09 - Forgive a Dangerious Structure Abatement Lien & Nuisance Abatement Liense against property lcoated at 338 N.E. 8th StreetItem No. 9
TO: Mayor, Mayor Pro Tem & City Council
FROM: Grayson Path, City Manager
SUBJECT: 338 NE 81h Street
Lien Forgiveness
DATE: August 9, 2021
BACKGROUND:
The City of Paris has seven (7) liens on 338 NE 8th Street. The following is a breakdown of the
liens:
...........
__._..
... ........... .......... ........... ........
16 -Nov -09
................... ........
10 -Apr -13
......
22 -Aug -15
............................... ........
5 -Oct -17
.......... . .......
24 -Sep 20
......
15 -Oct -20
. .
5 Nov.20
TotalValue of Property
Property
Structure Lien
Nuisance Lien:
Nuisance Lien
Nuisance Lien:
Nuisance Lien:
Nuisance Lien:
Nuisance Lien
338 NE 8th - #14584
$ 1,380.00
Principal
..
$ 2,471.04
$ 413.14
$ 344.52
$ 354.57:
$ 296.00
$ 296.00
$ 296.00
......... ..
$4,471.27
.. I .... ........... .
Today's Value
$ 7,095.82
$ 805.09
$ 554.85
$ 471.93
$ 296.00
$ 296.00.
$ 296.00
$9,815.69
InterestOnly
$ 4,624.78
$ 391.95
$ 210.33:
$ 117.36
$
$
$
$5,344.42
There is also approximately $1,950.00 in unpaid property taxes since 2009 (that amount would
be finalized by the Appraisal District). As can be seen in the above table, the total value of liens
today is worth about $9,815.69 and the value of the property is $1,380.00.
Ms. Elaina Thomas is the owner of 821 Pine Bluff which is the property to the immediate south
of 338 NE 8th Street. She has approached the City Manager stating that they wish to purchase
338 NE 8th Street from the existing owner and is requesting forgiveness of the liens. The City
cannot forgive the owed Property Taxes, which they recognize and are prepared to pay.
Ms. Thomas has informed the City Manager that the current owners inherited the property after
their last remaining parent passed away sometime around 2017 or 2018. The property was
owned by Floyd and Betty Gray during the time of the structure lien and we believe the first
three nuisance liens (2013 — 2017). The parents allegedly instructed their children to not pay the
taxes or the liens and to let the property go up for a tax sale which effectively would be at no
expense to them (the liens would be waived in a tax sale and the taxing entities would recoup
whatever pro -rated share they can from the tax sale). They allegedly have no further interest in
this property and are willing for it to go up for auction. The current owners apparently do not
live in Paris and have allegedly told Ms. Thomas that they will sell her the property so long as
they have no expense for conducting the transaction. Ms. Thomas would like to purchase the
property, extend her fence around it, but more importantly start maintaining the property both in
terms of codes and taxes.
The property is vacant and approximately 60' wide by 80' deep which is smaller than a typical
buildable lot (a variance would be needed to build on it). It is zoned 2F (Two Family Dwelling).
Pursuant to City Code 4.03.009, only the City Council can consider waiving a Structure Lien (the
November 16, 2009 lien). Under City Code 7.04.011, the City Manager can consider waiving
Nuisance Liens (the six remaining liens).
STATUS OF ISSUE:
The City Manager has developed a process he goes through for considering when to forgive
principal and/or interest for Nuisance Liens. It is not perfect, but this procedure allows him to
remain fairly consistent each time. Given there are so many different factors and scenarios
involved with properties all over town, the City Manager attempts to adhere to two goals:
1. Protect the taxpayer dollar — resist forgiving liens whenever possible given taxpayers had
expense in maintaining the property, while
2. Finding a way to get the property in to the hands of someone who will maintain — possibly
develop — the property, thus alleviating the taxpayers of having to further maintain the
property.
Taking in to consideration both goals, the City Manager's analysis in this situation is as follows:
the value of the liens and property taxes greatly exceed the value of the property and historically
the current owners have clearly refused to pay taxes and maintain the property. Therefore, it is
reasonable to assume that the current owners will continue to not pay taxes or maintain the
property, thus the taxpayers will continue to have expenses. This would inevitably lead to a tax
sale in which case the City will most likely not recoup enough to cover both the owed taxes and
the liens. In addition, the property does not meet necessary lot size for building a home (this can
be overcome if someone wished to pursue it through the process).
Ms. Thomas and the current owners have worked together, using a local title company, and agreed
to sell the property for a deminimus amount and Ms. Thomas will pay all transaction expenses
including owed property taxes. Ms. Thomas wishes for this property to not go up for tax sale as
there is no guarantee she will be able to purchase it at auction and she wishes to control the
property.
The City Manager has negotiated with Ms. Thomas and we have agreed that in exchange for
waiving the 2009 Structure Lien as well as the 2013, 2015 and 2017 Nuisance Liens — which are
valued at $8,927.69, they will pay the taxes as well as the three 2020 liens — which are valued at
$888.00. The current owners apparently were not responsible for the 2009 — 2017 liens as their
parents were living at that time and responsible, but they are responsible for the three 2020 liens.
And given those three liens occurred in this Fiscal Year, the tax payers should recoup at least this
much as it impacted this year's budget.
While this is not a perfect solution, it does appear to, in good faith, meet both of the City Manager's
desired two goals: recoup a portion of the taxpayer's expense (at least that which occurred this
FY) while getting the property in to the hands of someone who will maintain it going forward.
BUDGET:
There is no new expense to the City in this situation to agree to this arrangement. Denying the
arrangement will mean the City will have to continue to maintain this property at taxpayer expense
and will likely lose that at a tax sale.
The City would be forgiving $8,927.69 in liens that occurred from 2009 — 2017, but would recoup
its share of the approximately $1,950.00 in delinquent taxes and $888.00 in liens applied to the
property within this Fiscal Year.
OPTIONS:
1. Approve a Resolution for the waiver of the November 16, 2009 Structure Lien for 338 NE
Stn Street in combination with the City Manager's waiver of the April 10, 2013, August 22,
2015, and October 5, 2017 Nuisance Liens as part of the sale transaction between the
current owners to Ms. Elaina Thomas.
2. Reject and/or edit this arrangement.
RECOMMENDATION:
1. Approve a Resolution for the waiver of the November 16, 2009 Structure Lien for 338 NE
8th Street in combination with the City Manager's waiver of the April 10, 2013, August 22,
2015, and October 5, 2017 Nuisance Liens as part of the sale transaction between the
current owners to Ms. Elaina Thomas.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS FORGIVING A DANGEROUS STRUCTURE ABATEMENT LIEN
AND SIX NUISANCE ABATEMENT LIENS ASSESSED AGAINST THE
PROPERTY LOCATED AT 338 NE 8TH 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 16, 2009 a lien in the amount of $2,471.04 (including
interest current payoff is $7,095.82) was entered against the property located at 338 NE
8th Street for demolition and cleanup of a dangerous structure at the expense of the City
of Paris that occurred on July 8, 2009 ; and
WHEREAS, the City filed a lien for the expenses incurred by the City related to the
demolition and clean up of the property with the Lamar County Clerk's Office under lien
number 075122-2009; and
WHEREAS, the property was then owned by Floyd and Betty Gray and has been
inherited by their children; and
WHEREAS, there are six nuisance abatement liens currently filed against the
property from 2009 to present; and
WHEREAS, Ms. Elaina Thomas, the owner of adjacent property of 821 Pine Bluff,
would like to purchase the property from the existing owners and is requesting
forgiveness of the liens but is willing to pay the property taxes along with two nuisance
abatement liens incurred in 2020 in the amount of $888.00; and
WHEREAS, the lot is approximately 60' wide by 80' deep which is smaller than a
typical buildable lot requiring a variance to build on and Ms. Thomas would like to extend
her fence around it and maintain it in the future; and
WHEREAS, given the above, the City Council finds that there is a public purpose in
forgiving the $8,927.69 in liens and accrued interest on the property located at 338 NE 8th
Street in that the tax money would be recouped and this would alleviate the alleviating
the taxpayers of having to further maintain the property.
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 structure and nuisance abatement liens
totaling $8,927.69 including interest on the property located at 338 NE 8th Street.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 9th day of August, 2021.
Paula Portugal, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney