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09-1151Coancil File # 6y l Green Sheet# 3083499 Presented by ��_- l � MINNESOTA 1 BE IT RESOLVED, that the Council of the City of Saint Paul, based on a review of the legislative 2 hearing record and testimony heazd at public hearing on October 7, 2009 hereby memorializes its decision 3 to certify and approve the September 15, 2009 decision of the Legislative Hearing Officer for the following 4 address: 6 ADDRE5S 8 772 Desoto Street 9 APELLANT Thomas Gorz 10 Decision: Appeal denied on the Certificate of Occupancy Revocation and extension granted to October 11 20, 2009 to complete all the repairs. If the property is not in compliance upon re-inspection, the building 12 will be referred to the Vacant Building Program. RequesYed by Department of: � Form Approved by City Attomey By: Form Approved by Mayor for Submission to Council By: Adoption Certified by Counc�]-Secretary . i By: , .i � �� - Approve Ma r� Da�te ��(�-� By: ��✓�'� ✓ _ � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � �r�t t�f DepartmenUOffice/Council: DaM Initiated: i' t 7!�+ co _c°°"°'' os ocT zoos Green Sheet NO: 3083499 �, Contact Person 8�. Phone: D�artment Sent To Person Ini[ial/Date Marcia Moermond � o onncii � 6-$$7� 1 ouncil De artrnentDireMOr Assign 2 � Clerk (5 Cle�k Must Be on Council Agenda by {Date): Number 3 � Routing 4 0 Doc.Type:RESOLU710N Order 5 0 E-OOCUment Requiretl: Y Document Contact: Mai Vang Contact Phone: 6-8563 Total # of Signature Pages _(Clip All Locations for Signature) Action Requested: Resolution memorializing City Council action taken October 7, 2009 denying the appeal and extension granted for properiy at 772 Desoto Street. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions: Planning Gommission 1, Has this person/firm ever worked under a contrad for this depaAment? CIB Committee Yes No Civil Service Commission 2. Has this person/firm ever been a ciry employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any current 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): Advaatages If Approved: Disadvantages If Approved: Disadvantages If Not Approved: Total Amount of 7ransaction: CosURevenue Budgeted: Funding Source: Activity Number: Financial lnformation: (Explain� October 9, 2009 2:01 PM Page 1 S 6ixi Os . e °: , ,��„�,� m "' September 10, 2009 Thomas Gorz 772 Desoto 5treet St. Paui, MN 55130 RE: 772 Desoto Street Dear Mr. Gorz: CITY OF SAINT PAUL CITY CLERK'S OFFICE Your application for an appeal has been received and processed. 0�-�l�l Please attend the pub{ic hearing before the Legis{ative Hearing Officer on Tuesday, Septemher 15, 20U9 at 12:00 p.m. in Room 330 City Hall and Courthouse to consider your appeal concerning the above referenced property. At that time the Legislative Hearing Officer will hear all parties relative to this action. Failure to appear at the hearing may result in denial of your appeaf. Since / .� Shari Moore City Clerk cc: Ed Smith, DS1 Code Enforcement Officer Rich Singerhouse, DSI Code Enforcement Supervisor Leanna Shaff, DSI (Fire) Marcia Moermand, Legislative Hearing O�cer Jerry Hendrickson, Deputy City Attorney Pauf Friederichs, Owner i 4V£ST KELLOGG BOULEVARD, SUITE 310 SAINT PAUL, MINNESOTA55102 Tel: 651-266$686 Fax: 651-266-8574 wwwstpaul.gov An Affirmatrve Action Equal OpporNnity Employer °� -C���I APPLICATION FOR APPEAL Saint Paul City Clerk 15 W. Keliogg Blvd., 310 City Hal] Saint Pau1, 1_Vlinnesota 5� 102 - - - TelepAone: (b51) 266-8688 1. Address of Property r 1n�. �e�r�a 2. Number of � RECEtVED 5EP p 9 7009 �� C�� 3. Date of Letter � � 4. Name of Owner: ��A ��'��--�.i�'.�" `��1�-u��__�4-°3`� �'✓ u �} Address: City: Zip: Phone Numbers: Business Residence Cellular 5. Appellant 1 Applicant (if other than owner)�a��� ���Q�- �� W `�-� Address: � �2�s0�0 �`. City:s�- S �-w,-C State: e���_Zip: � l� Phone Residence Cak�-� Ct,.:n io� +� F-3�E-83i 6 State specifically what is being appealed and why (Use an attachment if necessary): t ^ � aC�r4 a�' �� � � �v �� NOTE: A�25.00 filing fee made payable to the City of Saint Paul must accompany this appiication as a necessary condition for filing. You must attach a copy of the original orders and any other correspondence relative to this appeal. Any persoa unsatisfied by the final decision of the City Counci3 may obtain judicial review by timeIy fiHng of an action as provided by law in I}istrict Court. For Office Use Only � .e Received; Fee Received: Receipt Number: Date of Hearing: �` �G�c�q e`�. �-r—� �a�� DEP.ARTMENT OF SAFE'IY AND INSPECTIONS Rrchard Lippert, Manager of Code Enforcement �_ ci� �F S 1�7 PA�. 375 Jackson Street., Suite 220 Telephorte� 651-266-8989 Saini Paul, MNSSIOIJ806 F¢csimlle� 651-2661979 Chrutopher &. Coleman, Mayar Web.� wwwstnaul eovldsi All,,QI1SY 28� 2��9 N Paul Friederichs III PO Box 48755 Coon Rapids MN 55448-0755 Dear Sir or Madam: 772 DESOTO ST is a Registered Vacant Building that requires a Code Compliance Inspection per the Vacant Building Statute (Chapter 43). This inspection can be obtained by calling Building and Inspections and Design at (651) 266-9016. This dwelling can not be occupied without a Certificate of Code Compliance. Call (651) 266-901Ez for a permif sign-off: THE VACANT BUILDING REGISTRATION FORM AND REGISTRATION FEE MUST BE RECEIVED BY THE VACANT BUILDING PROGRADZ BEFORE DSI MAY ISSUE PERMITS. Violation of the Vacant Building Statute (Chapter 43) will result in the issuance of a criminal citation. Written pertnission from the City of Saint Paul is required before a Category 2 or Category 3 Vacant Building can be soid. Requirements that must be met for CateQOrv 2 vacant buildings include: 1. register/re-register the building, 2. Pay outstanding fees, 3. obtain a code compliance report, 4. submit far approval a rehab cost estimate frozn a licensed contractor and a schedule for completion of all code compliance work, and 5, submit proof of financial responsibility acceptable to the City. In addition to meeting a115(fivel of these requiremants a CateQOrv 3 vacant building must obtain a Certi�cate of Occupancy or a Certificate of Code Compliance prior to the sale of the building. Tf you have any questions you can call me at the number below. PROPERTIES THAT ARE SUSPECTED TO BE ILLEGALLY OCCUPIED A,RE SUBJECT TO INSPECTIONS AT .ANY HOUR OF THE DAY OR 1VTGHT. Sinaerely, Ed Smith 651-266-1917 Vacant Buildings Code Enforcement Officer dj DEPARTMENT OF SAFETY AND INSPECTIONS Fire Inspecrion Division Robert Kessler, Dueclor CITY OF SAINT PAUL Ch�is[opher E. Coleman, Mayor JUly 17� ZQ�9 JILL A FRIEDERICHS PO BOX 48755 COON RAl'IDS MN 55448-0755 375Jackson Sveet, Suite 220 Telephone: 651-266-8989 SamtPaul,MN»I01-1806 F�� 6)I-Z66-8951 RE: NOTICE OF CERTTPICATE (JF OCCUPANCY REVOCATION 772 DESOTO ST Ref. # 110205 Dear Property Representative: Your building was inspected on July 16, 20�9, for the renewal of the Certificate of Occupancy. Since you have failed to comply with the applicable requirements, it has become necessary to revoke the Certificate of Occupancy in accordance with Section 33.05 of the Saint Paul Legislative Code. Your building vacant IS ON August 18, 2009 AT 12 NOON. THIS MEANS YOUR BULDING IS TO BE VACATED BY THIS DATE AND TIME. The Saint Paul Legislative Code further provides that no building shall be occupied without a Certificate of Occupancy. Failure to immediately complete the following deficiency list or the building vacated may result in a criminal citation. THIS LETTER SERVES AS OFFTCIAL NOTICE OF REVOCATTON. DBFICIENCY LTST ?, � � 5. Basement - MN Stat 299F.18 - Immediately remove and discontinue excessive accumulation of combustible materials. Basement - SPLC 34.10 (3} 3433{2) - Provide an approved guardrail. Tntermediate ballustrade must not be more than 4 inches apart. Intermediate rails must be pmvided if the height of the platform is more than 30 inches. Basement - SPI,C 34.10 (3), 3433(2) - Provide an approved handraii. The top of the handrail must be between 34 and 38 inches above the treads and run the entire length of the stair. SPLC 34.11 (6), 34.34 (3) - Provide service of heating facility by a licensed contractor wluch must include a carbon monoxide test. Submit a completed copy of the Saint Paul Fire Marshal's Existing Fuel Buming Equipment Safety Test Report to this office. SPLC 39.02(c) - Complete and sign the provided smoke detector affidaviY and return it to Yhis offiae. 6. MSFC 605.6 - Provide a11 openings in juncfion boxes to be sealed. l� -! (� MSFC 605.1 - Remove unapproved exposed wiring and install in accordance wSth the electncal code. This work may require a permit(s}. Call DSI at (651) 266-9090.-Replace all hard wired smoke detectors 8. SPLC 34.08 (5), 34.31 (3) - Repair, replace and maintain all exterior surfaces on FENCES, sheds, garages and other accessory shvctures free from holes and deterioration. Provide and maintain exterior unprotected surfaces painted or protected from the elements. 9. MSFC 901.81 - It shall be uniawful for any person to remove, tamper with ar otherwise disturb 10. UMC 504.6 - Provide, repair or replace the dryer exhaust duct. Exhaust ducts for domestic clothes dryers shall be conshucted of inetal and shall have a smooth interior finish. The exhaust duct shall be a minimum nominal size of four inches (102 mm} in diameter. The entire exhaust system shail be supported and secured in place. 11. tJMC 1346.743 - Provide 30 inches clearance around all mechanical equipment. 12. MN Stat. 299F362 - Immediately provide and maintain a smoke detector located outside each sleeping area. If you have any questions, call me at 651-266-8983. Please help to make Saint Paul a safer place in which to live and work. Sincerely, James Thomas Fire Inspector Email: james.thomas@ci.stpaul.mn.us Ref. # 110205 cc: Force CITY OF SAINT PAUL Chrismpher B. Coiemars, M¢yor June 26, 2009 JILL A FRIEDERICHS PO BOX �8755 COON RAPIDS Ml�T 55448-0755 DEPARTMENT SAFETY AND I1vSPECTIONS Fire Inspection Division Robert Kessler, Directar ,�! �� y( (1"'� 375 Jackson Street, Suite 220 Telephone� 651-266-9090 Swnt Paul, MN 55101-IF06 Fac: b57-266-8951 RE: RE-INSPBCTION FIRE CERTIFICATE OF OCCL7PANCY WITH DEFICIENCIPS 772 DESOTO ST Re£ # 110205 Dear Property Representative: Your building was re-inspected for the Fire Certificate o£ Occupancy on June 26, 2009. Approval for occupancy will be granted upon compliance with the following deficiency list. The items on the list must be corrected immediately. A reinspection will be made on July 16, 2009 at 2:00 P.M.. Failure to comply may result in a criminal citation or the revocation of the Fire Certificate of Occupancy. The Saint Paul Legislative Code requires that no building be occupied without a Fire Certificate of Occupancy. The code also provides for the assessment of additional reinspecrion fees. DEFICIENCY LIST Basement - MN Stat 299F.18 - Immediately remove and discontinue excessive accumulation of combustibie materials. 2. Basement - SPLC 3410 (3) 34.33(2) - Provide an approved guardrail. Intermediate ballustrade must not be more than 4 inches apart. Intermediate rails must be provided if the height of the platform is more than 30 inches. 3. Basement - SPLC 3410 (3), 3433(2) - Provide an approved handrail. The top of the handrail must be between 34 and 38 inches above the treads and run the entire length of the stair. 4. SPLC 34.11 (6), 34.34 (3) - Provide service of heating facility by a licensed contractor which must include a carbon monoxide test. Submit a completed copy of the Saint Paul Fire Marshal's Existing Fue1 Burning Equipment Safety Test Report to this office. SPLC 39.02(c) - Compiete and sign the provided smoke detector affidavit and return it to this office. 6. MSFC 605.6 - Provide all openings in junction boxes to be sealed. MSFC 605.1 - Remove unapproved exposed wiring and install in accordance with the electrical code. This work may require a pernrit(s). Call DSI at (651) 266-9090.-Replace all hard wired smoke detectors �1�115{ 8. SPLC 34.08 (5), 34.31 (3) - Repair, replace and maintain all exterior surfaces on FENCES, sheds, garages and other accessory sfiactures free from holes and deterioration. Provide and maintain exterior unprotected surfaces painted or protected from the elements. 9. MSFC 901.8.1 - It shall be unlawful for any person to remove, tamper with or otherwise disturb 10. IJMC 504.6 - Provide, repair or replace the dryer exhaust duct. Exhaust ducts for domestic clothes dryers shall be constructed of inetal and shall have a smooth interior finish. The exhaust duct shall be a minimum nominal size of four inches (102 mm) in diameter. The entire exhaust system sha11 be supported and secured in place. 11. UMC 1346.703 - Provide 30 inches clearance around all mechanical equipment. 12. MN Stat. 299F.362 - Immediately provide and maintain a smoke detector located outside each sleeping area. If you have any questions, call me at 651-266-8983 between 7:30 a.m. - 9:00 a.m. Please help to make Saint Panl a safer place in which to live and work. Sincerely, James Thomas Fire Inspector Email: }ames.thomas@ci.stpauLmn.us Ref. # 110205 DEPARTMENT SAFETY AND INSPECTIONS Fire Inspection Division Roberd Kessler, Directar � � (� / ! CITY OF SAIN'I' PAUL Christopher B. Colem¢n, Mayor May 28, 2009 JILL A FRIEDERICHS PO BOX 48755 COON RAPII7S MN 55448-0755 37i Jackson Street, Suite 220 Telephone� 651-2b6-9090 SaintPauL MN5�101-1806 F2r' 651-266-8951 RE: FIRE CERTTFICATE OF OCCUPANCY WITH DEFICIENCIES 772 DESOTO ST Ref. # 110205 Residential Class: C Dear Property Representative: Your building was inspected on May 28, 2009 for the renewal of your Fire Certificate of Occupancy. Approval for occupancy will be granted upon compliance with the following deficiency 1ist. The items on the list must be corrected immediately. A re-inspection will be made on June 26, 2009 at 11:30 A.M.. Failure to comply may result in a criminal citation or the revocation of the Fire Certificate of Occupancy. The Saint Paul Legislative Code requires that no building shall be occupied without a Certificate of Occupancy. The code also provides for the assessment of additional re-inspection fees. YOU WILL BE RESPONSIBLE FOR NOTIFYING TENANTS IF ANY OF THE FOLLOWING LIST OF DEFICIENCIES ARE THEIR RESPONSIBILITY. DEFICIENCY LIST Basement - MN Stat 299F18 - Immediately remove and discontinue excessive accumulation of combusrible materials. 2. Basement - SPLC 3410 (3) 3433(2) - Provide an approved guardrail. Intermediate ballusirade must not be more than 4 inches apart. Intermediate rails must be provided if the height of the platform is more than 30 inches. Basement - SPLC 34.IQ (3), 3433(2) - Provide an approved handrail. The top of the handrail must be between 34 and 38 inches above the treads and run the entire length of the stair. 4. SPLC 3411 (6), 34.34 (3) - Provide service of heating facility by a licensed contractor which must include a carbon monoxide test. Submit a completed copy of the Saint Paul Fire Marshal's Existing Flxel Burning Equipment Safety Test Report to this office. 5. SPLC 39.02(c) - Complete and sign the provided smoke detector affidavit and return it to this office. 6. MSFC 605.b - Provide all openings in junction boxes to be sealed. 4�-�/5/ 7. MSFC 6051 - Remove unapproved exposed wiring and install in accordance with the electrical code. This work may require a permit(s). Call DSI at (651) 266-9090.-Replace all hard wired smoke detectors SPLC 34.08 (>}, 34.31 (3) - Repair, replace and maintain all exterior surfaces on FENCES, sheds, gazages and other accessory shuctures free from holes and deterioration. Provide and maintain exterior unprotected surfaces painted or protected from the elements. MSFC 901.8.1 - It shall be unlawful for any person to remove, tamper with or otherwise disturb 10. LTMC 504.6 - Provide, repair or replace the dryer exhaust duct. E�aust ducts far domestic clothes dryers shall be constructed of inetal and shall have a smooth interior finish. The exhaust duct shall be a minimum nominal size of four inches (102 mm) in diameter. The entire exhaust system shall be supported and secured in place. 1 L UMC 1346.703 - Provide 30 inches clearance around a11 mechanical equipment. 12. MN Stat. 299F.362 - Immediately provide and maintain a smoke detector located outside each sleepang area. You have the right to appeal these arders to the Legislative Hearing Officer. Applications for appeals may be obtained at the Office of the City Clerk, 310 City Hall, CitylCounty Courthouse, 15 W Kellogg Blvd, Saint Paul MN 55102 Phone: (651-266-8688) and must be filed within 10 days of the date of the original orders. If you have any questions, call me at 651-266-8983 between 7:30 am. - 9:00 a.m. Please help to make Saint Paul a safer place in which to live and work. Sincerely, James Thomas Fire Inspector Email: }aznes.thomas@ci.stpaul.mn.us Ref. # 110205 DEPARTMENT SAFETY AND INSPfiCTIqNS Fire Inspechon Drvision Robert liessler, Director CITY OF S�IN'T PAUL Christopher B. Colemnn, Mayor May 4, 2009 .TILL A FRIEDERTCHS PO BOX 48755 COON RAPIDS M1�T 55448-0755 375 Jackron Street, Suite 220 Saint Paul, MN Si 101-1806 Telephon e. 651-266-9090 INSPECTION APPOINTMENT Deaz Property Ownez: An inspecrion of your property has been scheduled as follows: Address: Date: Inspector: 772 DESOTO ST May 28, 2009 James Thomas Units: Time: 11:30 P.M. Phone: 651-266-8983 You or your responsible representative is requested to meet the inspector at the front of the building to admit and accompany the inspector throughout the building, including each rental unit. It is the responsibility of the owner to notify the tenants at least 24 houcs in advance that an inspection will be done. Please have keys available to all units and common azeas. Saint Paul Legislative Code authorizes this inspecrion and it is a criminal misdemeanor violarion should you not pemut this inspection by failing to appear for this appoimment without xescheduling wifh the inspector. In arldition, a No Entry Fee of $60.00 may be assessed to the Renewal Fee whenever the owner or responsible representative needs to re-schedule the appointment but faiis to norify the inspector, in writing, by 8:00 a.m. on the date of the inspecrion. If you no longer own this building contact the inspector immediately between 7:30 - 9:00 a.m, Monday through Friday. FOR CONDOS: The interior of owner-oceupied dwelling units aie exempt from this inspecrion. In condominium buildings, only rental units, the common azeas, and utility azea wili be inspected. FOR APARTMENTS AND DWELLINGS: Attached is a Smoke Detector Affidavit and a Residential Occupancy Atfidavit, both must be completed at the time of inspection. Also attached is a Pre-Inspection Checklist, which is a list of the most common violarions found by the inspectors, an "E�sting Fuel Burning Equipment Safety Test Report (RH-1)" and a"Notice To TenanYs° that thea units will be inspected. Thank you for your co-operarion. AA-ADA-EEO Employer September 15, 2009 Legislative Hearing Minutes Page 9 �!-1/5'/ 5. Appeal of Thomas Gorz to a Certificate of Occupancy Revocation and Vacant Building Registration Norice and Fee for property at 772 Desoto Street. Thomas Gorz, appellant, appeared with Kristina Wagner, a friend, and Jon Devary, Integrity Investigarions. Ms. Moermond stated that Joe Yannarelly, DSI — Code Enforcement, had given a report prior to the hearing and indicated it was Code EnforcemenYs position to abide by the decision of the Hearing Officer. Ms. Moermond said that in reading the appeal, she was unclear what was being appealed. Mr. Gorz responded stated that he was appealing the revocation and order to vacate as well as the buiiding being registered in the Vacant Building Program. He said he had oumed the property for the past 18 years and it was his understanding that the contract for deed he had with Paul Friederichs had not been filed with Ramsey County. The property should not have been in the C of O Program since he owned the property and had not been aware of any correction orders from Fire. He said he wished Mr. Friederichs was at the hearing so he could talk to him about striping the equity in his house. Leanna Shaff, DSI — Fire Tnspector Supervisor, stated that Inspector Thomas had sent a letter to Jill Friederichs scheduling an inspection for May 28, 2009. Ae also called Ms. Friederichs on three different occasions regarding the city providing trash hauling service at the property and got the answering machine with no return call. He inspected the property on May 28 and issued a deficiency list. On June 26, he conducted a re-inspection of the property and on July 16, he revoked the certificate of occupancy with a re-inspection on August 18. According to the inspector's notes, on July 16, he received a call from the "tenant" who was yelling and swearing at him. The property was not listed under the "tenanYs" name, per Ramsey County, despite the tenant claiming ownership of the property. On August 18, the inspector noted that the work had not been done; he offered to put batteries in the smoke detector and the "tenanY' refused. The property was then refened to the Vacant Building Program for non-compliance with the orders. Ms. Moermond reviewed a copy of all of the orders and noted that it did not appear Mr. Gorz was copied on any of them. Ms. Shaff responded that this was correct. The department generally only mailed orders to the property owners of record per Ramsey County Taxation, and in this case, that was N. Paul and Jill Friederichs. It was her understanding that Inspector Thomas had asked Mr. Gorz for proof of ownership and Mr. Gorz refused. Mr. Gorz responded that the inspectar had not asked him for any proof of ownership. He said when the inspector showed up at his house the first time, he let him in the house. The inspector noted some deficiencies which he understood needed to be corrected. He said he never received any orders, was unaware that the property had been considered a rental property s3nce he had lived there for the past 18 years, and had a copy of the contract for deed to prove it. He had hired Mr. Devary to assist him with the ownership issues with the property concerning the contract for deed as he had mortgaged his house through Pau1 Friederichs approximately five years ago and that contract was never recorded. He couldn't understand how his home, even though it wasn't homesteaded, would have become classified as a"rental" property. Ms. Shaff explained that the term "rental" was applied arbitrarily as they looked at properties as being owner occupied or non-owner occupied. They were only concerned with whether the primary September 15, 2009 Legislative Hearing Minutes l � ( Page 10 � fJ owner of record lived at the property. In this case, the owner of record shows their primary address as Coon Rapids. She said since March 2007, the city abolished the rental registration program and placed all non-owner occupied properties into the Fire C of O Program. Since there were over 10,000 rental properties in the city, it was taking a tremendous amount of time to inspect all of the properties which were rental. This was the first time that Fire C of O had come to the conclusion this property was being used as a rental property. Mr. Gorz claimed that he was a vuinerable adult and all of sudden the police showed up athis property, with guns drawn, to remove him &om his house with no just cause. He was put in jail far three days for what he believed was no good reason. Ms. Wagner explained that Mr. Gorz did not know what was going on when the police arrived at his property so he hid in the attic for several hours. He was then arrested for obstructing legal process. Mr. Gorz went on to say that when he saw the police arrive, they were "strong anning" his 17 year old son and then drew guns at his house. Since he never received any notices of anything, he didn't know what was going on so he hid in the attia He was removed from his house and put in jail for three days for what he thought was a psychological evaluation. He now had no place to live, was staying with his mother, and was recently diagnosed with advanced cancer. Ms. Moermond asked Mr. Garz whether he was warking with a social worker since he claimed he was a vulnerabie aduit. Ms. Wagner responded that Mr. Gorz was working with a social worker at the VA and was recently officially diagnosed with schizophrenialbipolar. He was placed on medication within the last week but had a tendency not to take his drugs so she would put it in his coffee or something. He currently visits the VA Hospital bi-weekly and is scheduled to have surgery to remove the cancer the following week. She said Mr. Gorz does not understand any of this process and believes his rights have been violated by being evicted from his home. She said he had not received any of the orders or he would have complied as he takes pride in his house. Ms. Moermond asked Ms. Shaff whether she had addirional information to provide concerning the day the police went to the property. Ms. Shaff responded that she received a call from Inspector Thomas on August 24 and he informed her that he had been contacted by the Police to go to the Desoto property. She then went to the property after she was done inspecting another property. Ms. Moermond questioned Ms. Shaff regarding item #9 as the order was incomplete. She asked what this item related to. Ms. Shaff responded that she was unsure; however, it could be related to item #8. Mr. Devary stated that he was retained by Mr. Gorz to assist him in sorting out the suspected equity striping scam by the Friederichs. What happened in this case was, on May 26, 2005, Mr. Gorz owned a farm, free and clear, in Alma, Wisconsin and Friederichs did a warranty deed from Gorz to themselves. Instead of giving the proceeds to Mr. Gorz, the payment in the amount of $97,000 was made to Excel Title. There was also a closing on May 27, 2005 for the Desoto property, which was in foreclosure, in which Mr. Gorz signed a contract for deed; however, he was unable to obtain any documentation concerning the closing of the property which had now been forced into lirigation. Ms. Moetmond stated that she dad a quick review on the title to the properiy and it appeared that on May 3, 2005, she found a notice of intent to redeem in which Mr. Gorz was trying to redeem the mortgage from the Priederichs. Mr. Devary responded that the intent was to redeem the property before it was lost indefinitely. Had the contract for deed been ragistered, this would not haue September 15, 2009 Legislative Hearing Minutes N ` Page 11 �"1 ` � f �� happened. Ms. Moermond asked Mr. Devary why Mr. Gorz, as the purchaser, did not file the contract for deed. Mr. Devary responded that the title company, APL Warranty Title, has refused to discuss this matter with him so he was unable to provide an answer. This was something that would have to be explored during the discovery process through the courts. Mr. Czorz stated that he recalled paying $6,000 to the title company to register the ritles, in addition to paying child support he owed as well as to pay some other judgments he had against him, from the funds of the sale. He believed he should have received $50,000 at the time of the closing. He said he wanted 1vs status restored on being able to live in his "mint-condition" house. He always paid his bills on time, he cleaned his house himself, cooked meals for him and his son, and thought everything was just fine with living in his house until this happened. Ms. Wagner stated that at the time the contract for deed was executed, Mr. Gorz' daughter had tragically passed away the previous December. She did not believe he was in any frame of mind at the time to have been si�ing such documents and believed Mr. Gorz had been preyed upon by the Friederichs. She said Mr. Gorz had consulted with an attorney at SMRLS who was going to represent him; however, she could not recall her name. Ms. Moermond asked Mr. Gorz whether he had a job. Mr. Gorz responded that he did not and had only worked off and on over the past year. He said with the current economy, he could not stay in business and was now currently working with the VA to collect social security disability. Ms. Moermond asked Mr. Gorz what he did for a living. Mr. Gorz responded that he had a litfle ` junk yard" next to his house at 776 Desoto and since then, he lost the property to foreclosure. Ms. Moermond asked Mr. Gorz how much he owed on his mortgage for 772. Mr. Gorz responded that he owed $100,000; however he disputed this amount and believed it was more like $50,000 that he owed. Ms. Moermond asked Mr. Gorz whether he was escrowing the payments that he would have been paying Mr. Friederichs. Mr. Gorz responded that he had not set aside any money to pay on the house and was using what he would have paid Friederichs to live on and pay his bills. He said he recalled paying Friederichs $10,000 at the time of the closing so that if he ever fell behind on payments, he would have that money to apply towards his contract payments. He said the only time he ever knew he had a problem was when someone told him he had a problem and he was never told there was aprobiem. Mr. Devary stated that he had talked to Paul Friederichs and was aware that he had been involved in at least l2 different equity scams such as this one. It was his information that Mr. Friederichs was "courted" by an organization for him to be an investor and they would take care of everything eise. He believed that escrows which were taken by the title companies, as well as the over-inflated appraisals, was merely a way to get cash at the time of the closing for escrow and was how they managed to ship people of the equity in their properties. Ms. Moermond recommended continuing the hearing to September 22 at 1130 am. She instructed Mr. Gorz that he have his attomey from SNII2I.S present at the hearing. She told Mr. Gorz that he can be at the property from S a.m. to 8 p.m. to make all of the necessary repairs, as outlined on the deficiency list, and that any repairs being made which require a permit, a permit must be pulled. September 22, 2009 Legislative Hearing Minutes y ���� /� f Page 6 U 5. Appeal of Thomas Gorz to a Certificate of Occupancy Revocation and Vacant Building Registration Notice and Fee for property at 772 Desoto Street. (continued from Sept. 15) Gerry Kaluzny, 5MRLS, appeared with the appellant, Thomas Gorz. Ms. Moermond stated that she received a call from DSI staff indicating that Xcel had cut the power to the property. Mr. Kaluzny stated that he believed he could have the power restored by the end of the day. He said the property should not have been inspected under the C of O Program since it was owner occupied and it was only inspected due to the contract for deed not having been recorded. Ms. Moermond responded that since the property was inspected and deficiencies were noted and orders did exist, the property would need to be brought into compliance. Mr. Kaluzny stated that Mr. Gorz did not want his property to be refened to the Vacant Building Program or be required to have a code compliance inspection. He said Mr. Gorz was beginning cancer treatments this week which required several weeks of treahnent. He would need additional time to make the repairs given his health situation. Ms. Shaff addressed the lifelsafety issues which were noted at the time of inspection. There were missang smoke detectors outside the bedrooms, no carbon monoxide detectors by the bedrooms, the dryer exhaust duct needed repair, there were missing handraiUguardrails in the basement, and there were excessive combustible materials in the basement. Ms. Moermond recommended denying the appeal on the Certificate of Occupancy Revocation and granting an extension to October 2Q, 2009 to complete all of the repairs. The owner cannot live at the property; however can be there from 8 am to 8 pm to make the necessary repairs. ff the property is not in compliance upon re-inspection, the building will be referred to the Vacant Building Program. A code compliance inspection will be necessary and the property will need to be brought up to code before it can be reoccupied.