Committee weighs using ending fund balance to demolish long-vacant Bonney Lake property

Bonney Lake City’s safety committee on March 10 reviewed a staff proposal to use ending-fund-balance money to demolish a long-vacant, heavily damaged property that staff said has been the subject of code enforcement activity since at least 2016. The contractor estimate for demolition was described as roughly $60,000.

Why it matters: The property is boarded and cited by code enforcement, but staff said it continues to attract illegal activity and public-safety responses. Staff framed demolition as a needed public-safety and neighborhood-restoration step and said the city would place the cost as a special property-tax assessment so the city could attempt to recover the expense when taxes are paid or at a tax sale.

City staff described the site as severely dilapidated, with a falling roof, interior mold, lack of plumbing and rubbish. "This is what we like to refer to as a zombie property," said the staff member who presented the case. Staff also said police have been heavily involved in responses to the site, including removing occupants during enforcement actions.

On financing, staff said the demolition expense would be recorded as a special assessment on the property rather than a mechanic’s lien. If the property owner does not pay, Pierce County’s tax-foreclosure process could result in a tax sale; staff said the minimum bid at tax sale must cover back taxes and assessments and that, in prior cases, the city has recouped abatement costs. Staff noted one prior recovery of roughly $17,000 on this property after an earlier abatement.

Committee members questioned the scope of the proposed work and whether installing a replacement fence is necessary. Staff said replacing chain-link fencing along the front of the property is a "worst-case" line-item to maintain site access and post no-trespassing signage; the fence line item shown in materials was discussed as roughly $3,500 in worst-case planning.

Ownership has complicated the case: staff reported a claimant and an attorney signed a stipulated order with the hearing examiner but have not completed demolition steps; staff said there is also a bank lien on title and that ownership and probate records have been convoluted.

Next steps: Staff advised the committee that the appropriate next action would be a council resolution or motion authorizing use of ending-fund-balance dollars for demolition; the committee did not take a formal vote at the meeting and directed staff to prepare the resolution for council consideration. The presenter told the committee there is a pathway to recoup costs but could not guarantee timing.

The committee will consider the staff-prepared resolution at a future council meeting; no demolition contract was approved at the committee meeting.