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2019-012 - Declaring Intent to Release Judgment Against Boomer Trends for property located at 260 South Main StreetRESOLUTION N0, 2019-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS DECLARING ITS INTENT TO TO RELEASE A JUDGMENT AGAINST BOOMER TRENDS MAGAZINE, INC. RELATING TO CIVIL PENALTIES ASSESSED AGAINST THE PROPERTY LOCATED AT 260 SOUTH MAIN STREET, PARIS, TEXAS; FINDING A PUBLIC PURPOSE IN SUPPORT OF SAME; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on August 30, 2012, after notice, publication and hearing as required by law, the Building and Standards Commission of the City of Paris ordered that owner of the the structure located at 260 South Main St., otherwise known as the Belford Apartments building (the `Belford building"), be demolished within 30 days, and assessing civil penalties should the owner fail to demolish the building as authorized by the. Code of Ordinances of the City of Paris, Chapter 7, Article III, Section 7-49; and WHEREAS, the building has not been demolished, and on February 20, 2018, the City filed suit in Cause No. 87292 against Boomer Trends Magazine, Inc., the owner of the Belford building, to reduce civil penalties accrued pursuant to said order to judgment, and WHEREAS, after a trial of the above referenced cause number, the 611, District Court of Lamar County, Texas entered a final judgment dated August 8, 2018 against Boomer Trends Magazine, Inc. in the amount of $2,071,000.00 plus interest representing accrued civil penalites accrued as of that date; and WHERAS, to satisfy said judgment, the Belford building and adjoining property will be sold at a Sheriff's sale on April 2, 2019; and WHEREAS, any purchaser of the Belford building will take said property subject to the City's judgment described hereinabove; and WHEREAS, the Belford building is a dangerous structure requiring demolition, or if possible, rehabilitation; and WHEREAS, both the demolition or the rehabilitation of the Belford building will require a substantial expenditure of funds, ranging from several hundred thousand dollars to several million dollars; and WHEREAS, since the entry of the demolition order in 2012, the City has not had sufficient funds to demolish the building itself; and WHEREAS, in addition to being a critical issue of public safety, the Belford Building is a significant eyesore located in a major entryway into the City's historic downtown area; and WHEREAS, the City is in the first year of a ten year plan to revitalize the downtown area; and WHEREAS, the City has adopted an economic development program under Chapter 380 of the Texas Local Government Code; and WHEREAS, the City Council prefers that the Belford building be restored and rehabilitated if at all possible; and WHEREAS, given the above, the City Council finds a public purpose in releasing any portion.of the judgment referred to above not satisfied by the sale of said property upon the successful completion of demolition or rehabilitation of the Belford building in order to facilitate the demolition or rehabilitation of a dangerous structure and the enhancement of the appeal of the downtown area in accordance with the City's downtown revitalization plan; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City Council hereby agrees to release any portion of the Final Judgment in Cause No. 87292 and the judgment lien associated therewith in the amount of $2,071,000.00 plus interest which remains unsatisfied after the Sheriffs sale of said property, conditioned upon the completion of the demolition or rehabilitation of the Belford building under the conditions set forth herein. Said release is for the public purpose of facilitating the demolition or rehabilitation of a dangerous structure and enhancement of the appeal of the downtown area in accordance with the City's plan for downtown revitalization. Section 3. As a condition of said release, within 6 months of purchase, the purchaser of the Belford building shall clean up the grounds on the lot upon which said building currently stands of all rubbish, debris, trash, and overgrown vegetation such that the property meets the City of Paris Code requirements relating to the accumulation of rubbish and overgrown vegetation. Section 4. As a further condition of said release, within 18 months of purchase, the purchaser of the Belford building shall either demolish said building and clean the lot upon which it currently stands to meet all City of Paris Code requirements, or, if the purchaser intends to rehabilitate the building, shall stabilize the fagade such that City of Paris Code Inspectors deem the structure to not be a danger to the public. Furthermore, in the event that the purchaser stabilizes the building for rehabilitation within the 18 month period, complete rehabilitation and restoration of the building such that the City can issue a certificate of occupancy must be completed within 5 years of the purchase in order for the City to release said judgment. Section 5. To evidence the City Council's preference that the Belford building be rehabilitated and restored, should a purchaser restore the building to the point where a certificate of occupancy can be issued within 5 years of the date of purchase, the City will, under its Chapter 380 economic development program, grant the purchaser a one-time incentive of $50,000.00 once the certificate of occupancy has been issued. Section 6. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 25th day of March, 2019. SteveiJ>, lifford, M.D., Mayor ATTEST:a= UWJ m ec: lc cn to ice Ellis, City Clerk APPROVED AS TO FORM: *phaiie StHarris, City Attorney