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07 - Forgiveness of Civil Penalties - 2596 W. HoustonItem No. 7 TO: Mayor & City Council FROM: Gene Anderson, Interim City Manager & Finance Director SUBJECT: PROPOSED FORGIVENESS OF CIVIL PENALTIES ON 2596 W. HOUSTON DATE: March 3, 2020 BACKGROUND: In May of 2012, the Building Standards Commission issued an order of demolition on the residential structure located at 2596 W. Houston and ordering civil penalties in the amount of $1,000.00 per day if the work was not completed within 30 days. The structure was demolished 230 days after the BSC order. STATUS OF ISSUE: The current owner has asked the city to forgive the civil penalties and interest accrued on the property so that he might sell it. The prospective buyer does plan to build a residence on the site at some future date. There is a public purpose in forgiving the civil penalties in that doing so will allow sale of the property to an owner who can maintain and improve the property and thus contribute to the prosperity of the neighborhood. BUDGET: No discernable impact; council would be forgiving over $200,000.00 in penalties and interest, but those penalties and interest would be next to impossible to collect given they are almost 90 times the value of the property. RECOMMENDATION: Move to approve a resolution forgiving civil penalties in the amount of $200,000.00 plus interest on the property located at 2596 W. Houston. 91WIfffiffe-RIMI A RESOLUTION OF THE C I TY C 0 U N C I L 0 F T H E CITY OF PARIS, TEXAS FORGIVING CERTAIN CIVIL PENALTIES ASSESSED AGAINST TH-D PROPERTY LOCATED AT 2596 W. HOUSTON STREET; FINDING A PUBLI* PURPOSE IN SUPPORT OF SAME; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on May 2:1, 2012, after notice, publication, and hearing as required by law, the Building and Standards Commission of the City of Paris ordered that a structure be demolished within thirty days on the property located in the Sperry's 3rd Addition, Block 2, Lot 23, otherwise known as 2596 W. Houston Street, and assessed civil penalties should the owner fail to demolish the structure as ordered, all as authorized by the Code of Ordinances of the City of Paris, Chapter 7, Article 111, Section 7-49; and WHEREAS, in Order No. DS12-62, dated May 21, 2012 and memorializing the order of said hearing, a copy of which is attached hereto as E_hi n" and incorporated by reference herein, said civil penalties were assessed in the amount of $1,000.00 per day to begin accruing on June 21, 2012 should the owner fail to demolish the structure; and WHEREAS, the owner failed to demolish the structure as ordered, and the structure was demolished 230 days after the Building and Standards Commission order; and WHEREAS, said owner, wishes to sell same and the prospective buyer wishes to build a residence on the site at a future date; and WHEREAS, as of March 3, 2020, civil penalties in the amount of $230,000.00 had accrued under said order, none of which have been paid; and WHEREAS, pursuant to Code of Ordinances Chapter 7, Article 111, Section 7-49(7), civil penalties for each day for which they are assesed shall accrue interest at the rate of ten percent (10%) per annum from the date of assessment until paid in full; and WHEREAS, the accrued civil penalties plus interest far exceed the value of the property; and WHEREAS, given the above, the City Council finds a public purpose in forgiving the $230,000.00 in civil penalties and any accrued interest in order to facilitate the sale of said property, thus keeping it on the tax rolls and providing for the construction of a new residence which will increase the property's taxable value and improve the neighborhood in which it is located; 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 forgives civil penalties and interest assessed and accrued against the property located at 2596 W. Houston St. by virture of Building and Standards Commission Order No. DS12-62 in the amount of $230,000.00 plus interest for the public purpose of facilitating the sale of the property so that a new residence may be built thereon, increasing the taxable value of the property and improving the neighborhood in which it is located. Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 9th day of March, 2020. Steven J. Clifford, M.D. Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Database: 11xStone_Lamar_PR_2009W042882 Instrument #: 97521 Volume: 2012 Page: 97521.01 06721-2012 1 06/20/2012 10146:18 open: 2 N07 Lamar CountyTK p 8Y aret ahsttb IIIf�,�I�Nllf�Kath Htl�flfll(IIII(I�Illla, ifl'lll�i�llflll ORDER 'O. DS 12-62 AN ORDER OF T14E CITY OF PARIS, IRIS, TEXAS BUILDING AND STANDARDS COMMISSION WITH REGARD TO THE�,.T BATEMENT OF THE SUBSTANDARD AND DANGEROUS STRUCTURE/S LOCATED2596 W HOUSTON, PARIS, TEXAS WHEREAS, the Building and Stand ds Commission for the City of Paris conducted a public hearing on 5/21/20112, wherein the structures located at 2596 W HOUSTON, more particularly described as SPERRY'S 3110 DDITION BLOCK 2, LOT 23 Paris, Texas ("Property") was agenda item number 3L; an' WHEREAS, notice forthe public h WHEREAS, based upon the evic Finds that the Property is in violation of C of Paris, Parrs, Texas; and has been given; and resented, the Building and Standards Commission 7, A rticic III of the Code of Ordinances of the City WHEREAS, the Building and Standar s Commission finds that the structure is dilapidated, substandard, dangerous and/or un for human habitation, unoccupied by the owner, or lessee, or other invitee, constitutes. hazard tdµs the health, safety and welfare of the public, is likely to endanger persons and property, and is unsetired from unauthorized entry to the extent that it could be entered or used by vagrants or other!'winvited persons as a place of harborage or could be entered or used by children, to wit: fit ROOF DAMAGE, UNSECURE, HLES IN FLOOR, ROTTEN WOOD, FOUNDATION DAMAGE, THEREFORE, IT IS HEREB' ORDERED BY THE BUILDING AND STANDARDS COMMISSION OF THE CRY "Y OF PARIS THAT: W The property be demolishoc �7d that all work be completed within 30 days of the date of flits Order. If the work is not conrpletr�ir� within the tlmo stated above, the City of Paris will demolish the structureFe assess expenses for the demolition against the property on which the stru was located, 191 if the work Is not complete l within the tune stated above, a civil penalty of $JQW_ per day plus lut est for each day the work is not completed will be assessed against the prop4',rty owner. ® The property owner or it 11 nholder of the property shall, pursuant to City Ordinance No. 2004-009,lpirnish written proof to a City of Paris Code Inspector of the proper anI legal disposal at a landfill of all materials from the demolition of the buildi la ur structure. You are advised that yoir may be ontitted to have a Court determine the outcome of (lie decisi t and order of the City of Paris Building and Standards Commission e�neerning your property, You should contact Page 12 of 12 Database: IlxStone lamar_Pi_200M04,2882 Instrument 11; 97521 Volume: 2012 Page: 97521.02 097521-2012 06120/2012 10:46:18 AM Page 2 of 2 your own attorney for lg4l advice and this notice to you Is not to be taken as legal advice to ou by the City of Paris or by any of it's employees or officials. You are advised that pul City of Parls Code of Or(' and order of the Buildi petition to a District Cor date a copy of the firaa personally delivered or receipt requested, to you. of the Paris Code of Or, Commission within the r Commission is final and 1 uant to section 7-51 and section 7-53 of the rances, you have a right to appeal a decision g and Standards Commission by filing a t within thirty (30) calendar days after the decision and order of the Commission is bailed by first class mail, certified return f no appeal is token pursuant to section 1-51 ponces from the decision and order of the luired period, the decision and order of the nding. ORDERED THIS 21" DAY OF Mq, 2012. 116e,l"�I;,911111064 . . . ...... . Cha rpersoa ATTEST; Secretary APPROVED AS TO FORM: �i D. Lestock, Asst. City Attorney Page 13 of 13