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18-RELATING TO CODE ENFORCEMENT LIENS ON PROPERTY SOLD AT AUCTIONCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By; Agenda Item No.: 6-t-12 Council Date: ! Legal John Godwin, City Manager 18• 6-25- t 2 RECOMMENDED MOTION: Motion to reapprove the existing Tax Abatement Policy consistent with Chapter 312 of the Texas Tax Code PoLZCY IssuE(s): Economic Development _ Paris, like most municipalities in Texas, has established certain standards for property maintenance. If a property owner fails to meet these standazds, lie/she is notified of the violation and given a specifed periad of time during which the property must be brought into eompliance. Many property owners do in fact comply, but rnany others do not. In such cases, the city typically abates the nuisance by performing necessary work ourselves, either using city forces or contractor(s). Once work is complete, the city bills the property oumer for the work, including an administrative fee (which amounts to a sort of fine). If the bill is not paid within a certain period of time, the city files a lien on the property. This lien has priority over all other 1'aens except tax liens. When the property is sold, we should get paid the full amount owed, plus interest, out of the closing costs. Unfortunately, many of these properties do not sell and we never get anything back to recoup even our out-of-pocket expenses, much Less the admin fee and accrued interest. A number of these properties in fact end up being placed for publie auction due to delinquent taxes and end up in possession of the city. Liens can sometimes be more expensive than a property is even worth. In such cases, a greater flexibility with the cade liens might help the property sell and return it to the tax roll and productive use. In other cases, speculators might use such flexibility simply ta buy properties on the cheap and re-sell them at a profit with no intention to increase their praductivity. Ultimately, the council has three choices - offer no flexibility on payment of code liens at all, autharize the city manager to waive any ar a.ll of owed amounts as specific situations dictate, or reserve the right as a body to waive all or parts of liens following public action by the council as a whole. BOARD/COMMISSION RECOMMENDATION: None EXHisrxs: AcrioN: ❑ Financial Repor F] Departcnent Ret ❑ Presentatian R Public Hearing Fiscni. NoTES: None BUDGET INFO: t Z Minute Order Expense ;NA iort Resolution Budgeted Amt. $NA ❑ Ordinance y'xD Actual $NA ❑ Other Acct, Name NA Acet. Number NA City of Paris Revised 2/04/08 \..D b