16 - Forgiving Civil Penalties in the amount of $116,000 on property located at 425 19th N.W. and 2045 Plum Street

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Item No. 16 TO: Mayor & City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: RESOLUTION FORGIVING CIVIL PENALTIES IN THE AMOUNT OF $116,000.00 ASSESSED AND ACCRUING ON THE PROPERTY LOCATED AT 425 19TH NW AND 2045 PLUM STREET DATE: July 8, 2020 BACKGROUND: The Building and Standards Commission placed an order of demolition on a burned -out structure located on a corner lot known as 425 19"' NW and 2045 Plum St. on November 18, 2013. The order also provided for civil penalties in the amount of $1000.00 per day if the owner failed to demolish the structure within 30 days of the order. The then -owner of the property failed to do so, but did demolish the structure, at his own expense, within 116 days of the 30th day stated in the order. In 2018, David and Deneen Whitaker acquired the property in order to build a new home for sale. Somehow, this order did not get disposed of at the time of that sale. There has never been a demolition lien on the property. STATUS OF ISSUE: Since that time, the Whitakers have in fact constructed a residence on the property, and are in the process of selling it. This order turned up in the title search. The Whitakers have a business in which they purchase lots, primarily if not exclusively in West Paris, and construct quality but affordable homes on them, thus increasing the taxable value of the properties and enhancing the neighborhoods where they are located. The accumulated civil penalties of $116,000.00 plus interest exceed the value of the property. BUDGET: A potential, but unlikely loss of the civil penalties plus interest. Collection of said civil penalties and interest on this property are unlikely at best. RECOMMENDATION: Move to approve a resolution forgiving civil of $116,000.00 plus interest on the property located at City Block 242, Lots 6B and 6C, otherwise known as 425 19th NW and 2045 Plum St.