Portion of Triple-A Venture's response to a filing by the City of Detroit. States Triple-A was "ever notified" of the Statler City Apartments project developer's "intention to build on Triple-A’s Property before announcing to the public that the Statler City project would be built on Triple-A’s Property."
Original Title
Def-Counter Pltf Resp to Mtn for ORder to Show Cause and Immediate Abatement of Nuisance(2014!07!23)
Portion of Triple-A Venture's response to a filing by the City of Detroit. States Triple-A was "ever notified" of the Statler City Apartments project developer's "intention to build on Triple-A’s Property before announcing to the public that the Statler City project would be built on Triple-A’s Property."
Portion of Triple-A Venture's response to a filing by the City of Detroit. States Triple-A was "ever notified" of the Statler City Apartments project developer's "intention to build on Triple-A’s Property before announcing to the public that the Statler City project would be built on Triple-A’s Property."
TRIPLE-A VENTURE LLC, A Michigan Limited Liability Co and 139 Bagley, Detroit, Michigan and any Unknown, or Unnamed Claimants, Owners, Spouses of Owners, Lienholders, Devisees, Heirs, or Assignees, or Successors/Subsidiaries/Affiliates in Interest, of 139 Bagley, Detroit, Michigan individually, jointly and severally,
Defendants,
and
TRIPLE-A VENTURE LLC, a Michigan limited liability company,
v.
THE CITY OF DETROIT, the DETROIT ECONOMIC GROWTH CORPORATION, a Michigan corporation, and the DETROIT DOWNTOWN DEVELOPMENT AUTHORITY, a public body corporate
Counter- and Third-Party Defendants.
Case No. 14-008057-CH Hon. Robert J . Colombo, J r.
DEFENDANT/COUNTER- PLAINTIFF TRIPLE-A VENTURE, LLCS RESPONSE TO MOTION FOR ORDER TO SHOW CAUSE AND FOR ENTRY OF ORDER REQUIRING IMMEDIATE ABATEMENT OF NUISANCE / City of Detroit Law Department By: Melvin B. Hollowell (P37834) Charles Raimi (P29746) Stanley L. de J ongh (41462) Assistant Corporation Counsel Attorneys for Plaintiff 2 Woodward Ave., Suite 500 Detroit, MI 48226 (313) 237-5031 jongsl@detroitmi.gov Schafer & Weiner, PLLC Daniel J . Weiner (P32010) Michael R. Wernette (P55659) Attorneys for Defendant Triple-A Venture, LLC 40950 Woodward Ave., Suite 100 Bloomfield Hills, MI 48304 (248) 540-3340 mwernette@schaferandweiner.com
{00524636.1}
FILED IN MY OFFICE WAYNE COUNTY CLERK 7/23/2014 8:22:27 AM CATHY M. GARRETT 14-008057-CH DEFENDANT/COUNTER-PLAINTIFF TRIPLE-A VENTURE, LLCS RESPONSE TO MOTION FOR ORDER TO SHOW CAUSE AND FOR ENTRY OF ORDER REQUIRING IMMEDIATE ABATEMENT OF NUISANCE
Defendant/Counter-Plaintiff, Triple-A Venture LLC (hereafter Triple-A), states as follows: INTRODUCTION The instant motion must be denied because Plaintiff, the City of Detroit (the City) has failed to meet its heavy burden to demonstrate that the subject property, consisting of land and a five-story building (the Building) located at 139 Bagley Avenue, Detroit, Michigan (together, the Property) is a nuisance, and has failed to show why, even if some aspect of the Property could be considered a nuisance, the draconian abatement remedy of demolition of the Building is necessary or appropriate. It is not, as demonstrated by the professional engineers building inspection report attached as Exhibit 4. FACTS 1. The subject real property, owned by Triple-A (the Property), is located at 139 Bagley Avenue in the heart of a triangle of land (the Statler Site) which is one of the most prime real estate development areas in downtown Detroit. The Property is half a block from Grand Circus Park, directly across the street from the Columbia Park neighborhood to be built as part of the new $650 million dollar Red Wings Arena District, and is within walking distance of everything else in Detroits entertainment district -- Comerica Park, Ford Field, the new Red Wings arena site, the Fox Theater, Fillmore Theater, and the Opera House and Music Hall. See maps, Exhibit 1. 2. Triple-As Property is the only remaining privately-owned parcel in that valuable Statler Site triangle of land, because the City, over time, has acquired all of the other Statler Site parcels. See portion of VG Holdings proposal to the Counter-Defendants, Exhibit 2. {00524636.1} 2
3. Triple-A seeks injunctive relief, declaratory relief, and damages to redress a scheme of illegal threats, illegal City Council hearings, and other harassment by the City and the other Counter-Defendants which is designed to forcibly take the Property or coerce Triple-A into selling it to a private developer for less than Triple-A considers fair value so the developer can increase its profits on a proposed $40 million dollar apartment and retail complex (dubbed Statler City) that the developer wants to build on Triple-As Property. 4. The developer, Village Green Holding LLC (VG Holding), received preliminary City approval 1 in late March, 2014 of a plan for Statler City which shows the project being built over the entire Statler Site, including Triple-As Property -- in other words, the City-approved plan requires that Triple-A be divested of its ownership of the Property. 2
Neither the City nor VG Holdings ever notified Triple-A of their intentions to build on Triple- As Property before announcing to the public that the Statler City project would be built on Triple-As Property. 5. Shortly after approving VG Holdings Statler City development plan, the City moved rapidly to take the Property from Triple-A with improper strong-arm tactics: (a) In late April, 2014, the City demanded (through its primary development agent, the DEGC) that Triple-A (which subsequent to the announcement of the proposed project, had been negotiating with VG Holding for a possible sale of the Property) lower its asking price for the Property -- and threatened economic retaliation against a Triple-A affiliate if Triple-A failed to comply with the Citys pricing demand. 1 The DDA, acting for and in concert with the City, authorized the DEGC in late March, 2014 to negotiate a development agreement with VG Holding for the Statler City project. 2 The City-approved plan also provides that the City will give all of its Statler Site parcels to VG Holding for one dollar ($1). {00524636.1} 3
(b) In early J une, 2014, the City threatened to use an illegal City Council hearing 3 to declare the Property dangerous and order the five-story building on the Property (the Building) demolished at Triple-As expense. The hearing was purportedly based on a June, 2011 inspection of the Building, but there was no inspection -- at most, a drive-by viewing -- as no City inspector ever asked to access the Building and the Building was surrounded by a locked security fence. The City withdrew that threat after Triple-A pointed out how the City Council hearing would have violated both state law and the Citys own ordinances. 4
(c) Then on J une 27, 2014, the City filed this lawsuit against Triple-A seeking to demolish the Building (as an alleged public nuisance) at Triple-As expense and to appoint a receiver to sell the Property without Triple-As consent (to VG Holding). On the same day it filed this lawsuit, the City obtained an ex parte order from this Court to appear for a hearing on Friday, J uly 25, 2014, purportedly to show cause why the City should not be granted an order requiring the Building to be demolished within 20 days. (d) Next, on J uly 16, 2014, before Triple-As time to even respond to this lawsuit, the City threatened yet another illegal City Council dangerous building hearing to order the Building demolished at Triple-As expense, to take place on Monday, July 28, 2014. That hearing is also illegal, for the same reasons and under the same state law and City ordinance as the first attempted City Council hearing was illegal, and it also purports to be based on a drive-by rather than any actual inspection of the Building (which the City has never requested or performed). 3 Including without limitation MCL 125.540(3) and (4), MCL 124.541(1) through (4), and City ordinance 12-11-28.4(a), (c) and (d). 4 See, e.g. letter to Mayor Duggan and City Council Members, Exhibit 3, especially at pp. 3-5. {00524636.1} 4
6. The threats of retaliation, illegal City Council hearings, and this lawsuit, are nothing more than a shakedown of Triple-A by the Counter-Defendants to force a sale of a portion of the prime, developable Statler Site for a low-ball price. The Counter-Defendants know the Building on the Property is neither dangerous nor a nuisance. It is fully secured from trespass, completely surrounded by a locked eight-foot security fence, the windows are boarded on the first floor and in the process of being boarded on all upper floors, and there are no falling bricks or other hazards present at the Property. See Report of Titus Associates, P.C., an architecture, structural engineering, and construction management firm, Exhibit 4. The Property is structurally sound and poses no danger. Id. In fact, the City itself leases its adjacent Statler Site parcels to third parties to park their vehicles within less than ten feet of the Building. See, e.g. photos included in Exhibit 4. 7. Furthermore, as alleged in detail in Triple-As Counterclaim and Third Party Complaint, filed today, the City is responsible for the damage which currently exists at the Building. The Citys demolition contractor, when demolishing the City-owned Statler Hilton Hotel which abutted the Building, dropped sections of steel beams onto the roof of the Building, destroying the elevator penthouse, breaking off part of the parapet wall around the roof, and breaking through a section of the roof itself. The Citys contractor also rained sparks and hot slag from cutting torches down onto the roof of the Building, starting a fire which further damaged the Building. The Citys contractor was required to take specific steps to protect the Building from damage during the demolition of the Citys Statler Hilton Hotel, but the City failed to require its contractor to take any such steps. The City never offered to repair or pay for the damage to the Building, and now seeks to use the damage for which it responsible as a pretext to take the Property. {00524636.1} 5
8. The City has engaged in a scorched-earth campaign of harassment and violations of Triple-As rights in an attempt to work an unlawful taking of the Property or coerce Triple-A to sell it cheaply to VG Holding. LAW and ARGUMENT The City cannot have the Building demolished as a nuisance of any kind, or otherwise, on the basis of conditions for which the City is responsible. See, e.g. 6A McQuillin, Municipal Corporations (3d ed), 24:64 (Nor can a city cause or create a nuisance on one's property and then abate it at the property owner's expense or require him or her to abate it), City of Mason v Buchman, 49 Mich App 98; 211 NW2d 552 (1973). Here, the City is responsible for the damage that currently exists at the Building, and it has never offered to repair the damage or compensate Triple-A. The City cannot rely on that damage now to force demolition of the Building, especially when the Building is structurally sound and not dangerous, see Exhibit 4. Furthermore, both the Citys Verified Complaint and its Motion consist almost entirely of boilerplate statements and legal conclusions. At a hearing on an order to show cause why injunctive relief should not issue, the party seeking the injunctive relief bears the burden of establishing that it should be issued, regardless of the form of an order stating that the other party must show cause. MCR 3.310(4). The City has never actually inspected the Building, because the Building is secured from unauthorized entry by a locked, eight-foot security fence and the City has never requested access. The Citys inspections are essentially curbside viewings. Titus & Associates, P.C., performed a detailed inspection of the Building, with testing for structural integrity, and strongly disagrees with the Citys curbside assessment that the Building is in any {00524636.1} 6
way dangerous. Exhibit 4. The City has not, and cannot show that the Building must be demolished right away (as the City asks this Court to impose) under the guise of abating a nuisance. Moreover, Triple-A has filed a detailed Answer and Affirmative Defenses, as well as a Counterclaim and Third Party Complaint, in this action and the parties have already commenced depositions. Triple-A is entitled to discovery and a trial on all disputed material facts before any attempt should be made to determine whether any abatement is necessary. There is no hurry because as shown in the Titus & Associates report, the Building poses no danger to the public. In the final analysis, the City is simply strong-arming Triple-A to try to effect an unlawful taking or coerce Triple-A into selling on the cheap to VG Holding. Triple-A has rights as the owner of the Property. It is willing to negotiate with VG Holding and is interested in development of the Property and the surrounding City parcels, but not at the point of a gun. WHEREFORE, Triple-A respectfully requests that this honorable Court deny the instant motion. Respectfully submitted, SCHAFER & WEINER, PLLC
_/s/ Michael R. Wernette________ Daniel J . Weiner (P32010) Michael R. Wernette (P55659) Attorneys for Defendant Triple-A Venture, LLC 40950 Woodward Ave., Suite 100 Bloomfield Hills, MI 48304 (248) 540-3340 mwernette@schaferandweiner.com
J uly 23, 2014. {00524636.1} 7
{00524636.1} 8
EXHIBIT1 FILED IN MY OFFICE WAYNE COUNTY CLERK 7/23/2014 8:22:27 AM CATHY M. GARRETT 14-008057-CH Page 1 of1 /i'ri r^J I r* IL ( ' 7 : . ' y i: ij 'J. li : 4 iiMf. -i a C l v"4 , // H j;'S8S^'/ : . ij it v. > 'I: . ,,. ? ste- i- ^3^aWiW3iT-& f;afa^gigE<~^ri^^siijiasajSSSBMWBMBB V . -. . \% C ASSPAKK V A ARIA Vt \. - . v,,: , \^ . . i, BRUSHPARK AREA C OMtKi PARK A'iRA'WOc fRO'l^V'' st&'i. PARk' j'-iXj" PARK u ^assS-- U Ui . |i " ' Mrir^f V^riv . . . Ji v http: //c dn. c static . net/images/gridfs/53c c 6066f92eall0e9017 be9/Detroit-Mi. . . 7 /21/2014 GoogleMaps Page 1 of1 & - \t % . -s >^ -r - ' - \r'm* -s . ^ ^av m - v !?. 4 . . $- " -imm ' "& " \"' ' ^ ~ i"" * ^,Tr - * % V %: '"1^. V ^ ' <&. " _H -fit. itiySP' Jl\t; '" ' '<--* -izSttr - I* * * ' > ';. . . iTV. ^. ' u ^^\\l": lj: -,: '"v-""->-!Sjr <^v 5/' A - . ^S'> ' ^ !mager>' ,S2014 DigitaIGic be, t-irstBase Solutions, Sanborn, U. S. Geologic al Survey, USDA FarmServic e Agenc y, Mapdata 2014 Google 200it https: //www. google. c oni/maps/@4 2. 3365309,-83. 04 6121 6,803m/data=!3ml ! 1 e3 7 /21/2014 EXHIBIT2 'i . A ER C APAR DtTROIT. MiC HiSAf NTS A PRESENTATION TOTHEDETROITEC ONOMIC GROWTHC ORPORATIONANDDOWNTOWr DEVELOPMENTAUTHORITY REQUESTFOR PROPOSAL: DDA BOARDMEETING: 500GR1SWOLDSTREET DETROIT, Ml 4 8226 >. ML , ov c C 1 , f f o -3 S A L". r- ;;;; a P v nn Z J. : -A 3 A A R T W' i 3 C - S I S '3 z S ' A - C ; p; 'O f s PRESENTED BY VILLAGEGREEN Is 0 f s < X W 1 3 to H ? n o x 159. 67 PRIVATE OWNER * ^ ^ & DBA AUTO a 1/ Vi L lA GEfift1. EN We are submitting forreview and approval the c onc ept renderings forStatler C ity Apartments based on our previous meetings and feedbac k fromthe Oc tober2013 tourof ourapartment projec ts in Minneapolis. As stated in ourJanuary 2014 presentation, we are proposing tomove forwardwith the ac quisition and developmentof the Statler hotel site. We have desc ribed the parc els we propose toac quire and developattac hed hereto. PURC HASEC ONSIDERATION We propose toac quire the four parc els ov/nsd by the C ity of Detroitand amliates: 1501 Washington Boulevard, 155: and163 Bagley -owned by the Downtown DevelopmentAuthority ( DDA); and 1539 and 1565Washington Boulevard and 167 Bagley owned by the C ity of Detroit. The primary c onsideration forthe c onveyanc e of the parc els will be the developmentof a 200-250 unit apartment c omplexwith the assoc iated amenities. The total deyelopmsntc ost is estimated between $35-4 0 million. RESPONSIBILITYOF VILLAGEGREEN: ? VILLAGEGREEN will be responsible for paying for the c lean-up of the site whic h inc ludes the removal of the foundations and underground struc tures left in plac e with site demotion. In addition, funding will be required to handle c lean-up of expec ted environmental c ontamination and remediation of other soil c onditions as nec essary topermit c onstruc tion toproc eed. The site c oasMs of five parc els and one of the parc els is privateiy-ownec l. Village Green has made a formal offer and intends tonegotiate in. good faith and ac quire the private parc el for a market value pric e. Village Green has retained Friedman Real Estate as its broker representative. W". . v ' ! . u w-. Mill Distric tC ity Apartments, Minneapolis MM EXHIBIT3 SC HAFER WEINER, I'LLC LAWOFFIC ES ARNOLDS C HAFER <194 8-aoo7 > DANIEL J. WEINER* MIC HAEL E. BAUM* * HOWARDM. BORIN LEONN. MAYER JOSEPHK. GREKIN MIC HAEL R. WERNETTE KIMK. HILLARY JOHNJ. STOC KDALE, JR. BRENDAN G. BEST JEFFERYJ. SATTLER JASONL. WEINER * ALSOADMITTEDINELOB. IDA * * BOAR. DC ERTIFIED-BUSINESS BANKRUPTC YLAW AMERIC ANBOARDOF C ERTIFIC ATION 4 0950WOODWARDAVENUE SUITElOO BLOOMFIELD HILLS, MIC HIGAN 4 8304 TELEPHONE( 24 8) 54 0-334 O www. sc haferandweiner. c om June 12, 2014 DetroitC ity C ounc il Members ViaEmail andFederal Express BrendaJones, George C ushingberry, Jr. , Saunteel Jenkins, James Tate, Sc ottBenson, AndreL. Spivey, Mary Sheffield, Raquel C astenada-Lopez, andGabe Leland, and The HonorableMayorMikeDuggan Re: "Notic eofRe-Hearing" forJune 16, 2014 regardingreal property loc atedat 139 Bagley, Detroit, Mic higan DearC ounc il Members andMayorDuggan: This firmrepresents the ownerofthereal property loc atedat 139Bagley inDetroit, Mic higan( the "Property"). TheProperty is ownedby Triple-A VentureLLC , aMic higan limitedliability c ompany ( the "Owner"). The C ity ofDetroit( the "C ity") Offic e ofthe C ity C lerk rec ently issueda "Notic e ofRe Hearing" to"S L S 1 C ORP" ( c opy attac hed, tab 1), datedMay 27 , 2014 , statingthata 're hearing' c onc erningthe Property will beheldonJune 16, 2014 . The Ownerobjec ts inthe strongestpossible terms toany suc hhearing oc c urring onJune 16, 2014 , oratany timeifbased onthe "Notic eofRe-Hearing. " Foratleastthefive( 5) independentreasons setforthbelow, noere-hearing' or proc eedingc onc erningtheProperty may lawfully be heldonJune16, 2014 , andthe Owner respec tfully submits thattheNotic e ofRe-Hearingmustbe withdrawnandany hearing c anc eledorresc heduled. Shouldthe C ity see fittoc onvene any hearings regardingthe Property, itshouldataminimumc anc el the 're-hearing' setforJune 1 6, issue aNotic etothe Owner, addressedas providedbelow, andsetany hearing fora newdatenotless thanten( 10) days afterservic e ofthe newNotic e. Any attempttoproc eedonJune 16 would, among other things, c onstitute aviolationofthe Owner's due proc ess andequal protec tionoflaws rights as guaranteedby the C onstitutions oftheUnitedStates andthe State ofMic higan. {005184 56. 1} SC HAFER^v/WEINERp^c BtVJy LAWOFFIC ES DetroitC ity C ounc il andMayorDuggan June 12, 2014 Page 2of6 First, theNotic e ofRe-Hearingwas notissuedtoorserveduponthe Owneras required by law. C ity ofDetroitOrdinanc eNo. 12-04 , C h. 9, Art. II, sec tion12-ll-28. 4 ( a) ( attac hed, tab 2) c learly requires notic es suc has theNotic e ofRe-Hearingtobe serveduponthe ownerofthe subjec tproperty, andfurtherrequires the C ity tofirstbefore serving suc haNotic e ~determine thewhothe ownerofthe property is by examiningtherec ords ofthe Wayne C ounty Registerof Deeds andthe Wayne C ounty andC ity ofDetroittaxassessmentrec ords. TheNotic e ofRe Hearingwas direc tedtoandservedupon SLS 1 C orporation, whic hhas notbeenthe ownerof theProperty sinc e 2006. The C ity failedtomaketherequiredexaminationofrec ords andfailed toissue andserve the Notic e ofRe-Hearing inac c ordanc e withthe requirements of12-1 1- 28. 4 ( a). TheNotic e ofRe-Hearing does notc omply withthe requirements oflawandc annot serve as thebasis fora 're-hearing' orotherproc eeding againstthe Property. Tothe extentthe C ity may inthe future seek toissue any notic e c onc erning the Property, suc hnotic e shouldbe addressedtoandserveduponthe Owner as follows: Ms. Wendy Grenlc e Triple-A Venture, LLC 27 390Floral Roseville, MI 4 8006 Sec ond. theNotic e ofRe-Hearingfails toidentify the allegeddaneerous c onditionthat purports tobe the subjec tofthe 're-hearins. ' TheNotic e ofRe-Hearing states thatonJune 16, 2014 at 10 a. m. ahearing will be held"as indic atedinthe Dangerous BuildingNotic esenttoyou regardingthe dangerous c onditionofthe above dangerous struc ture( s)" ( italic s added) andthat SLS 1 C orporationis "requestedtobepresentandshowc ause" why "saidstruc ture( s) shouldnot be ordereddemolishedorotherwisemade safe. " NoDangerous BuildingNotic ewas inc ludedor attac hed, andnoDangerous BuildingNotic ewas eversenttothe Owner, oruponinformation andbelieftothe entity thatis supposed"showc ause" ( SLS 1 C orporation). What, spec ific ally, is the alleged"dangerous c onditionofthe above dangerous struc ture( s)"? The sec ondpage of theNotic e ofRe-Hearingmakes obliquereferenc e toaninspec tionpurportedly made onJune 17 , 201 1 -nearly threeyears ago-andc laims thatsuc hinspec ted"revealedthatN10. " Whatis V/O? Noexplanationhas beenprovided. Howc ouldOwneroranyone else have a fairand properopportunity topartic ipate ina hearing c onc erning analleged"dangerous c ondition," muc hless "showc ause," whennonotic e has beenprovidedas towhatthe allegeddangerous c onditionis? {005184 56. 1} S C HAFER a^rWEINERp^o fiTvy LAWOFFIC ES DetroitC ity C ounc il andMayorDuggan June 12, 2014 Page 3 of6 EvenifthepurportedJune 1 6re-hearinghadbeenproperly notic ed, itc ouldnotproc eed lawfully bec ausethe Ownerhas notbeenapprisedofthe substanc e ofthe allegations c onc erning the c onditionofthe Property. Third, ifthe subjec tofthe Notic e ofRe-Hearineis a three-yearoldinspec tion, the hearinghas nobasis. As notedabove, the only c lue as tothebasis forany hearingis the oblique referenc e onthe sec ondpage oftheNotic e ofRe-Hearingthatthe "lastinspec tionmade onJune 17 , 201 1" allegedly "revealedthatV/O. " Ifthatis thebasis forthehearing, thenevenifV/Ohad beenexplainedindetail ~whic hithas not~Ownersubmits thataninspec tionthattook plac e three years agois notaproperbasis forahearing now. Fourth, the Notic e ofRe-Hearingpurports toc onvene a hearingthatc learly violates the proc edures andsafeguards c odifiedinC ity Ordinanc esec tion12-11-28. 4 . C ity ofDetroit Ordinanc eNo. 12-04 , C h. 9, Art. II, sec tion12-1 l-28. 4 ( a) ( attac hed, tab2) provides that " [n]otwithstanding any otherprovisionofthis ordinanc e," whenabuildingis foundtobe a dangerous building, the proc eedings mustoc c urinspec ific steps, none ofwhic hhave been c ompliedwithby the C ity here: ( 1) First, servic e ofanotic etoappear, onthe ownerofthe subjec tbuilding, whomthe C ity shall identity hy examiningc ertainpublic rec ords. ( 2) Sec ond, aninitial hearingbefore a"hearing offic er," appointedby the Mayor, who shall notbe anemployee oftheBuildings andSafety EngineeringDepartment( "BSED"), at whic hthe Owneris entitledtoappear. 12-1 l-28. 4 ( a). ( 3) Next, "/fthe hearing offic erdetermines" thatthe building shouldbe demolished, repairedorotherwisemade safe, then"thehearing offic er" shall soorderandfixatime forthe ownertoc omply withthe order. 12-1 l-28. 4 ( c ) ( italic s added). ( 4 ) Next, ifthe ownerfails toc omply withthe orderissuedby thehearing offic er, then "thehearing offic er" shall filea reportofhis orherfindingwithC ity C ounc il andrequestthat thebuildingbe demolished, repairedorotherwise made safe, anda c opy ofthe hearingoffic er's dec ision, "inc ludingthe findings andorderofthe hearing offic er, shall be servedonthe owner . . . . " 12-ll-28. 4 ( c ). ( 5) Then, aftersteps ( 1) through( 4 ), the "C ity C ounc il shall holda showc ause hearing notless than30days after" theinitial hearingrequiredunderstep ( 2) above, and"shall give notic etothe owner" ofthe C ity. C ounc il hearing. 12-1 1-28. 4 ( d). The owner"shall be giventhe {005184 56. 1} PX-X-C SC HAFER Sv/WEINERr flc Vy LAWOFFIC ES DetroitC ity C ounc il andMayorDuggan June 12, 2014 Page 4 of6 opportunity toshowc ause" atthe C ity C ounc il hearing why the orderofthe hearing offic er, resultingfromthe initial hearing desc ribedinstep ( 2) above, shouldnotbe enforc ed. Id. The C ity C ounc il may approve, disapprove, ormodify the orderofthehearing offic er. Id. ( 6) Ifthe C ity C ounc il determines, aftersteps ( 1) through( 5), thattheorderofthe hearing offic ershouldbe "enforc edormodified" ( as opposedtodisapprovingthe order), the C ity C ounc il shall take steps toenforc ethe orderofthehearing offic er. 12-11 -28. 4 ( d). ( 7 ) "Anowneraggrievedby afinal dec isionororderofthe C ity C ounc il under Subsec tion( d) . . . may appeal the final dec isionorordertothe c irc uitc ourtby filingapetition foranorderofsuperintending c ontrol withintwenty ( 2) days fromthe date ofthe dec isionor order. " 12-ll-28. 4 ( h). The foregoingproc ess andproc edure is the only onethatthe C ity may employ: "[a]ll ordinanc es, orparts ofordinanc es, thatc onflic twiththis ordinanc e are repealed. " 12-1 1-28. 4 at Sec tion2. The C ity has notc ompliedwithany ofthe requiredproc esses andproc edures c odified inthe ordinanc e andis attempting toviolatethe express language ofthe ordinanc e. TheNotic e ofRe-Hearingwas notproperly issuedorservedonthe Owneras disc ussedabove ( step ( 1)). TheNotic e ofRe-Hearingpurports toskipsteps ( 2), ( 3) and( 4 ) c ompletely and gostraighttostep( 5), a C ity C ounc il hearing ( seetab 1, p. 1). Beforethe matterc anbe referredtoC ity C ounc il, however, the Owneris entitledtoaninitial hearingbefore a hearing offic erappointedby theMayorwhoc annotbe aBSEDemployee. Thathas not oc c urred, andc annotoc c uronJune 16 bec ause ofall ofthe defec ts disc ussedinthepages above. Moreover, theNotic e ofRe-Hearing appears toindic atethatwhatthe C ity C ounc il intends toc onsideratthehearing is arec ommendationby the BSED-whic his expressly prohibitedby the ordinanc e. As notedabove, the C ity C ounc il mustonly c onsiderthe findings andorderof"thehearing offic er" who"shall not" be aBSED employee. The Owneris entitledtoa c opy ofthehearing offic er's findings andthehearing offic er's orderfromthe initial hearing. Nosuc hhearinghas oc c urredandOwnerhas beenprovidedwithnopurportedfindings ororderofahearing offic er. {005184 56. 1} S C HAFER akrrWEINER, PULC LAWOFFIC ES DetroitC ity C ounc il andMayorDuggan June 12, 2014 , Page 5 of6 Only anorderofthehearing offic er, afterthe initial hearing, c anbeplac ed before the C ity C ounc il, andnosuc horderexists. Fifth the "C ase" referenc edintheNotic e ofRe-Hearingwas dec idedanddisposedofin 2011. andthere are novrovisions in the ordinanc e allowinga re-hearins ofapreviously- dec idedmatterafteralmostthree years, orany time. TheNotic e ofRe-Hearingpurports toaddress C aseNumberDNG201 0-1 631 3. See tab 1 . Itappears thatthatc ase was disposedofby the C ity as ofSeptember 8, 201 1 andtheproc eeding againstthe Property was withdrawn. See tab3. Thatdispositionc ame several months afterthe purported"lastinspec tion" ofthe Property made onJune 17 , 201 1 ( tab 1, p. 2). The C ity C ounc il determinationis the laststepby the C ity inhandling analleged"dangerous building" issue. See the steps setforthinthe ordinanc e, listedabove. There is nonewinspec tionandno newproc eeding, andthe ordinanc e does notpermita "dangerous building" hearing, onc e disposedofatthe C ity C ounc il level, tobe 're-heard,' nearly threeyears afteritwas dec idedor atany time. Ifthe C ity sees fittoholdany "dangerous building" proc eedingc onc erningthe Property, itmustbeginanewproc eeding andfollowthemandated, c odifiedproc edures, beginningwithstep ( 1). This letterdoes notaddress the substanc e ofany issuerelatedtowhethertheProperty inc ludes a "dangerous building," inpartbec ause ofthe C ity's failuretoprovidethe appropriate notic e andbasis forany attempttoc lassify theProperty as suc h. Ownerreserves all rights. To the extentthe C ity attempts togoforwardwithany hearing orproc eeding c onc erningthe Property, Ownerwill vigorously c ontestany attempttoc lassify theProperty as a "dangerous building. " The C ity foundin201 1 thattheProperty was nota "dangerous building" andnothing has c hanged. TheProperty is sec ure fromtrespass, is listedforsale by a lic ensedreal estate broker, andis otherwisenotina c onditionthatmeets any ofthe c riteriaforbeing c lassifiedas a "dangerous building. " The Ownerquestions whetherthe "Notic e ofRe-Hearing," c omingnow, andbeing based onnothingnew, is infac tanattempttoexertimproperleverage forthebenefitofaprivateparty withwhomOwnerhas beennegotiating apossible sale oftheProperty. Ifthis matterproc eeds, the Ownerwill assertall rights, c laims anddefenses, inc luding the several C onstitutional issues andc laims whic hbarthe ac tionwhic hthe C ity appears poisedtotake. These C onstitutional issues, ataminimum, will require legal briefingwhic hthe Ownerintends toprovide shouldthe C ity move forwardonits c urrentc ourse. {005184 56. 1} PLLC LAWOFFIC ES S C HAFER SvrWEINER, LAWOFI DetroitC ity C ounc il andMayorDuggan June 12, 2014 Page 6 of6 Inany event, please c onfirmimmediately thatthe 're-hearing' setforJune 16, 2014 is c anc eledoradjournedandwill notgoforward. Ilook forwardtohearingfromyouandyoumay reac hme at( 24 8) 7 03-6808 oratmwemette@sc haferandweiner. c om Very truly yours SC HAFERANDWEINER, PLLC MvLJiz Mic hael R. Wemette MRW: tbm Enc losures c c : Anthony V. Pieroni DilipPatel, C ity ofDetroit {005184 56,1} TAB1 Janic eM. Winfrey C ity C lerk S L S I C ORP C ERTIFIEDMAEL - RETURNREC EIPTREQUESTED C ITYOFDETROIT OFFIC EOFTHEC ITYC LERK NOTIC EOFRE-HEARING C ase Number: PNG2010-16313 139BAGLEY BLDGID: 101. 00 Parc el No. : 2 315. RobinUnderwood Deputy C ity C lerk May 27 . 2014 220 BAGLEY, 800 DETROIT, MI 4 8226 DearSirorMadam: The DetroitC ity C ounc il has been informedthattheBuildings, Safety Engineering andEnvironmental Departmentwill hold a hearing as indic atedinthe Dangerous BuildingNotic e senttoyouregardingthe dangerous c ondition ofthe above dangerous struc ture( s). TheBuildings, Safety Engineeringand Environmental Department will rec ommend if the struc ture( s) shouldbe removed andthec ostforsuc hremoval assessed againstthe property. In-as-muc h as therec orded ownershipofthe property is inyourname, youarehereby notified, inac c ordanc e with DetroitC ity Ordinanc e 290-Hthata DetroitC ity C ounc il hearingwill beheld inthe C ommittee Room, 13th Floor, C olemanA. YoungMunic ipal C enter, 2 Woodward Avenue, Detroiton June 16,2014 10: 00 AM r : : =: * atwhic h timeyouare requested tobe presenttoshowc ause why said struc ture( s) shouldnotbe ordered demolishedorotherwise made safe. Ifyouhavenooppositiontothedemolitionofthis struc ture( s), orifyouhavenofurtherinterest insaid property, itis notnec essary foryoutoattendtheabove C ity C ounc il hearing. Ifyouhave additional questions regardingthestruc ture^), youmay c all theBuildings, Safety Engineeringand Environmental Department at ( 313)224 -321 5 forinformation. Very truly yours, Janic e M. Winfrey C ity C lerk . UJLDINGS, SAFETYENGINEERING&ENVIRONMENTAL >EPT. OURTHFLOOR, C OLEMANA. YOUNGMUNIC IPAL C ENTEJune 16' 2014 kT* "^/-STT' Xyn/~TTTOATwT AO^niZ NOTIC EOFRE-HEARING RE: DANGEROUS BUILDINGS 10: 00AM HONORABLEC ITYC OUNC IL C ase Number: DNG2010-16313 RE: 139 BAGLEY BLDGID: 101. 00 S BAGLEY25 EXC W12 FTTAKENFOR ALLEYPLATOF SEC 10 GOVERNOR &JUDGES ILANL34 P553 1 BETWEEN C ASS AND C LIFFORD ON J. C . C . PAGES 999PUBLISHED , YOUR HONORABLEBODYRETURNE JURISDIC TIONOF THEABOVE-MENTIONEDPROPERTYTOBUILDINGS, SAFETYENGINEERINGAND ENVIRONMENTAL , DEPARTMENTTOREINVESTIGATEANDPROVIDEC OUNC IL WITHADDITIONAL INFORMATIONONSAID PROPERTYFORFINAL DISPOSITIONBYYOUR HONORABLEBODY. C une_17 , 20lT^> THELASTINSPEC TIONMADEON REVEALEDTHAT: V/O. ITIS RESPEC TFULLYREQUESTEDTHATYOURHONORABLEBODYAPPROVETHEORIGINAL REC OMMENDATIONOF THIS DEPARTMENTPUBLISHED ( J. C . C . PAGES 999), TODIREC TTHEDEPARTMENTOF BUILDINGS, SAFETYENGINEERINGANDENVIRONMENTAL T HAVETHIS ( THESE) DANGEROUS STRUC TURE( S) BARRIC ADED/REMOVEDANDTOASSESS THEC OSTS OF REMOVAL/BARRIC ADES AGAINSTTHEPROPERTYDESC RIBEDABOVE. RESPEdTFULLYSUBMITTED, DEPT. DAVIDBELL BUILDINGOFFIC IAL BUILDINGS, SAFETYENGINEERING&ENVIRONMENTAL ENG. UNSAFEBLDG. RPT. C C : DEPTOF PUBLIC WORKS BOARDOF ASSESSORS LAWDEPARTMENT PLANNING&DEVELOPMENT S L S IC ORP 220 BAGLEY, 800 DETROIT, MI 4 8226 139BAGLEY BLDGID: 101. 00 TAB2 ORDINANC ENO. 02-07 ORDINANC ENO. 02-07 C HAPTER 9 ARTIC LEII ANORDINANC ETOAMEND C HAPTER 9, ARTIC LEII, OFTHE1984 DETROITC ITYC ODEBYAMENDING ORDINANC ENO. 290-H, AS AMENDED, THEADMINISTRATIVE RULES ANDREGULATIONS OFTHE OFFIC IAL BUILDINGC ODEOFTHE C ITYOF DETROIT, WHIC HIN AC C ORDANC EWITHSEC TION1-1-7 OFTHE1984 DETROITC ITYC ODEIS SAVEDFROMREPEAL INTHE1964 DETROITC ITYC ODEANDIS INC ORPORATEDBYREFERENC E INTOTHE1984 DETROITC ITYC ODE, ANDORDINANC ENOS. 15-88, 9-91 AND12-04 , WHIC HINAC C ORDANC E WITHSEC TION 1-1-7 OFTHE1984 DETROITC ITYC ODEARE INC ORPORATEDBYREFERENC E INTOTHE1984 DETROITC ITYC ODE, BYAMENDINGSEC TION12-11-28. 4 TODELINEATETHEPROC EDURE FOR DEFERRAL OR REC ISSIONOF A DEMOLITIONORDER ISSUEDBYTHE C ITYC OUNC IL, ETC . AN ORDINANC Etoamend C hapter 9, Artic le II, of the 1984 Detroit C ity C ode by amending Ordinanc e No. 290-H, as amended. The Administra tive Rules and Regulations of the Offic ial Building C ode of the C ity of Detroit, whic h in ac c ordanc e with Sec tion1-1-7 of the 1984 DetroitC ity C ode is saved from repeat in the : 1964 Detroit C ity C ode and is inc or porated by referenc e intothe 1984 Detroit C ity C ode, and Ordinanc es Nos. 15-88, 9-91 and 12-04 , whic h In ac c ordanc ewith Sec tion 1-1-7 ofthe 1984 Detroit C ity C ode are inc orpo rated by referenc e into the 1984 Detroit C ity C ode, by amending Sec tion 12-11-28. 4 to delineate the proc edure for deferral or rec ission of a demolition order issued by the C ity C ounc il by inc orporating the Revised Rules for Deferral and/or Rec issionofC ity C ounc il Demolition Orders for Private Properties that were promulgated by the Buildings and Safety Engineering Department and bec ame effec tive on Oc tober7 , 1996; toprovide that the failure of the owner( s) of rec ord to c omply withthe requirements fordeferral or rec ission may result in the deferral being resc inded at any time and in the building demolished; and topro videthatonly three( 3) deferrals may be grantedtoany property ownerfor eac h property unless extenuating c irc umstanc es are rec ommended by the Buildings andSafety Engineering Department or determined by the C ity C ounc il. ITIS HEREBYORDAINEDBYTHEPEO PLEOFTHEC ITYOF DETROITTHAT: Sec tion 1. C hapter 9, Artic le II, of the 1984 Detroit C ity C ode be amended by amending Ordinanc e No. 290-H, as amended, whic h in ac c ordanc e with Sec tion 1-1-7 of the 1984 Detroit C ity C ode is saved from repeal in the 1964 Detroit C ity C ode and is inc orporated by referenc e intothe 1984 DetroitC ity C ode, and Ordinanc es Nos. 15-88, 9-91 and 12-04 , whic h in ac c ordanc e with Sec tion 1-1-7 of the 1984 Detroit C ity C ode are inc orporated by referenc e into the 1984 Detroit C ity C ode, by amending Sec tion 12-11-28. 4 , toread as follows: THEADMINISTRATIVERULES ANDREGULATIONS OFTHE OFFIC IAL BUILDINGC ODEOFTHE C ITYOF DETROIT Sec tion 12-11-28. 4 . Notic e of dan gerous building; show c ause hear ing at the Buildings and Safety Engineering Department; show c ause hearing before the C ity C ounc il; demolitiondeferral orrec is sion; lien; appeal: ( a) Notic e of Dangerous Building. Notwithstanding any other provisions of this ordinanc e, when the whole or any partof any building orstruc ture is foundto be a dangerous building, the Building Offic ial shall issuea notic e totheowneror owners of rec ord that the building or struc ture is a dangerous building and to appear before a hearing offic er, whoshall be appointed bv and shall serve at the pleasure of the Mayor, toshow c ause at the hearing why the building or struc ture should not be demolished, repaired, or otherwise made safe. The hearing offic er shall be a person who has expertise in housing matters, lorexample, one whois an engineer, arc hitec t, building inspec tor, or members of a c ommunity housing organization. An employee of the Buildings and Safety Engineering Department shall not be appointed as a hearing offic er. The departmentshall file a c opy of the notic e that the building or struc ture is a dangerous building with the hearing offic er. . All notic es shall be in writ ing and shall be served upon the person towhomthe notic e is direc tedby anagent of the department, orshall be sentby reg istered or c ertified mail, return rec eipt requested, tothe last known address of suc howner orowners. In determining the mmm a-* last known address of tha ownerfsVtha department shall examine Iha rarnrris nl the last C itv of Detroit and C ounty of Wayne taxassessment, and the rec ords nf the C nnnty nf Wavne Registrar ot Deeds. Where a notic e is served upon a person by c ertified mail, a c opy of the notic e shall be posted upon a c onspic u ous part of the building or struc ture. The notic e shall be served upon the owner or party in interest at least ten ( 10) days before the date of the hearing inc luded in the notic e. ( b) ShowC auseHearingattheBuildings andSafety Engineering Department. JThe hearing offic ershall take testimony of the building inspec tor, of the owner or own- grs. andof any interestedparty. The hiaf- ina offic er shall render his, or her, dec i sion, not more than five ( 5) days after c ompletion of the show c ause hearing, either c losing the proc eedings, or order ing the building or struc ture tobe demol ished, repaired, orotherwise made safe. ( c ) Dec ision ofHearing Offic erWhere the hearing offic er determines that the building or struc ture should be demoP ished, repaired or otherwise made safe. tRe hearing offic er shall soissue an order that spec ifies tne ac tion( s) tobe taken by the orderand sets a date forthe ownerto c omply with the order. Where the building is a dangerous building as defined in Sec tion 12-1 1-28. 2, the ordermay require the owner tomaintain the exterior of the building and adjoining grounds owned by theownerof the building inc luding, but not limited to, the maintenanc e of lawns, trees, and shrubs. Where the owner fails toappearorneglec ts orrefuses toc omply with the order issued under this subsec tion, the hearing oftic er shall file a report of his, 'or her, findings with a c opy of the orderwith the C ity C ounc il not more than five ( 5) days after non-c omplianc e by the owneTof owners, and reguest that C itv C ounc il take nec essary ac tion toenforc e the hearing offic er's order. A c opy of the dec ision, inc luding the findings and order of the hearing offic er, shall be served on the owner in the manner presc ribed in Subsec tion ( at ot this sec tion. ( d) Show C ause Hearing Before the C ity C ounc il. The C itv C ounc il shall holda show c ause hearing not less than thirty ( 30) days after the hearing presc ribed in Subsec tion fa) of this sec tion for a hear ing on the findings and orderof the hear ing offic er and shall give notic e to the owner in the manner presc ribed in Subsec tion fa) ot this sec tiorTof the time and plac e of the hearing to approve, to disapprove, or tomodify the order for the demolition of, repairof, or otherwise mak ing the building or struc ture safe. As pro vided for in this subsec tion, the owner, or owners, of rec ord shall be given the opportunity tosnowc ause at tneTiearing why the ordershouldnot be enforc ed. The C itv C ounc il shall approve, disapprove, or mnriify tha nrder Where the C ity C ounc il approves or modifies the order, the C ity C ounc il shall take all nec essary ac tion to enforc e the order. Where the order is approved or modified, the owner shall c omply with the order within sixty ( 60) days after the date of the hearing under this subsec tion. In the c ase of an orderof demolition, where the C ity C ounc il deter mines that the building or struc ture has beensubstantially destroyed by fire, wind, flood or other natural disaster, and the c ost of repair of the building or struc ture will be greater than the state equalized value of the building or struc ture, the owner shall c omply with the order of demolition within twenty-one ( 21) days after the date of the hearing under this subsec tion. ( e) Demolition deferral orrec ission. ( 1 ) Where, afterthe showc ause hearing, the C ity C ounc il approves the order to demolish the building or struc ture, the owner of rec ord may file a request for demolition deferral or resc ission, with the C ity C lerk's offic e, within twenty ( 20) days of the rec eipt of notic e that the C ity C ounc il has plac edan ordertodemolish a building orstruc ture, whic h shall c ontain: ( a) Proof ofownershipandorinterestin the property; ( b) A statement that the building or struc ture is sec ured from trespass, all imminently hazardous c onditions have been remedied and the premises is free of litter andovergrown vegetation; ( c ) The purpose for whic h the property will be used; ( d) The time frame forrehabilitation; ( e) A c ommitment to: ( 1) Pay delinquenttaxes or negotiate a payment plan with the C ounty of Wayne; ( 2) C omply with all applic able laws inc luding, but not limited to, pre-sale inspec tion, rental registration, and other applic able provisions of the 1 984 Detroit C ity C ode as well as state c odes; ( 3) Pay all delinquent inspec tion fees and otherc harges; ( 4 ) Obtaina rehabilitation permit; and ( 5) Obtain a C ertific ate of Oc c upanc y. ( 2) Within ten ( 10) days of rec eipt of notic e of a request for deferral or resc is sion, the owner of rec ord shall apply for and pay the requiredinspec tion fee tothe Buildings and Safety Engineering Department for a spec ial inspec tion to determine c omplianc e with Subsec tion ( e)( 1)( b) of this sec tion. ( 3) Upon c hanges in any of the c ondi tions underwhic h a deferral or resc ission is approved by C ity C ounc il, the owneror interested party shall immediately notify the Buildings and Safety Engineering Department. Failure tomaintain the c on dition of approval of a deferral, orobtain a modific ation thereof, will result in the exe c ution of the demolition orderwithout fur ther notic e. ( 4 ) Withinten ( 10) days of the rec eiptof a request and payment of the presc ribed fee, the Buildings and Safety Engineering Department shall c onduc t a spec ial inspec tion of the property and c omplete an inspec tion report, whic h shall c ontain: ( a) A desc ription of the property; ( b) The c ondition of the property as to c omplianc e with Subsec tion ( 1)( b) of this sec tion; ( c ) Feasibility for use as provided for in Subsec tion ( 1)( c ) of this sec tion; ( d) Evaluation of the time frame for rehabilitation as provided for in Subsec tion ( 1)( d) of this sec tion; ( e) C omplianc e with c onditions listed in Subsec tion ( 1)( e) of this sec tion; and ( f) A rec ommendation toC ity C ounc il. ( 5) Within five ( 5) days following the spec ial inspec tion, the Department shall advise the applic ant and the C ity C ounc il of its rec ommendation. . ( 6) Upon rec eipt of the Buildings and Safety Engineering Department's rec om mendation, the C ity C ounc il shall approve, disapprove or modify the Department's rec ommendation. The C ity C lerk shall advise the applic antof the C ity C ounc il dec ision. ( 7 ) Where the owner( s) of rec ord does not c omply with the requirements that are c ontained in Subsec tion ( e)( 1) of this sec tion, at the disc retion of the C ity C ounc il or upon rec ommendation of the Buildings and Safety Engineering Department to C ity C ounc il, a demolition deferral may be resc inded by the C ity C ounc il atany time. Where the owner( s) of rec ord fail to adhere tothe requirements that are c on tained in Subsec tion ( e)( 1) of this sec tion, the building shall be demolished without further notic e. ( 8) The C ity C ounc il shall grantnomore than three ( 3) deferrals to any property owner, for eac h property, with the exc ep tion of extenuating c irc umstanc es to be determined by the C ity C ounc il or by rec ommendation from the Buildings and Safety Engineering Department. ( f) Assessment and Enforc ement of Lien. The c ost of demolition inc ludes, but is not limited to, fees paid tohearing offi c ers, c osts of title searc hes or c ommit ments used to determine the parties in interest, rec ording fees for notic es and liens filed with the C ounty of Wayne Register of Deeds, demolition and dump ing c harges, c ourt reporter attendanc e fees, and c osts of the c ollec tion of the c harges authorized under this ordinanc e. The c ost inc urred by the C ity, of demol ishing, repairing, making the building or struc ture safe, or maintaining the exterior of the building or struc ture or grounds adjoining the building or struc ture, shall be a lien against the real property and shall be reported to the Board of Assessors who shall assess the c ost against the property in question. The lien may be enforc ed in the manner pre sc ribed in the applic able provisions of the 1997 Detroit C ity C harter or the 1984 Detroit C ity C ode whic h provide for the enforc ement of spec ial assessment liens or of unpaid property taxes. Where any assessment pursuant to this sec tion is found tobe unjustorerroneous, orwhere the owner of the property would suffer an undue hardship through nofault of his or her own, the C ity C ounc il may waive the assessment. ( g) Use andEffec tive Date ofLien. The owner or party in interest in whose name the property appears upon the last C ity taxassessment rec ords shall be notified by the C ity Assessorof the amountof the c ost of the demolition, of making the building or struc ture safe, or of maintain ing the exteriorof the building orstruc ture orgrounds adjoining the building orstruc ture by first c lass mail at the address shown on the rec ords. Where the owner or party in interest fails to pay the c ost within thirty ( 30) days afterthe mailing by the C ity Assessor of the notic e of the amount of the c osts, the C ity shall have a lien for the c ost inc urred by the C ity to bring the property intoc onformanc e with this ordinanc e. The lien shall not take effec tuntil notic e of the lienhas been filed or rec orded as provided by law. A lien for the c ost shall be c ollec ted and treated in the same manneras provided for proper ty taxliens under the Mic higan General Property TaxAc t, being MC L 211. 1 to 211. 157 . ( h) Legal Ac tion by C ity. In addition to other remedies under this ordinanc e, the C ity may bring an ac tion against the owner of the building or struc ture for the full c ost of the demolition, of making the building or struc ture safe, or of maintain ing the exteriorof the building orstruc ture. The C ity shall have a lien on the property for the amount of a judgment obtained under this subsec tion. The lien provided for in this subsec tion shall not take effec t until notic e of the lien is filed or rec orded as providedby law. The lien does nothave priority over prior filed or rec orded liens and enc umbranc es. ( i) Appeal fromC ity C ounc il Ac tion. An owner aggrieved bv a final dec ision or orc fer of the C ity C ounc il under Subsec tion ( d) of this sec tion may appeal the tinal dec ision or order to the C irc uit C ourt by filing a petition tor an order of superintending c ontrol within twenty ( 20) days from the date of the dec ision or order. Sec tion 2. All ordinanc es, or parts of ordinanc es, that are in c onflic t with this ordinanc e are repealed. Sec tion 3. This ordinanc e is dec lared nec essary forthe preservationof the pub lic peac e, health, safety, and welfare of the People of the C ity of Detroit. Sec tion 4 . In the event that this ordi nanc e is passed by a two-thirds ( 2/3) majority of the c ity c ounc il members serv ing, it shall be given Immediate effec t and bec ome effec tive upon public ation in ac c ordanc e with Sec tion 4 -116 of the 1997 Detroit C ity C harter. Where this ordi nanc e is passed by less than two-thirds ( 2/3) majority of the c ity c ounc il members serving, it shall bec ome effec tive nolater than thirty ( 30) days after enac tment in ac c ordanc e with Sec tion 4 -115 of the 1997 DetroitC ity C harter. ( J. C . C . pg. Passed: Approved: Published: Effec tive: ) January 31 , 2007 February 5, 2007 February 9, 2007 February 9, 2007 JANIC EM. WINFREY C ity C lerk TAB3 C ttp of Jietrott OFFIC EOF THEC ITYC LERK . Janic e M. Winfrey VivianA. Hudson C ity C lerk Deputy C ity C lerk September 8,2011 S L S IC orp. , 220Bagley, Ste. 800, Detroit, MI4 8226 Bagley Ac quisitionC orp. , 220Bagley, 800Mic higanBldg. , Detroit, MI4 8226 DearSirorMadam: On July 6, 2011, the Detroit C ity C ounc il returnedjurisdic tion ofthe above-c aptionedproperty tothe Buildings andSafety EngineeringDepartmentforthereasonindic ated: ? Property barric aded ? Owner/interestedparty given weeks toproperly barric ade ? Newowner/interestedparty involved ? Buildings &Safety EngineeringDepartmenttobarric ade O C ity /HUDowned ? Removed, noac tionnec essary . ? Returntojurisdic tionoftheBuildings &Safety EngineeringDepartment V Withdraw ? Withdraw, razed, oc c upiedormaintained ? JANIC EM. WINFREY DetroitC ity C lerk JMW/c f/mgw 200C olemonA, Young Munic ipal C snler Delroll, Mic higan4 8226-34 00 ( 313) 224 -3260 Fax( 31 3) 224 -1 4 66 EXHIBIT4 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement BUILDINGC ONDITIONREPORT 139 Bagley Street, Detroit, Mic higan 4 8226 dD toaJ uuuu wmm WESTELEVATION Property Owner: Report C ompleted: Triple-A Venture, LLC 220 Bagley Street Detroit, Ml 4 8226 21 July, 2014 St. C lairShores, MI 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement July 21, 2014 BUILDINGC ONDITIONREPORT The buildingat 139Bagley is a 5story ( inc ludingmezzanine) masonry load-bearing exteriorwalls withsteel mainframe infill. There are several openings on thefront( west) south, and the rear( east) elevations. There are noopenings on the north elevation. There is a steel fire esc ape on thesouth elevation. The building is c urrently unoc c upied. We have observedthe building's exteriorwalls, windowopenings, and struc ture, as well as the roof. The exteriorwalls were inspec tedvisually andthrough masonry sc raping Qoints and bric ks) and noproblems were identified. We observedthe exteriorwalls tobe plumband true, andwithoutmajordamagetosuggestany impendingstruc tural failure. This struc ture is in noway in immediate dangerof c ollapse. The masonry walls are sec ure and brac ed by the remainingfloorjoists and roofjoists as they are. All doorand windowopenings on thefirsttwofloors have been sec uredwith plywood thathas been painted. Windows on the 3rd through 5th floors have not been sec ured and some have been damaged by vandalism, others damaged duringthe demolition of the adjac ent property. The windowunits are sec ure in theirattac hmenttothe building. It is ourunderstandingthatthe roof and roof struc ture of 139Bagley were damaged by the C ity of Detroitorthose underits employ duringthe proc ess of demolishingthe adjac entStatlerHotel someyears ago. Elements of thatbuildingwere allowed tofall ontothe roof of 139Bagley andthus c ause the c urrentvisible damage. Nomeasures were taken and nooffers were made by the C ity torec tify the damage c aused by their forc es sinc e they were inc urred. While a portion ofthe roof is missing, the remaining roof andfloorelements provide adequate struc ture and brac ing, and again based upon ourexperienc e, andwhatwe have seen on-site, this struc ture is in noway in immediate dangerof c ollapse. As the building is open tothe elements we dorec ommendsec urely enc losingthe windows on the upperfloors topreventfurtherdamagetothewalls and struc ture of the buildingfromexposure tothe elements. It is ourunderstandingthatthe Owner, TripleA Venture, LLC has retained Grunwell- C asheroC o. of Detroittosec ure all windows on the upperfloors against intrusion by the elements. St. C lairShores, MI Titus Assoc iates, P. C . 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement Based upon ourinspec tion of the buildingat 139Bagley in Detroitwe strongly disagree withthe allegations c ontainedwithinthe c urrentlawsuit, partic ularly the dangerous building allegations. Based upon oureduc ation and over30years of design and c onstruc tionexperienc e, we findthatthis buildingdoes not pose an immediate hazardtothe public . Further, we find thatthe buildingc an remainstable andsafewithoutany additional measures beyond our rec ommendations herein and normal maintenanc eforthe nextthreetofive years. The Dangerous Building Ordinanc e was intendedtoquic kly rec tify hazardous c onditions thathave immediate impac tuponthe public 's health, safety andwelfare. We believe thatthis Ordinanc e should not be usedtoimproperly strong-armindividuals tosell their property tootherdevelopers. While it's obvious thatthe buildingat 139Bagley in Detroitwill needwork in thefuture, the applic ationofthe Dangerous BuildingOrdinanc e is grossly premature. St. C lairShores, MI Titus Assoc iates, P. C . 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement is* T ton 'Mtoy fr gg gfg ^ IB SIS SI 7 SS' lis m KEi SBSa is lor ^s: I 1ilTffffWWWmmVB m FOR SALE =--'4 S9 -. b-r nstv; /* q WestElevation - Doors and windows sec ured on firsttwofloors. Minordamageto windows onthirdandfourthfloors. Missingglass in windowunits onfifthfloor. Parapet c opingc omplete andsec ure. Titus Assoc iates, P. C . St. C lairShores, MI 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement iiill B8 9 3 i * ( IIi ^\. - South Elevation - Doors andwindows sec ured on firsttwofloors. Windows on thirdfloor partially sec ured. Windows on fourthfloorintac t. Missing glass in windowunits on fifth floor. Parapetc oping c omplete andsec ure. Steel fire esc ape fromroof tothirdfloors - sec ure. St. C lairShores, MI Titus Assoc iates, P. C . 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement bp ftp-1SP- mmm i mm 8 East Elevation - Doors and windows sec ured on firsttwofloors, as well as one half of the windows on the thirdthroughfifthfloors. Windows missingglass instairwell. Window on fourthfloormissingglass with missing bric k above and belowtobe sec ured. Parapet c oping inc omplete. Bric k atstairtowerand northeastparapetc ornertobe sec ured. St. C lairShores, MI Titus Assoc iates, P. C . 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement <"1 m North Elevation -Parapetc oping missing. Damaged parapet - some loose bric k tobe removed/sec ured. St. C lairShores, MI Titus Assoc iates, P. C . 313. 516. 84 82 Titus Assoc iates, P. C . Arc hitec ture, Struc tural Engineering, C onsulting, C onstruc tionManagement AtTitus Assoc iates, an arc hitec ture and engineeringfirm, we are c ommittedtoproviding ourc lients the high level ofservic es nec essary topreserve theirhistoric buildings or c reate newstruc tures c ompatiblewiththe existing historic fabric . Ourextensive experienc e allows us togobeyond a blind applic ation ofstandards, toac hieve a deep understandingof a property's signific anc etoc reate solutions forc ontemporary living that respec ta sense of plac e. Ourextensive experienc e in designingnewlifeforexisting buildings throughthevarious jurisdic tions and applic able ordinanc es and c odes translates intoeffic ienc y forour c lients. Renovation, restoration, rehabilitation, and preservation may sound like interc hangeableterms; they are not. These are distinc ttreatmentapproac hes for existingstruc tures. AtTitus Assoc iates we have used these approac hes on suc c essfully c ompleted projec ts and c an use this experienc e tohelpyouselec tthe bestapproac hfor yourprojec t. Our proac tive approac h and extensive bac kground has earnedTitus Assoc iates rec ognitionfromthe Detroit Historic Distric tC ommission; we are on the listof arc hitec ts it maintains foruse in the C ity's historic distric ts. We are well versed in the Sec retary ofthe Interior's Standards forRehabilitation. We understandthe requirements of various funding resourc es and c an aid in the applic ation proc ess. We exc eed the Sec retary of the Interior's Professional Qualific ations Standards. We provide a c omprehensive evaluation of the c urrent buildingc onditions. Ourservic es inc lude: Fa5ade EasementGrant Reports Historic Struc tures Reports National RegisterNominations Historic TaxC reditand GrantApplic ationAssistanc e Preservation, Restoration, Rehabilitationdoc umentation Adaptive reuse design and doc umentation Infill planning and design Frominitial hands-on evaluation through c onstruc tion operations toprojec tc lose-out, Titus Assoc iates provides professional arc hitec tural and engineeringservic es tomeet and exc eed established expec tations. Original signed and sealed, RonaldTitus, A. I. A. St. C lairShores, MI Titus Assoc iates, P. C . 313. 516. 84 82 Educ ation: I have an arc hitec tural degree ( five-year bac helors - professional degree). I ama registered arc hitec tinMic higanforover20years andhave my national c ertific ation( NC ARB). Assistanc e: I was assistedinmy analysis ofthe buildingby James Partridge, P. E. I was alsoassistedby Ed Allison, whohas a degree inc onstruc tionengineering( University ofTennessee). Sc oneofWork: We madeseven ( 7 ) visits tothe Buildingovera two( 2) week period. Duringthose inspec tions, weperformedthefollowingtasks, amongothers: 1. Tested samples of mortar ( between bric ks) in several areas - sc rape tests, both wet anddry -anddeterminedthatthereis littleornodeteriorationofthebric k struc ture, whic his stable. 2. Used laser-sc ope toverify true plumbness of the masonry walls, the results of whic h showed all walls are within ac c eptable toleranc es ( exc ept where noted, whic h may require some remedial work ontheparapetwithinayearortwo). 3. Viewedtheinteriorofthe Building. Itwas notpossible togainac c ess tothe interiorby the doorwithoutdamaging it, soall observations were made fromladders, through various windows. Somefiredamagewas obviously evidentbutwe didnotobserve any damage likely toresultinstruc tural instability. 4 . Wewere unabletogainac c ess totheroofbutweviewedvarious pic tures ofthedamage frombelowand c onc lude there is a suffic ient area of the remaining portion of the roof tomaintain struc tural stability by brac ingoftheexistingwalls.