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DeBary council authorizes foreclosure action and up to $350,000 to resolve blighted Bank of America building
Summary
Council approved initiating foreclosure on the vacant Bank of America building at 150 US Highway 1792 and authorized the city manager to expend up to $350,000 if necessary to satisfy the first mortgage and move the property toward remediation or sale.
The City of DeBary City Council voted to initiate foreclosure proceedings on 150 U.S. Highway 1792 — the vacant Bank of America building — and authorized the city manager to expend up to $350,000 if needed to satisfy the first mortgage and related costs, council members said at the May special meeting.
City staff described a long-running compliance problem. The city manager told the council the building has been dilapidated for more than five years, reported evidence of trespass and graffiti, and that prior building permits had expired. A code‑enforcement action assessed repeat-violation fines at $500 per day; staff said the fines total approximately $223,750 and that one mortgage remains on title (staff estimate approximately $235,000). The manager said the property owner would need re-engineered plans to meet code because of recent building-code changes.
Assistant City Attorney Eric Johnson explained legal mechanics and risks: filing a foreclosure action does not vest title in the city; the city becomes owner only if it is the successful bidder at the foreclosure sale. Paying off the first mortgage would place the city in first-lien position, but additional court steps would still be required. The city requested authority to purchase or redeem the first mortgage and to proceed if Regions Bank forecloses on its first mortgage — the $350,000 cap is intended to provide flexibility to address those possible paths.
Council members said the structure is an eyesore and a public-safety risk and supported staff’s request. Council voted in favor of initiating foreclosure and granting the city manager authority to expend up to $350,000 from general-fund reserves if needed. Staff said any sale would follow procurement processes (request for proposals) and that the city’s objective is remediation — demolition, rehabilitation or sale to a responsible owner — consistent with the land‑development and building-code requirements.
Staff emphasized multiple unknowns: additional liens may appear on title, Regions Bank may file its own foreclosure, and remediation costs will vary depending on ownership and condition. Council directed staff to proceed and to return with updates as legal steps progress.
