10 - Release of Lien-Waiver Request - 245 NE 2nd Street

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OPTIONS: The City Manager has developed a process he goes through for considering when (if) to forgive principal and/or interest for Nuisance Liens (liens that he is tasked with reviewing). It is not perfect, but this procedure allows him to remain fairly consistent each time. Given there are so many different factors and scenarios involved with properties all over town, the City Manager attempts to adhere to two goals: 1. Protect the taxpayer dollar — resist forgiving liens whenever possible given taxpayers had expense in maintaining the property, while 2. Finding a way to get the property in to the hands of someone who will maintain — possibly develop — the property, thus alleviating the taxpayers of having to further maintain the property (note: this has not been an issue in this specific situation). Taking in to consideration both goals, the City Manager's analysis in this situation is as follows: the value of the lien (principal + interest) greatly exceeds the value of the property, although the value of the property exceeds the value of the principal of the lien. The owner at the time of the demolition has since passed away and descendants have inherited the property in recent years (2020). This property has been maintained in the past, taxes paid, and no other nuisance violations are on file, therefore there are no issues that would require tax foreclosure. This property does not appear to be one of our current nuisance sites, although the northern block of this area is heavily wooded, thus it could in time become a nuisance if not developed. What Mr. Faber has offered to do, pay the principle, seems fair given the value of the interest + principle greatly exceeds the value of the property, making it unlikely to ever be sold if payment of interest is expected. However, given the taxpayers had actual expenses of $3,070.15 to demolish this house and given this is less than the value of the property, it is appropriate to try and pursue that amount. Therefore, the City Council has the following options: 1. .Approve a Resolution for release of the lien against 245 NE 2nd Street and: a. Receive payment of the $3,070.15 Principle while waiving interest applied to the August 2, 2006 Structure Lien. b. Waiver of principle and interest applied to the August 2, 2006 Structure Lien. c. No waiver of principle and/or interest. d. Waiver of a portion (TBD) of the principle and/or interest. 2. Request additional information. 3. Do not release the lien or waive any portion of the August 2, 2006 Structure Lien.