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16 - Forgiving Civil Penalties in the amount of $116,000 on property located at 425 19th N.W. and 2045 Plum StreetItem No. 16 TO: Mayor & City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: RESOLUTION FORGIVING CIVIL PENALTIES IN THE AMOUNT OF $116,000.00 ASSESSED AND ACCRUING ON THE PROPERTY LOCATED AT 425 19TH NW AND 2045 PLUM STREET DATE: July 8, 2020 BACKGROUND: The Building and Standards Commission placed an order of demolition on a burned -out structure located on a corner lot known as 425 19"' NW and 2045 Plum St. on November 18, 2013. The order also provided for civil penalties in the amount of $1000.00 per day if the owner failed to demolish the structure within 30 days of the order. The then -owner of the property failed to do so, but did demolish the structure, at his own expense, within 116 days of the 30th day stated in the order. In 2018, David and Deneen Whitaker acquired the property in order to build a new home for sale. Somehow, this order did not get disposed of at the time of that sale. There has never been a demolition lien on the property. STATUS OF ISSUE: Since that time, the Whitakers have in fact constructed a residence on the property, and are in the process of selling it. This order turned up in the title search. The Whitakers have a business in which they purchase lots, primarily if not exclusively in West Paris, and construct quality but affordable homes on them, thus increasing the taxable value of the properties and enhancing the neighborhoods where they are located. The accumulated civil penalties of $116,000.00 plus interest exceed the value of the property. BUDGET: A potential, but unlikely loss of the civil penalties plus interest. Collection of said civil penalties and interest on this property are unlikely at best. RECOMMENDATION: Move to approve a resolution forgiving civil of $116,000.00 plus interest on the property located at City Block 242, Lots 6B and 6C, otherwise known as 425 19th NW and 2045 Plum St. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS FORGIVING CERTAIN CIVIL PENALTIES ASSESSED AGAINST THE PROPERTY LOCATED AT 425 19TH NW STREET AND 2045 PLUM 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 November 18, 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 on the property located in City Block 242, Lots 6B and 6C, otherwise known as 425 19th NW Street and 2045 Plum 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. DS13-812, dated November 18, 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 December 18, 2013 should the owner fail to demolish the structure; and WHEREAS, the owner failed to demolish the structure as within 30 days as ordered, but did demolish the structure at his own expense 116 days after the Building and Standards Commission order was entered; and WHEREAS, there is not, nor has there ever been a demolition lien on this property; WHEREAS, said owner, on March 19, 2018 sold the same and the buyer has built a residence on the site and is in the process of selling it; and WHEREAS, as of July 13, 2020, civil penalties in the amount of $116,000.00 plus interest 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 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 $116,000.00 in civil penalties and any accrued interest in order to facilitate the sale of said property, thus keeping it on the tax rolls with a new residence constructed thereon which has increased the property's taxable value and improved 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 City Block 242, Lots 6B and 6C, otherwise known as 425 19th NW and 2045 Plum Street by virture of Building and Standards Commission Order No. DS13-812 in the amount of $116,000.00 plus interest for the public purpose of facilitating the sale of the property which has been improved with a new residence built thereon, increasing the taxable value of the property and improving the neighborhood in which it is located. Section 3. The City Council hereby releases Building and Standards Commission Order No. DS13-812. Section 4. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 13th day of July, 2020. Steven J. Clifford, M.D. Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Database: iWoung—Lamar Year: 20:13 11/20/2013 Richard Lenoir 7170 FM 195 Paris, TX 75462 Instrument #: 1121.52 Volume: 2013 Page: 112152001. According to the real property records of Lamar County, you either have an ownership interest in or hold a lien on the real property described below. A City of Paris Code Inspector presented the property identified below at a hearing before the Building and Standards Commission of the City of Paris, Paris, Texas on November 19, 2013 at 3-.00 PM at City of Paris Council Chambers, 107 E Kauf nan(Old Central Fire Station) Paris, Texas. At the conclusion of the hearing, the Buildings and Standards Commission issued the following ORDERS: ORDER NO. DS 13-812 AN ORDER OF THE CITY OF PARIS, PARIS, TEXAS BUILDING AND STANDARDS COMMISSION WITH REGARD TO THE ABATEMENT OF THE SUBSTANDARD AND DANGEROUS STRUCTUREfS LOCATED AT 425 19a' NAV & 2W Mum, PARIS, TEXAS WHEREAS, the Building and Standards Commission for the City of Faris conducted a 6 -public hearing on 11118/33, wherein the structures located at 425 19`x' NW 8i 2015 Plum, more particularly described as City Flock 242, Lot 6-B & 6-C Paris, Texas ("Property") was agenda item number 3ivl; and WHEREAS, notice for the public hearing was timely mailed and published in the local newspaper in accordance with article 111, Ch. 7 of the City of Paris Code of Ordinance; and WHEREAS, based upon the evidence presented, the Building and Standards Commission `, T; .2 'a finds that the Property is in violation of Chapter 7, Article III of the Code of Ordinancos of the City r" > IT. F of Paris, Paris, Turas; and i WHEREAS, the Building and Standards Commission finds that the structure is 6,4- 1 dilapidated, substandard, dangerous and/or unfit for human habitation, unoccupied by the owner, or; CD lessee, or outer invitee, constitutes a hazard to the health, safety and welfare ofthe public, is likely to endanger persons and property, and is unsecured from unauthorized entry tai the extent that it � r4 v., could be entered or used by vagrants or other uninvited persons as a place of harborage or could be 9Rt entered or used by children, to wit: EXTENSIVE FIRE DAMAGE. THEREFORE, IT IS HEREBY ORDERED BY THE BUILDING AND STANDARDS COMMISSION OF THE CITY OF PARIS THAT, The property be demolished whin 30 days of the date of this Order. t If the work is not completed within the time stated above, a civil penalty of S_LOdp, per day plus interest for each day the work is not completed will be assessed against the property owner. k%AIS Page 15 of 15 Database: iWoung_4zmar Year: 2013 Instrument #: 112152 Volume: 2013 Page: 112152002, 112152-2013 12/23/2013 09:3::21 AM Page of 2 IM The property owner or a lienholder of the property shall, pursuant to section 7-58 of the City of Paris Code of Ordinances, furnish written proof to a City of Paris Code Inspector of the proper and legal disposal at a landfill of all materials from the demolition of a 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 your own attorney for legal advice and this notice to you is not to be taken as legal advice to you by the City of Paris or by any of its employees or officials. You are advised that pursuant to section 7-51 and section 7-53 of the City of Paris Code of Ordinances, you have a right to appeal a decision and order of the Building and Standards Commission by ding a petition to a District Court in Lamar County, Texas, within thirty (30) calendar days after the date a copy of the final decision and order of the Commission is personally delivered or mailed by first class mail, certified return receipt requested, to you. If no appeal is taken pursuant to section 7-51 of the Paris Code of Ordinances from the decision and order of the Commission within tate required period, the decision and order of the Commission is final and binding, ORDERED S 18th DAY OF NOVEMBER, 2013. ATTEST, UDs sAsst City Attomey CM: 7010 1970 0001 0101 9882 Robert Talley, Code Enfomernern ervisor 903-784-9219 Page 16 of 16