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Item 8EAGENDA ITEM # 8E NOVEMBER 23, 2009 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Authorizing Legal Action to Fore lose Liens on Vacant Properties SUBMITTED BY: Jim Hanson, Ci Mana DATE: November 12, 2009 BACKGROUND: During the course of pursuing the strategic goals set by the City Commission to clean-up and otherwise improve the Royal Palms and Mayport Corridor neighborhoods, a few vacant properties have been brought to our attention by the Community Redevelopment Coordinator, City COPs Officers, and Code Enforcement staff. These are vacant residential properties that have not been inhabited for at least the last couple of years. One is a small, underdeveloped lot. Some have been broken into by vagrants, some have been used for illegal activity and others are boarded up and in a state of disrepair. All have City liens that have been filed. Most of these have been for weed abatement although some have other code enforcement fines and unpaid utility bills. This staff report is to bring two particular properties to the Commission's attention and request approval to file foreclosure suits. The purpose of these actions is to either force the owners to clean-up the property and pay off the City liens or to acquire the title of the properties so that they can be sold to others who will turn them into productive, occupied and maintained residential units. The first of these is located 387 Skate Road, owned by Valda Hector. This is a rental property that has been vacant for at least two years. The carport is collapsing. Neighbors have complained about the condition of the residence and vagrants have broken into the property. There have been five different liens placed on this property by the City totaling $4,248 not including interest. The second is a 50 by 50 foot vacant lot on Dutton Island Road. The property has been overgrown and a site for illegal dumping. Property taxes have not been paid in recent years. It is currently held in the name of "Land Trust" in care of Larry Dean. Pictures of both of these properties are attached to this staff report. City Attorney Alan Jensen has been involved in the staff discussion of how to deal with these properties and will be able to describe the specific legal steps required or answer any of your questions about the foreclosure process at the next Commission meeting. AGENDA ITEM f! 8E NOVEMBER 23, 2009 BUDGET: If the City acquires title to the property at 387 Skate Road, it will be subject to the unpaid mortgage balance currently estimated at $20,000. The City will also have minor legal expenses in acquiring the title. The vacant lot on Dutton Island Road does not have any mortgage on the property and could possibly be acquired at the cost of the unpaid taxes (approximately $1,700.00, not including interest) plus legal expenses. It is estimated that the City could sell each property for at least the value of the mortgage balance, legal expenses and City liens. One possible buyer that has expressed interest in both properties is Beaches Habitat. RECOMMENDATION: Authorize the City Attorney to take legal action necessary to acquire the title to both of the properties, including filing suit by foreclosure if necessary. ATTACHMENTS: 1) Pictures of 387 Skate Road and vacant lot on Dutton Island Road. AGENDA ITEM # 8E NOVEMBER 23, 2009 L L a oc ca 0 0 oc a~ ca Y N 00 M