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AGENDA RECOMMENDATION |
7.A.
City Council Regular Meeting
- Meeting Date:
- 09/09/2024
Agenda Item:
Review of Rental License at 123 North 4th Street - License #934.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The property at 123 North Fourth Street is owned by River Bluff Suites, LLC and is currently licensed for 28 units (Rental License #934). The license is set to expire on December 31, 2025.
On November 22, 2023, the property at 123 North Fourth Street was court ordered into administration pursuant to a 504B action brought by the city and certain tenants, which was filed with the Blue Earth County Court, arising out of continued code violations and unsafe health and public safety conditions.
On January 17, 2024, the Court entered an Order Accepting the Settlement Agreement and appointed Lighthouse Management as the Administrator of a number of properties, including 123 North Fourth Street.
On August 7, 2024, the Administrator filed a report with the Court which concluded that the property is not economically viable in its current state, and it continues to have significant security issues, is unsafe for tenants, and continues to need repairs to comply with the City Code. At this time, the Court also ordered the defendants to work with the property Administrator and the city to transition tenants to alternative housing on or before October 15, 2024. In addition, the Court ordered the defendants to secure the property, not lease any of the units to new tenants until all city ordered repairs were completed with an approved inspection, and to obtain an updated and current rental license.
Prior to the 504B action, the police and/or inspectors/enforcement officers found that the property was being used in a disorderly manner and that nuisance conditions and violations of the City Code existed. The property owner had been notified as well as the listed agent of the property and provided with the violations and action required. Additional instances of disorderly use and code violations continued to occur for over 12 months, giving rise to unsuccessful problem-solving discussions up to the filing of the 504B action.
Mankato City Code, Section 5.42, Subd. 10, Inspection, indicates that no rental license shall be issued by the city unless the property complies with the provisions of the City Code and the Mankato Housing Maintenance Code which pertains to such dwelling unit. Section 5.42, Subd. 15, Conduct on Licensed Premise, includes the responsibilities of the license holder and language regarding revocation and/or suspension of rental licenses.
Mankato City Code, Section 5.03, Subd. 8, states that "the City Council may either suspend, not to exceed 90 days, or revoke any license issued pursuant to this chapter, for good cause, including, but not limited to, a finding that the licensee has failed to comply with any applicable statute, regulation or ordinance relating ot the operation of the licensee. No suspension or revocation shall take effect until the licensee has been afforded the opportunity for a hearing provided by the City Council."
A letter was sent to the property owner via regular and certified mail on August 28, 2024, notifying them of the Council's intent to consider the revocation of the rental license for 123 North Fourth Street at the September 9, 2024, Council Meeting.
Due to the property owners, and the Administrator's failure to comply with the City Code to correct deficiencies in the numerous violations, as well as the Administrator's determination of ongoing health and safety violations at the property and the Court's order requiring the vacation of tenants from the property and that it be secured, it is recommended that effective October 15, 2024, that the Rental License #934 for the property at 123 North Fourth Street be revoked.
On November 22, 2023, the property at 123 North Fourth Street was court ordered into administration pursuant to a 504B action brought by the city and certain tenants, which was filed with the Blue Earth County Court, arising out of continued code violations and unsafe health and public safety conditions.
On January 17, 2024, the Court entered an Order Accepting the Settlement Agreement and appointed Lighthouse Management as the Administrator of a number of properties, including 123 North Fourth Street.
On August 7, 2024, the Administrator filed a report with the Court which concluded that the property is not economically viable in its current state, and it continues to have significant security issues, is unsafe for tenants, and continues to need repairs to comply with the City Code. At this time, the Court also ordered the defendants to work with the property Administrator and the city to transition tenants to alternative housing on or before October 15, 2024. In addition, the Court ordered the defendants to secure the property, not lease any of the units to new tenants until all city ordered repairs were completed with an approved inspection, and to obtain an updated and current rental license.
Prior to the 504B action, the police and/or inspectors/enforcement officers found that the property was being used in a disorderly manner and that nuisance conditions and violations of the City Code existed. The property owner had been notified as well as the listed agent of the property and provided with the violations and action required. Additional instances of disorderly use and code violations continued to occur for over 12 months, giving rise to unsuccessful problem-solving discussions up to the filing of the 504B action.
Mankato City Code, Section 5.42, Subd. 10, Inspection, indicates that no rental license shall be issued by the city unless the property complies with the provisions of the City Code and the Mankato Housing Maintenance Code which pertains to such dwelling unit. Section 5.42, Subd. 15, Conduct on Licensed Premise, includes the responsibilities of the license holder and language regarding revocation and/or suspension of rental licenses.
Mankato City Code, Section 5.03, Subd. 8, states that "the City Council may either suspend, not to exceed 90 days, or revoke any license issued pursuant to this chapter, for good cause, including, but not limited to, a finding that the licensee has failed to comply with any applicable statute, regulation or ordinance relating ot the operation of the licensee. No suspension or revocation shall take effect until the licensee has been afforded the opportunity for a hearing provided by the City Council."
A letter was sent to the property owner via regular and certified mail on August 28, 2024, notifying them of the Council's intent to consider the revocation of the rental license for 123 North Fourth Street at the September 9, 2024, Council Meeting.
Due to the property owners, and the Administrator's failure to comply with the City Code to correct deficiencies in the numerous violations, as well as the Administrator's determination of ongoing health and safety violations at the property and the Court's order requiring the vacation of tenants from the property and that it be secured, it is recommended that effective October 15, 2024, that the Rental License #934 for the property at 123 North Fourth Street be revoked.