City Council at its April 8 meeting unanimously approved a resolution (AR 76-13) for “in-rem foreclosure” of the site (Block 317, Lot 15), which had been owned by Dornoch. The resolution essentially begins court proceedings on foreclosure; here’s a quick explanation of “in rem foreclosure.”
Demolition of the structure about two years ago cost almost $104,000, with additional engineering costs of $51,500 and other costs of $1,360, detailed in an October letter from Bohler Engineering. In all, the city holds a lien of about $150,000, according to Redevelopment Agency attorney Frank Regan, who updated commissioners at their April 3 meeting.
|File Photo (2011)|
The site was part of the prior redevelopment plan and ultimately might provide a connection or promenade from the Lewis Street parking deck to Lot B, he said, where the Slokker Group has proposed a retail-residential the development of about 180 units.
If the city completes the foreclosure, it obtains title in lieu of receiving the money, according to Regan, and there is the possibility that the bank (Wells Fargo) that holds the mortgage would have to pay off the lien if it completes the foreclosure first.