Broken Arrow City Council
Meeting of: 08-05-15
To: Mayor and City Council
From: Office of the City Attorney
Title:
title
Consideration, discussion, possible approval of and authorization to execute Resolution No. 887, a Resolution authorizing the City Attorney to agree to Entry of Judgment without admitting liability in the matter of First Pryority Bank v. City of Broken Arrow, Wagoner County District Court, Case No. CJ-2015-0180; and directing the City Attorney to prepare and file the necessary documents to effectuate settlement, including a Journal Entry incorporating the Resolution of the Court’s approval, pursuant to 51 O.S. § 158
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Background:
On June 4, 2015, First Pryority Bank filed Case No. CJ-2015-0180 in the District Court of Wagoner County and by virtue thereof, alleged the City of Broken Arrow demolished its abandoned house located at 2400 East 71st Street South, Broken Arrow, Oklahoma, without proper notice to First Pryority Bank.
On December 3, 2013, the City of Broken Arrow Neighborhood Improvement Officer mailed a Notice to Abate a Nuisance Public Hearing regarding property located at 2400 East 71st Street South, Broken Arrow, Oklahoma, 74014, to the owner of record as shown by the Wagoner County Treasurer advising the owners of the requirement to rehabilitate or demolish the structure on the property, and of the Public Hearing scheduled for January 9, 2014.
In addition, the City of Broken Arrow Neighborhood Improvement Officer provided notice by physically posting the Notice to Abate a Nuisance Public Hearing on the property at 24001 S.E. 71st Multiple photographs were also taken which documented the dilapidated, unsafe condition of the property as of December 3, 2013. A mortgage and ownership record search was performed at the Wagoner County land records for the address, 2400 East 71st Street South, Broken Arrow, Oklahoma 74014, but not by its legal description. No mortgage holder of record was revealed by this search. The City subsequently learned that a search of the Wagoner land records by using the legal description, rather than the address, would reveal a Mortgage filed on March 1, 2007, and Sheriff’s Deed on filed February 8, 2013, with the Wagoner County Clerk showing First Pryority Bank as the owner of record for this property.
On January 7, 2014, two days before the Public Hearing for the public nuisance at 24001 S.E. 71st Street, the City of Broken Arrow Neighborhood Improvement Officer returned to the property and confirmed the nuisance had not been abated. Photographs documenting the continued dilapidated, unsafe condition of the property as of January 7, 2014 were also taken.
On January 9, 2014 a public hearing on the property located at 24001 S.E. 71st Street was held before a City of Broken Arrow Hearing Officer who signed an Order of Abatement and Notice of Dilapidation and Lien ordering the property at 24001 S.E. 71st Street be rehabilitated or demolished within thirty (30) business days of the date of the order. The Order of Abatement was mailed to the property owners New Tulsa Properties LLC, C/O Halo Properties, 7107 S. Yale Ave #138. The Notice was also sent to New Tulsa Properties LLC, Registered Agent Deborah Fisher Dunn, 7107 S. Yale Ave., Ste. #138, Tulsa, OK. 74136 and Halo Properties LLC, Registered Agent Roy Eleod, 7107 S. Yale Ave., Ste #138, Tulsa OK. 74136. In addition, on January 9, 2014, the Neighborhood Improvement Officer physically posted the Order of Abatement on the property at 24001 S.E. 71st Street. Additional photographs showing the continued dilapidated, unsafe condition of this property were also taken.
On January 13, 2014, the City of Broken Arrow City Clerk mailed a Notice of Dilapidation and Lien File to the Wagoner County Clerk, PO Box 156, Wagoner, OK 74467 describing the property, the findings of the City at the Public Hearing and stating the City of Broken Arrow claims a lien on the property for the destruction and removal costs and that such costs are the personal obligation of the property owner from and after the date of the filing of the notice.
On February 10, 2014, the City obtained an asbestos report for the property. The Building Demolition Notification Form was completed and Approval for Abatement was executed on March 11, 2014, followed by the demolition of the property.
State law found at 11 O.S. § 22-112(A)(1) requires ten (10) days written notice to the property owner as well as any mortgage holder prior to any hearing regarding demolition. Notably, “owner” is defined in 11 O.S. § 22-112(C)(2) as “the owner of record as shown by the most current tax rolls of the county treasurer.” See 11 O.S. § 22-112(C)(2). While First Pryority Bank was not the owner of record as shown by the most current tax rolls for Wagoner County as of November 25, 2013 for 24001 S. E. 71st Street, Broken Arrow, Oklahoma 74014, First Pryority did have a properly recorded mortgage for the property and was entitled to notice of the nuisance abatement action. As such, settlement of this matter in the amount of $30,000.00, plus release of the Notice of Dilapidation and Lien in reasonable for a full and final settlement of this matter.
The attached Resolution authorizes entry of Judgment in this matter, as well as direction to prepare and file the documents necessary to effectuate the terms of the settlement.
Cost: $30,000.00, plus Release of the Notice of Dilapidation and Lien
Prepared By: Beth Anne Wilkening, City Attorney
Reviewed By: Finance Department
Assistant City Manager
Approved By: Russell M. Gale, Acting City Manager
Attachments: Resolution No. 887
Recommendation:
Approve Resolution No. 887 and authorize its execution.