PROPOSED ORDINANCE NO. 16-007 - SECOND READING - PUBLIC HEARING - Approve and authorize creating Part II, Chapter 2, Article 5, Section 2-93 of the code of ordinances for a Conditional Lien Encumbrance Reduction Program.

On April 1st, 2014 the City Commission adopted Resolution No. R14-032 establishing a pilot Conditional Lien Waiver Program for an evaluation period of one year.  On March 17th, 2015 the City Commission adopted Resolution No. R15-026 extending the pilot program for one additional year and minor changes to streamline the program.

The program was designed to assist in the redevelopment of commercial and residential properties by administratively settling City code liens which often pose a barrier to obtaining clear and marketable title. The clear and marketable title in turn gives the interested property owners the ability to gain needed financing to bring properties into compliance or will allow for the transfer of title to the new property owner interested in bringing the properties into compliance. Two of the major successes of the pilot Conditional Lien Waiver Program were evidenced as Yachtsman's Plaza and the old Denny's building was successfully sold to new owners on 12/30/14 and 8/28/15. The new owner of Yachtsman's Plaza has completed major renovations to the plaza which included landscaping, irrigation, asphalt overlay, façade improvements, and signage.  The total investment to the plaza is in excess of $600,000 dollars. The new owner of the old Denny's building is in the process of completing major renovations to the site which included landscaping, irrigation, lighting, façade improvements, interior renovations, and signage.  In total the investment in the site and building is in excess of $725,000 dollars.

Staff is recommending the creation of a permanent conditional Lien Waiver Program as part of the Code of Ordinances. Additionally the program is being amended to provide changes to help streamline the process and continue to provide cost recovery.

The Conditional Lien Waiver Program is another tool that can be used by the Code Compliance and Economic Development Divisions to assist in brining chronically blighted/nuisance properties that possess City code liens, into compliant, productive, properties.

Currently the program is being administered by current Code Compliance and Building Division staff.

Do not codify the Conditional Lien Waiver Program and extend pilot program for one additional year or do not codify the Conditional Lien Waiver Program, allow the program to sunset,  and require applicants to go through the lien reduction process.

This item supports Strategic Plan Goal #1 - Great Neighborhoods: Safe, Affordable and Livable ; Objective #1 - Remove blighted structures, building, and homes; Short Term Challenges and Opportunities #4 - Consistent and supported code compliance.