Council 'gets the ball rolling' on dilapidated property

Tuesday, December 3, 2019

Lorri sughroue

Associate Editor

McCOOK, Neb. — Call it the property in limbo.

A dilapidated, burned-out alley house at 1107 W. Fourth had stood vacant for years, posing safety, health and structural problems for the neighborhood.

The McCook City Council attempted the past few years to address the property with city staff trying to pinpoint the legal owner. In May 2018, the house was torn down after the council approved using ACE funds to demolish the structure, contingent on the property owner deeding the property to the city. ACE funds are not taxpayer funds but revenue derived from the gas company’s return program.

But the ownership of the property is still in question. The issues is that the supposed owner does not have a deed of sale on file, said McCook City Manager Nate Schneider at the regular city council meeting Monday night.

Instead, a purchase agreement was discovered but that cannot serve as a deed of sale, Schneider said. That puts the legal ownership of the property in a kind of no-man’s land.

To get the ball rolling, the council unanimously approved to authorize city staff to prepare a resolution fixing as a special assessment all costs incurred by the city to demolish the property and filing a lien against the property. Costs have been estimated at $15,326 and include asbestos inspection, $765, demolishing the house, $9,000 and transfer station charges, $5,561.

Once the city gains possession of the property, it can be sold, Schneider said.

In response to a question by Councilman Gene Weedin, who pulled the item from the consent agenda for discussion, Schneider said the time frame would be up to two years, starting with the date of the special assessment, until the city could foreclose on the property. After a court judgement, the city could sell the property.

Councilman Jerry Calvin asked if the money collected from the sale would go back into the ACE account as a line item or to the general fund. Schneider said the council would have the authority as to where the funds would go, noting that the city has already budgeted $25,000 for demolition.

Another possibility of how municipalities can address dilapidated property may come from the Nebraska Legislature in the form of land banks, Schneider said.

He was referring to a bill introduced last year by Grand Island senator Dan Quick, that would allow municipalities throughout Nebraska to create or join land banks. The bill stalled on general file.

A land bank is a tax exempt, un-elected political sub division that acquires, manages and develops vacant and tax-delinquent properties under the Nebraska Land Bank Act, according to the Nebraska Legislature. Currently, only municipalities in Douglas and Sarpy counties are eligible under state law to create land banks.The bill specified that a land bank could not levy property taxes and would have the authority to buy or accept donations of tax delinquent, run-down or abandoned properties, then sell them for redevelopment.

Supporters of the bill, such as Sen. John Stinner of Gering, saw it as a way for cities, especially those in rural areas, to address abandoned and dilapidated properties. Opponents, like Sen John Lowe of Kearney, said it would remove more property from the tax roles.

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