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Council hears briefing on demolition of fire-damaged 1105 N. Bedelia; asbestos complicates cost recovery

Spokane City Council · March 30, 2026
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Summary

City staff briefed the council on a proposed demolition contract for a fire-damaged commercial building at 1105 N. Bedelia, saying asbestos and lower property value complicate recouping costs; staff described liens, tax foreclosure and potential city ownership as possible outcomes while legal options to recover overage costs are pursued.

Jason Ruffing told the Spokane City Council that the proposed demolition at 1105 N. Bedelia is complicated by asbestos and fire damage and that staff plan to fund the contract from DC reserves with SBA partner support. Ruffing said the usual cost-recovery route is placing a lien on the property and pursuing collection through property tax processes, but that the property's value may be less than demolition costs, which would leave the city potentially owning the property after foreclosure.

Why it matters: When property value is lower than abatement or demolition costs, the city can be left holding a property and costs; staff told the council they are pursuing every available legal option, including work with city legal and outside counsel, to attempt recovery from responsible parties.

Details: Ruffing described the typical path (liens, tax foreclosure) and noted that in prior similar cases the city ended up as the owner and then worked with partners such as the public development authority to pursue redevelopment. He estimated the contract work could be completed by late July but said timing depends on legal guidance and asbestos abatement protocols; staff indicated the goal is to complete the demolition in spring or early third quarter if the site is cleared. Council members pressed for information on alternatives and best practices; staff said they are continuing conversations with legal partners and real-estate experts about potential reuse or sale after city acquisition.

Next steps: Staff will continue legal efforts to recover overage costs, work to schedule abatement and demolition once asbestos protocols are satisfied, and return with any follow-up procurement or legal recommendations.