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Council weighs legal options after a burned building prompts $14,000 demolition estimate
Summary
Council discussed recouping demolition costs after a burned house on North Seventh Street could cost about $14,000 to tear down while the parcel's auditor valuation was very low. Law Director Costa Mastros said he will review applicable statutes on lien authority and possible lawsuits; Public Works staff noted water-termination costs should be included.
Council members raised concerns about a burned property on North Seventh Street that will cost the city to demolish and questioned whether the city can recoup demolition costs from the owner or lien the owner’s other properties.
"...we're going to have $14,000 into demoing this to turn around for a piece of property that's going to be worth 400 bucks," Councilman Albaugh said, arguing it is unfair that taxpayers might bear demolition costs when the owner holds other property and has higher assessed values elsewhere. Law Director Costa Mastros said he will review the statute governing liens and remedies: "I'm going to have to look at how the statute reads. But I recall correctly. I think it only can only mean what you take down that that parcel, which you take the work that you do on it. I think that's the only one that you can lien."
Council discussed the possibility of suing owners, tracking property titles to see if owners hold properties through LLCs, and the cost-effectiveness of legal action. Water Superintendent Jim Jenkins said a proper water-service termination for a demo runs roughly $1,800 by city crews and could be about $3,000 if contracted. Council asked staff to research statutory authority, the property's titling and collection routes and return with options.
Next steps: Law Director Mastros will review statutes and report on lien and legal remedies; staff will compile cost estimates including proper water termination and report back to council.
