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10 - Release of Lien and Waiver Request - 503 W. WashingtronNo. 10 TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: Release of Lien / Waiver Request DATE: April 11, 2022 BACKGROUND: In January 2013, the City of Paris demolished a dangerous structure located at 503 W Washington (the primary structure on the property) and applied a lien against the property on January 11, 2013 in the principal amount of $6,519.69. The lien has continued to exist on this property, unpaid, since that time. The taxes have all been paid and there have been no other nuisance violations requiring an assessment of a lien since that time. STATUS OF ISSUE: Mr. Santiago Pena has purchased the next door property of 433 W Washington Street within the last year and would like to purchase 503 W Washington Street to extend his yard. Mr. Pena has provided the City Council with a proposal with his plans for the property and the work he is going to do. The key items in his proposal, from a code and nuisance perspective, are: 1. Tear down and remove existing sheds on the property. 2. Remove all of the concrete on the property that is not needed. 3. Bring in loads of dirt to level the entire parcel. Mr. Pena has plans for yard improvements, sprinkler system, fencing, etc. that will add to the aesthetic look of this property. He also plans to add a new shed unit, but this would require plating and combining the properties, which can be done. He has stated that he plans to spend about $20k cleaning up and preparing the property for his use. According to Mr. Pena, the previous owner of the property has passed away, he is working with the heirs. They are willing to sell him the property for $1,000.00. The sellers have also informed Mr. Pena that it is his responsibility to address the lien on the property. Mr. Pena has requested that the City Council 1) forgive the owed expense on the lien and 2) release the lien on the property. 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 totwo 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 1� Taking in to consideration both goals, the City Manager's analysis in this situation is as follows: the value of the lien (principal + interest) greatly exceeds the value of the property, although the value of the property exceeds the value of the principal of the lien. The property is zoned 2F and it appears to be appropriately sized for a house if one were to be built, The owner has supposedly passed away while a neighbor is interested in obtaining and maintaining this property. This property has however been maintained in the past, taxes paid, and no other nuisance violations have been recorded, therefore there are no issues that would require tax foreclosure. This property does not it could easily become one. Options will be presented below. There is no new expense to the City in this situation to agree to releasing and forgiving the lien, �1111iffi , 1 1 1: 1�i` 1. Approve a Resolution for the waiver of the January 11, 2013 Structure Lien for 503 W Washington Street. 2. Approve a Resolution for the waiver of a portion of the January 11, 2013 Structure Lien for 503 W Washington Street. a. Waive all or part of interest in the amount of $1.00 - $8,853.40, and/or b. Waive all or part of principal in the amount of $1.00 - $6,519.69. 3. Request a development agreement be created where the owner pays all or a portion of the lien upfront, release the lien, and upon completion of work (to be decided by the council) reimburse the payment amount to Mr. Pena. 4. Do not waive any portion of the lien. RECOMMENDATION: The City Council has not considered many of these since the City Manager's tenure, so he is unfamiliar with their preference and thoughts on this topic. With that said, if this were a nuisance situation (non -structure), the City Manager would likely consider waiving at most the interest given the value of the principal + interest is greater than the value of the property, but the value of the property is greater than the value of the principal alone. Had the future owner been considering the construction of a house, then waiving all of the principal might have made sense too. The property will benefit by having an on-site and interested owner which should prevent it from turning in to a nuisance site under its current trajectory. The City Manager might recommend against a 100% waiver given the precedent this sets, but we see so few of these and typically we waive them during foreclosures anyway if that were to come up. So it would not be unheard of. Grayson Path From: spenaco@aol.com Sent: Tuesday, April 5, 2022 12:53 PIVI To: Grayson Path; spenaco@aol.com; cantinadlsdoll@aol.com Subject: Re: 503 W Washington Street I Mr. Path, IIl , 111311'111lkyw�)u so inuch foiir yoiiiiii� eii,in6� and fbr the btter cancerriih,igthe propeii,ty ocated at 503 WVV'asll wh ugtoi SL III cc6dn't tiave dai'm wIny l�etteir hi wii"Nii,ig skid,'� a gireat exp, ariakn, III arn qufte exwJted to Il,.we iii,iii,iiovuiiiiig to III aiIs . .....IIl X, oi'id getfiii'ig out w.mll flris bg dity that l ['rave beew i a part, io'f tw..wu uwwlsst of rny Ufa. III have Ill!�)eeii wiri biusuness reire uii [41as for ovew 43 years arid ut has Ill)een a very eye ii��q�)ening expeyiiei,'wcie. III deckled to niave iiq enflm ��n,�s�iimss to I )aiiiis . ..... Ill X,aind to baii.mw to begNiiwahe. iii�"i, l puird[msed the 6d Sesame toutiorls pri��wperty Nocated orw 700 W Ceinteir, Street, �wrack iirm 201211, hopes f wnov4ig wnwryt lniisliriiees, to IC"Iaris back ttmri but, N was wirivoNed uuwu a teirdzfle acdderit ttmt bii,olee iii rq ba(�Ii; airxi otheii" l�)aiits of b f rr�mlyve md . ��'�0 veiny s&ous IlHe thiiileat,iil2Ill"lll'lu,lllg siuii,gefles lion trie i;mst 3 yeaii�"s iii!"r hol!)es of correctiii'ig fliii:wm daiinages doii'we Ilfw u'rr'wy body, I�Rii'Bgaii'dless of 0 twat, III fi that ut ws flnie t,ici' do &�,wmethiiii,ig Wfl'i 11,iat propeily ofliei 11iaiii to Nlray taxes w.mwrrl flw Illwwolll,wewllw,r year, aft: r yeair, ancl l did awst exl!)ect Ibir tl iiat Il.,waweeN tic) becormie a rnioriey ipwI, Ilwwwt wt N,,*, II"se got het that pNace tqr aii� tid rtiii iiii www w, biefore it beconiles too ate foir ine to �)is, aNe tio do aii'iyth��ii,,�g, ��l [wire, ��s sfiH a toiri of ftir�gs ltV iat iieed to IlDe dorie oiri :1 fl'iat l�)iiropeiity, we dqiiirk evein o �iw ve ateii, si:�I!iioi�;e l�)ew;ause fl,iie Qty iernovewJ thiil:'w 'Taps ffiat clo tothe prq��wieity wheiiii fliey Ilwwwwt a irew wateir rri6irw ai'id iiever, Nmked the 1�wii'q!:)eii'ly bad< up to ft�e wateir. My ii�mirirqpariy Il�"ias l)�:Ieirw miiiking wi�flh fli'm pii,iirwcil�Ies of the (l N&R) !IHGdll I Ft&H� ���)RQSlECT, I AS TO III IUJIS 1 01014 11I ?Y'N14 S I AIID14 I311JIIl...JIIE!7 I f�NI% I!irqIVect swu i1ce it's ww wcq,:,;�wUiot ii bacl� uii 20,H), My col� rlpany has curii'eiiit III°)ids in for fliat Ilwwolwwetfai" fl'16ir rrfl&; sill�eel IlDaii ts, steeN 615irigs, siteel std4cases, and gUtter systeii'm Unibii,hiinai6y, irry faN woafiloirw fadHty iii�"i DaHas, TX, is r*t ���q��4tfle of crii,:Iatirig Crie �arge parts tl iat �� �'iave old on, aftfiough, I ��s c��qpabb of siiind,Is, � �Xl!!!j Sl!!!Iiu��!R ottad"iedto iniy l�Iaii is fadHtyi, III wfll be 6fletio mov�e a tot of riateii,raIs wftli 0 ie Nw ie I'ieirefiore,l WNII th,18 ClIXT&A h iiidud��ii ig but not lirri�tied'Iko raw and ffi'i1i1s1�'ied matew 41s fow H w 1 arn rrqra� ingto hii e over 250-350 Nor the q0ct, arid m� are airbd��!)aflrig that t,iie �!)i,qecl Wl��: ll:,Ist k excess 6 '1/2 years, i ci�)urse, Ill.hesww are iril"fly q�)ecO[Eltoll"Is at thiis but ttmy are aNso extii� eiWy iii eWisft !�*k'iits Ill.hnt l Illwnwwle in taide . .... I tmN, lwww.eww ak)ng firrie coirrflrwg aiiid l oi�::!Icoii ne ttie 4��:hairige 11111 EM,/eii' y way wHI i arms, nicyt oiri,Iy !kiir �qACO, �uitfoirfllie Qty of Paiir��s, I X as w6H� III kr*w IN"it N4".n iill, a lo,t to take irii fbrrru sor rreloirm U[iat yoiii,,w tiaverft eiveiru rrmt before, bi,flk kwxw„ww th�,s, III airi fiii ft towNii,ii R fi�x afl wwt us, airx] III W11111 do whatevei� it t6�1:es to inako:111! fiflis Iiapperi I'rn Mii•eady lu"iee deep wn tiius cl wawige of nny futuire to Ill�)e airid yes, l ari''ii scared to�o, :)ut, I rari rn6ke it �'ial!�ipen airul II cw'lri rw,4s �we liit afl work iiw�iiut too, l 'just haivo::wto lmel!) k)ICLV::II,ecJ and stay fl'ie couise I WOUM any liiO1p froirrw Uwe t.Jth of Paris www una111wwwrrh thus drearrw a1`111:11, ss �q:%I� heq)s Udidrig sorne !.�iie— ures q�ffl of virile whHe l ami iegodabr�g ttwse rmtters 1::, corifiry J� �g to keej�� rrxw�ir�g fbrwaii,41, �x,�oe of Ure 503 W Was� h gtc�� !�mrcel rq �ay seern a tat ��ow, !�nd,,Ul'mre ��s a ��ot irnore to •�t fl,mr� you rnigtit �n,iag�ine, ��� tmt ���rol!)eiity tt::M kq)t U�) t0ir ii''irmiriy years aind ��t �s cosfi� ig rrile a sn'mH tortw ie tio get it c�eaned aii�''wd w:Ieaiied Trmre i,,:,T toli'lls Of rituff, lLIII'Ikll tirai: fl„i, uiiideirbiiruslh, wiinbsl, Eft, that weii,e bflIheire ��'ve a�ki eady �!)iio 2 (210) yard 61 off diiirnlll!)steii`s theii"e, for, U,m trasll @!$685J)0 dirolp, 0 iie labor has :,Peiei!w cosiJii'q� iii riefoii� 5 we6ks already, and we Ihmve riot eveii"i beguin ttm aftfiaris lo,f ig, Iree ttrrw rnwrigs, fewices rrmiived, airwii�J orw ai'u�ll orw. Na,le wuru:5 to be wiener eii,Mfirig aii� wt becoirraiiig vie'y i,I!xpeiriieve. � aii! ri ass paying R)r aIH:i (A the (;.losuilig w�*sts U,wat aiire o�wei! $1 11200 00 Ne got e(�lUil°�inierit iii beiing drop���!ied theire scoir for U,ie �a� �d ciieaii,�iig fl,iat wiH rtn'i ri exc•ess of $7,5()0,0C ' �, li'd of q!��eril�� way ove� flile c6ckflafio� is of flie q�)pii,alsal for the aid arild theii i soine, �'irn sixi a that I�� wflI riave ii���)ver $20,000 s11!�)eii fll refi e ft ws afll sa�d au iid Ihwne. JI doii''Vt w�s�h to �1�ee�i) yoU �31111y �o� ger and ngaM, ��� wm'd to thank yotrfi�)r ever� takh iig the firi'm fo� us arif�l� in oui� eii�'ide;aviiiii to 1�)ecoaie a of I3aiiis, I X k'i thii,� ve)r i'mar fuhn"e a'''unt of we rnay ever be of service to you N oiir �w fle C 'iky of I us IlNease do illot °ie§late to q�x)n1ziii,iine drw;fly, I g tiard< you k'i aiv dancill:, fo,r any hdip n tNs veii"y iter Stay safiB�i Santiago Pena PA US ARMY Vet Ret CEO, Senior 1)eveloper, Animation, Concelptual Designier Art & Sculpture, (""'Oncretie, Steel, any Desi gn & Motif, Penaco Industries Construction and Fabrication Gn)up, L,.L,.0 Structural Steel, Concrefe, Electrical & Custroni Building h"J.)eCialist SD Aniefiran Veteran OtAined DBFISBr-,YMBEZID�0'rlMl.)07Tr)(I)O'rf['BODITJ'Ar;[--,INC7'RC!A Certitled., 7'XMIIL,, 1979- 2021'A + BBB 42,yrs of Consinicliory, Designing, Building, & Deniiofidon 4,000WE57GROVE DRVE, ADINSON, TEXAS Suite 1003WORUSTWE"E71 DALLAS, rEXAS75226214-748-8831 214-370-3457 pindustriies, c F-acebook, Twifferw , Lirpkedln, mewYouTube "Always Do Your Very, Very, Best It, Does Mattpr" Integrily, Couragp, Honor, Trust, and Coinmittivent Dallas, Addison, Arlington, Paris -----Original Message ---- From: Tracey Sullins <cantinadlsdoll@aol.com> To: Spenaco@aol.com <Spenaco@aol.com> Sent: Mon, Apr 4, 2022 4:31 pm Subject: Fw: 503 W Washington Street Tracey Sullins Penaco Industries 3909 Elm Street Dallas Texas 75226 1rtirwarded IVIessage Firorn:�3raysr""�rj C(,� Ste fl,'arfle H""unt, gov>, Vir"i g( )v>, "Aricirf,"'AA( Rdi�iert "Bflke <bt"ari1s( tFaiIsIexas,gov>, Janke Dlis" Serit: \Ar,an, AIx'4, 2()22 at',15: 1 13 1"-1N1 503 VV was1 ingtorl 'Stree�� Ms. Sullins, This email is for Mr. Santiago Pena. From my understanding, I need to forward this to you to get to him. Could you please forward this on for me to Mr. Pena? Mr. Pena, I have reviewed your proposal and request for 503 W Washington Street to the City Council for the waiver and release of the existing structure lien. According to my records, we have one (1) dangerous structure abatement lien on this property which occurred in 2013 when the City paid for the demolition of a structure (I presume the primary dwelling). There still remains a garage/shed on the property. This came at an expense to the tax payers of $6,519.69. According to our codes, this has now accrued interest in the amount of $8,853.40, for a total of $15,373.09. According to LCAD, the property is valued at $8,950.00, you are under contract to purchase it for $1,000.00, and you have plans to extend your yard from 433 W Washington Street. Your plans also include demolishing of the existing remaining structure, extending of your fence, yard improvements, etc. Pursuant to our City Code, structural liens are released upon payment. However, the City Council can consider requests to waive all or a portion of the lien. As such, this is a matter that I must therefore take before the City Council. I believe I have everything I need for the packet (to be sensitive to your arrangements, I will exclude the selling document). To prepare you for the discussion, the City Council will be offered several options to consider — to which they may have more that I do not think of. Those will consist of: 1. Do not waive the lien. 2. Waive a portion of the lien (ex: interest). 3. Consider an arrangement where you pay the lien (or a portion therefore), and perhaps if you perform the work you have proposed, the City rebates it back to you upon completion. All of these are examples of what the Council has done in the past, it is very much case by case given every situation is unique. I would encourage you to make plans to attend the meeting which will occur on Monday, April 11, 2022 at 5:30 pm in the City Hall Council Chamber. If you attend and are interested in presenting your request directly to the council, the Mayor will initiate the agenda item, I will present, and then, with Council's approval, I will give you an opportunity to speak. Please understand that while the City Council enjoys assisting individuals in whatever way they can, they have to also balance the fact that taxpayers paid to remove this structure and should be compensated whenever possible. If you have any questions or would like to discuss this, please let me know. I will include your proposal in the agenda packet for the council to review. Thank you, Grayson Path City Manager City of Paris, Texas 135 SE 18t Street PO Box 9037 Paris, TX 75461 (903) 784-9202 OPEN RECORDS NOTICE: This email and any responses may be subject to the Texas Open Records laws and may be disclosed to the public upon request March 23,'d 2022' To The Honorable City Council of Paris, Texas From: Mr. Santiago Pena, A PA. Penaco Industries Group, LLC Subject: A Property located within the City Limits of The Paris, Texas Location: 503 W. Washington Street Paris, Texas 75460 March 23,'d 2022' Proer ! Location: 503 W Washington St, Paris TX 75460 jopression: On first site the property is seen as un -kept, dirty, trashy, and extremely unwanted as it has been left to fin for itself. Usually a property like this is left for many years, alone, growing weeds, filling with trash day in and day out, longing for someone to come along and lend a hand, pitch in, and care for it, even if just a little bit of care. Visualization: On short notice the property at 433 W Washington St. came up for sale. I found it intriguing and I decided to take a chance and purchase the property. Looking around the property I came upon the 503 W. Washington property. I found it interesting, challenging, and in desperate need of a caretaker I saw the parcel as a grander part it had to still play in this neighborhood. Laying in the realm of so many un -kept and dilapidated homes & yards it yearns to be a shining star and become a major part of a new beginning, so I have decided to purchase this property as well, and a join the 503 with the 433 property and create a grandscape. Investyyr eg tion Upon my searching and in speaking to the current owner of the 503 W. Washington parcel I have discovered that there is a large lien that has been placed on the property by the City of Paris, TX. The cost was in the range of $6,500.00 - $6,800. 00. My understanding is that this occurred over 10 years ago. Also, the money has never been paid to the City of Paris by the current owner in this length of time passed and now interest charges have accrued on the originl amount owed and the new balance is now in excess of $16, 000.00 USD. AU ,Wish,: I only have the very best interest in mind for this parcel @ 503 TTI Washington St. I am pleading with the City of Paris City Council to please allow the dissolve of all fees, liens, and encumbrances to be removed, and released for this property, that of which in turn would allow me to invest the adequate funding that will be needed in order for me to make this parcel a clear, clean, decisive, and beautiful integral part and addition to the 403 W. Washington Street property. MLPlans: I have outlined a list of items along with what I will be doing to make the property at 503 TAY. Washington a beautiful part of the neighborhood and a proud part of the City of Paris, TX. 503 W Washington Street, Paris Texas 75460 Plan: • Purchase property and completely clean entire parcel. • Trim and remove all trees necessary. • Remove all dead tree stumps. • Tear down and remove existing sheds on the property. • Remove all of the concrete on the property that is not needed. • Bring in loads of dirt to level the entire parcel. • Scrape all of the foliage undergrowth and prepare for plants. • Prepare property for the installation of water sprinkler system. • Install buried water sprinkler system throughout entire parcel. • Clean along entire perimeter of parcel and prepare it for fencing. • Install new fence along front of property on Washington street side. • Prepare property posts for exterior lighting along all of parcel. • Install outdoor lighting on the entire perimeter (landscaping • Bring in and install all new landscaping to match 433 W. Washington. • Install all outdoor cameras along fence lines of parcel. • Prepare an out building for storage of all landscaping equipment. • Plant new lawn throughout the property where desired. Final: In the truth there is not a final Chapter to this proposal, there is only the beginning, the P Chapter of a string of more enduring and positive Chapters that will come to he and lay claim as long lasting memories yet to he had, made and enjoyed, and cherished as we' walk into the shadows of the past and into the light of the future and make our way into and out of The Trail of years through the passages of time. Thank You for your time, your presence, and your understanding and I look forward to many years of service as I embark as the newest curator of these properties. All of My Best, Santiago Pena RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, TO WAIVE PRINCIPAL AND INTEREST ON A DANGEROUS STRUCTURE ABATEMENT LIEN ON PROPERTY DESCRIBED AS CITY OF PARIS BLOCK 155, LOT 3, LOCATED AT 503 W. WASHINGTON STREET TO FACILITATE SALE OF THE PROPERTY TO AN ADJACENT NEIGHBOR; MAKING OTHER FINDINGS AND PROVISIONS; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Santiago Pena of 433 W. Washington Street would like to purchase 503 W. Washington Street (the "Property") to extend his yard, proposing to remove existing sheds, concrete bringing in dirt to level the property, and installing a sprinkler system; and WHEREAS, said Property is subject to a Dangerous Structure Abatement Lien dated January of 2013 (the "Structure Lien") in the principal amount of $6,519.69, which principal has accumulated interest in the approximate amount of $8,853.40 for a total of $15,373.09; and WHEREAS, no other liens have been assessed against the Property and the taxes have remained paid; and WHEREAS, the Property is valued by Lamar County Appraisal District at $8,950.00; and WHEREAS, Mr. Pena has requested that the City waive said Structure Lien to facilitate his purchase of the Property and has agreed to purchase it from the owner's heirs for $1,000.00; and WHEREAS, the City Council believes that it would be in the best interest of the city and its residents to waive the repayment of principal and interest related to the Structure Lien so as to facilitate the purchase of the Property by Mr. Pena; 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 waives and forgives repayment of principal and interest on the Structure Lien attached hereto as " in the total approximate amount of $15,373.09 to facilitate the sale of the property and allow improvements. Section 3. The city attorney is directed to prepare and cause releases for said lien. Section 4. This Resolution shall take effect immediately after its passage in accordance with the provisions of law. PASSED AND APPROVED this 11th day of April, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney DANGEROUS STRUCTURE ABATEMENT AFFIDAVIT OF LIEN STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LAMAR That, the CITY OF PARIS, Paris, Texas, 1501st Street S.E., Paris, Texas, by and through its' Building and Standards Commission, after having given written notice of at least thirty (30) days (or after having given notice by publication) for the owner to repair, remove, or demolish a structure or structures from the following described lot or lots: 503 W Washington; City Block 155, Lot 3 and the said OWNER of said lot, Brian Paul Seymour, failed (or refused) within the time so ordered to complete said repairs, removal or demolition after notice addressed to such owner was deposited in the Post Office (or aftersuch publication if said owner's address was not known), the City of Paris did, on 81912012, cause the following work to be done and paid $6503.69 for the same: DEMOLISHIREMOVE STRUCTURES, plus $16.00 filing fee. In accordance with V.T.C.A. Health and Safety Code, Chapter 342, and Article III, Chapter 7, Code of Ordinances of the City of Paris, Paris, Texas, this statement executed by ROBERT TALLEY, Code Inspector for the City of Paris, is filed with the County Clerk of Lamar County forthe purpose of fixing a privileged lien upon the above described property, which lien is second only to tax liens and liens for street improvements, said lien being fixed for the purpose of securing the above described expenditure in the amount of $6519.69 which amount shall bear interest at the rate of ten percent (10%) per annum from the 1st day of FEBRUARY, 2013, that being the day of such expenditure. For any such expenditures and interest as aforesaid, suit may be instituted and foreclosure had in the name of the City of Paris. Signed on JANUARY 11, 2013. f w ZZU _w ROBERT TALLEY Code Enforcement Superb sor STATE OF TEXAS COUNTY OF LAMAR ) I certify under my seal of office on this /I day of . Sar a _ , 20__!'3___, that on this date personally appeared ROBERT TALLEY, Code Officer for the City of Paris, known to me to be the person whose name is subscribed to the foregoing instrument, and signed the foregoing instrument in writing before me and upon his/her oath stated and swore before me that the facts stated therein are true and correct. RETURN TO: Robert Talley P. O. Box 9D37 Paris, TX 75461-9037 Notary Public, State of Texas `�`®1�cer ti i i r� rrrr®y® y®ZARYA•a°®i!w p TEX A z Lljc �i U e L a .y m ME d �= mz dd u= in 04 o 0.0 l'9 A3= .-9lhy p� NO 7 Lr 1NV 1� L. N~ Ey= 10,44 Wt is