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03-783�/�'i�i/11f�- /-/�r�vsH �7 �do3 RESOLUTION CITY OF SAINT�AUL, MINNESOTA Presented By Referred To Committee: Date �l2 �- 1 WHEREAS, Citizen Service Office, Division of Code Enforcement has requested the City Council 2 to hold public hearings to consider the advisability and necessity of ordering the repair or wrecking and 3 removal of a two-story, wood frame, single family dwelling located on property hereinafter referred to as 4 the "Subject Property" and coxnmonly known as 487 Bay Street. This property is legally described as 5 follows, to wit: The East 25 feet of Lot 1, Block 1, Scheffer's Addition. The South one half of the East one half of Lot 2, Block 1, Scheffer's Addition. The East 25 feet of the North one half of Lot 2, Block 1, Scheffer's Addition 10 11 WHEREAS, based upon the records in the Ramsey County Recorder's Office and information 12 obtained by Division of Code Enforcement on or before March 07, 2003, the following are the now lrnown 13 interested or responsible parties for the Subject Property: Michael D. Cantu / Louise Cantu, 487 Bay Street, 14 St. Paul, MN 55102-3817; Michael D. Cantu / Louise Cantu, John and Paul's Bar (a.k.a. Mateyka's), 15 731 Randolph Avenue, St. Paul, MN 55102; U.S. Bank National Association, as Trustee for MASTR Asset 16 Backed Securities Trust 2002-NCl (c!o Ocwen Federal Bank}, c(o Leonazd, O'Brien, Wilford, Spencer & 17 Gale, Ltd., 55 East 5`� Street, Suite 800, St. Paul, MN 55101; Ocwen Federal Bank, c/o Mary Jo Oren, Oren 18 Realty, P.O. Box 17902, St. Pau1, MN 55117 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 WFIEREAS, Division of Code Enforcement has served in accordance with the provisions of Chapter 45 of the Saint Paul Legislative Code an order identified as an"Order to Abate Nuisance Building(s)" dated July 1, 2003; and WHEREAS, this order informed the then known interested or responsible parties that the structure located on the Subject Property is a nuisance building(s) pursuant to Chapter 45; and WHEREAS, this order informed the interested or responsible parties that they must repair or demolish the structure located on the Subject Property by July 16, 2003; and WHEREAS, the enforcement officer has posted a placazd on the Subject Property declaring this building(s) to constitute a nuisance condition; subj ect to demolition; and WHEREAS, this nuisance condition has not been corrected and Division of Code Enforcement requested that the City Clerk schedule public hearings before the Legislative Hearing Officer of the City Council and the Saint Paul City Council; and Council File �# p3-'1$3 Green Sheet # � �7L�V AA-ADA-EEO Employer O3-"1,8Z WHEREAS, the interested and responsible parties have been served notice in accordance with the provisions of Chapter 45 of the Saint Paul Legislarive Code, of the tnne, date, place and purpose of the public hearings; and 5 WHEREAS, a hearing was held before the Legislative Hearing Officer of the Saint Paul City 6 Council on Tuesday, August 12, 2003 to hear testimony and evidence, and after receiving testimony and 7 evidence, made the recommendation to approve the request to order the interested or responsible parties to 8 make the Subject Properly safe and not dehimental to the public peace, health, safety and welfaze and 9 remove its blighting influence on the community by rehabilitating this structure in accordance with all 10 applicable codes and ordinances, or in the alternarive by demolishing and removing the structure in 11 accordance with all applicable codes and ordinances. The rehabilitation or demolition of the shucture to be 12 completed within £t�ee�}days after the date of the Council Hearing; and 13 G��� 5) 14 WHEREAS, a hearing was held before the Saint Paul City Council on Wednesday, August 27, 2003 15 and the testimony and evidence including the action taken by the Legislative Hearing Officer was 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 considered by the Council; now therefore BE IT RESOLVED, that based upon the testimony and evidence presented at the above referenced public hearings, the Saint Paul City Council hereby adopts the following Findings and Order concerning the Subject Property at 487 Bay Street: 1. 2. 4. 5. 6. 7. That the Subject Property comprises a nuisance condition as defined in Saint Paul Legislative Code, Chapter 45. That the costs of demolition and removal of this building(s) is estimated to exceed three thousand dollars ($3,000.00). That there now exists and has existed multiple Housing or Building code violations at the Subject Property. That an Order to Abate Nuisance Building(s) was sent to the then lrnown responsible parties to correct the deficiencies or to demolish and remove the building(s). That the deficiencies causing this nuisance condition have not been corrected. That Division of Code Enforcement has posted a placard on the Subject Property which declares it to be a nuisance condition subject to demolition. That this building has been rourinely monitored by the Citizen Service Offices, Division of Code Enforcement, Vacant/Nuisance Buildings. 8. That the lrnown interested parties and owners are as previously stated in this resolution and that the notification requirements of Chapter 45 have been fulfilled. ORDER The Saint Paul City Council hereby makes the following order: AA-ADA-EEO Employer 1 1. The above referenced interested or responsible parties shall make the Subject Properiy safe and not 2 dehimental to the public peace, health, safety and welfaze and remove its blighting influence on the 3 community by rehabilitating this structure and conecting all deficiencies as prescribed in the above 4 referenced Order to Abate Nuisance Building(s) in accordance with all applicable codes and 5 ordinances, or in the alternative by demolishing and removing the structure in accordance with all 6 applicable codes and ordinances. The rehabilitation or demolition and removal of the shucture 7 must be completed within after the date of the Council Hearing. 8 2. If the above corrective action` is n��ompleted within this period of tune the Citizen Service Office, 9 Division of Code Enforcement is hereby authorized to take whatever steps are necessary to 10 demolish and remove this structure, fill the site and charge the costs incurred against the Subj ect 11 Property pursuant to the provisions of Chapter 45 of the Saint Paui Legislative Code. 12 13 14 15 16 17 18 19 3. In the event the building is to be demolished and removed by the City of Saint Paul, all personal property or fixtures of any kind which interfere with the demolition and removal shall be removed from the property by the responsible parties by the end of this time period. If all personal property is not removed, it shall be considered to be abandoned and the City of Saint Paul shall remove and dispose of such property as provided by law. 4. It is further ordered, that a copy of this resolution be mailed to the owners and interested parties in accordance with Chapter 45 of the Saint Paul Legislative Code. Requested by Department of: Benanav Blakev Bostrom Coleman Harrzs Lantrv Reiter Yeas � � Navs Absent Citizen Service Office• Code Enforcement ✓ By� s d i Adopted by Council: Date Adoption Certified by Council Secretary Form Approved by City Attorney By: � Approve�y or for Submission to By: AA-ADA-EEO Employer �3- z � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet DepartmenUoffice/council: Date Initiated: �S -����� z���-� Green Sheet NO: 3003260 Contact Person 8 Phone: Deoartrnent Sent To Person Initial/Date Mdy Dawkins � 0 'lizeo Services Z66-�927 Assign 1 'tizenServices De artmentDirector ���-v Must Be on Council Agenda by (Date): Number 2 • 27-AUG03 Fa � Routing 3 vor's OfLce Mavor/Assis[aot Ordef 4 ouncit 5 itv Clerk Ci Clerk Total # of Signature Pages _(Clip AII Locations for Signature) Action Requested: City Council to pass tlus resolurion which will order the owner(s) to remove or repair the referenced building(s). If the owner fails to comply with tfie resolution, the Citizen Service Office, Division of Code Enforcement is ordered to remove the building(s). The subject property is located at 487 Bay S4eet. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Mswer the Following Questions: Planning Commission 1. Has this person/firm ever worked under a conUact for this departmenY? CIB Committee Yes No Civil Service Commission 2. Has this person/firm ever been a city employee? Yes No 3. Does this personffirm possess a skill not normally possessed by any current city employee? Yes No Ezplain all yes answers on separete sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): This buIlding(s) is a nuisance building(s) as defined in Chapter 45 and a vacant building as defined in Chapter 43 of the Saint Paul Legislative Code. The owners, interested parties and xesponsible parties lmown to the Enforcement Officer were given an order to repair or remove the building at 487 Bay Sheet by July 16, 2003, and have failed to comply with those orders. � r����� 0o n . .�. Advantages If Approved: The City will eluninate a nuisance. A�G �'� 2C�3 ''� �� . �1>!�� Disadvantages If Approved: The City will spend fuuds to wreck and remove this building(s). These costs will be assessed to the property, collected as a special assessment against the property taaces. �r�7�n'� �,'^��...,.�, ,^ -:.,a„ DisadvanWges If NotApproved: A nuisance condirion will remain unabated in the City. Tlus building(s) will continue to blight the community. ��f� y�, 3 � d Total Amount of Transaction: 6000 Cos�Revenue Budgeted: y Funding source: Nuisance Housing activitv Number: 30251 Financiallnformation: Abatement (Explain) � � August 12, 2003, I.egislative Hearmgs Page 2 � 7. Resolution ordering the owner to remove or repair the building(s) located at 487 Bav Street. If the owner faiLs to comply with the resoluflon, Code Enforcement is ordered to remove the building(s). I,egislative Hearing O�cer recommends grantmg the owner six months to complete the rehabilitarion of the properiy on condition that the following is done by noon of August 27, 2003: 1) Code Compliance inspection is completed; 2) a$2,000 bond is posted; and 3) a signed purchase agreement is provided 8. Resolufion ordering the owner to remove or repair the building(s) located at 573 Edmund Avenue. If the owner faiLs to comply with the resolution, Code Enforcement is ordered to remove the building(s). Legislative Hearmg Officer recommends demolition within five (5) days. jab �3-�83 LEGISLATIVE HEARING, AUGUST 12, 2003 PAGE 10 � Resolurion ordering the owner to remove or repair the building(s) located at 487 Bav Street. If the owner fails to comply with the resolution, Code Enforcement is ordered to remove the building(s). Lawrence Wilford, attorney representing Ocwen Federal Bank, a servicing agent for U.S. Bank National Association; and Michael Cantu appeazed. Michael and Louise Cantu aze co-owners and Ocwen Federal Bank foreclosed on behalf of U.S. Bank. The foreclosure period ends October 10, 2003. Steve Magner, Code Enforcement, Vacant Buildings, provided a staff report. 487 Bay is a two- story, wood frame, single family dweliing on a lot of 2,614 squaze feet. The building was condemned in February 2003 by Code Enforcement, and has been vacant since February 18, 2003. Four (4) Summary Abatement Notices have been issued to: 1) secure the dwelling; 2) remove refuse; 3) remove garbage, etc., and 4) cut tall grass and weeds. Ms. Moermond asked whether the City actually did these clean-ups. Mr. Magner responded that work orders were sent out on boazding of the dwelling, cleaning up the refuse and cutting the grass. Ms. Moermond asked about the time periods. Mr. Magner replied that the Suuunary Abatements were issued twice in Apri12003, once in May 2003, once in June 2003, once in July 2003, and just recently in August 2003. Continuing with his report, on June 18, 2003, an inspection of the building was conducted and a list of deficiencies compiled which constitutes a nuisance. Conditions were developed and photographs were taken. An Order to Abate Nuisance Building was issued on July 1, 2003, with a compliance date of July 16, 2003. As of this date, the property remains in the condition which comprises a nuisance as defined by the Legislative Code. The City has had to board the building in arder to secure it against trespassing. Vacant Building Registration fees were paid by Orin Realty on behalf of Ocwen Band. A Citation was issued charging the owner with failure to pay the Vacant Building fee. Real Estate tases aze paid in fu1L Taxation has placed an estunated market value of $10,700 on the land and $36,400 on the building. As of August 12, 2003, a Code Compliance Inspection has not been applied for and a bond has not been posted. Code Enfarcement estimates the repairs of the sriucture between $60,000 - $70,000, with demotion costs between $5,000-$6,000. Code Enforcement is seeking a resolution to repair or remove this building within fifteen (15) days. Ms. Moermond asked both Mr. Wilford and Mr. Cantu about their plans. Mr. Wilford responded that at this point, since the property is in a redemption period, his client is not in a position to take action with regard to all the structural items that need to be taken care of. Mary Jo Orin, the real estate broker working with Ocwen, has been receiving the Sununary Abatement Orders, from whom he received copies last week. There was a discussion that oar client undertake a five- (5) week redemption period on this, but since the properry was listed for sale up until last week by the owner, it can't be considered abandoned. There are notes on the Suuunary Abatement Order date mailed July 15, 2003, with an appeal date of July 21, 2003. The note says that it's been taken care o£ The mortgage company is certainly in a position to take a3-�g3 LEGISLATIVE HEARING, AUGUST 12, 2003 PAGE 11 care of some of exterior items. Also, there has been an offer submitted for a short sale - for U.S. Bank to accept less ttian whaPs owed to them. There is over $70,000 outstanding on this mortgage. Ms. Moermond asked what the bank wouid like to see. Mr. Wilford responded that the bank would like to see the owner of the properiy take caze of his property to remove any of the abatement and condemnarion orders; correct the defects so that the property can be sold, so Mr. Cantu can possibly realize some money out of it. The bank would realize some fairly significant portion of what iY s owed. Otherwise, the bank would like to have this matter continued over until after the redemption period expires so that it has fixll legal right as owner of the property to proceed to make necessary repairs, etc. Ms. Moermond asked Mr. Cantu his plans concerning this building. Mr. Cantu responded that his original intention was to try to get some fixnding from the City in order to get this house rehabbed, but his efforts have been denied since February 13, 2003 to obtain any kind of help. He added that now, he is in a position in which he needs to sell the property. His family has been shuffled azound since February 13, 2003, and he needs to get some stabilization back into their lives. His goal is to find someone who can buy the property in its current condition. Mr. Wilford asked Mr. Cantu if he has been working with a realtor. Mr. Cantu answered that he has been working with several Realtors. Mr. Wilford asked if he was aware of the offer from Home Vestors. Mr. Cantu responded that he was agreeable with the offer. Mr. Wilford stated that on August 7, 2003, his office received a proposal from Home Vestors far the short payoff on the amount owned to the bank. It was sent to our client for their review on Thursday. There has yet been no response; one is expected very soon. To clarify, Mr. Cantu noted that he boarded up the house himself, not the City. Perhaps they had to put one boazd over a side basement window because it was not adequately boarded for them. Ms. Moermond asked for other testimony on this issue. Jim Polucha, Home Vestors, addressed the heazing. Home Vestors' plan is to rehab the house completely within six (6) months. They have funding to do so. They agree to the $60,000 - $70,000 estimated rehab cost, but in order for them to spend that much capital, they need to buy the house at the short sale price that they submitted to U.S. Bank. Betty Moran, West Seventh Federation, addressed the hearing representing the neighborhood. They would like to see something done with the properiy as quickly as possible. It is a blight on the block. Ms. Moermond reiterated that in this situation there is both an owner and a bank, neither of whom is in a position to do the rehabilitation. She noted a couple of red flags: 1) the City needed 03 �� LEGISLATIVE HEARING, AUGUST 12, 2003 PAGE 12 to boazd the building in order to secure it against trespassers; and 2) the City had to issue four (4) Suuunary Abatement Notices. These tell that the City is doing properiy management at this location, and that's not a good sign of someone being able to caze of their own property or to execute a rehabilitation of a properry. The Code Compliance Inspection has not been applied for. In terms of the sale of the properry, that Code Compliance Inspection can be substituted for the Truth in the Sale of Housing Inspection. So, if the ritle of the properiy is going to be transferred, one of those two things needs to be done. She wishes it would have already been done. (Another red flag.) This is not under control. Finally, once the Code Compliance Tnspection has been applied for and conducted, a$2,000 bond needs to be posted with the City, which indicates financial capacity to execute a rehabilitation. Not having that indicates another red flag. Testimony has indicated to Ms. Moermond that a little more time is needed to conclude the transfer of this property. After the properry has been transferred, Ms. Moermond needs a plan for the rehabilitation of the property that addresses all the items on the Code Compliance Inspection. At this time, there is an order for the building to be removed or repaired within fifteen (15) days. This issue comes before the City Council on Wednesday, August 27, 2003, at their public hearing. In order for Ms. Moermond to recommend grantiog suc (6) months for Home Vestors to complete the rehabilitation: 1) the Code Compliance Inspection needs to be completed by noon, Angust 27, 2003; a$2,000 bond needs to be posted with the City; and 3) a signed Purchase Agreement needs to be provided to Ms. Moermond and to the Code Enforcement Office. jab CITIZEN SERVICE OFF[CE Donald J Lunrs, Qry Cle�k CITY OF SAII�IT PAUL Raruly C. Kef1y, Mayor DN[S[ON OF PROPERTY CODE E�FORCE�fENT d�+�:j �a:vkins. Progrmrt ,ifanc�er Nuisnnce Building Cade Enjorcemer.t 1600.NonkfVnite3earAvenue Tel: 6il-2¢Q-/900 SaintPauf,,Lf.V jji06 F¢r.6�1-265=1926 � �� _ � __. �., : ...__ ' ...._. i. ..>�. Jllly 2�� 2��� AUG � "� 20�13 . - NOTICE OF PUBLIC HEARINGS Council President and Members of the City Council a3 -�� Citizen Service Office, Vacant/Dluisance Buildin�s Enforcement Division has requested the City Council schedule public hearings to consider a resolution ordering the repair or remaval of the nuisance buildin�(s) located at: 487 Bay Street The City Council has scheduled the date of these hearin�s as follows: Legislative IIearing - Tuesday, August 12, 2003 City Council Hearing - Wednesday, August 27, ?OQ3 The owners and responsible parties of record are: Name and Last Known Address Michael D. Cantu / Louise Cantu 487 Bay Street St. Pau1, NLtiT ��102-3817 �4icnael D. Cantu : Louise Cznm 7ohn asd Paa1�s B� tzk.z �.Iaz�csa�_ � -= : �?*idoi� � 3ce._... St. Paul, �L� » 102 Interest Fee Owner Fee O�izier AA-ADA-EEO Emptoyer 487 Bay Street July 2�, 2003 Pa�e 2 �ame and Last Known Address U.S. Bank National Association, as Tn:s�ee for MASTR Asset Backed Securities Trust 2002-NC1 03-�� Ir.terest Foreclosin� :llort�a�e C-ompany (c/o Oc�cen Federal Bank) c,'o Leonazd, O'Brien, Wilford, Spencer & Gale, Ltd. 5� East �" Street, Suite 800 St. Paul, �'»101 Oc�ven Federal Bank c/o Mary Jo Oren, Oren Realty P.O. Bos 17902 St. Paul, MN 5�117 Foreclosin� Bank The le�al description of this property is: The East 2> feet of Lot 1, Block 1, Scheffer's Addition. The South one half of the East one haif of Lot 2, Block 1, Scheffer's Addition. The East 25 feet of the North one half of Lot 2, Block 1, Scheffer's Addition. < Di�•ision of Code Enforcement has declared this buildin�(s) to constitute a"nuisance" as defined by Legislative Code, Chapter 45. Division of Code Enforcement has issued an order to the then known responsible parties to eliminate this nuisance condition by correctin� the deficiencies or by razin� and removin� this buildin�(s). Inasmuch as this Order to Abate has not been complied with the nuisance condition remains unabated, the community continues to suffer the blightin� influence of this property. It is the recommendation of the Division of Code Enforcement that the City Council pass a resolution orderin� the responsible parties to either repair, or demolish and remove this building in a timely manner, and failing that, authorize the Division of Code Enforcement to proceed to demolition and removal, and to assess the costs incuned a�ainst the real estate as a special assessment to b: collected in the same manner as taxes. Sincerely, C �y�ic�e C,!2 i�2G��` Steve Ma�er Vacant Buildings Supervisor Division of Code Enforcement Ci*izen Senzce Ofice c�i-_ cc: : ranh Berg, Building inspzcnon and Desi� Me�han Riley, City Attorneys Office Nancy Anderson, Assistant Secretary to the Council Laurie Kaplan, PED-Housin� Division A4 .4DA-EEO Employer �3- 7�'3 Thomas W.Newcome*' Brian F. Leonard+ Eldon J. Spencer, Jr. + Michae] R O'Brieni CawrenceA. Wilford• Fdwazd W, Gale Grover C. Sayre, III+O Thomas W. Newcome III" James A. Geske Michelle McQuartie Colton TimothyM. Watsh* Joseph J. Deuhs, Jr. Thomas C. Atmore+ Emest F. Peake Matthew R. Burton Eric D. Cook LEONARD, O'BRIEN WILFORD, SPENCER & GALE Attorneys at Iaw A Professional Association 55 East Fifth Street Suite 800 Saint Paul, Minnesota 55101-1718 Telephone (651) 227-9505 Fac (651) 251-1734 100 South FiRh Street Suite 1200 Minneapolis, Minnesota 55402-1 2 1 6 Telephone (612) 332-1030 Fac (612) 332-2740 Tnternet: www.towse.com Reply to: St. Paul August 27, 2003 Honorable Randy C. Kelly, Mayor Honorable Council Members City of Saint Paul City Ha11 St. Paul, MN 55102 Re: 487 Bay Street Peter J. Sajevic� Justin P. Weinberg Krny A. Evans Anna M. Burgett OFCounsel George B. Ingebrznd, Jr. +p�o admitted iv Wiscon�^ a Atso admitted in A=iwna 0 Also admitled in Iowa $ Qualified Neutral (RWe ll 4) ' Ce*afiedRealProPe*�Y Law Specialist (Minrsuota SW te Bar Associatian) "'ReCved Status Dear Mayor and Council Members: Our office represents U.S. Bank National Association, as Trustee for MASTR Asset Backed Securi6es Trust 2002-NCl ("US Bank") and Ocwen Federal Bank ("Ocwen") with regard to the above referenced property. US Bank is the holder of a Sheriff's Certificate from the foreclosure sale held April 10, 2003. Ocwen is the servicing agent for US Bank. US Bank was the successful bidder at the foreclosure sale. The amount of the tota2 debt owing to US Bank at the time of the £oreclosure sale was $73,265.25. The fareclosure sale was subject to a statutory six month redemption period. The redemption period will expire on October 10, 2003. At that time, US Bank will become the owner of the subject property if there is no redemption by the owner or junior creditor. US Bank requests that the City delay adoption ofa resolution requiring the demolition ofthe subject property unril a8er US Bank becomes owner of the property. Until the redemption period expires, the owner, Michael Cantu, has the right to possession of the property. Since Mr. Cantu has had the properry listed for sale, US Bank has not been able to reduce the redemption period pursuant to Minnesota Statutes. Mr. Cantu currentiy has an offer to purchase the property which would result in US Bank receiving significantly less than it is owed. Our client needs to have an interior inspection and appraisal done Honorable Randy C. Kelly, Mayor ,�Ionorable Council Members Page 2 inordertohavesufficientinformationtojusfifytheacceptanceofthediscountedpayoff. Theparties aze currently working on getting the appraisal completed. Thank you for your consideration of this matter. Very truly yours, LEONARD, O'BRIEN WII.,FORD, SPENCER & GALE, LTD. By Lawrence A. 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