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:	August 27, 2009
RE:	617 W. 4th

This memorandum is intended to provide additional information to the memorandum dated May 13, 2009 which is attached for review.

On June 15^th, at the request of Jeanette Denton, staff met with her and her sister, Norma Jantz. Ms. Denton advised the meeting was to discuss the financing of the rehabilitation and to determine what their next step was regarding the continuance of the work. Staff discovered during this meeting that there was a dispute regarding the amount of money owed to Michael Downs, for work performed to date.

In an attempt to facilitate the project along, staff called Mr. Downs and asked if he would be willing to come to the office and discuss the financial issues. Mr. Downs arrived and after much discussion it was determined that Ms. Denton and Mrs. Jantz were not going to continue to use the services of Mr. Downs as they believed he had grossly overcharged them for his services. Ms. Denton did inquire about obtaining another licensed contractor and staff asked that she keep staff advised of the situation as the property was now in a blighted condition.

During the week on of July 6^th, staff received a letter from Mr. Downs that was sent to Ms. Denton and Mrs. Jantz in which he identified the outstanding balance of $19,555.69. Mr. Downs stated in order to resume work he would need a special account to be established to avoid similar financial problems in the future and he was asking that all future negotiations be overseen by an attorney.

On July 20^th, staff spoke with Mindy Downs, wife of Michael Downs. Mrs. Downs informed staff that they have not heard from Ms. Denton and they would be exploring the possibility of putting a mechanics lien against the property. Staff asked Ms. Downs to contact staff when she had additional information.

On August 27^th, staff re-contacted Mrs. Downs to obtain an update on their actions regarding the lien. Ms. Downs stated there had been a mechanics lien placed on the property and that their attorney, Brandy Sutton would have additional information.

Staff called Ms. Sutton and was informed she had filed a lien against the property, case #2009-SL-134 and that she was in receipt of the certified notice that Ms. Denton signed on August 22^nd. Ms. Sutton plans to give Ms. Denton 10 business days to respond to the notice.

Additionally, staff contacted Daryl Graves to verify his role in the matter. Mr. Graves advised staff he is “washing his hands” from the situation and will be sending Ms. Denton a letter advising her of his termination of services as he has not been paid. Mr. Graves advised he would be sending a letter of apology to the City for his role in this matter as he had given his word to the City Commission that the rehabilitation would be completed.

Staff has continued to monitor the property and has not observed any additional work performed. As previously mentioned, it is staff’s opinion the work completed to date has eliminated the unsafe/dangerous building element from consideration.

On today’s date, staff visited the property and took pictures which are attached to accurately show the current condition of the structure. The structure remains in a blighted condition. The building permit expires on September 26, 2009.

Staff is in the process of determining the next step in enforcement action.