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05-1134Council File # ��� �� J� Green sheet # 3028554 Presented By Referred To Committee: Date 1 WfIEREAS, Neighborhood Housing & Properiy Improvement has requested the City Council to 2 hold public hearings to consider the advisability and necessity of ordering the repair or wrecking and 3 removal of a two-story, wood frame, duplex located on propertyhereinafter refened to as the "Subject 4 Property" and commonly lmown as 724 Seventh Street East. This property is legally described as 5 follows, to wit: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Lot 3, Auditor's Subdivision No. 72, St. Paul, Minn.. WHEREAS, based upon the records in the Ramsey County Recorder's Office and information obtained by Neighborhood Housing & Property Improvement on ar before February 25, 2005, the following are the now known interested or responsible parties for the Subject Property: James E. Mooney, 724 — 7�' Street East, St. Paul, MN 55106-5005; Ameriquest Mortgage Company, Attn: Nancy A. Nordmeyer and Lawrence P. Zielke, Shapiro & Nordmeyer LLP, 7300 Metro Blvd. Suite 390, Edina, MN 55439-2306; Robert Oscar Quast, 724 — 7"' Street East, St. Paul, MN 55106-5005; Rick Romero, 505 City Parkway West, Suite 100, Orange, CA 92868; Wendy Lee, 1264 Point Douglas Road, St. Paul, MN 55119 WHEREAS, Neighborhood Housing & Property Ixnprovement 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 September 16, 2�05; 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 arder informed the interested or responsible parties that they must repair or demolish the structure located on the Subject Property by October 17, 2005; and WHEREAS, the enfarcement officer has posted a placard on the Subject Property declaring this building(s) to constitute a nuisance condition; subject to demolition; and WHEREAS, this nuisance condition has not been conected and Neighborhood Housing & Property Improvement requested that the City Cierk schedule public hearings before the Legislative Hearing Officer of the City Council and the Saint Paul City Council; and WF3EREAS, the interested and responsible parties have been served notice in accordance with the provisions of Chapter 45 of the Saint Paul Legislative Code, of the time, date, place and purpose of the public hearings; and RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� AA-ADA-EEO Employer 1 WHEREAS, a hearing was held before the Legislative Hearing Officer of the Saint Paul City 2 Council on Tuesday, November 15, 2005 to hear testanony and evidence, and after receiving testunony 3 and evidence, made the recommendation to approve the request to order the interested or responsible 4 parties to make the Subject Property safe and not detrimental to the public peace, health, safety and 5 welfare and remove its blighting influence on the community by rehabilitating this structure in o5-t �,�j� 6 accordance with all applicable codes and ordinances, or in the altemarive by demolishing and removing 7 the structure in accordance with all applicable codes and ordinances. The rehabilitarion or demolition of 8 the structure to be completed within fifteen (15) days after the date of the Council Hearing; and 9 10 11 12 13 14 15 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 51 52 53 WHEREAS, a hearing was held before the Saint Paul City Council on Wednesday, December 7, 2005 and the testunony and evidence including the action taken by the Legislative Hearing Officer was 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 724 Seventh Street East: That the Subject Properry comprises a nuisance condirion as defined in Saint Paul Legislative Code, Chapter 45. 2. 4. 5. 6. 7. 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 mulriple Housing or Building code violations at the Subject Property. That an Order to Abate Nuisance Building(s) was sent to the then known responsible parties to correct the deficiencies or to demolish and remove the building(s). That the deficiencies causing this nuisance condition haue not been corrected. That Neighborhood Housing & Property Improvement 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 monitared by Neighborhood Housing & Property Improvement, Vacant/Nuisance Buildings. 8. That the known interested parties and owners are as previously stated in this resolution and that the notification requirements of CUapter 45 have been fulfiiled. ORDER The Saint Paul City Council hereby makes the following order: The above referenced interested or responsible parties shall make the Subject Properly safe and not detrimentai to the public peace, health, safety and welfare and remove its blighting influence on the community by rehabilitating this structure and correcting all deficiencies as prescribed in the above referenced Order to Abate Nuisance Building(s) in accordance with all applicable codes and ordinances, or in the alternarive by demolishing and removing the structure in accordance with all applicable codes and ordinances. The rehabilitation or demolition and removal of the shucture must be compieted within fifteen (15) days after the date of the Council Hearing. AA-ADA-EEO Employer t�`, �t3'� 1 2. If the above corrective action is not completed within this period of time Neighborhood Housing 2 & Properry Improvement is hereby authorized to take whatever steps aze necessary to demolish 3 and remove tYris structure, fill the site and chazge the costs incurred against the Subject Property 4 pursuant to the provisions of Chapter 45 of the Saint Paul L,egislative Code. 5 6 7 9 10 11 12 13 In the event the building is to be demolished and removed by the City of Saint Paul, ali personal properiy oz fixtures of any kind which interfere with the demolition and removal shall be removed from the properiy by the responsible parties by the end of this time period. If all personal properry is not removed, it shall be considered to be abandoned and the City of Saint Paul shali remove and dispose of such property as provided by law. 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. � Yeas Navs Absent Benanav �/ Montqomerv � Bostrom � Thune � xarris ,/ Lantrv ,/ fi2).4E71 ✓ ' d Adopted by Council: Date � �� Adoption Certified by Council Secretary By: Appr By: Requested by Department of: Neiqhborhood Housina Propertv Imorovement By: ,�������� Forr By: App� By AA-ADA-EEO Employer � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � ,�-,,�a Departmentloffice7council: Datelnitiated: v+ � �, NeighborhoodF3ousing/Pcoperty 2,-��-�5 Green Sheet NO; 3028554 ConWct Person & Phone- Deoartment Sent To Person Initial/Date Andy DOWkinS y 0 borh od Housi ro er Z6Cr�92� A55ign 1 ei borhoodHousi ro er De artm ntDir or �0-T,� OS' Must Be on Council Agenda by (Date): Numher 2 m• pttorne �Q 07-DEG05 For ROUting 3 vor'sOffce _ MavodAssistant Order 4 ouncil 5 Clerk Ci Clerk Total # of Signature Pages _(Clip All Locations for Signature) Action Requested: City Council to pass this resolurion wluch will order the owner(s) to remove or repair the referenced building(s). If the owner fails to comply with the resolurion, Neighborhood Housing & Property Improvement is ordered to remove the building. The subject property is located at 724 Seventh Street East. 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 cont2ct for this department? CIB Committee Yes No Civil Service Commission 2. Has this persoNfirm ever been a city employee? Yes No 3. Does this person/firm passess a skill not normally possessed by any wrrent city employee? Yes No - Explain all yes answers on separate 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 vacaut building as defined in Chapter 43 of the Saint Paul Leg.islarive Code. The owners, interested parties and responsible parties lmown to the Enforcement Officer were given an order to repaiz or remove the building at 724 Seventh Street East by October 17, 2005, and have '�� y7�s. i� aa�a�ta irapp�o�ea: �CT � 7 2005 The City will elimivate a nuisance. ���� � 5 @ 46!"'@GV�� DisadVantages If Approved: The City will spend funds to wreck and remove this building(s). These costs will be assessed to the property, collected as a special assessment against the property taxes. DisadvanWges If Not Approved: A nuisance condition will xemain unabated in the City. This building(s) will continue to blight the commwuty. ToWI Amount of _ _ , Transaction: 9000 CosURevenue Budgeted: Y �"- - - � � � ` Fund�ng source: Nuisance Housing Activity Number: 30251 Abatement P�,,,,�nas� � �. v �.r . Financial Informa6on: ' (Explain) UL! e� S W� pS- �1'�-1 LEGISLAZ`IVE HEARING MINUTES OF I30VEMBER 15, 2005 Page 4 Mr. Dawkins stated he will schedule the remainder for the March 28 Legislative Hearing. Ms. Moermond responded that they should go for April 11 for a L,egislative Hearing because she does want to act before the City Council makes their policy direction lrnown. Mr. Dawkins responded that Apri1 I S allows a week or two of good weather and allows enough time for his office to get booked for a contractor. Otherwise, they may not be able to get someone to do it. If the work is not completed by July 1, the City is out the $7,000 to $8,000 it takes. With that in mind, Ms. Moermond recommends laying over to the Legislative Hearing for Mazch 7 and City Council Public Hearing on Mazch 15. The other addresses can be scheduled for Legislative Hearing on Mazch 28. Resolution ordering the owner to remove or repair the building(s) at 724 Seventh Street East. If the owner fails to comply with the resolution, Neighborhood Housing and Properly Improvement is ordered to remove the building(s). Larry Zielke, attorney, appeazed and stated Steve Magner gave the following report: this has been a vacant building since 1-24-05. The owners are listed as James E. Mooney and Robert O. Quast, power of attorney. There have been six Summary Abatement Notices issued to remove tall grass, rubbish, and snow and ice. On 8-24- O5, an inspection of the building was conducted, a list of deficiencies which constitute a nuisance condition was developed, and photographs were taken. An Order to Abate a Nuisance Building was posted on 9-16-OS with a compliance date of 10-17-05. As of this date, this property remains in a condition which comprises a nuisance as defined by the legislative code. The Vacant Building Registration fees are not paid as of 11-15-05. Taxation has placed an estunated market value of $41,800 on the land and $120,400 on the building. As of 11-15-05, a Code Compliance Inspection has not been completed, nor a$2,000 performance bond posted. Real estate tases for 2004 are delinquent of $1,602.66. Code Enforcement Officers estimate the cost to repair this structure is $80,000 to $90,000; however, Mr. Magner feels the appraisal is not accurate because the value of the home is not near that cost. The estimated cost to demolish is $8,000 to $9,000. They aze seeking a resolution to repair or remove the building in 15 days. Mr. Magner continued: Individuals from the mortgage company have contacted NHPI over the past year to say they are in process or attempting to foreclose on it. Some individuals say tUey are representing Mr. Mooney. The one individual, not the owner, appears to have a business of scrapping. This person says he grew up in the house and is trying to saue the house for Mr. Mooney. The mortgage company at one time was going to redeem and raise the structure; now they want to save the structure for resale. The house would need a high level of rehabilitation. In answer to several questions, Mr. Magner responded they have not spoken to either Mr. Mooney or Mr. Quast. It appears Mr. Quast is a family member. Mr. Ziellce stated his firm was foreclosure counsel for the lender. There was a foreclosure sale held on 5-6-05. The redemption expired on 11-6-05. At this point, Mr. Mooney is no longer the owner of the property; Ameriquest is now the owner of record. He has talked to Wendy Lee, Rea1 Estaxe agent assigned to this property, and she has confumed that this is an unusual case where p5-1�3`� LEGISLATIVE HEARING MINUT'ES OF NOVEMBER 15, 2005 Page 5 people seem to be coming and going and putting a sign in the window advertising for storage. Mr. Zielke is asking for a couple of things: 1) time for his client to evaluate the property, 2) time to immediately commence an eviction to get the personal properry out of the house. 3) a layover so that Ameriquest can have this evaluated. Either Ameriquest can concur with the City or they can come up with a gasue plan to get an investor to rehab the properry. Mr. Zielke drove to the property this moming, and the yazd appeazed to be clean and the property secure. Ms. Moermond asked has he seen the photographs. Mr. Zielke responded he has not seen the photos, but he understands what it looks like. His client has attempted to secure it in the past, but someone has tampered with that. Ameriquest will re-secure the property with their own locks. Someone needs to take control of the property. They may concur it is a lost cause. If they do, they can get bids or sell it as a vacant property. Mr. Magner added that there is quite a bit of value in the site itself based on the square footage because of the depth of the lot. In answer to several questions, Mr. Magner responded it was once condemned, but now it is just unoccupied and secured by other than normal means with multiple violations. It is in the Dayton's Bluff Historic Preservation zone. If the Council removed the structure, there is no review on the HPC boazd, according to Chapter 73. Ms. Moermond asked how much money is involved for Ameriquest. Mr. Zielke responded they bid $143,546.28. With interest, they aze into this for over $150,000. It is a significant loss if it goes down. Ms. Moermond stated they can sometimes get a properiy tax abatement because of that, which will be a little something. Ms. Moermond recommends laying over to the December 6 Legislative Hearing. Ms. Moermond stated this is set far City Council Public Heazing on December 7. She would like to see the following done: 1) a Code Compliance Inspection to get a list of all problems with the building, which should help his client decide what they are looking at. 2) The taxes will need to be paid, 3) the vacant building fees paid. On December 6 she would like to see the results of the Code Compliance Inspection. Mr. Zielke should proceed with the evictions. If he wants to go the rehabilitation route, she would like to see the following: 1) a purchase agreement, Z) a work plan that demonstrates they understand the scope of the rehabilitaxion, 3) a$2,000 bond with the City, 4) a financial plan showing they haue the financial wherewithal to complete the rehabilitation. Mr. Zielke asked about the Vacant Building fee. Mr. Magner responded $250, but the anniversary is not up yet. The owner will be mailed a notice and invoice on that. Resolufion ordering the owner to remove or repair the building(s) at 896 Palace Avenue. If the owner fails to comply with the resolution, Neighborhood Housing and Property Improvement is ordered to remove the building(s). (Owner did not appear.) Steve Magner reported this is a one story dwelling. It has been vacant since 6-5-03. It is not condemned. The current owner is Richazd C. Stroemer and John Stroemer. There have been twelve Suminary Abatement Notices to remove tall grass, remove rubbish, remove snow and ice. On 8-9-05, an inspection of the property was conducted, a list of deficiencies which constitute a � 05-�t3� NE[GHBORHOOD HOU54YG & PROPERTY MPROVEMEVT Aruly Dawkirct, Program �Yfarsager CITY OF SAINT PAUL RnnAy G Ke![}�, 6lay�or October2l, 200� NOTICE OF PUBLIC HEARINGS Council President and Members of the City Council ��� � � �;�� � Neighborhood Housing & Property Improvement , Vacant/Nuisance Buildings Enforcement Division has requested the City Council schedule public hearings to consider a resolution ordering the repair or removal of the nuisance building(s) located at: 724 Seventh Street East. The City Council has scheduled the date of these hearings as follows: Legislative Hearing - Tuesday, November 15, 2005 City Council Hearing - Wednesday, December 7, 2Q05 The owners and responsible parties of record are: Name and Last Known Address James E. Mooney 724 — 7`" Street East St. Paul, MN 55106-5005 Ameriquest Mortgage Company Attn: Nancy A. Nordmeyer and Lawrence P. Zielke Shapiro & Nordmeyer LLP 7300 Metro Blvd. Suite 390 Edina, MN 55439-2306 Robert Oscaz Quast 724 — 7�' Street East St. Paul, MN 55106-50�5 Rick Romero 505 City Parkway West, Suite 100 Oran�e, CA 92868 Wendy Lee 1264 Point Douglas Road St. Paul, MN 55119 Nuisance Buildirtg Code En�oreemen[ l600 �4ord� Whi[e BearAvenue Tel: 65f-266-l900 Sairs1 Pcu[. ,ILV 55106 Far 651-266-1926 Interest Fee Owner Mort�age Holder Fee Owner P.O.A. Interested Party Mortgage Holder's Agent AA-ADA-EEO Etttployer �-� �3 �F October 21, 2005 724 Seventh Street East Pa�e 2 The le�al description of this property is: Lot 3, Auditor's Subdivision No. 72, St. Paul, Minn. Neighborhood Housing & Property Improvement has declared this buildin�(s) to constitute a "nuisance" as defined by Legislative Code, Chapter 4�. Nei�hborhood Housin� & Property Improvement has issued an order to the then known responsible parties to eliminate this nuisance condition by correctin� tlie deficiencies or by razin� and removing 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 bli�hting influence of this property. It is the recommendation of the Neighborhood Housing & Property Improvement that the City Council pass a resolution ordering the responsible parties to either repair, or demolish and remove this building in a timely manner, and failing that, authorize the Neighborhood Housing & Properry Improvement to proceed to demolition and removal, and to assess the costs incurred against the real estate as a speciai assessment to be collected in the same manner as taxes. Sincerely, F � �; : � i : Steve Ma�er Vacant Buildings Supervisor Neighborhood Housing & Property Improvement SM:mI cc: Frank Berg, Building lnspection and Design Judy Hanson, City Attorneys Office MazyErickson, Assistant Secretary to the Council Laurie Kapian, PED-Housing Division ccnph AA-ADA-EEO Employer � MINUTES OF TI'� LEGISLATIVE HEARING `�'� ORDERS TO REMOVE/REPAIIt, CONDEMNATIONS, ABATEMENT ASSESSIvIENTS, ABATEMENT ORDERS, RENTAL REVOCATION CERTIFICATES Tuesday, December 6, 2005 Room 330 City Hall, I S Kellogg Boulevazd West Mazcia Moermond, Legislative Heazing Officer The hearing was called to order at 10:1Q a.m. STAFF PRESENT: Steve Magner, Neighborhood Housing and Properry Improvement Resolutiou ordering the owner to remove or repair the building(s) at 724 Seventh Street East. If the owner fails to comply with the resolution, Neighborhood Housing and Property Improvement is ordered to remove the building(s). (Laid over from 11-15-OS) Ms. Moermond stated Mr. Zielke said that everything has been done that she was looking for in the last hearing: Code Compliance Inspection, taxes paid, vacant building fees paid. Mr. Magner responded that is correct, except the tases may be in the process of being paid. His office has been out there a few times since November 15, and the parry that was hanging around has not been seen. Lany Zielke stated the eviction heazing has been held. A writ is in the process of being served. A forceable to remove all the items of personal properiy will be done within two weeks. Mr. Zielke has been contacted by rivo investors who have been referred to the Reakor. Mr. Zielke will be able tA fax or e-mail a copy of the inspection to his client. This will put a dose of reality into his client's evaluations. They need more information to properly evaluate the properiy. Mr. Zielke's goal is to the get his client out of the way. Ms. Moermond stated it looks to her like the property needs everything. Mr. Zielke responded that his observation is that it is a distressed properry, but there are some positive things that can come out of it. His client needs time to properly evaluate the property and get it sold. Ms. Moermond stated this is in front of the City Council tomorrow, and she will recommend a two week layover for Mr. Zielke to talk to his client, discuss what to do, and possible pursue a purchase agreement. Ameriquest is not interested in a rehab. She would like a purchase agreement by December 21. At that time, she will recommend a 30 day order to remove or repair. By December 21, his client shouid lrnow if this situation is salvageable. A 30 day order still provide a window of opportunity. Mr. Magner stated he will assume the client's maintenance people will take care of the snow. The properry could be rehabilitated. The oniy downside is that this is in a historic preservation area. The exterior requires a permit review. It does take longer and it limits what can be done to the property. Ms. Moermond asked about the two week plan. Mr. Zielke responded it is not a lot of time, but it is better than nothing. The hearing was adjourned at 10:26 a.m. fiiu�