Code Enforcement as a Redevelopment Tool City of

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Code Enforcement as a Redevelopment Tool City of Ocala, Revitalization Strategies Department Florida Redevelopment

Code Enforcement as a Redevelopment Tool City of Ocala, Revitalization Strategies Department Florida Redevelopment Association Annual Conference Florida Ballroom 6 October 19, 2011

Slum and Blight Removal Property Registration Ordinance: Due to the ongoing effects of the

Slum and Blight Removal Property Registration Ordinance: Due to the ongoing effects of the down economy many real properties have gone into mortgage default, have been either foreclosed and/or abandoned, and have resulted in unsightly or hazardous conditions posing a danger to health, safety, and welfare and reducing surrounding property values. As a result at least thirty-eight municipalities in Florida have adopted a Property Registration ordinance establishing a system for managing abandoned properties. The ordinance requires the owner of the foreclosed or abandoned property to register with the municipality paying a nominal registration fee (ie. $125 annual) and providing a local contact for staff to work with on an ongoing basis. Page 2

Slum and Blight Removal Property Registration Ordinance Continued: The ordinance helps to reduce cost

Slum and Blight Removal Property Registration Ordinance Continued: The ordinance helps to reduce cost and time associated with code enforcement processing and achieving voluntary compliance. Many banking institutions have come to accept these type of ordinances and understand it is in the interest of the bank and municipality to keep these properties in compliance. The City of Ocala’s code considers the property abandoned if utility service is disconnected in excess of two days regardless if the property is subject to a mortgage or that any such mortgage be in default. The City of Ocala has registered approximately four hundred properties and in a few cases has worked out deed in lieu of foreclosure from the bank as a result of the ordinance. Page 3

Slum and Blight Removal Stipulated Settlement Agreements: In cases where there are numerous violations,

Slum and Blight Removal Stipulated Settlement Agreements: In cases where there are numerous violations, the owner admits guilt, and needs time to bring the property into compliance the City of Ocala may utilize a stipulated settlement agreement. The agreement is negotiated between the owner and staff and usually involves concessions on both ends including the ability to forego or freeze fines and liens. The agreement is presented to the Code Enforcement Board or Special Magistrate, agreed to by all parties, and may be recorded with the Marion County, Clerk of Court. The agreements often involve multiple issues of varying degrees of complexity and trigger points for performance and can be effective where changes in property ownership are involved. Page 4

Slum and Blight Removal Stipulated Settlement Agreement Example: Before Page 5 After

Slum and Blight Removal Stipulated Settlement Agreement Example: Before Page 5 After

Slum and Blight Removal Negotiated Demolition Agreements: In the case of properties located within

Slum and Blight Removal Negotiated Demolition Agreements: In the case of properties located within a community redevelopment area that contribute to slum and blight but are otherwise in compliance the City of Ocala may negotiate a demolition agreement. The agreement is typically used when an owner voluntarily agrees to accept a grant from the City to cover demolition and other related costs with partial reimbursement upon property sale or redevelopment. The agreement requires grant repayment with interest if the owner does not perform and allows the City to record a lien superior to any mortgages or encumbrances as security. The agreement allows for the immediate removal of slum and blight thereby encouraging private investment rather than waiting for the property to become dilapidated. Page 6

Slum and Blight Removal Negotiated Demolition Agreement Example: Before Page 7 After

Slum and Blight Removal Negotiated Demolition Agreement Example: Before Page 7 After

Property Acquisition Lien Foreclosure: In August, 2009 the federal government seized the assets of

Property Acquisition Lien Foreclosure: In August, 2009 the federal government seized the assets of Taylor, Bean and Whitaker (TB&W) mortgage corporation in Ocala leaving approximately 1, 000 citizens unemployed. One of the remaining former TB&W buildings can support up to 600 employees, unfortunately the building remains vacant and only 300 onsite parking spaces are available. The City elected to foreclose on code enforcement liens on the adjacent former Richardson Oil property which was a brownsfield site contributing to slum and blight for decades. The City has designed and is ready to permit a 168 space parking lot and will convey or lease the property to a company that reoccupies the building committing to significant job creation. Page 8

Property Acquisition Lien Foreclosure Example: Before Page 9 After

Property Acquisition Lien Foreclosure Example: Before Page 9 After

Contact: Revitalization Strategies Department: Chip Rich, Code Compliance Manager Code Enforcement Division 201 SE

Contact: Revitalization Strategies Department: Chip Rich, Code Compliance Manager Code Enforcement Division 201 SE 3 rd Street (2 nd Floor) Ocala, FL 34471 (352) 629 -8272 email: crich@ocalafl. org website www. ocalafl. org Page 10