07 - Forgiveness of Civil Penalties - 2596 W. Houston

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Item No. 7 TO: Mayor & City Council FROM: Gene Anderson, Interim City Manager & Finance Director SUBJECT: PROPOSED FORGIVENESS OF CIVIL PENALTIES ON 2596 W. HOUSTON DATE: March 3, 2020 BACKGROUND: In May of 2012, the Building Standards Commission issued an order of demolition on the residential structure located at 2596 W. Houston and ordering civil penalties in the amount of $1,000.00 per day if the work was not completed within 30 days. The structure was demolished 230 days after the BSC order. STATUS OF ISSUE: The current owner has asked the city to forgive the civil penalties and interest accrued on the property so that he might sell it. The prospective buyer does plan to build a residence on the site at some future date. There is a public purpose in forgiving the civil penalties in that doing so will allow sale of the property to an owner who can maintain and improve the property and thus contribute to the prosperity of the neighborhood. BUDGET: No discernable impact; council would be forgiving over $200,000.00 in penalties and interest, but those penalties and interest would be next to impossible to collect given they are almost 90 times the value of the property. RECOMMENDATION: Move to approve a resolution forgiving civil penalties in the amount of $200,000.00 plus interest on the property located at 2596 W. Houston.