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Posted: November 08, 2024
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF111324-10

Agenda Item Title:

Authorize Staff to Enter into Stipulation in Quiet Title Action in Re: Condemned Property at 104 East College Ave, Rapid City

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
11/13/2024
City Council Hearing Date:
11/18/2024
Petitioner:
Community Development
Staff Contact:
Jennifer Utter / Vicki Fisher
Location:
Council Chambers
Agenda Item Summary:
During the process of preparing to demolish a condemned residential structure at 104 E. College Ave, City staff discovered that a Notice of Intent to take Tax Deed and Quiet Title action had been filed in court, prompting City’s delay of demolition pending the resolution of the Quiet Title lawsuit. Usually, City does not answer these lawsuits. However, due to the fact that this property had been condemned, Plaintiff, City, and County have reached a stipulated settlement agreement, whereby the Plaintiff will be issued a Treasurer’s Tax Deed and assume immediate responsibility of this condemned property, including posting a $25,000 performance bond for the new owner to accomplish demolition within a short time of Quieting Title.

In sum, this Stipulation is a settlement agreement that authorizes the Court to order the Treasurer to issue the Tax Deed, which will resolve the new owner’s obligation for an approximately $11,000 City Special Assessment in the process. In return, Plaintiff agrees to assume responsibility for the demolition, which the City had planned to accomplish at a cost of approximately $24,000 to the City. In the unlikely event that the new responsible owner is unable or unwilling to accomplish the demolition, this Stipulation would authorize City to draw on the $25,000 bond to complete the process, saving the City from accessing any 2025 budget funds for such demolition. This Stipulated resolution has been negotiated with the cooperation of the Plaintiff, the City’s Community Development Director, Vicki Fisher, and Pennington County. All other parties are in default of this lawsuit and have failed to answer the Complaint. This Stipulation immediately shifts responsibility and authority to take remedial action on this distressed property to the new responsible owner, RC Tours LLC.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve
Published in 2024 - LF Agenda Items
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