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CL-2689 Work Session   Item #: A.       
Meeting Date: 01/18/2022  
Subject:    Release of Abatement Liens, Collection Costs and Interest Against Parcel #25163 Vacant Lot on Gray Street
From: W. Clarke Whitfield, Jr.

COUNCIL ACTION
Work Session:     01/18/2022
SUMMARY
City Staff is seeking approval from City Council to release one (1) nuisance abatement lien, and associated costs and delinquencies affecting one (1) vacant parcel of land on Gray Street to facilitate its sale to a new owner, and partial payoff.
BACKGROUND
The City currently holds approximately $23,000.00 in a nuisance abatement lien and associated collection costs and interest against one (1) vacant Parcel on Gray Street near the SOVAH School of Nursing, identified as Parcel #25163 Gray Street. The lien greatly exceeds the market value of the Parcel and makes it unmarketable.
 
The present owner of the Parcel has no assets and was unable to set up a payment plan due to potential bankruptcy, but has arranged a potential sale of the Parcel to a prospective local buyer that does not have any history of nuisances within the City, for a sale price of $1,000. The present owner desires to pay all potential sales proceeds directly to the City. The potential purchaser intends to develop the Parcel, increasing its taxable value. The sale is dependent upon the City releasing the recorded nuisance abatement lien to allow marketable title.

Under State law, City Council can release nuisance abatement liens to facilitate the sale of an otherwise unmarketable lot. City Staff has determined that releasing the outstanding nuisance abatement lien and associated costs to facilitate the property sale would be of benefit to the City by eliminating likely future maintenance costs, increasing the taxable value of the Parcel, and enabling the owner to immediately pay the City a portion of what is owed to it. 
RECOMMENDATION
City staff recommends releasing the existing lien and associated collection costs and interest affecting Parcel #25163, contingent upon the actual sale of the Parcel and the payment of all sales proceeds to the City of Danville.

Attachments
Resolution


    

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