Memorandum

City of Lawrence

Planning & Development Services

TO:	David L. Corliss, City Manager
FROM:	Brian Jimenez, Code Enforcement Manager
CC:	Scott McCullough, Director Planning and Development Services
Date:	May 13, 2009
RE:	617 W 4^th St.- Progress Update

Background

Staff has maintained weekly contacts with Mike Downs, (general contractor) to ensure the rehabilitation of the structure is moving along in a timely manner. Mr. Downs has been reliable and has performed his trade admirably considering unfortunate circumstances that have arisen as a result of Jeanette Denton (owner) failing to address her responsibility of securing the financial resources to keep the project moving towards completion.

Mr. Downs initially stopped work on February 27^th due to not being paid for work completed. At the request of Daryl Graves (Denton’s Attorney); staff attended a meeting on March 6th with Ms. Denton to discuss the progress being made regarding securing the financial resources required to continue the rehabilitation of the structure. Mr. Graves informed staff he had convinced Ms. Denton that selling several of her other properties was the logical thing to do and the proceeds of those transactions should be applied to the rehabilitation of the structure at 617 W 4^th St.

Staff was led to believe Ms. Denton had every intention to follow through with the plan to sell such properties and was told the cash flow from these transactions would allow Mr. Downs to be paid for all work performed to date along with receiving additional monies to complete the project. On March 13^th, staff confirmed with Mr. Downs that Ms. Denton had made a payment to him for all work completed to date and for future work as well as construction materials that needed to be purchased. Mr. Downs informed staff the payment would allow for him to continue work until approximately the end of April at which time he and Ms. Denton would need to discuss financing for the next phase of the project. On March 18^th, Mr. Downs and his employees resumed work.

Regrettably, a few weeks later, Mr. Graves informed staff Ms. Denton had terminated his legal representation for all properties except 617 W 4^th St. Mr. Graves stated it was his understanding that Ms. Denton had changed her mind regarding the selling of other properties as she believed he was not looking out for her best interests. Mr. Graves stated he was still committed to assisting Ms. Denton in completing the project as he had stood before the City Commission and gave them his word that the project would have adequate financing to be completed.

On May 4^th, Mr. Downs informed staff he had stopped work on May 1^st as he had been trying to secure additional funds from Ms. Denton for the past several weeks without any success. Mr. Downs stated he had exhausted all avenues for contacting Ms. Denton and he could not afford to over extend himself any more than he had already done. He advised staff he secured the structure and removed all of his equipment and would return to the project if Ms. Denton was able to obtain additional monies to complete the next several phases which would include siding, windows, painting and interior work.

On May 6^th, staff spoke with Mr. Graves and was informed he would attempt to contact Ms. Denton. He acknowledged there may be nothing else he could do to rectify the situation and that he understood staff was in a position to bring the issue back to the City Commission for further discussion.

As of May 13^th, staff has not received any feedback from Mr. Graves. In addition, staff has left several messages on Ms. Denton’s cell phone but has not received a return call.

During the last two months staff has confirmed the following work has been completed:

Completed foundation repair which includes all areas of failure which were reconstructed with native stone and tuck pointed.
Completed roof repairs which includes north slope, west addition and east overhang. Items replaced or repaired include roof rafters, roof sheathing, and shingles.
Moisture barrier installed on north and east exterior walls.
Additional load bearing wall studs installed on north wall along with insulation and exterior wall sheathing.
Living room floor leveled and supported with new floor joists, wall studs and floor joists for 2^nd floor.
West addition raised and leveled.
The miscellaneous contents stored inside the structure have been removed.

It is staff’s opinion the structure no longer fits the criteria for an unsafe/dangerous structure; however the structure has been left in a blighted condition which consists of:

· Boarded up window openings

· Window openings without windows

· Lack of siding

· Siding not painted

STAFF WILL CONTINUE TO MONITOR THE PROPERTY IN THE HOPES THAT THE OWNER WILL ACT ON THE ACTIVE PERMIT TO RESTORE THE PROPERTY TO A CODE COMPLIANT CONDITION. IF THE PERMIT IS ALLOWED TO LAPSE WITHOUT PROGRESS, STAFF WILL FORWARD A COMPLAINT TO MUNICIPAL COURT FOR PROSECUTION OF THE BLIGHTED CONDITIONS. STAFF WILL ATTEMPT TO GATHER ADDITIONAL INFORMATION REGARDING MS. DENTON’S PLANS FOR CONTINUING THE REHABILITATION OF THE STRUCTURE AND WILL PROVIDE AN UPDATE IN THE COMING WEEKS.