10 - Sheriff's Sale of Belford Apartment Building

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Item No. 10 memorandum TO: City Council John Godwin, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Sheriff’s sale of Belford Apartments building property DATE: April 2, 2019 BACKGROUND: As you know, two parcels belonging to Boomer Trends Magazine, Inc., nd to owner of the Belford Apartments building, were auctioned at a sheriff’s sale on April 2 satisfy of the City’s judgment against Boomer Trends relating to civil penalties incurred for failure to demolish the building pursuant to order of the Building and Standards Commission. The Belford building sits on one of the lots, also known as 260 S. Main St., and a smaller lot lies immediately north of and adjacent to the Belford building lot.South Main Acquisitions, L.L.C. boughtthe small lot to the north of the Belford building. There were no bids on the Belford property itself, and it did not sell. STATUS OF ISSUE:Unless Council instructs me otherwise, I will have the Belford property th ready for the next sheriff’s sale date,which falls on Tuesday, May 7. At this juncture, I would recommend putting the property up for sale under the same terms and conditions as before. The Council has made clear that the City is prepared to release any remaining portion of the judgment should a purchaser either demolish or rehabilitate the building according to the terms and timetable set forth in its March 25th resolution,and to further incentivize the rehabilitation of the building through a $50,000.00 economic development incentive should the purchaser rehabilitate the building according to those conditions. Weare still hopeful that through the sale of the property, we can help abate a dangerous structure and return the property to a functional and attractive use in keeping with the historic character of the area. BUDGET: Minimal budgetary impact, including publication of the new sale date, and minimal court costs and sheriff’s costs. RECOMMENDATION: Direct city attorney with respect to a possible second sheriff’s sale of the Belford Apartment building property at 260 S. Main St.