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 ...
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