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6.2A <br /> Page 1 <br /> RE P`t�RT <br /> To the H+a�orabl+� Nlayor'�nc! City Coun�il and <br /> The R�ede�elopm+�:n#Ag�ncy Bo:ar+d <br /> From the; Ci Nlana er and ths ��ce�cutive D'ire�ct+ar <br /> December 17, 2007 <br /> SUBJECT <br /> 611 Heller Acquisition & Demolition Report <br /> RECOnnn��r�oaTio� <br /> That the Agency: <br /> (1) authorize by Resolution, Purchase Agreement & Esc�ow fnstructions for 611 Heiler <br /> Street and Author�ze City Manager and Redevelopment Agency Executive Director to <br /> execute all docume�ts pertaining thereto; and <br /> {2) approve by Motion, the immediate demolition of the existing structure after obtaining <br /> environmenta! clearance from the Regional Air Quality Management District. <br /> BACKGROUND <br /> For a number of years,the Police Department and Code Enforcement has had a recorded <br /> history af social blight, criminal and known gang activity including murders and stabbings at <br /> 611 Helier Street. They have found the building to be a Nuisance hazard which endangers <br /> the life, health, property, and safety of the public. <br /> The property owner defaulted on their �aan and the bank foreclosed on the property. <br /> Prior fo the foreclosure, afI of the doors have been broken or kicked in. On a daify basis, <br /> windows and doors are left open, evidencing continued trespassing and unsafe uses of <br /> the structure by transients. <br /> The recammendation from Housing staff was to remove the socia! blight by facilitating the <br /> change of ownership of the property and promoting a positive change to the neighborhood <br /> by bui{ding affordable housing on the sifie (as was done with Wyndham Place and Rolison <br /> Road). The Board agreed and on November 5, directed Housing staffto make a purchase <br /> offer to Chase Bank for the property. <br /> Chase Bank was offered the listing pric� of $649,000. The offer was accepted and on <br /> November 7, the Agency made an initial down payment o#$17,470. Previously, a deposit <br /> of$2,000 had been made with the written offer. To date, a total of$19,470 has been paid <br /> into escraw. Based on Counter �ffer # 2, the Purchase �ffer provides for a remaining <br /> amoun#due#o close escraw of approximately$630,427.39 plus$2,547.39 far ciasing costs <br /> and Title Poficy (nsurance. The escrow is scheduled to clase in 45 days or approximateiy <br /> Decembec 19, 2Q07. <br /> Property Condition <br /> Over the years, this house has undergone extensive remodeling without building permits. <br /> Load bearing walls have been removed, openings have been cut into both concrete <br /> basement walls as welf as shear walls; stairs have been built up the back and at the side <br /> of the structure and fhe attic has been configured so as ta pose a life threatening situatian <br /> for safety officers who enter the dweiling under compromised circumstances. Furkher, <br />