items.

(Staff photo by Herb Nygren Jr.)