Council approves after-the-fact nuisance-lien abatement for a LiftJax-redeveloped home after discussion

The Finance Committee approved an after-the-fact abatement of nuisance and demolition liens on Aug. 5 for a property that had been redeveloped and sold by a private developer working with LiftJax.

The bill drew questions from council members about why the lien reduction was requested after the property changed hands. Phil Peterson, representing council staff, and Cherry Pollock of the Office of General Counsel described the city's existing process for lien reductions when private parties rehabilitate properties: for the first $30,000 of documented qualified improvements, the city reduces liens by $1 for every $5 spent; after $30,000 in improvements, the reduction changes to $1 for every $2 spent. "Normally, city council doesn't see those," Peterson said, adding that the council occasionally sees after-the-fact requests and those require council action.

The sponsor asked for a one-cycle deferral earlier in the meeting to allow the bill sponsor to be present. After questions and additional explanation about the program and why the lien remediation was handled after a property transfer, the committee reopened the item later in the meeting and voted 7-0 to approve the after-the-fact abatement.

Council members and staff said the city has used this type of lien-reduction policy to encourage private rehabilitation of formerly blighted parcels and that occasional after-the-fact approvals arise when closings occur before the paperwork to clear liens is in place.

The committee did not detail the name of every prior owner who incurred the liens; the resolution approved an after-the-fact reduction consistent with the city's long-standing formula and attached updated exhibits with current lien balances.