for a year prior to purchase the home, but he had to get some legal documentation
from the government. He was going through a divorce and never received it. After a
year of having $10,0000 sitting there, we decided to cancel the contract. As soon as
we did that, he re-listed it and never could find a buyer. We ended up going under
contract again, but at a lower price. He signed off at closing that there were no fees or
bills associated with the property. At closing on October 14, 2022, both my title
company, Executive Title, as well as the seller’s title company pulled all Saint Paul
assessments prior. There were some that they were able to take out of his proceeds.
There may have been an unpaid fee from the year prior. I know there was an
assessment, #238804, dated 7/11/2022 to 9/19/22. He must have received bills for
that, but again, never paid them and never made us aware. The city does not post any
of those vacant building fees or any assessments until there's a gap of time before a
pending assessment is posted and we happened to close during that gap. It was not
visible by anyone online. Both the seller’s and my title company confirmed that. They
investigated it and said nothing was posted, so they couldn't pull it out of his proceeds.
I was not made aware of it for several months. I didn't even know it existed. When I
received a bill, I immediately sent it to the title company and said this should have
been caught at closing. They said, “No, it wasn't that. There's this gap in time.” So,
they sent it. I heard nothing more. I thought that they were able to get the seller to
have it paid because it was his bill to pay. We had a custom-built home built there.
We took that building down and built a home. I wasn't aware that the fee wasn't paid
until 2 weeks ago when I sent everything over to our closer to close on this custom
home. I called and spoke to Robert (Humphrey) and had a conversation regarding the
fee. Everyone will say, “Yes, there's a gap.” I talked to Tanya Panzer about that gap
where no one can know the fee is there to take care of it or to make sure it's assessed
to the prior owner. This should have been handled at closing when I purchased it, but it
couldn't be because it wasn't posted. We took it down. I think I've spoken with you
before. I've built probably 50 houses in Saint Paul. We want to make it a better place
and feel that this is a penalty. That really isn't fair, for both the house being torn down
and our ability to not collect from the previous owner.
Moermond: I’m not going to give you the answer you want. I’m looking at 3 critical
pieces. 1. Assessments are for unpaid bills. The bill went to the previous owner on
September 19, 2022. 1 month later there is a warning that they have 15 days to pay.
That is not yet an assessment. That is a bill that they’re given an opportunity to pay. If
the bill goes unpaid within a couple weeks of that, it does get sent over as a pending
assessment and will populate online. An unpaid bill doesn't go unpaid and
un-assessed for more than 3 weeks. That is the gap of time we're looking at. 2. When
looking at the September 8, 2022, Truth In Sale of Housing (TISH) disclosure
statement, which should have been provided to you and you should have known to ask
for, the vacant building status is disclosed there. That’s really between you and the
seller though. They’re the ones who have to pay for that and disclose conditions of the
property. 3. A list of vacant buildings does appear on the city's website and is always
up to date. As someone in your business, if you’re not using that website, you should
be. This would have shown up then as a Category 2 Registered Vacant Building. It’s
not the City's responsibility to cover a vacant building fee for a 9-month period. I see
the responsibility as really being a private matter between you and the seller, and not
involving the City at all, but the Council could look at it differently. You paid this
already, to take care of it for the upcoming closing, correct?
Schumacher: Yes, to avoid adding more fees. Since the building did come down, and
the fee was through, October of this year, I thought I might be able to at least get
credited back for the period when it wasn’t vacant.
Moermond: The billable period for this fee was 9 months. I don’t make
recommendations to Council on pro-rating Vacant Building fees of more than 6
months. I will use that as a carrot to get people to take care of business. The council