One year ago there was an application for a Code Compliance Inspection Report
(CCIR). The inspectors arrived and found that the lock box combination did not work.
Someone named Steven from the company had applied for the CCIR on behalf of the
owner, saying he would let inspectors know when they could get in. There was no
communication back to the Department of Safety and Inspections (DSI). In June of
2023, five months later, DSI reached out to the applicant, Bonnie, at the company in
question, GIRG. The e-mail bounced back as undeliverable. We learned in the
process of the Legislative Hearing that GIRG had ghosted the owner and obviously not
followed through on being present for this inspection either. When this information
came to light, the owner did get that CCIR scheduled and it was conducted. The CCIR
was issued. The first permit was pulled at the end of September. A couple more were
pulled in December and another in January. The actual building permit has not been
pulled, so I don't think it's likely that they're going to be done in the very near future.
I am recommending that this be made payable over five years, per the request of the
ownership group, but I am recommending that this be approved as written. I think the
higher vacant building fee for Category 2 properties exists to address this kind of
situation.
Councilmember Noecker: I know we sometimes allow payments to be made payable
over five years when there's a financial hardship. This sounds like an LLC with a
number of properties. What's the reason for granting a request for payment over time?
Moermond: I think that this LLC is in financial difficulty, from what I was able to
determine by reviewing Ramsey County taxation records. This property and nine others
were purchased on a contract for deed from a landlord who owns a number of
properties and seems to be backing out of the business. The acquisition price for
those was something like $1.6 million. That's a lot of properties to be turning around if
you don't necessarily have your ducks in a row. The City's interest rate that it charges
is the same as the bond rate, so the taxpayer is not experiencing any additional costs
related to spreading the payment out.
Councilmember Johnson: The owner previously mentioned coming back to you with
the potential update from the new contractor on a timeline or just touching base with
you. Have you been able to get in contact with them since?
Moermond: I have not had subsequent conversations with the ownership group. I was
able to review the permit status. It's evident that they have their CCIR and that permits
have started to be pulled. One is finaled, one is inspected, the other couple are active.
One still needs to be pulled. There's progress happening, which is what I look for. This
is a June vacant building anniversary date. If it's done by June, there is no fee after
that, and it's out of the program.
Johnson: It's quite evident that it's a rental property and an investment property.
Moermond: Historically, it has been. It was sold with a cluster of rental properties, yes.
Council President Jalali opened the public hearing.
Jason Lindsey: My name is Jason Lindsey and I'm one of the owners of this portfolio. I
live in Ham Lake. I don't have all the documentation in front of me, but we actually just
acquired this portfolio in January 2023. The previous owner who we took it over from
was in financial distress, lost all his money. There were 2 owners, and one of them
made it very hard to get paperwork, which is why it took us so long to get the CCIR. I
just received it. We actually have passed all three of our mechanical inspections as of
today: plumbing, heating and electrical. We just started working on it. I took it over in
December. Communication has been very hard because the guy who had the original