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Council hears request to appropriate $200,000 for Forbes receivership expenses
Summary
The city manager asked the council to appropriate $200,000 from free cash for receivership expenses at the Forbes property after a court‑approved sale and an appeal and bankruptcy filings by the prior owner; councilors said funds spent will be recovered from sale proceeds when resolved and the order was referred to Ways & Means.
The city manager told the council the receiver overseeing the Forbes property has incurred ongoing expenses to secure the site after a multi‑building fire and subsequent receivership petition. The city previously authorized $500,000 from the general stabilization fund in November 2024; the manager said roughly $82,000 remains of that appropriation and the administration seeks an additional $200,000 to fund boarding, demolition, security and other receivership costs through the summer.
The manager said the courts approved a sale to an entity identified in the memo as Mass Auto Bond on March 25, but the buyer has appealed and has filed bankruptcy in California, and legal processes are continuing. The memorandum said the courts recognize that taxpayers should not bear all receivership costs but the city cannot risk another public safety incident while legal matters proceed.
Councilors thanked staff for the work and said the city will seek recovery of expenses from sale proceeds once legal matters conclude. The order was moved to Ways & Means for further consideration; no final appropriation vote occurred at the meeting.
Provenance: The request and background on receivership expenses were presented in a city manager communication and discussed by councilors.
