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.
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Not,. Public, State of Te..,�
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RBTURN TO: fax Robert Taller
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JANICE WORTHAM
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NOTARY PUBLIC
STATE OF TEXAS
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