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CL-2504 New Business   Item #: C.       
Meeting Date: 04/20/2021  
Subject:    Releasing Liens Against Parcel 22118 - Park Street
From: W. Clarke Whitfield, Jr.

COUNCIL ACTION
Business Meeting:     04/20/2021
SUMMARY
City Staff is seeking approval to release ten (10) nuisance abatement liens against a vacant lot on Park Street to facilitate its sale to a new owner, and partial payoff.
BACKGROUND
The City currently holds approximately $2,720 in nuisance abatement liens for having to cut tall grass upon a vacant lot on Park Street, identified as Parcel #22118. The City has recorded thirteen (13) separate nuisance abatement liens against the Parcel in the past decade, ten (10) of which remain unpaid. The tax assessed value of the vacant lot is $600, one quarter of the value of the City’s liens.
 
The owner of the Parcel has arranged a potential sale of the Parcel to the owner of the neighboring parcel. The potential purchaser has not had any similar nuisance abatement actions taken against them, relieving the City of future grass-cutting costs. The potential purchaser intends to develop the Parcel, increasing its taxable value. The sale is dependent upon the City releasing the recorded nuisance abatement liens to allow marketable title.
 
Under State law, City Council can partially release nuisance abatement liens to facilitate the sale of an otherwise unmarketable lot. Releasing the liens does not relieve the current property owner of his legal obligation to pay the debts secured by the liens. The property owner would legally still be responsible for paying the remaining balance of the debt. The City would not be writing off any debt owed by the Parcel owner, merely waiving one of several debt collection tools available to the City to collect on the debt.
 
City Staff has determined that releasing the ten (10) outstanding nuisance abatement liens to facilitate its 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 pay the City some of what it is owed without the City forfeiting any of the amount owed to it. 
 
RECOMMENDATION
City staff recommends the City Council pass a resolution releasing the ten (10) nuisance abatement liens recorded against Parcel #22118 on Park Street to facilitate its sale, conditioned on the clear understanding that none of the debt itself is being waived and the sale actually occurs.

Attachments
Resolution


    

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