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10 - Release of Lien-Waiver Request - 245 NE 2nd StreetNo. 10 TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: Release of Lien / Waiver Request DATE: June 12, 2023 BACKGROUND: In June 2006, the City of Paris demolished a dangerous structure located at 245 NE 2nd Street (LCAD # 14000) and applied a lien against the property on August 2, 2006 in the principal amount of $3,070.15. 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. Jeff Faber inherited this property from his uncle, Ben Faber, and would like to now sell it, along with the two neighboring properties to the north and northwest. Mr. Faber has requested that the City Council consider allowing him to pay the original principle amount on the lien, but otherwise to 1) forgive the accrued interest on the lien and 2) release the lien on the property, allowing him to now sell it without any further liens. Pursuant to City Code 4.03.009, only the City Council can consider waiving a Structure Lien. The sale is set to occur this week. BUDGET: There is no new expense to the City in this situation to agree to releasing the lien and forgiving the interest on the lien. The principal of the lien is $3,070.15. The accumulated interest is approximately $11,856.49. The total of the lien is therefore approximately $14,926.64. The value of the property is $4,370.00 according to LCAD. There are no delinquent taxes and no other liens. Mr. Faber has delivered to the City a check in the amount of $3,070.15. OPTIONS: The City Manager has developed a process he goes through for considering when (if) to forgive principal and/or interest for Nuisance Liens (liens that he is tasked with reviewing). 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 (note: this has not been an issue in this specific situation). 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 owner at the time of the demolition has since passed away and descendants have inherited the property in recent years (2020). This property has been maintained in the past, taxes paid, and no other nuisance violations are on file, therefore there are no issues that would require tax foreclosure. This property does not appear to be one of our current nuisance sites, although the northern block of this area is heavily wooded, thus it could in time become a nuisance if not developed. What Mr. Faber has offered to do, pay the principle, seems fair given the value of the interest + principle greatly exceeds the value of the property, making it unlikely to ever be sold if payment of interest is expected. However, given the taxpayers had actual expenses of $3,070.15 to demolish this house and given this is less than the value of the property, it is appropriate to try and pursue that amount. Therefore, the City Council has the following options: 1. .Approve a Resolution for release of the lien against 245 NE 2nd Street and: a. Receive payment of the $3,070.15 Principle while waiving interest applied to the August 2, 2006 Structure Lien. b. Waiver of principle and interest applied to the August 2, 2006 Structure Lien. c. No waiver of principle and/or interest. d. Waiver of a portion (TBD) of the principle and/or interest. 2. Request additional information. 3. Do not release the lien or waive any portion of the August 2, 2006 Structure Lien. RECOMMENDATION: Approve a Resolution for release of the lien against 245 NE 2nd Street and: a. Receive payment of the $3,070.15 Principle while waiving interest applied to the August 2, 2006 Structure Lien. b. As payment has already been made (check is with the Finance Department), we are prepared to release the lien upon your approval. M�Y�]��Ylf[i1�[ia A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, TO WAIVE INTEREST ON A DANGEROUS STRUCTURE ABATEMENT LIEN ON PROPERTY DESCRIBED AS CITY OF PARIS BLOCK 39, LOT PT 2, LOCATED AT 245 AND 253 NE 2nd STREET; MAKING OTHER FINDINGS AND PROVISIONS; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Paris demolished a dangerous structure located at 245 and 253 NE 2nd Street in June of 2006 and thereafter filed a structure abatement lien against the property in the amount of $3,070.15; and WHEREAS, said principal amount of $3,070.15 has accumulated interest to date in the approximate amount of $11,856.49; and WHEREAS, no other liens have been assessed against the property and the taxes have remained paid; and WHEREAS, the Lamar County Appraisal District has valued the property at $4,370.00; and WHEREAS, the current owner, who inherited the property after the city filed its structure abatement lien, is selling it along with two neighboring properties and has agreed to pay the principal amount of the lien, thus repaying the city for amounts expended to demolish the dangerous structure, and has requested that City Council to waive the interest on said lien to facilitate the sale of the property; 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 interest related to the Structure Lien and release the lien so as to facilitate the sale of 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 waives and forgives interest on the Structure Lien attached hereto as Exhibit A in the total approximate amount of $11,856.49 contingent upon the payment of the principal lien amount of $3,070.15. Section 3. The city attorney is directed to prepare a release for said lien upon the owner's payment of the principle amount of $3,070.15. Section 4. This Resolution shall take effect immediately after its passage in accordance with the provisions of law. PASSED AND APPROVED this 12th day of June, 2023. Reginald B. Hughes, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney DANGEROUS STRUCTURE ABATEMENT AFFIDAVIT OF LIEN STATE OF TEXAS ) COUNTY OF LAMAR j KNOW ALL MEN BY THESE PRESENTS: 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: 245 & 253 NE 2ND, CITY BLOCK 39, LOT PT 2 and the said OWNER of said lot, BEN FABER C/O SAFFLE GALARY, failed (or refused) within the time so ordered to complete said repairs, removal ordemolition after notice addressed to such ownerwas deposited in the Post Office (oraftersuch publication if said owner's address was not known), the City of Paris did, on JUNE 7, 2006, cause the following work to be done and paid $3054.15 for the same: DEMOLISH/REMOVE STRUCTURE, 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 for the purpose of fixing a privileged lien upon theabove described property,which lien is second only totax liens and liens for street improvements, said lien being fixed for the purpose of securing the above described expenditure in the amount of $3070.15, which amount shall bear interest at the rate of ten percent (10%) per annum from the 1st day of SEPTEMBER, 2006, 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 AUGUST 2, 2006. ROB T TALLEY Code Inspector STATE OF TEXAS COUNTY OF LAMAR ) this date personally appeared ROBERT TALLEYrr��Code Ins ect I certify under my seal of office on this a rz day of t.i�i" , 20 (7(,a , that on p y pP p orf r 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. _b.. Cn ' � _.,....... t_' r Not,. Public, State of Te..,� xas RBTURN TO: fax Robert Taller P�_0.- ". Box 907 ° a , 1P?° ��P,40TX Tiir161, 037 JANICE WORTHAM _ .� tg NOTARY PUBLIC STATE OF TEXAS •'< MS Gommissian Euptrss0502-2009