forward pretty quickly and resolve Thalita Terrace and foreclose. Then obviously we will
schedule a sale date, and it will continue to move forward through the foreclosure
process. Staff has done everything possible to assist with them getting out of
foreclosure but, to this date they have not taken any steps to do so. So again, Thalita
Terrace is in foreclosure, and we expect to have a hearing relatively soon in the next few
weeks, and we will keep the Commission updated when it is set for final sale.
The Commission, City Attorney and staff discussed the foreclosure, having mediation or
Executive Session, default entered against respondent, nothing filed with the court,
meetings with staff including on site, permits issued, demonstrating accessing the
building, whether there is a contract, the property being a nuisance, similar projects, and
Aloha Estates.
A.
Discussion concerning Enrico Ridge.
The next property, Enrico Ridge, is more troubling for us legally than Thalita Terrace.
They have current liens in the amount of $651,300 and we got an updated title search
but, the challenge with Enrico Ridge is that it has a mortgage on top of the City’s liens in
the amount of $15,500,686.61 which is the primary note. There is other debt on this
property and there is a final judgment in the amount of $141,000. So, there is a lot of
debt on the Enrico Ridge site which will make it harder to sell in a foreclosure action. We
have a different recommendation in that it is not as clean a shot as Thalita Ridge, which
has a very low mortgage for what it is. So, Enrico Ridge is a trickier project in that it has
such a huge note tied to it. If the Commission wants to move forward with foreclose, we
will but, legal does not recommend it. She recommends that Code continue to cite and
accrue fines.
The Commission, City Attorney and staff discussed legal action, the current building
condition, needing a third party analysis, condemning the property, possible structural
issues, getting a judgment, the cost, having the Building Official make
recommendations.
After discussion, the Commission concurred to have the Building Officials do an
analysis and make a recommendation, and if he recommends moving it to an
engineer, then we have direction to move to an engineer. Also, to place the
findings on the next agenda.
The Commission, City Attorney and staff discussed the existing mortgage, construction
insurance, safeguarding the process, and the building being a public safety hazard.
11. CITY MANAGER COMMENTS:
The City Manager stated the Commission was alerted this weekend that we received a
Tyco settlement for PFAs litigation in the amount of $664,000. Also, he thanked the
Commission for passing the parks item tonight. There will be some good ribbon cuttings
coming up throughout our parks and the City, from walking trails, courts and pavilions.