Commission orders demolition and preserves $900,000 in accrued penalties for Velo Flats complex

The Building and Standards Commission on Dec. 6 adopted a sweeping enforcement package for the 2606 Willis Lane property, locally known as Velo Flats, ordering demolition of an office building and nine apartment buildings and preserving previously accrued civil penalties totaling $900,000.

Staff investigator Vera Presley described persistent vandalism, interior destruction, missing electrical and plumbing systems, and repeated failures of boarding and securing efforts across the site after a Feb. 28, 2025 fire. The city has spent staff time and cleanup dollars at the site and previously issued July repair orders that were not timely appealed; accrued penalties under those July orders have reached $100,000 per order for nine orders, totaling $900,000.

Staff proposed replacing the prior repair orders with a single demolition order that would keep the $900,000 cap in place but stop further interest accrual. The commission adopted staff’s proposed findings and recommendation to order demolition, set a 60‑day compliance timeline for permits and demolition, and authorized the code official to proceed with demolition and expense assessment if the owner did not comply.

Commissioners asked about potential appeal effects and were advised that if the new demolition order were successfully appealed, the underlying July repair orders would remain in effect, so accrued penalties would not automatically be erased. Staff also noted the property’s proximity to a school and prior demonstrations of homeless activity on the site.

Outcome: Commission approved demolition order and preserved the $900,000 accrued penalties; staff will monitor compliance and may authorize city demolition and file liens if needed.