[Ord. 8346, passed 9-24-2020]
The Code Enforcement Department, in cooperation with the Office
of City Solicitor, shall prepare a Property Notice of Intent form
for prospective bidders of repository properties to complete and submit
to City Council at least five days prior to City Council's vote
on acceptance or rejection of a bid.
[Ord. 8346, passed 9-24-2020]
(a)
The Property Notice of Intent Form shall include a request for information
from the bidder as to the following:
(1)
Whether the bidder has any existing code violations for any
properties owned by bidder within the City of New Castle;
(2)
Whether the bidder has any delinquent property taxes owed to
the City of New Castle or New Castle Area School District;
(3)
The bidder's plan for rehabilitation and the proposed time
frame required for rehabilitation of the property;
(4)
Written estimate from a licensed contractor or architect as
to the projected cost of rehabilitation;
(5)
Whether the bidder has obtained a surety bond or posted a cash
bond, meeting the specifications set forth in Section 1784.06 herein;
(6)
Whether the bidder has previously rehabilitated properties within
the City of New Castle and documentation of the current condition
of those properties;
(7)
The source of funds upon which the bidder will draw for completing
the rehabilitation of the property.
(b)
If the property bid upon is a vacant lot, the bidder may omit the
information set forth in Subsections iii - vii herein above.
[Ord. 8346, passed 9-24-2020]
The Code Enforcement Department shall prepare and submit to
Council at least five day prior to City Council's vote on acceptance
or rejection of a bid, a report for each property subject to a repository
bid.
[Ord. 8346, passed 9-24-2020]
(a)
The Code Enforcement Property Report shall include the following
information:
(1)
Current photographs of the exterior of the property;
(2)
If interior access can be lawfully and safely obtained, photographs
of the interior of the property;
(3)
A list of observable code violations;
(4)
Whether the property is currently on a City or County demolition
list;
(5)
A statement as to whether the prospective bidder has any current
code violations on any properties owned by the bidder within City
limits;
(6)
A statement, affirmed by the City Treasurer, that the bidder
is not delinquent on any taxes owed to the City or New Castle Area
School District at the time of submission of the bid form;
(7)
A statement from the Code Enforcement Department as to whether
the property can reasonably be rehabilitated or whether the property
is beyond repair.
[Ord. 8346, passed 9-24-2020]
City Council, in reviewing bids for repository properties, may
consider the following criteria in making a determination whether
to approve or deny a bid:
(a)
Whether the bidder has any current code violations for properties
owned within the City of New Castle;
(b)
Whether the bidder owes delinquent taxes to the City of New Castle
or New Castle Area School district on any properties owned within
the City of New Castle;
(c)
The condition of the property as indicated in the report prepared
by the Code Enforcement Department and whether the property can reasonably
be rehabilitated;
(d)
Whether the bidder has obtained written estimates from a licensed
contractor or architect for rehabilitation of the property, the cost
of rehabilitation, and the proposed timeline for rehabilitation;
(e)
For properties with structures, whether the prospective bidder has
obtained a surety bond in the amount of at least $25,000 for residential
properties or in the designated amount set forth in Section for commercial
properties, endorsed to the City of New Castle as payee in the event
the property is not rehabilitated within the time period set forth
in Section 1784.06(b)(i)(D)(2) herein; or a cash bond in like amount
tendered to the City of New Castle to be held in escrow during the
rehabilitation period;
(f)
Whether the bidder has previously rehabilitated properties within
the City of New Castle and documentation of the current condition
of those properties.
(g)
Whether the property is currently on a City or County demolition
list.
[Ord. 8346, passed 9-24-2020]
(a)
This ordinance does not mandate bidders to obtain bonds in order
to bid upon and be considered for approval or denial of repository
property bids; however, the presence or absence of a bond meeting
the specifications set forth in this section for properties with existing
structures may be considered by City Council in it overall determination
of whether to accept or reject a repository property bid.
(b)
Surety bond.
(1)
For purposes of City Council's consideration of certain
criteria for approving or denying a repository property bid for properties
with structures, a surety bond obtained by a bidder shall be deemed
adequate if it meets the following specifications:
A.
The bond is held by a reputable bonding company which holds
all required licensure and approvals for operation as an issuer of
surety bonds;
B.
The bond is endorsed to the City of New Castle as payee if the
bond conditions are not met;
C.
The bond is in an amount not less than $25,000 for residential
properties, and not less than the following applicable tier rate for
commercial properties:
|
Commercial Property Tiers
| |
|---|---|
|
Size
|
Amount
|
|
Less than 2,500 square feet
|
$25,000
|
|
2,500 — 4,999 square feet
|
$35,000
|
|
5,000 — 9,999 square feet
|
$50,000
|
|
10,000 — 15,000 square feet
|
$75,000
|
|
Above 15,000 square feet
|
$100,000
|
|
An additional $15,000 for any commercial structure containing
asbestos.
| |
D.
The bonding document specifically include the following provisions:
1.
A provision that the bond is maintained for the duration of
rehabilitation of the property and is extinguishable only upon inspection
of the property by a Code Enforcement Officer and certification that
the property is substantially compliant with code regulations;
2.
Notwithstanding the foregoing, the bond shall be exercisable
and paid to the City of New Castle if the rehabilitation is not substantially
completed within a period of 12 months for residential properties
and 18 months for commercial properties from the date of filing of
the repository deed, unless an extension if granted per Subsection
(ii.) herein. (For purposes of this section, the phrase "substantially
completed" means that the property is safely habitable by persons,
structurally sound, and the property interior and exterior is otherwise
substantially compliant with code regulations as determined by a Code
Enforcement Officer.);
3.
Notwithstanding the foregoing, the bond shall be immediately
exercisable and payable to the City of New Castle if the property
is placed on an emergency demolition list at any time during the rehabilitation
period.
(c)
Cash bond. In lieu of a surety bond, a prospective bidder on a repository
property with a structure may post a cash bond in the amount of $25,000
for residential properties or in the amount set forth in Section 1784.06(b)(c)
for commercial properties with the City Treasurer and execute a cash
bond agreement with the City of New Castle with terms to include the
specifications set forth in 1784.06(b).
[Ord. 8346, passed 9-24-2020]
If a bidder obtains a surety bond or posts a cash bond with
the City Treasurer, and is successfully awarded the repository property,
the bidder shall be entitled to a release/termination of the surety
bond or refund of the cash bond, as the case may be, upon application
to the Code Enforcement department that the property meets the criteria
set forth in Section 1784.06(b) hereinabove, and if, after inspection
by a Code Enforcement officer, the Code Enforcement officer certifies
the same. If a bidder is not awarded the repository bid after review
and vote by all taxing bodies, or if the bidder withdraws his or her
bid at any time during the bidding process, the bidder shall be entitled
to a refund of any cash bond deposited with the City Treasurer and
the City's rights under any surety bond as payee shall be extinguished
and terminate.
[Ord. 8346, passed 9-24-2020]
Any bidder who posts a surety bond or cash bond and is denied
a release of the same after application and inspection as provided
in Section 1784.07, shall have a right to appeal the denial by filing,
within 20 days of the denial, a written request for a hearing before
the Housing Board of Appeals. The Housing Board of Appeals shall establish
a procedure for hearing and deciding appeals under this section. Further
appeal shall be to a court of competent jurisdiction.
