08 - Forgiveness of Civil Penalties - 1421 and 1431 N.E. 7thItem No. 8
TO: City Council
Gene Anderson, Interim City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Proposed forgiveness of civil penalties on property located at 1421 and 1431 N.E. 7th
Street
DATE: March 4, 2020
BACKGROUND: In January of 2013, the Building Standards Commission issued an order of
demolition on a residential structure located at 1421 and 1431 N.E. 7th Street, which order included
the automatic assessment of civil penalties in the amount of $1,000.00 per day if the work was not
completed within 30 days. The prior owner, now deceased, failed to demolish the structure, and
city did so at the cost of $627.00. There is, accordingly, a dangerous structure lien on the property
in that amount that has accrued interest making the total due as of this writing $1,017.50. The
present owner inherited the property and would now like to sell it. (In addition to the lot upon
which the structure was demolished, there is another residential structure.) Unfortunately, the order
for civil penalties is still attached to the property, and between the date the civil penalties began
accruing and the date of demolition, civil penalties in the amount of $173,000.00 had accrued plus
10% compounding interest, which is far in excess of the value of the property, listed by the Lamar
County Appraisal district at $34,430.00.
STATUS OF ISSUE: The current owner has asked that the city forgive the civil penalties and
interest accrued on the property so that he might sell it. 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 the
existing residence, maintain or increase its taxable value, and thus contribute to the well-being of
this neighborhood. The owner will pay the demolition lien plus interest and is not asking for a
waiver of that lien.
BUDGET: No discernable impact; council would be forgiving hundreds of thousands of dollars
in penalties and interest, but those penalties and interest would be next to impossible to collect
given how many times they exceed the value of the property itself.
RECOMMENDATION: Move to approve a resolution forgiving civil penalties in the amount of
$173,000.00 plus interest on the property located at 1421 and 1431 N.E. 7th Street.
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
FORGIVING CERTAIN CIVIL PENALTIES ASSESSED AGAINST THE
PROPERTY LOCATED AT 1421 AND 1431 NE 7TH STREET; FINDING A
PUBLIC PURPOSE IN SUPPORT OF SAME; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, on January 22, 2013, 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 at the property located at Williams Addition block 6, Lot 7-8, also
known as 1421 and 1431 NE 7th 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 III, Section 7-49; and
WHEREAS, in Order No. DS13-12, dated January 22, 2013 and memorializing the order
of said hearing, a copy of which is attached hereto as Exhibit A and incorporated by reference
herein, said civil penalties were assessed in the amount of $1,000.00 per day to begin accruing
on February 22, 2013 should the owner fail to demolish the structure; and
WHEREAS, the owner failed to demolish the structure as ordered, and on or about
August 15, 2013, the City demolished the structure.
WHEREAS, the current said owner, having inherited and maintained the property,
wishes to sell same; and
WHEREAS, as of March 9, 2020, civil penalties in the amount of $173,000.00 had accrued
under said order, none of which have been paid; and
WHEREAS, pursuant to Code of Ordinances Chapter 7, Article III, Section 7-49(7), civil
penalties for each day a penalty is assessed shall accrue interest at the rate of ten percent (10%)
per annum from the date of assessment until paid in full; and
and
WHEREAS, the accrued civil penalties plus interest far exceed the value of the property;
WHEREAS, the sale of the property will likely increase its taxable value; and
WHEREAS, given the above, the City Council finds a public purpose in forgiving the
$173,000.00 in civil penalties and any accrued interest in order to facilitate the sale of said
property, thus increasing its taxable value;
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 1421 and 1431 NE 7th St. by virture of Building and
Standards Commission Order No. DS13-12 in the amount of $173,000.00 plus interest for the
public purpose of facilitating the sale of the property and thus enabling the sale of same and
helping to increase the taxable value of the property.
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
uka6ase: ihcMne_tamar_Ptt ,200WN42A33 Instrument #: 103778 Volum: 2013 Page: 103776.01
I t
ORDER NO, DS 13-12
AN ORDER OF THE CITY OF PARIS, PARIS„ TEXAS JBIIiLDING AND STANDARDS
COMMISSION WITH REGARD TO THE ITEM'13I7t` THE SUBSTANDARD AND
DANGEROUS STRUCTUREIS LOCATED T 1421 Nle 7fh, P RIS, TEXAS
WHEREAS, the Building and Standards Commission for ilia City of Paris conducted a `
public hearing on 1127,/13, wherein the structures located at 1421 NE 7th, more particularly
described as Williams Addition Block ti, Lot 744 Paris, Texas t" Property'! was agenda Item
number 3Li and
WHEREAS, notice for the public hearing has been given; and
WHEREAS, based upon the evidence presented, the Building and Standards Commission
finds that the Properly is in violation of Chapter 7, Article III of the Code of ordinanoes of the City
of Paris, Paris, Texas; and
WHEREAS, the Building and Standards Commission finds that the structure Is
dilapidated, substandard, dangerous and/or unfit for human habitation, unoccupied by the owner, or
lessee, or other invitee, oonstitutes a hazard to the health, safety and welfare ofthe public, is likely
to endanger persons and property, and Is unsecured from unauthorized entry to the extent that it
could be entered or used by vagrants or other uninylted persons as a place of harborage or could be
entered or used by children, to wit:
0
DETERIORATED AND MISSING WOOD, SHINGLES HAVE BLOWN OFF,
ROOF IS SAGGING,
THEREFORE, IT IS HEREBY ORDERED BY THE BUILDING AND
STANDARDS COMMISSION OF THE CM OF PARIS THAT; .® 11
o u
om
R The property be demolished and that all work be completed within 30 days of
/ 121
the date of this Order,
® If the worts Is not completed within the time slated above, the City of Paris `
will demolish the structure and assess expenses for the demolition against the
property ou which the structure was located. RUN=
If the work Is not completed within the time stated above, a civil penalty of k
$_4qa2 per day plus interest for each day the work is not completed will .�-
be Assessed against the property owner.
The property owner or a lienhol&r of the property shall, pursuant to City
Ordh anee No. 2004-009, furnish written proof to a City of Paris Code
Impactor of the proper and legal disposal at a landfill of till materials from
the demolition of the building or structure.
You are advised that you may be entitled to have a Court determine
the outcome of the decision and order of the City of Paris Building and
Standards Commission concerning your property. You should contact
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ii*Sto"—Lnmnr---PR-20DM04_2H33 Instrument M 103776 Volume: 2013 Page. 103776.02
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your own attorney for lepI advice and this notice 10 you is not to be
taken as legal advice to you by the City of Palis or by any of it's
employees or officials.
You are advised that pursuant to section 7-51 and section 7-53 of the
T
TWWW"fi IlYr
of the Paris Code of Ordinaneas from the decision and order of the
Commission withim, the required periodo the decision and order of the
Commission is final and binding.
ORDERED THIS 22nd DAY OF JANUARY, 2013.
7
ATTEST:
WWI
Ahn D. Lestock, Asst. City Attorney