04-14-2009 Council Work Session Packet

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, , I � � April 13, 2009 Memo to: City Council From: Lyle Oman, Building Official �� Re: Hazardous building action On March 18th, 2009 I received a call from Tom Hagadorn who owns a property at 3443 Crystal Place in Orono. He purchased the property in January of 2006 with the intent of remodeling it for resale. After he gutted the lower level he found out the foundation is severely deteriorated and in danger of collapse. He would now like to remove the house and garage and market the the vacant lot. However because of the economy he cannot afford the demolition. We discussed Hazardous building action and I informed him of MN Statute 463.151(attached). This statute allows municipalities to remove or raze hazardous buildings with the�roperty owners consent. The cost would then be certified against the property taxes except that the city may provide that cost so assessed may be paid in not to exceed five equal annual installments with interest thereon, at eight percent per annum. After discussion with staff and Soren Mattick City attorney, I find no down side to this course of action. The following is several scenarios. 1. We remove the buildings and he pays of the cost plus interest for 5 years. 2. We remove the buildings and he sells the property. The outstanding assessment gets paid at closing. 3. We remove the buildings, he does not sell the lot and it goes tax forfeit. The county would eventually sell the lot and we get paid at closing. This building was a commercial building in its past and is located up against the street property line and is an eye sore. I solicited three bids all in the $10,000 range. The bids include removal of the house and garage, disconnection of the sewer and water, grading the lot to partially fill the excavation, erosion control, top soil and seeding. I am seeking your input and approval for moving forward on this project.