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EUEA discusses receivership options for downtown properties including Christiana Street; staff to bring options in February
Summary
Board members reviewed possible roles for EUEA in local receivership cases for deteriorated downtown properties, identified Christiana Street as the first candidate for February consideration, and discussed phased approaches, foreclosure mechanics, cost recovery and operational risks.
Board members spent the largest portion of the meeting discussing downtown property preservation and receivership options. Staff and legal counsel described multiple paths: EUEA can play a limited role (stabilize a property and pass it to a receiver selected via city RFP) or take a full receivership role (become the receiver, invest in repairs, foreclose on the property if necessary and then sell to recover costs).
Staff identified three candidate properties mentioned in the transcript: a property on Christiana Street, a property on Beardsley (described as heavily scrapped and a likely heavy financial lift), and a Second Street property whose Order to Abate (OTA) had expired. The Christiana Street property was discussed in detail and was identified as the likely first receivership candidate for the February agenda.
Legal staff and board members discussed procedural and financial mechanics: whether the OTA remains valid, how the foreclosure process works, the possibility of being outbid at foreclosure (in which case EUEA would be repaid for outlays), and the need to quantify staff time and costs so city staff hours can be reimbursed as part of any receivership fee structure that a judge would approve. Board members emphasized that each property is unique and that a single blanket playbook is unlikely; instead, staff will bring property-specific options and cost estimates.
Options described to the board included: (1) stabilize to code and then pass to a receiver via RFP; (2) bring the property to a minimum safe standard, foreclose and offer for sale or RFP; or (3) take the property through full rehabilitation, recognize the higher financial risk and plan for long-term ownership and resale. Staff said they will present site-specific assessments, OTA reports and proposed price/work thresholds at the February meeting to help the board decide which path to take.
Ending: The board asked staff to prepare a detailed February agenda item on the Christiana Street property with site visit findings, OTA/inspection reports, budget estimates and options for phased engagement, including recommended thresholds for when EUEA would proceed to foreclosure or withdraw from further investment.
