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HomeMy WebLinkAbout2019-150 CCRMember Butler introduced the following resolution and moved its adoption: RESOLUTION NO. 2019-150 RESOLUTION CERTIFYING SPECIAL ASSESSMENTS FOR NUISANCE ABATEMENT COSTS TO THE HENNEPIN COUNTY TAX ROLLS WHEREAS, the City of Brooklyn Center has caused abatement removal at the property located at 6842 West River Rd N, Brooklyn Center, MN under the authority of City Ordinance Section 12-1504 and Minnesota Statutes, Section 429 and/or by written agreement with the owners of such property; and WHEREAS, David W. Berg and Gwendyne C. Berg are the owners of the property located at 6842 West River Rd N located in Brooklyn Center; and WHEREAS, on August 13, 2018, the City Council passed Resolution No.2018- 144 declaring the partially -built house and accessory structures located on the Property to be hazardous buildings within the meaning of Minnesota Statutes, Section 463.15; and WHEREAS, on October 14, 2019, the abatement account remained unpaid; and WHEREAS, the property located at 6842 West River Rd N, Brooklyn Center, MN has a remaining special assessment balance of $29,355.00 for clean-up that occurred at the property between May 1, 2019 through June 30, 2019; and WHEREAS, the City Council approved resolution number 2019-#/# approving the restoration agreement with respect to the property at 6842 West River Rd N, Brooklyn Center.; and WHEREAS, Minnesota State Statute authorizes the certification of delinquent abatement accounts to the County tax rolls for collection; and WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for abatement costs. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The special assessment of $29,355 for the property located at 6842 West River Rd N, Brooklyn Center is hereby adopted and certified as Levy No. 20233. 2. The special assessments as adopted and confirmed shall be payable in equal annual installments with interest thereon at 5 percent per annum, extending over a period of five years. The first of the installments shall be payable with ad valorem taxes in 2020, and shall bear interest on the entire assessment from November 1, 2019 through December 31, 2020. To each subsequent RESOLUTION NO. 2019-150 installment when due shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may at any time prior to the certification of the assessment to the County Auditor pay the whole of the assessment, to the City Treasurer, without interest, if the entire assessment is paid on or before November 14, 2019. After November 14, 2019, he or she may pay the total special assessment, plus interest. Interest will accumulate from November 1, 2019 through the date of payment. Such payment must be made by the close of business November 22, 2019 or interest will be charged through December 31 of the succeeding year. 4. The City Clerk shall forthwith transmit a certified duplication of this assessment to the County Auditor to be extended on the proper tax lists of the county and such assessments shall be collected and paid over in the same manner as other municipal taxes. October 28, 2019; xl� Date Mayor r ATTEST: City Cle The motion for the adoption of the foregoing resolution was duly seconded by member Ryan and upon vote being taken thereon, the following voted in favor thereof: Butler, Graves, Ryan, and Elliott and the following voted against the same: None whereon said resolution was declared duly passed and adopted. Attachment- Summary of Appealed Properties Property Number 1 Address: 6007 Girard Ave Owner: R&B Management LLC Appellant’s Statement: Attempted to contact the City regarding administrative citations but staff did not get to back to him. Findings: The property had a Type I – 3 year rental license with an expiration date of October 31, 2018. A first notice to submit a rental license renewal application was sent on July 2, 2018. Staff did not receive a renewal license application, therefore, the second rental license renewal notice was sent on August 1, 2018. On October 31, 2018 the Type I – 3 year rental license application expired. On December 21, 2018 the rental license renewal application and fee was submitted. (typically due 90 days before expiration) The first rental license inspection was conducted on January 14, 2019 and failed due to 11 property code violations. The second rental license inspection was conducted on April 2, 2019 and failed. A $300 Administrative Citation was issued for $300 for operating without a rental license. The third rental license inspection was conducted on April 25, 2019 and failed. A $600 Administrative Citation was issued. The fourth rental license inspection was conducted on May 7, 2019 and failed. On May 9, 2019 a $1200 Administrative Citation was issued for $1200 for operating without a rental license. The firth rental license inspection was conducted on May 10, 2019 and failed. The sixth rental license inspection was conducted on May 24, 2019 and failed. The seventh rental license inspection was conducted on May 30, 2019 and failed. The eighth rental license inspection was conducted on June 11, 2019 and passed, however, $600 in reinspection fees were still owed. On June 25, 2019 the $600 reinspection fees were paid. The property qualified for a Type IV – 6 month rental license due to 11 property code violations and an expiration date of April 30, 2019. The license was issued on August 12, 2019. The rental license renewal application was submitted on August 28, 2019. The initial rental license inspection was conducted on October 1, 2019 and failed with 4 property code violations. The follow up inspection is scheduled for November 6, 2019. Recommendation: Legal notification requirements were followed and the rental property did not have a valid rental license at the time of issuance. The administrative citations were not appealed. The special assessment is for the amount of $2,100 including the Certification fees of $40. Violation Type Dates Action Fees Operating a rental dwelling without having a license. 1/11/18 Type I – 3 year rental license was issued with an expiration date of 10/31/19 7/2/18 1st rental license renewal notice was sent 8/1/18 2nd rental license renewal notice was sent 10/31/18 Type I – 3 year rental license expired 12/21/18 Rental license renewal application and fee was received 1/14/19 1st rental license inspection failed with 11 property code violations 2/19/19 Management called to reschedule rental license inspection to 3/1/19 2/27/19 Management called to reschedule rental license inspection to 4/1/19 4/2/19 2nd rental license inspection failed, not all items were corrected. A $300 Administrative Citation was issued for operating without a rental license. $300 4/25/19 3rd rental license inspection failed, there was no access to the property. $100 reinspection fee was charged. A $600 Administrative Citation was issued for operating without a rental license. $600 / $100 5/7/19 4th rental license inspection failed, there was no access to the property. $100 reinspection fee was charged. $100 5/9/19 A $1,200 Administrative Citation was issued for operating without a rental license. $1,200 5/10/19 5th rental license inspection failed, there was no access to the property. $100 reinspection fee was charged. $100 5/24/19 6th rental license inspection failed, there was no access to the property. $100 reinspection fee was charged. $100 5/30/19 7th rental license inspection failed, the smoke alarm was not working. $100 reinspection was charged. $100 6/11/19 8th rental license inspection passed, however, $600 reinspection fees are still owed and a license was not issued. $100 6/25/19 The $600 reinspection fee was paid. Property Number 2 Address: 2801 63rd Ave N Owner: Jason Blatz Appellant’s Statement: The Appellant stated that he informed the City that he is no longer going to rent the property and was going to terminate the lease agreement with the tenants. Since he is not renting the property, he felt that he did not need to submit an Action Plan. He further stated that he only had 4 property code violations therefore he should qualify for a Type II license. Findings: The property was issued a Type III – 1 year rental license on September 11, 2017. During the initial rental license inspection, there were 5 property code violations. The license would expire on October 31, 2018. Five Code Violations is a Type III License. However, this changed in December of 2018. On September 12, 2017 a notice was sent to Mr. Bennett to submit an Action Plan as required by the rental license type. An Action Plan was not received and a second notice was sent to submit an Action Plan on October 6, 2017. Staff followed up and spoke with Mr. Bennett on October 19, 2017 informing him of his license category and due to his license type he needed to submit an Action Plan. On March 16, 2018 a $125 Administrative Citation was issued for failure to submit an Action Plan. On June 14, 2018 A $250 Administrative Citation was issued for failure to submit an Action Plan. On July 11, 2018 A $500 Administrative Citation was issued for failure to submit an Action Plan. On August 1, 2018 A $1,000 Administrative Citation was issued for failure to submit an Action Plan. On August 16, 2018 A $2,000 Administrative Citation was issued for failure to submit an Action Plan. On September 27, 2018 $375 was specially assessed to the property taxes for payable on 2019 property taxes. On February 14, 2019 staff completed an occupancy check and found the property vacant. On February 19, 2019 the property was posted as a vacant building and a notice was sent to register the property. Staff received a call from Mr. Bennett stating he is putting the property on the market. On February 27, 2019 staff spoke with Mr. Bennett and explained the requirements for the vacant building registration and he was informed that registration will not be required if there is a purchase agreement to purchase the property. On March 6, 2019 the realtor called and spoke with staff inquiring about the vacant building requirement and informed staff the property is in the process being rehabbed for sale. March 19, 2019 Mr. Bennett provided documentation that the property was being sold. Staff informed him that the vacant building registration would not be required since there is an executed purchase agreement. Later, staff then spoke with Mr. Bennett again and informed him of the citations that were owed due to operating without a rental license. Staff then informed him of the special assessment process regarding any unpaid Administrative Citations. Recommendation: Legal notification requirements were followed and the Action Plan was not submitted at the time of issuing the Administrative Citations. The administrative citations were not appealed. The special assessment is for the amount of $3,500 including the Certification fees of $40. 2801 63rd Ave N Timeline Violation Type Dates Action Fees Failure to submit an Action Plan 9/11/17 Type III – 1 year rental license was issued with an expiration date of 10/31/18. 9/12/17 1st notice to submit Action Plan was sent 10/6/17 2nd notice to submit Action Plan was sent 10/19/19 Staff called and spoke with Mr. Bennett about the submission of the Action Plan and license type. 3/16/18 $125 Administrative Citation was issued for failure to submit an Action Plan $125 6/14/18 $250 Administrative Citation was issued for failure to submit an Action Plan $250 7/11/18 $500 Administrative Citation was issued for failure to submit an Action Plan $500 8/1/18 $1000 Administrative Citation was issued for failure to submit an Action Plan $1000 8/16/18 $2000 Administrative Citation was issued for failure to submit an Action Plan $2000 9/27/18 $375 was specially assessed to the 2019 property tax rolls. 2/14/19 Staff completed an occupancy check and found the property vacant. 2/19/19 Staff posted the property as a vacant building requiring the owner to register as a vacant building. 2/27/19 Staff spoke with Mr. Bennett and was informed that the property will be on the market. 3/19/19 Staff spoke with Mr. Bennett and was informed that the property has been sold. Staff then explained the citations and the special assessment process Property #3 Address: 5301 Russell Ave N Owner: Midwest GIR Group Appellant’s Statement: The Appellant stated that she purchased the property in December 2018 and the administrative citation was issued in September. The appellant was not aware of the citation since it was issued to the previous owner. Findings: The property was previously owned by Nedzad Ceric. The property is a multi- family property with 36 units in 2 buildings. A Type III – 1 year rental license was issued on April 10, 2017 and expired on December 31, 2017. A rental license renewal application was submitted on December 11, 2017. A first inspection was completed on December 28, 2017 and failed with 197 property code violations. The Type III – 1 year rental license expired on December 31, 2017. A follow up rental license inspection was completed on February 5, 2018 and failed. A $1000 reinspection fee was charged. A $300 Administrative Citation for operating without a rental license was issued on February 8, 2018. On February 22, 2018 a follow up rental license inspection was completed and failed. A $100 reinspection fee was charged. The $1000 reinspection fee was paid. A $600 Administrative Citation for operating without a rental license was issued on March 6, 2018. On March 9, 2018 the $100 reinspection fee was paid. A follow up rental license inspection was completed on March 14, 2018 and failed. $200 reinspection fee was charged. On March 23, 2018 $300 reinspection fee was paid. On March 26, 2018 a follow up rental license inspection was completed and passed. The Type IV – 6 month rental license was issued on April 9, 2018. The expiration date is June 30, 2018. The rental license renewal application and fee was submitted on April 11, 2018. A first inspection was completed on May 11, 2018 and failed with 305 property code violations. Due to the number of property code violations, the follow up inspections were completed every two weeks to accommodate the owner and maintenance staff. A $1200 Administrative Citation for operating without a rental license was issued on August 1, 2018. On September 10, 2018 a payment of $1200 for the Administrative Citation was received. After several failed inspections, a $2000 Administrative Citation for operating without a rental license was issued on September 19, 2018. On September 27, 2018 $900 was specially assessed to the property taxes for payable on 2019 property taxes. The rental inspection passed on October 29, 2018 and the Type IV – 6 month rental license was issued on December 10, 2018. The current owners, Midwest GIR Group applied for a new rental license on December 18, 2018. The initial inspection was conducted on January 3, 2019 and failed with 206 property code violations. A follow up inspection was conducted on February 12, 2019 and failed. $1800 reinspection fee was charged. The third inspection was conducted on March 13, 2019 and failed. $150 reinspection fee was charged. A $1900 reinspection fee was paid on March 21, 2019. The remaining $50 in reinspection fees were not charged. The fourth inspection was conducted on April 15, 2019 and failed. New code violations were found during the inspection. No reinspection fees charged for this inspection. The fifth inspection was conducted on April 16, 2019 and passed. The Type IV – 6 month rental license was issued on May 13, 2019. The license expires on November 30, 2019. The mitigation plan was submitted on July 12, 2019 and approved on August 14, 2019. On September 10, 2019 the rental license renewal application and fee was submitted. The initial inspection was conducted on October 8, 2019 and failed with 93 property code violations. The follow up inspection is scheduled for November 5, 2019. Recommendation: Legal notification requirements were followed and the rental property did not have a valid rental license at the time of issuing the Administrative Citations. The administrative citations were not appealed. The Administrative Citations were issued prior to the sale of the property and during the special assessment search, it would have been discovered the pending special assessment for $2000 for an administrative citation. The special assessment is for the amount of $2,000 including the Certification fees of $40. Typically these fees are paid at closing and the current owners should address the fee with the closing agent. Violation Type Dates Action Fees Operating a rental dwelling without having a license. 4/10/17 Type III - 1 year rental license was issued. Expired December 31, 2017. 12/11/17 Rental license renewal was submitted. 12/28/17 1st rental license inspection was conducted and failed with 197 property code violations 12/31/17 Type III rental license expired 1/9/18 Staff posted vacant units 2/5/18 2nd rental license inspection was conducted and failed. $1000 reinspection fee charged. $1000 2/8/18 $300 Administrative Citation was issued. $300 2/22/18 3rd rental license inspection was conducted and failed. $100 reinspection fee charged. $1000 reinspection fee was paid. $100 2/27/18 4th rental license inspection was conducted and failed. No reinspection fee as new violations were found. 3/6/18 $600 Administrative Citation was issued. $600 3/14/18 5th rental license inspection was conducted and failed. $200 reinspection fee was charged. $200 3/23/18 $300 reinspection fee was paid. 3/26/18 6th rental license inspection was conducted and passed. 4/9/18 Type Iv – 6 month rental license was issued. 4/11/18 Rental license renewal was submitted. 5/11/18 1st rental license inspection was conducted and failed with 305 property code violations. 5/16/18 2nd rental license inspection was conducted and failed. $50 reinspection fee was charged. 5/23/18 3rd rental license inspection was conducted and failed. $50 reinspection fee was charged. 6/5/18 4th rental license inspection was conducted and failed. $50 reinspection fee was charged. 6/19/19 5th rental license inspection was conducted and failed. 6/30/18 Type IV – 6 month rental license expired. 7/10/18 6th rental license inspection was conducted and failed. $50 reinspection fee was charged. 7/11/18 $1500 reinspection fee was paid. 8/1/18 7th rental license inspection was conducted and failed. 8/15/18 8th rental license inspection was conducted and failed. $1200 Administrative Citation was issued. $1200 9/4/18 9th rental license inspection was conducted and failed. Additional property code violations were found. 9/10/18 $1200 reinspection was paid. 9/19/18 10th rental license inspection was conducted and failed. Additional new property code violations were found. $2000 Administrative Citation was issued. $2000 9/27/18 On September 27, 2018 $875 was specially assessed to the property taxes for payable on 2019 property taxes. 10/3/18 11th rental license inspection was conducted and failed. 10/29/18 12th rental license inspection was conducted and passed. 11/1/18 Staff received a complaint about property conditions. A follow up inspection was completed and correction orders were issued. 11/27/18 Complaint inspection follow up conducted and failed. 12/13/18 Complaint inspection follow up conducted and passed. All items were compliant. 12/18/18 Midwest GIR Group submitted a new rental license application. 1/3/19 1st rental license inspection was conducted and failed with 206 property code violations. 2/12/19 2nd rental license inspection was conducted and failed. $1800 reinspection fee was charged. 3/13/19 3rd rental license inspection was conducted and failed. $150 reinspection fee was charged. 3/21/19 $1900 reinspection fee was paid. 4/15/19 4th rental license inspection was conducted and failed. New code violations were found during the inspection. 4/16/19 5th rental license inspection was conducted and passed. 5/13/19 The Type IV – 6 month rental license was issued. Expires on 11/30/19. 7/12/19 Mitigation plan was submitted. 8/14/19 Mitigation plan was approved. Copy of the approved plan was sent to the owner. 9/10/19 Rental license renewal application and fee was submitted. 10/8/19 1st inspection was conducted and failed with 93 property code violations. 11/5/19 2nd inspection is scheduled for follow up. Address: 5301 Russell Ave N Owner: Midwest GIR Group Appellant’s Statement: The Appellant stated additional concerns regarding the rental license program and the inspections that have occurred at the property. Findings: Building permit for new windows A buildering permit was issued to Nedzad Ceric on July 31, 2018 for replacing all the windows on the property. Staff conducted an inspection on September 20, 2019 and the new windows were not installed yet. A follow up inspection was conducted on December 13, 2018 and the owners stated he is getting close to have inspections. On January 25, 2019 the permit was close without final approval. Since the building was sold, the new owner needed to submit a new permit application to install or repair the windows. A building permit was issued to CCW MN Holdings 2 LLC on February 4, 2019 for window and three door replacements. An inspection was conducted on February 12, 2019 and staff noted that the window installation was partial complete. On February 22, 2019 an inspection was conducted and passed. A building permit was issued to CCW MN Holdings 2 LLC on February 19, 2019 for window repairs in a total of 9 units. An inspection was conducted on February 27, 2019 and approved the installation of the window. A building permit was issued to CCW MN Holdings 2 LLC on March 7, 2019 for 89 window repairs. An inspection was conducted on April 16, 2019 and staff noted that the windows were partial completed. An inspection was conducted on July 23, 2019 and approved the installation of the windows. ARM meeting requirement Once the property passed the rental license inspection, the notice on May 14, 2019 was sent to the owner stating the Mitigation plan requirements. Staff met with the owner and its representative regarding the mitigation plan requirements and staff explained each requirement. The Mitigation Plan was submitted on July 12, 2019 did not indicate any requirement for ARM meeting attendance. The Mitigation plan was approved on August 14, 2019 and a copy of the Mitigation Plan was sent to the owner. Citation/Reinspection fees Re-inspection fees are issued after the second failed inspection. Any inspection after the second inspection is charged a reinspection fee. The multi-family reinspection fee charged is $50 per unit and $100 per common area. After the second inspection on February 12, 2019, there were 26 units that failed and 5 common area. The fee charged for the failed 26 units were $1300 and $500 for the failed common areas, totaling $1800. After the third inspection on March 13, 2019, there was 1 unit that failed and 1 common area. The fee charged for the failed unit was $50 and $100 for the failed common areas, totaling $150. The total reinspection fee owed is $1950. There has been no Administrative Citations issued since Midwest GIR Group has been the property owner. Property Code Violations Prior to the rental license inspection, staff has provided the new property owners and managers with a brochure of the most common property code violations. The brochure is designed to be used as a checklist to ensure that common code violations can be checked off by the owner/property manager when they are doing their own walk-through inspection. The brochure lists violations such as blocked egress access which includes impediments from allowing the door to fully open and open light bulb sockets which are electrical hazards. During the rental license inspection, staff will specifically call out and show the property code violation(s) to the management staff. If management or maintenance staff correct the violation during the inspection, staff will note that the violation is corrected onsite. The violation will still be used to determine the rental license type. Property #4 Address: 7231 Morgan Ave N Owner: Deborah Ledin Appellant’s Statement: The Appellant stated that the vehicles did not belong to her. The vehicles and belonged to her renter. She stated that she attempted to discuss the inoperable vehicle and junk storage with the renter but the renter did not correct the violations. She is in the process of buying the property and asking the fee to be lowered. Findings: Staff received a complaint about the storage of inoperable vehicles on the property. After completing an inspection staff found several inoperable vehicles in violation of the city ordinance. Staff spoke with an occupant and informed him of the inoperable vehicle violations. The occupant stated that the vehicles could not be repaired due to the weather. Staff advised on how to comply with city ordinances by updating the tabs on the vehicles, storing it in the garage, or moving it off the property. Compliance notices were sent and several inspections were conducted, the property continued to be in violation and Administrative Citations were issued for storage of inoperable vehicles on the property. Staff posted the vehicles to be towed, however, on the day of the towing, the vehicles were blocked in by other vehicles and the inoperable vehicles were not able to get towed off the property. On September 27, 2018 $1,915 was specially assessed to the property taxes for payable on 2019 property taxes. Recommendation: Legal notification requirements were followed and the property continued to be in violation of inoperable vehicle storage at the time of issuing the Administrative Citations. However, staff is recommending the citation be dismissed due to the extenuating circumstances and the alternative enforcement actions that could have been done in lieu of a citation. Violation Type Dates Action Fees Unlicensed/Inoperable Vehicles 4/19/18 Staff received a complaint about inoperable vehicles in the driveway. 4/20/18 Staff completed an inspection and confirmed several inoperable vehicles stored on the property. Staff then spoke with an occupant at the property and the occupant stated that the weather is preventing him from working on the cars. Staff informed him to update the tabs on the vehicles, store them in the garage or move them off site. A first compliance notice was sent. 4/30/18 Staff completed a follow up inspection and the attempted to knock on the door. No one came to the door. The vehicles were still in violation. A second compliance notice was sent. 5/14/18 A follow up inspection was conducted. Vehicles are still in violation. $125 Administrative Citation was issued. $125 5/31/18 Staff received another complaint about inoperable vehicles. An inspection was conducted and the property was in violation for inoperable vehicle storage. $250 Administrative Citation was issued. $250 6/14/18 A follow up inspection was conducted and the property was still in violation. A $500 Administrative Citation was issued. $500 6/27/18 Staff received another complaint about inoperable vehicles on the property. 6/28/18 A follow up inspection was conducted and the property was in violation for inoperable vehicle storage. A $1000 Administrative Citation was issued. $1000 7/12/18 A follow up inspection was conducted and the property was in violation for inoperable vehicle storage. The inoperable vehicles were posted for towing. A compliance notice was sent informing the owner that the vehicles are posted to be towed if the vehicles are not in compliance. 7/27/18 An inspection was conducted and the inoperable vehicles were in violation. The inoperable vehicles could not be towed since the vehicles were blocked in by other operable vehicles. A third notice was sent. 8/3/18 A follow up inspection was completed and the vehicles were in violation. 8/7/18 A follow up inspection was completed and the vehicles were in violation. A $2000 Administrative Citation was issued. $2000 8/21/18 A follow up inspection was completed and all the vehicles were in compliance.