R2016-65 AUTHORIZING ACCEPTANCE OF DEED & TRANSFER OF PROPERTY - 825 N. Lowber

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CITY COUNCIL MEMORANDUM NO. 2016-11 DATE: June 6, 2016 TO: The Honorable Mayor and City Council Members FROM: Timothy A. Gleason, City Manager Billy Tyus,Assistant City Manager Wendy Morthland, Corporation Counsel SUBJECT: Resolution Authorizing Acceptance of Deed in Lieu of Foreclosure and Subsequent Transfer of Property SUMMARY RECOMMENDATION: City Staff recommends City Council approval of the acceptance of a deed in lieu of foreclosure and subsequent transfer of property located at 825 N. Lowber Street, Decatur, Illinois. BACKGROUND: This property consists of a 30 acre parcel that was once home to Wagner Castings and later Intermet Foundry. The companies went bankrupt and the property owners have abandoned the property resulting in the City being forced to perform maintenance work on the brush and weeds and liens placed on the property. Criminal activity has also occurred and been addressed by the police department. A local developer, Black Acre of Decatur, LLC has approached the City with an avenue to redevelopment. Impediments exist, however, to this- primarily a large amount of real estate taxes that have been unpaid since 2009, liens the City has placed on the property and potential environmental concerns. These concerns have caused this property to remain vacant, abandoned and a detriment to this community. The City has worked for many months on a plan with the potential developer, Macon County, ILEPA, USEPA, and most recently Central Illinois Title Company to resolve this very complicated matter. State statute provides an avenue for addressing the property tax and City lien issues and one the City has used since the early 1990's to transfer properties under our side yard program. The City is able to foreclose on outstanding liens it has or accept a deed in lieu of foreclosure. Once that has been accomplished, the outstanding taxes will be declared null and void. The corporation that owns this property is currently not in good standing and dissolved. The Managers and Members of the corporation, therefore, had to be found which the developer did and they have signed a deed in lieu of foreclosure transferring the property to the City of Decatur in exchange for the extinguishing of the City liens. Knowing potential environmental issues exist, the City toured the site with the Illinois EPA and United States EPA. This tour led to a partnership to remediate the site utilizing our brownfield site grants. Brownfield sites are properties, "the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance,pollutant, or