22 - Relien of Lien Waiver Request - 239 NE 2nd Street

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No. 22 Memorandum TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: Release of Lien / Waiver Request DATE: April 22, 2024 BACKGROUND: In June 2006, the City of Paris demolished a dangerous structure located at 239 NE 2nd Street (LCAD #39438) and applied a lien against the property on September 1, 2006 in the principal amount of $1,350.30. The lien has continued to exist on this property, unpaid, since that time. The taxes have all been paid and any other nuisance violations that may have occurred along the way have also been paid. STATUS OF ISSUE: Mr. Jeff Faber is listed as the property owner. According to LCAD, he took ownership of the property on February 5, 2024. The previous owner owned the property from 1995 — 2024, which includes the date the lien was applied. Mr. Faber owns four properties all on the north side of this block (LCAD #39438, 14000, 100911, 13999) and is looking to sell all to one individual who intends to develop all properties at once. The City Council, on June 12, 2023, met and approved release of lien for 245 NE 2nd Street (immediately north of 239 NE 2nd Street), also to Jeff Faber. The City Council required the payment of the entire principal amount of $3,070.15, but waived the interest in the amount of $11,856.49 as the value of the property was only $4,370.00. The selling price was not obtained. The City Council, on September 11, 2023, met and approved release of lien for 1567 S. Main Street (not Jeff Faber, someone else). The City Council required the payment of the entire principal amount of $1,469.65, as well as 1/z of the $6,129.34 in accumulated interest (or about $3,064.67), for a total of $4,534.32. The City Council also waived about $47,000 in accumulated civil penalties. The property was valued at $1,130.00, but they were selling the property for $9,500.00, therefore the city council felt it appropriate to collect some on the interest.