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CL-2628 New Business   Item #: D.       
Meeting Date: 10/19/2021  
Subject:    Consideration of the City Releasing Liens Against Five-Forks Properties
From: W. Clarke Whitfield, Jr.

COUNCIL ACTION
Business Meeting:     10/19/2021
SUMMARY
City Staff is seeking approval from City Council to release twenty (20) nuisance abatement liens affecting five (5) parcels of land on Jefferson Avenue and Loyal Street, to facilitate its donation to the Danville Redevelopment and Housing Authority (DRHA).
BACKGROUND
The City is interested in preserving the unique historic character of the Five-Forks area to encourage growth around the River District and Old West End.  In furtherance of this plan, DRHA is interested in redeveloping several blighted properties in the Five-Forks area, located on Jefferson Avenue and Loyal Street in the Old West End, identified as Parcels #21232 and #24234 Jefferson Avenue, and #22490, #22491, and #21930 Loyal Street.  In order to complete this as planned, the DRHA must acquire ownership of these parcels with marketable title.  At the present time, there are twenty (20) City-held liens for nuisance abatement services affecting the Parcels, greatly exceeding the market value for the Parcels and preventing the DRHA from obtaining marketable title.
 
The present owner of the Parcels has recently obtained them from the out-of-state owners that permitted the liens to accumulate. The present owner desires to donate the parcels to the DRHA to assist with the City’s blight eradication and neighborhood redevelopment plans, but is unable to at this time due to the preexisting liens. The City has authority under State law to release the liens to allow for the transfer of the Parcels to an unrelated owner, such as DRHA.  By releasing the liens, the DRHA can accept the donation of the Parcels. City Staff has determined that releasing the outstanding nuisance abatement liens to facilitate its transfer would be of benefit to the City, by eliminating likely future maintenance costs, increasing the taxable value of the Parcels, and enabling stabilization and rehabilitation of the structures located on the Parcels.
RECOMMENDATION
City staff recommends releasing the existing liens affecting the Parcels to assist the DRHA with the preservation and redevelopment of the Five-Forks area, contingent upon the actual donation of the Parcels to DRHA.
 

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