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Regular Council Meeting September 22, 2014 Page 5 of the cost of remodeling work at the office on the plaza and the expense was an eligible use of HOT revenues, because that is where the VCC manager offices. Mr. Godwin said the city attorney concurred this was a legally eligible expenditure. Council Member Hashmi said if it was legally allowed that he did not have reservations, but it was still best practices to keep the accounts separate. 19. Receive and discuss dilapidated structure report. Code Enforcement Supervisor Robert Talley gave a presentation to City Council about the progress on demolition of dilapidated structures. Mr. Talley reported that 8 structures were demolished in August 2014; 69 structures were awaiting demolition; 146 residential structures had been demolished by the City from August 2012 through the present; 42 structures had been demolished by property owners from August 2012 through the present; and an average of 5.66 structures were torn down per month over the past 6 months. Council Member Hashmi inquired of the 146 home demolished what was the cost per structure. Mr. Godwin said it was $2,200. He also inquired how many properties had been sold out of the 146 and Mr. Godwin told him 140 properties and that he had a new list and would forward to the Council. A Motion to move items 21 and 22 up was made by Council Member Pickle and seconded by Council Member Grossnickle. Motion carried, 7 ayes — 0 nays. 21. Discuss the failure to disclose and possible fraudulent activity as it pertains to the Rodgers -Wade Manufacturing and Distribution Warehouse facility appraisal as it relates to an anonymous letter presented to the City Council on March 10, 2014 and related discussions of said appraisal. If necessary during this discussion convene into Executive Session pursuant to Section 551.074 of the Texas Government Code to hear a complaint or charge against an officer or employee, as follows: receipt by the city attorney of the above referenced appraisal and subsequent events leading up to and including the city council meeting of March 10, 2014. Council Member Pickle said prior to discussion that he would like Mr. Godwin to play a video that contained excerpts of March 10, 2014 meeting. Mr. Godwin played the video excerpts and Council Member Hashmi asked that the video of the entire conversation of agenda item #11 be played. Council Member Pickle said the thing that pushed this over the edge was an appraisal and referenced that Council Member Hashmi had called Holland Harper at the time he received the anonymous letter. He asked Holland Harper to come forward. Mr. Harper told the City Council in late February he received a phone call from Dr. Hashmi and was told he had received an anonymous letter about the property of Rodgers Wade being collateralized by a $42,000 piece of property. Mr. Harper said he told Dr. Hashmi they had an appraisal for the property for 7.5 million dollars but it turned out to be worth 7.75 million dollars. Mr. Harper also said a week later he received a phone call from Matt Frierson about the same issue. Mr. Harper said he called CFO Mike Anders and sent him to the Council meeting to state the company's position. He also said they did not get the opportunity to state their position