Item 13: Contract for CDBG Demolition Services

[COSM_Admin]

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]

Where are these lots that we have identified so far?
What is the zoning?
Assuming the rezoning is at no cost to the owner?
Bringing property values back up also increases the property taxes for the neighbors. just want to recognize that.
Who will be looking at the owner's financials to make the determination if they are eligible. What are the eligibility requirements?

If someone can't afford to demolish the existing structure, I'm not sure how everyone can afford to build a new house afterward. Therefore, they are likely to sell the lot to someone who can. That means they will profit from the government funding.
We discussed at the last meeting using some type of lien or other legal method to ensure that the owners don't immediately profit from government spending on their lot by selling the lot right away. I don't see those protections here.

 

[COSM_Admin]

Q: Where are these lots that we have identified so far?

6 lots are under consideration but no contracts have been executed at this time.

Q: What is the zoning?

4 are SF-6, 1 is SF-4.5, and 1 is CC Community Commercial

Q: Assuming the rezoning is at no cost to the owner?

Correct

Q: Bringing property values back up also increases the property taxes for the neighbors. just want to recognize that.

Recognized.

Q: Who will be looking at the owner's financials to make the determination if they are eligible. What are the eligibility requirements?

CDBG staff; 80% of Area Median Income

Q: If someone can't afford to demolish the existing structure, I'm not sure how everyone can afford to build a new house afterward. Therefore, they are likely to sell the lot to someone who can. That means they will profit from the government funding.

We discussed at the last meeting using some type of lien or other legal method to ensure that the owners don't immediately profit from government spending on their lot by selling the lot right away. I don't see those protections here.

Yes, a lien will be placed on the property so the cost of demolition will be repaid if the property sells. The amount recovered through the lien will go back into the CDBG program.