Agenda Item 15: Demolition Services for CDBG Program

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COSM_Admin

Administrator
Staff member
Consider approval of Resolution 2021-63R, awarding an Indefinite Delivery Indefinite Quantity contract to Haulbrooke, Inc. for Demolition Services to be funded through the Community Development Block Grant program in a not-to-exceed amount of $125,000 and authorizing two additional annual renewals; authorizing the City Manager or his designee to execute the contract on behalf of the city; and declaring an effective date.
 

JHughson

CoSM Members
I don't see details of the agreement/contract in the packet.
Will the awardee go through the houses, removing items that can be re-used (by anyone) and given to either Habitat for Humanity ReStore or used for programs the city runs or funds for rehab?
Or, will we give the opportunity for Habitat (if they choose) or others to remove all re-usable materials in the structures?
Will any of these materials be distributed for recycling (metal, etc.)?
I hate to see it all hauled off to a landfill if any of the contents can be re-used to benefit others.
 

MBaker

Council Member
When a property is demolished through these funds and we place a lien on it, does the School Board/County have the ability to stop us from building an affordable home there?

Since a goal of this is to increase nearby property values, what do we do to ensure that the increased taxes for nearby properties aren't affected? Does our strategy/plan account for potential gentrification effects?
 

MDerrick

CoSM Members
Can these ALL be used for affordable housing lots after they are cleared, instead of placing a lien - are most of them in default with property taxes? Can we sell the salvageable pieces to put money in the bank to build affordable housing. If not can we donate to those who do provide affordable housing w/out legal consequence if someone is injured due to using old salvaged pieces.
 

COSM_Admin

Administrator
Staff member
Responses provided by Amanda Hernandez, Assistant Director of Planning:

Question from Mayor Hughson


Q1 - I don't see details of the agreement/contract in the packet.
The attached Scope of Work/Specifications section was not included in the packet. This section was contained in the solicitation documents to which the awarded contractor will be bound.

Q2 - Will the awardee go through the houses, removing items that can be re-used (by anyone) and given to either Habitat for Humanity ReStore or used for programs the city runs or funds for rehab?
Or, will we give the opportunity for Habitat (if they choose) or others to remove all re-usable materials in the structures?
Will any of these materials be distributed for recycling (metal, etc.)?
I hate to see it all hauled off to a landfill if any of the contents can be re-used to benefit others.
A2 – These properties will still be privately owned; the City will be stepping in to demolish structures that are beyond repair in cases where the property owners do not have the resources to pay the $10,000-12,000 to have the home demolished. Property owners will be income-qualified as a means of doing our best to determine that the actually do not have the resources to take these structures down.
Because the properties will be privately owned, staff will need to obtain permission from the property owners to recycle or salvage materials. Staff will make this request part of the program and will endeavor to find a partner such as Habitat that will assist.

Questions from CM Baker


Q3 - When a property is demolished through these funds and we place a lien on it, does the School Board/County have the ability to stop us from building an affordable home there?.
A3 - Because the properties are privately owned, it will be up to the homeowner what is constructed on the property. The City can offer to buy the property at market rate minus the cost of demolition, but we have to make it very clear that we are in no way pressuring the property owner to sell to the City. If the homeowner agrees to sell the property to the City, then the City could build an affordable home on the property if grant funds are available to do do.

Q4 - Since a goal of this is to increase nearby property values, what do we do to ensure that the increased taxes for nearby properties aren't affected? Does our strategy/plan account for potential gentrification effects?
A4 – The main goals of this program are to remove an unsafe structure and to remove blight from the neighborhood. Boarded up structures can be considered attractive nuisances that can attract kids to a place where they can be injured or start fires that impact the neighborhood. By removing blight, it is hoped that property values that have been depressed by the blight next to them will come back up to ordinary un-blighted values, a benefit to the property owners.

Questions from CM Derrick


Q5 - Can these ALL be used for affordable housing lots after they are cleared, instead of placing a lien - are most of them in default with property taxes?
A5 – It can be assumed that if these properties were in default on property taxes to the extent that a taxing entity could foreclose on them, they would have been foreclosed on. The purposes of this program include 1) removing neighborhood blight and 2) paying the up front costs of demolition so the income-qualified property owner can then do something useful with the property. The lien provides the possibility that the federal dollars can be recouped at some point in the future when the property sells and then be used for a CDBG qualifying program.

Q6 - Can we sell the salvageable pieces to put money in the bank to build affordable housing. If not can we donate to those who do provide affordable housing w/out legal consequence if someone is injured due to using old salvaged pieces.
A6 – The structures are privately owned. The City will ask for permission from the property owners to salvage recyclable pieces and sell or donate them. Any value from sales of salvaged pieces would legally have to go first to the cost of salvaging them and second to the property owner.

Response provided by the Legal department:
Any donation agreements with affordable housing providers would include terms to limit the city’s liability. For example, the agreements can require that the recipient will hold the city harmless and accept the salvaged materials “AS-IS” with no representations from the city as to the condition or suitability of the materials for a particular purpose.
 

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  • Demolition_ScopeOfWork.pdf
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