Refer back to LH December 13, 2022 9 am if PD is posted by COB November 4,
Doug Grimm, Northern Value Group, LLC
[Moermond gives background of appeals process & items required to rehab a Category
3 Vacant Building]
Moermond: I show an owner of Marcine Mary McLellan who is deceased. Who are you?
Grimm: I represent Northern Value Group, LLC, we hold the first mortgage.
Moermond: Wells Fargo must be in second position?
Grimm: yes, that is my understanding. The original amount was about $384. We are
scheduled to take ours to sheriff’s sale tomorrow. I don’t know the answer yet whether
it will be a six month or 5-week redemption.
Moermond: have your attorney seek a shortened redemption period if you want to
rehab. I know it will cost more, but Council needs to see you are in this. They won’t
have the patience to wait six months. They will say move forward with demolition. If you
come in saying here’s what we are doing to expedite this, that is what they’re looking
Staff report by Supervisor Joe Yannarelly: The building is a one-story, wood frame,
single-family dwelling with an attached one-stall garage, and metal utility shed, on a lot
of 6,098 square feet. According to our files, it has been a vacant building since May
4, 2020. The current property owner is Marcine Mary McLellan (deceased), per
AMANDA and Ramsey County Property records. On July 20, 2022, an inspection of the
building was conducted, a list of deficiencies which constitute a nuisance condition
was developed and photographs were taken. An order to abate a nuisance building was
posted on August 3, 2022, with a compliance date of September 2, 2022. As of this
date, the property remains in a condition which comprises a nuisance as defined by
the legislative code. Taxation has placed an estimated market value of $25,000 on the
land and $278,600 on the building. Real estate taxes for the first half of 2022 are due
and owing in the amount of $4,119.35, which includes penalty and interest. Taxes for
the second half of 2022 are due on October 17, 2022, in the amount of $3,678.00. The
vacant building registration fees were paid by assessment on June 1, 2022. As of
October 10, 2022, a Code Compliance Inspection has not been done. As of October
10, 2022, the $5,000 performance deposit has not been posted. There was one
Summary Abatement notice since 2020. There have been two work orders issued for
boarding and securing. Code Enforcement Officers estimate the cost to repair this
structure exceeds $100,000. The estimated cost to demolish exceeds $40,000.
Moermond: the first thing I noticed is if the owner died in February 2018 there was a
2-year gap between when she died and went into the Vacant Building program. I look
down and I hear one Summary Abatement Order and two work orders. I’m hearing the
property’s exterior is maintained but the interior is likely a bad situation.
Grimm: when we took assignment of the mortgage we did enter the property to change
the locks and secure. We found it not to be in horrible condition. The roof was old but
hadn’t leaked inside. I can speak to the steps we’ve taken on the outside.
Moermond: sooner rather than later we need a Code Compliance Inspection Report
done to do that assessment. It needs to be broom clean and cleared of personal
possessions. Is it cleaned out?