Loading...
22 - Relien of Lien Waiver Request - 239 NE 2nd StreetNo. 22 Memorandum TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: Release of Lien / Waiver Request DATE: April 22, 2024 BACKGROUND: In June 2006, the City of Paris demolished a dangerous structure located at 239 NE 2nd Street (LCAD #39438) and applied a lien against the property on September 1, 2006 in the principal amount of $1,350.30. The lien has continued to exist on this property, unpaid, since that time. The taxes have all been paid and any other nuisance violations that may have occurred along the way have also been paid. STATUS OF ISSUE: Mr. Jeff Faber is listed as the property owner. According to LCAD, he took ownership of the property on February 5, 2024. The previous owner owned the property from 1995 — 2024, which includes the date the lien was applied. Mr. Faber owns four properties all on the north side of this block (LCAD #39438, 14000, 100911, 13999) and is looking to sell all to one individual who intends to develop all properties at once. The City Council, on June 12, 2023, met and approved release of lien for 245 NE 2nd Street (immediately north of 239 NE 2nd Street), also to Jeff Faber. The City Council required the payment of the entire principal amount of $3,070.15, but waived the interest in the amount of $11,856.49 as the value of the property was only $4,370.00. The selling price was not obtained. The City Council, on September 11, 2023, met and approved release of lien for 1567 S. Main Street (not Jeff Faber, someone else). The City Council required the payment of the entire principal amount of $1,469.65, as well as 1/z of the $6,129.34 in accumulated interest (or about $3,064.67), for a total of $4,534.32. The City Council also waived about $47,000 in accumulated civil penalties. The property was valued at $1,130.00, but they were selling the property for $9,500.00, therefore the city council felt it appropriate to collect some on the interest. Regarding 239 NE 2nd Street, according to LCAD, the value of the property is $2,010.00. The value of the lien's principal is $1,350.30, interest is $5,885.87, for a total value of $7,236.17. All taxes are listed on LCAD as having been paid. We have also learned that Mr. Faber plans to sell the property for approximately $9,000.00, as part of a larger sell of the surrounding three properties, the grand total is about $57k. It is also appropriate to report that Mr. Faber has done a lot of work clearing all of these lots (including 239 NE 2nd Street). For those who can recall, all four lots were heavily wooded. In fact, they had reached the point that we in Code Enforcement could not abate them due to how wooded they were. The work Mr. Faber has done has made all these properties ready for development. The exact amount spent on this is unknown. Mr. Faber is prepared to pay the city to release the lien. The amount is subject to City Council approval, however he is requesting any forgiveness the council is willing to provide. They are attempting to close on all four properties at an unknown future date. Pursuant to City Code 4.03.009, only the City Council can consider waiving a Structure Lien. BUDGET: There is no new expense to the City in this situation to agree to releasing the lien. The principal of the lien is $1,350.30. The accumulated interest is approximately $5,885.87 (as of 4/8/24 — the approximate date we received the request). The total of the lien is therefore $7,236.17. The value of the property is $2,010.00 according to LCAD. There are no delinquent taxes and no other known liens. 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 (at least the principal) 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 primarily because the lot used to be so wooded beyond our ability to abate). The following options have been devised, however City Staff will be happy to discuss any other options that we have missed: 1. Approve a Resolution for release of the lien against 239 NE 2" d Street and: a. Receive payment of the $1,350.30 principal while waiving interest applied to the September 1, 2006 Structure Lien. b. Waiver of principal and interest applied to the September 1, 2006 Structure Lien. c. No waiver of principal and/or interest. d. Waiver of a portion (TBD) of the principal and/or interest. 2. Request additional information. 3. Do not release the lien or waive any portion of the September 1, 2006 Structure Lien. RECOMMENDATION: It is my minimum recommendation that the City Council require payment of the principal amount ($1,350.30). This was actual tax dollars (in 2006) spent to abate this project. This follows the pattern we have done in the last two examples. As for whether or not to waive interest, that is a council decision based on the known factors at hand. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, WAIVING INTEREST ON A DANGEROUS STRUCTURE ABATEMENT LIEN ON PROPERTY DESCRIBED AS CITY OF PARIS BLOCK 39, LOT PT 2, LOCATED AT 239 NE 2nd STREET; MAKING OTHER FINDINGS AND PROVISIONS; AND DECLARING AN EFFECTIVE DATE. WHEREAS, in June of 2006, the City of Paris demolished a dangerous structure on property described as City Block 39, Lot PT 2 and located at 239 NE 2nd Street, and thereafter filed a structure abatement lien against the property in the amount of $1,334.30 plus a $16.00 filing fee to file the notice of lien in the real property records of Lamar County, Texas; and WHEREAS, said principal amount of $1,350.30 has accumulated interest to date in the approximate amount of $5,885.87 as of April 8, 2024 for a total due and owing to the City of $7,236.17; 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 $2,010.00; and WHEREAS, the current owner, who has done significant work clearing the property of vegetation and junk and rubbish illegally dumped or placed thereon by third parties, plans to sell this parcel in a package with three other adjoining parcels 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 and are incorporated herein by reference. Section 2. The City Council hereby waives and forgives interest on the structure lien attached hereto as Exhi i A in the total approximate amount of $_ contingent upon the payment of the principal lien amount of $1,350.30 and the amount of $-- representing ,_representing the portion of the interest not waived herein, for a total of $ Section 3. The city attorney is directed to prepare a release for said lien upon the owner's payment of the sum of $�. mm........... Section 4. This Resolution shall take effect immediately after its passage in accordance with the provisions of law. PASSED AND APPROVED this 22nd day of June, 2024. Reginald B. Hughes, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney EXHIBIT A DANGEROUS STRUCTURE ABATEMENT 9 Oft V? 3.8 7 PM AFFIDAVITOF LIEN 46 STATE OF TEXAS ) COUNTY OF L1►MAR j KNOW ALL MEN BY THESE PRESENTS: That, the CITY OF PARIS, Paris, Texas, 160 let Street S.E,, Paris, Texas, by and through its, Building and Standards Commisolon, 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: 239 NE 209. CITY BLOCK 39, LOT PT LT 2 and the said OWNER ofsold fat, NASSER & JEANETTE EYDANI, 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 Offlce(orattersuch publication ifealdownees address was not known), the City of Paris did, on JUNE T, 2006, cause the following work to be done and paid #1334.30 for the same: DEMOLISHiREMOVE STRUCTURE, plus $16.0D filing fee. In accordance with V.T.C,A. Health and Safety Coda, Chapter34A and Article til, Chapter 7, Code of Ordinances of the City of Paris, Paris, Texas, this statement executed by ROBERTTALLEY, Cade inspector for the City of Paris, Is flied With the County Clerk of Lamar County for the purpose affixing a privileged Oen upon the abovedesodbed properly,whlch lien Issecond only to tax liens and Ilona for street improvements, said Oen being fixed for the purpose of securing the above, described expenditure in the amount of $1350.30, which amount shell bear interest at the rate of ten percent (10%) per annum from the lot 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. ROBERT'RLLEY __ .� Code Inspector STATE OF TEXAS COUNTY OF LAMAR ) I certify under my seal of office on this AIA day of, 20106 . that on this date personally appeared ROBERT TALLEY, Code Inspector fc he City of Paris, known tome to be the poison whose name Is subscribed to the foregoing Instrument, and signed the foregoing instrumentin writing beforeme and upon hiafharoathstated and more before methatthefactsstated therein are true and correct t � � � � No ,Public, State of Texas ^' a RETURN TO; ftbalalWgy 2eg R 0. Hbx 1037............JANICE WORh1AM ,o .„ ." a � � a :� � NOTARY PUBLIC STATE Of TEAS � N:LSgmm�►IanbeY+sOrWg300a y 5