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18 - Forgiving certain civil penalties on the property located at 1633 W. HendersonItem No. 18 Memorandum TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Proposed forgiveness of civil penalties on property located at 1633 W. Henderson Street DATE: December 13, 2021 BACKGROUND: In December of 2013, the Building Standards Commission issued an order of demolition on a residential structure located at 1633 W. Henderson 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 owner, failed to demolish the structure within the 30 days however, did demolish within 33 days of the entry of the order. 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 $33,000.00. The owner would now like to sell it. 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 $33,000.00 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 $1,650.00. STATUS OF ISSUE: The 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 property, maintain or increase its taxable value, and thus contribute to the well-being of this neighborhood. The owner will pay all other nuisance abatement liens on the property. BUDGET: No discernable impact; council would be forgiving 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 $33,000.00 plus interest on the property located at 1633 W. Henderson Street. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS FORGIVING CERTAIN CIVIL PENALTIES ASSESSED AGAINST THE PROPERTY LOCATED AT 1633 W. HENDERSON 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 December 16, 2013, after notice, publication, and hearing as required by law, the Building and Standards Commission of the City of Paris entered Order DS13-900 (Exhibit A) ordering demolition within 30 days of the structure located at City Block 234, Lot 2, City of Paris, Texas, otherwise known as 1633 W. Henderson Street, and further ordering the imposition of Civil penalties of $1,000.00 per day for each day the structure remained in the property after the expiration of the 30 day deadline; and WHEREAS, the owner demolished the structure 63 days after entry of the order; and WHEREAS, civil penalties accrued under said order are in the amount of $33,000.00 plus interest; and WHEREAS, said owner, wishes to sell same and the prospective buyer wishes to improve the property; and WHEREAS, given the above, the City Council finds a public purpose in forgiving the $33,000.00 in civil penalties and any accrued interest in order to facilitate the sale of said property, thus keeping it on the tax rolls, increasing its taxable value, and enhancing and contributing to the value of the area; 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 1633 W. Henderson Street by virture of Building and Standards Commission Order No. DS13-900 in the amount of $33,000.00 plus interest for the public purpose of facilitating the sale of the property so that the property may be improved, increasing the taxable value of the property and improving the area in which it is located. Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 13th day of December, 2021. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney