Explanation
BACKGROUND: This legislation authorizes the City of Columbus, Department of Development to release its recorded mortgage interests in a residential property located at 1316-1326 Summit Street, Columbus Ohio with an outstanding balance totaling $82,500 made to borrower Phy-Tec International. The purpose of the release is to enable the City to release the mortgage for a debt that is uncollectable and allow for the sale of the land.
Phy-Tec International was a group of four individuals who tried to develop a multi-family property at this site. Three of the four principals were doctors-Dr. Durado Brooks, Dr. Carolyn Sharp and Dr. Kimberly Bethel. The fourth partner was Linda Quick. Phy-Tec is now defunct and the property was twice up for Sheriff's Sale. When no bids were received the property was declared forfeited to the State of Ohio by the Franklin County Treasurer. Over the years the apartments were demolished and the City of Columbus has carried the property in the Land Bank since September of 1995.
Columbus Public School District is interested in purchasing this property and therefore the uncollectable debt needs to be removed from the title. This facility will include a new elementary school and a development center. Land Management negotiated a sales price to the School District of $1,500.
Emergency action is requested to expedite authorization for a closing on the property.
FISCAL IMPACT: The impact is that the City will be writing off $82,500 in bad debt as a loss in accounts receivable for Rental Rehab Loan Funds.
Title
To authorize the Director of the Department of Development to release the recorded mortgage interests of the City of Columbus in property located at 1316-1326 Summit Street that secures a loan with an outstanding balance totaling $82,500; and to declare an emergency.
Body
WHEREAS, the City of Columbus, Department of Development made a Rental Rehabilitation Loan to borrower Phy-Tec International with an outstanding balance totaling $82,500 and the loan that is secured by a recorded mortgages on the property located at 1316-1326 Summit Street, Columbus, Ohio, and
WHEREAS, the release of the City's mortgage interest will enable the City to sell the property to the Columbus Public School District for a negotiated price of $1,500; and
WHEREAS, it is necessary to authorize the Director of the Department of Development to release the recorded mortgage interest of the City on the property located at 1316-1326 Summit Street, Columbus, Ohio; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to release said mortgage interests in order to expedite authorization of a settlement thereby preserving the public health, peace, property, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
Section 1. That the Director of the Department of Development be and is hereby authorized to release the City's recorded mortgage on property located at 1316-1326 Summit Street, Columbus, Ohio that secures the City's outstanding loan amount totaling $82,500 and write off the entire amount as bad debt.
Section 2. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.