HomeMy WebLinkAboutAgenda Packet City Council - 02/16/2016 (SP) � Cornus Christi 1201 Leopard Sheet
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` / Meeting Agenda - Final POSTED
City Council / FEB 12 2016
CAP Al/. l.'..,,4.
Tuesday,February 16,2016 9:00 AM
7Q3tV.L'ffa,'
Special City Council Meeting
Public Notice--THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PA e ERS
ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF • E
CITY COUNCIL.
Members of the audience will be provided an opportunity to a.. :ss the Council during
the Public Hearing. Please speak into the microphone locat:, at the podium and state
your name and address. Your presentation will be limited •three minutes. If you have
a petition or other information pertaining to your subjec please present it to the City
Secretary.
Si Usted desea dirigirse al Co o y cree que ingles es limitado,habra un interprete
inglds-espanol en todas las jun: .:l r. ci'•para ayudarle.
Persons with disabilities who pla • L nd this meeting and who may need auxiliary
aids or services!re req est to ct the City Secretary's office(at 361-826-3105)
at least 48 hours in dv ce th- appropriate arrangements can be made.
A. Mayor Nelda Martinez to call t ' g to order.
B. Invocation to be given b De o Michael Mantz,Diocese of Corpus Christi.
C. Pledge of Allegianc e - ag of the United States to be led by Assistant City
Secretary Paul
D. City Secretary Re , . Muerte to call the roll of the required Charter Officers.
E. APPEAL OF A D- ISION OF THE BUILDING STANDARDS BOARD
1. 16-0198 onsideration of an appeal filed by Timothy Dowling on
behalf of Corpus Christi Note Acquisitions, LLC of the
Building Standards Board's decision to require
demolition of the buildings and structures on property
located at 625 Gordon Street.
•Statement of Facts
Corpus Christi Page I Printed on Z'12/2016
INDEXED
City Council Meeting Agenda-Final February 16,2016
•Appellant's Case (up to 30 minutes)
• Public Hearing (three minutes per speaker)
• City Staff Response (up to 30 minutes)
•Council Action -Three options:
- Deny the appeal (Uphold the Building Standards
Board's decision)
- Sustain the appeal (reverse the board's decision)
- Amend the board's decision (in whole or in part)
F. Adjournment
Corpus Christi Page 2 Printed on 2/12/2016
1
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Ihj�w�
. AGENDA MEMORANDUM
rs52 s2 Building Standards Board Hearing Appeal to City Council of February 16, 2016
DATE: February 2, 2016
TO: Ronald L. Olson, City Manager
FROM: David Blackmon, Commander—Operations, Police Department
(DavidBl@cctexas.com) (361.826.2691)
Tracey K. Cantu, Administrator—Code Enforcement Division, Police Department
(TracevC(ac cctexas.com) (361.826.3170)
Building Standards Board Hearing Appeal for 625 Gordon Street
CAPTION:
Consideration of an appeal filed by Timothy Dowling on behalf of Corpus Christi Note
Acquisitions, LLC of the Building Standards Board's order to require demolition of the
buildings and structures on property located at 625 Gordon Street.
PURPOSE;
Mr. Timothy Dowling, on behalf of Corpus Christi Note Acquisitions, LLC, has requested
that the City Council hear and consider an appeal of a decision of the Building Standards
Board regarding property located at 625 Gordon Street.
BACKGROUND AND FINDINGS:
On September 24, 2015, due to the substandard and dilapidated condition of the
structures at 625 Gordon, a hazard to the health, safety, and welfare of the public is
henceforth declared. The Building Standards Board ordered the structures at 625 Gordon
Street to be removed or demolished by owner, lien holder or mortgagee within thirty (30)
days. If demolition is not started and completed as required, then the City be authorized to
demolish.
Per Section 13-24 of the Code, an owner or occupant may appeal a decision of the board
to the city council. Mr. Dowling submitted a notice of appeal in writing on October 23, within
30 days of the board's decision. The City Charter, Article VI, Section 2 states that appeals
shall be perfected by filing a sworn notice of appeal with the city secretary within thirty (30)
days from the date of the decision.
In addition, Section 13-24(b), of the Code states that all orders of the Board regarding this
property are to be suspended pending a decision on this matter by the City Council.
OTHER CONSIDERATIONS:
During an appeal, the City Council acts in a quasi-judicial capacity to determine the facts and to
determine whether the structure requires demolition. The hearing will be structured as follows:
1. Statement of Facts
2. Appellant's Case (up to 30 minutes)
3. Public Hearing (three minutes per speaker)
4. City Staff Response (up to 30 minutes)
5. Council Action (see Alternatives below)
ALTERNATIVES:
The Council has three options.
1. Deny the appeal by approving the attached resolution (upholding the Building
Standards Board's order to demolish the property located at 625 Gordon Street within 30
days).
2. Sustain the appeal by motion (reversing the Board's order in whole or in part).
3. Amend the board's order by amending the attached resolution (in whole or in part).
Under Section 13-24(b), the Council may vary the application of any provision of Chapter
13 of the City Code when the enforcement thereof would do manifest injustice and would
be contrary to the spirit and purpose of this Code, the Corpus Christi Property
Maintenance Code or public interest or when, in its opinion, the decision of the board
should be modified or reversed. A decision of the city council to vary the application of any
provision of this Code or the Corpus Christi Property Maintenance Code, or to modify an
order of the board in whole or in part shall specify in what manner such modification is
made, the conditions upon which it is made and the reasons therefore.
The decision of the City Council shall be final unless the aggrieved party appeals by
instituting suit for that purpose in any court having jurisdiction within fifteen (15) days from
the date on which the decision of the city council was rendered.
DEPARTMENTAL CLEARANCES:
Building Standards Board—Code Enforcement, Police Department
Legal Department
FINANCIAL IMPACT:
❑ Operating ❑ Revenue ❑ Capital X Not applicable
RECOMMENDATION:
Deny the appeal by approving the attached resolution (uphold the Building Standards Board
order to demolish the property located at 625 Gordon within 30 days.)
LIST OF SUPPORTING DOCUMENTS:
1. Resolution -Affirming the Building Standards Board order to demolish the property
located at 625 Gordon within 30 days.
2. Final Order of the Building Standards Board Case No. 15-568
3. Transcription of Building Standards Board Meeting August 10, 2015
4. Transcription of Building Standards Board Meeting September 24, 2015
5. Case Chronology—Activity Prior to September 24, 2015
6. Case Chronology —Activity After September 24, 2015
7. Location Map — 625 Gordon Aerial Photo
8. Evidence Photos
9. Notice of Appeal — Corpus Christi Note Acquisitions, LLC
10.Engineer's Report provided by Corpus Christi Note Acquisitions, LLC.
Resolution affirming the Building Standards Board order to demolish the buildings
and structures on the property located at 625 Gordon Street.
Whereas, the Building Standards Board (the "Board") held a public hearing on
September 24, 2015, at 1:30pm regarding property located at 625 Gordon Street and
after making certain findings ordered the structure or premises be removed or demolished
by the owner, lien holder or mortgagee, within thirty (30) days pursuant to the attached
Final Order of the Building Standards Board Case No. 15-568; and
Whereas, the authorized agent for the owner of 625 Gordon Street (the
"Appellant")filed a written notice of appeal of the Board's order with the City Secretary's
Office on October 23, 2015, in accordance with Section 13-24(a) City of Corpus Christi
Code of Ordinances (the "Code") and Article VI, Section 2 of the City Charter (the
"Charter"); and
Whereas, Section 13-24(a) of the Code and Article VI, Section 2 of the Charter
authorize the City Council to hear Appeals of the Board's decision; therefore this Council
properly has jurisdiction of this appeal; and
Whereas,after hearing the evidence,the City Council makes the following findings
related to the property located at 625 Gordon Street:
1. The Code Enforcement division of the Police Department complied with the
procedural requirements for eliminating substandard conditions pursuant to
Section 13-22 of the Code; and
2. The Board held a public hearing on August 10, 2015, at 1:30pm where
authorized agents for the owner appeared and represented the owner
estimated it would cost 1.2 million dollars to repair the property and they had
the money available but needed additional time to determine whether this
would be sufficient funds to repair or if demolition would be a more
economically feasible option. At this hearing the authorized representatives
made representations that if an extension was granted, they would be sure to
secure the property with a fence, board up all openings and provide security.
Based on this information the Board tabled the case and the owner was to
secure the property with a fence, board up all openings, provide security for the
property and return with financial information and a more definitive plan for
repairs at the next hearing; and
3. The Board held another public hearing on September 24,2015,at 1:30pm. The
owner did not appear, and no authorized representatives appeared on behalf
of the owner. However, documents regarding a general timeline for repair were
submitted to the Code Enforcement division by representatives of the owner
and these documents were provided to the Board. A report was given by City
staff advising the owner and his representatives had failed to properly secure
the property with a fence, openings had not been boarded up and no security
had been provided for the property. After determining that the owner had not
complied with the prior request of the board to secure the property and failed
to return with financial information regarding the economic feasibility of repair,
the Board found that the structure or premises could not be repaired because
of the refusal of the owner or its intrinsic state of disrepair or both and is
dilapidated or substandard and ordered ordered removal or demolition by the
owner, lienholder or mortgagee, within 30 days; and
4. Portions of the buildings and structures have been damaged by fire,
deterioration, neglect, abandonment, and vandalism and therefore are
considered dangerous and deemed substandard pursuant to section 108.1.5
of the Corpus Christi Property Maintenance Code (the"CCPMC"); and
5. Portions of the buildings and structures are clearly unsafe for its use and
occupancy and therefore are considered dangerous and deemed substandard
pursuant to section 108.1.5 of the CCPMC; and
6. The buildings and structures are neglected, damaged, dilapidated, unsecured
or abandoned so as to become an attractive nuisance to children who might
play in the building or structures to their danger,becomes a harbor for vagrants,
criminals or immoral persons, or enables persons to resort to the building and
structure for committing a nuisance or an unlawful act and therefore are
considered dangerous and deemed substandard pursuant to section 108.1.5
of the CCPMC; and
7. The photos attached as 625 Gordon Street Photos further support the finding
that the buildings and structures are dangerous and substandard; and
8. Pursuant to Section 101.3 of the CCPMC the spirit and purpose of the Code
is to ensure public health, safety and welfare of the residents of this City
insofar as they are affected by the continued occupancy and maintenance of
structures and premises; and
9. The Appellant has failed to properly secure the property and has not made
any of the required repairs and the property remains in a state of disrepair;
and
10.The Appellant has failed to establish that an error was committed by the
Board; and
11.The Appellant has failed to establish that the Board's decision would have
caused undue hardship.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
Section 1. The Board's attached order requiring the owner, lien holder or
mortgagee to demolish the buildings and structures on the property located at 625 Gordon
Street is affirmed.
P.O.Box 9277 Corpus Christi,Texas 78469-9277•(361)826-3046•htto;//www.cctexas.com/
FINAL ORDER OF THE '` .\
r BUILDING STANDARDS BOARD
''Et'` Case No. 15-56.8
Property Owners) RE:625 Gordon
OWNER: Corpus Note Acqulsitons LLC LOT:W 24.4'It 9 all Its 10 thru 12 W 64.48 Lt 13
c/o Tim Dowling BLOCK:40
ADDRESS: 1001 Third Street ADD'N:Undale Park 4
C/TYSTATE VP: Corpus Christi,Texas 78404
This final order is issued pursuant to the authority granted to the Branding Standards Board("Board")of the City of Corpus Christi,
("Cfty"1,Nueces County,Texas in accordance with the Charter of the City,Chapter 13 of the City's Code of Ordinances("Code")and
the Texas Local Government Code.
On September 24,2015,the City of Corpus Christi Building and Standards Board held a public hearing and made the following
findings regarding the building located at the above referenced property:
1. Pursuant to the provisions of Chapter 13 of the.Code,on April 9,2015 an inspection for substandard conditions was
made of the buildings)or structure(s)located within the City at the above referenced property;
2. On June 1,2015 a notice of violation(s)and request to correct the violation(s)was sent to the owner and all known
interested parties. Additionally,on August 10,2015 and August 11,2015 notice of violations)was posted In the
Corpus Christi Caller Times;
3. Thirty days elapsed since the notice of violations)was provided and such violation(s)were not cured;
4. Code Official,Diana T.Garza,filed a complaint with the Chairman regarding the above listed property on September 9,
2015,and the public hearing was held not less than ten days and not more than 45 days after the complaint was filed;
5. Notice of the public hearing was sent to the owner and all known interested parties an September 10,2015,which was
at least ten day prior to the public hearing. Additionally,op September 10,2015 and September 11,2015 notice of the
public hearing was posted in the Carpus Christi Caller Times;
6. After considering the testimony and reviewing the documentation and information submitted by city Staff and atter
affording the owner and/or other Interested parties the opportunity to address the Board and present testimony,
documentation and information the Board finds the building located at the above referenced prbperty is substandard
and/or constitutes a nuisance.
7. The City of Corpus Christi will vacate,secure,remove,or demolish the building or relocate the occupants of the
building if the action ordered below is not taken within the allotted time.
The Board further finds:
- The substandard building shall be ordered secured by the owner,lien holder or mortgagee from unauthorized
entry within 30 days.
OR
- The substandard building or structure can reasonably be repaired by the owner,lien holder or mortgagee,so as to
be in compliance with this code,therefore it shall be ordered repaired within thirty(30)days. Repairs must be in
compliance with City Ordinance Section 13-22(G),
•
The substandard building or structure can reasonably be repaired bythe owner,lien holder or mortgagee,so as to
be in compliance with this code,therefore it shall be ordered repaired within (31 days to 90 days)days.
Repairs must be in compliance with City Ordinance Section 13-22(G). Further,the owner,lien holder or
mortgagee shall secure the property in a reasonablemanner from unauthorized entry while the work is being
performed and work shall be commenced and performed In accordance with the time schedules established by the
Board,to wit
The substandard building or structure is so damaged,decayed,dilapidated,unsanitary,unsafe,or vermin-infested
that it creates a serious hazard to the health or safety of the occupants orthe public,therefore it shall be ordered
to be vacated within_days. Tile building or structure shall be placarded to prevent occupancy until the building
or structure is brought up to all minimum standards of this code within thirty(30)days.
The substandard building or structure is so damaged,decayed,dilapidated,unsanitary,unsafe,or vermin-infested
that it creates a serious hazard to the health or safety of the occupants or the public,therefore it shall be ordered
to be vacated within—days. The building or structure shall be placarded to prevent occupancy until the building
or structure is brought up to all minimum standards of this code within_days. Work shall be commenced aiid
performed in accordance with the time schedules established by the Board,to wit
ii The structure or premises cannot be repaired because of the refusal of owner or its Intrinsic state of disrepair or
both and is dilapidated or substandard,therefore,it shall be ordered removed or demolished by the owner,lien
holder or mortgagee,within thirty(30)days.
The structure or premises cannot be repaired because of the refusal of owner or Its intrinsic state of disrepair or
both and is dilapidated or substandard,therefore,ft shall be ordered removed or demo lisj ed by the owner,)lien
holder or mortgagee,within_(31 days to 90 days)days.
OR
The Board finds that the owner,lien holder or mortgagee has submitted a detailed plan and time schedule for the work and the
owner,lien holder or mortgagee has established that the work cannot reasonably be completed within 90 days because of the scope
and complexity of the work;therefore:
The owner,lien holder or mortgagee is required to regularly submit progress reports to the Board to demonstrate
compliance with the time schedules established for commencement and performance of the work,to wit
The owner,lien holder or mortgagee shall report monthly to the code enforcement office with progress reports.
The above listed property,Including structures or improvements on the property,exceeds$100,000,in total Value
the owner,lien holder or mortgagee shall post a cash or surety bond In an amount adequate to cover the cost of
repairing,removing or demolishing the building or structure not later than the 30"'day from the date of this order.
Clarissa Beltran FOR Tim Honea FOR
lee R.Hassman FOR Craig S.Loving FOR
Matthew Ezell FOR Shane Tomo FOR
Ordered this 24th day of September,2015.
Date Filed '?/i 1'
Signed under authority of the Board; plg„it4w Sig under the author) the Board:
Chairperson I Vice-Chairperson
r[ u
R Ahecca Huerta.
Filed. City Secretary DATE TIME y Secretary
PASSED AND APPROVED this day of , 2016 at a Regular
Meeting of the City Council of the City of Corpus Christi, Texas.
ATTEST: CITY OF CORPUS CHRISTI
Rebecca Huerta Nelda Martinez
City Secretary Mayor
Corpus Christi, Texas
of , 2016
The above resolution was passed by the following vote:
Nelda Martinez
Rudy Garza, Jr.
Chad Magill
Colleen McIntyre
Lillian Riojas
Brian Rosas
Lucy Rubio
Mark Scott
Carolyn Vaughn
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Code Enforcement Division •',.'4�
Police Department
DATE: September 24,2015
CERTIFIED LETTER#7014 1200 0001 9125 4487
OWNER Corpus Note Acquisitons LLC RE:625 Gordon
Tim Dowling ADD'N: Lindale Park 4
ADDRESS 1001 Third Street LOT: W 24.4' Lt 9 all Lts 10 thru 12 W 64.48 Lt 13
CITY STATE ZIP Corpus Christi, Texas 78404 BLOCK:40
The Building Standards Board met at 1:30 a.m.,Thursday.September 24,2015 in the Council Chambers, 1201 Leopard,
to hear matters concerning the substandard building(s)located at the above referenced property.A final order of the
Board's decision made on that date is enclosed.The period of time allowed you to comply with the decision of the Board
commences from the date of the enclosed order.
The owner or occupant,or his/her duly authorized agent, may appeal the decision of this Board to the City Council.Such
appeal must be perfected by filing a sworn notice of appeal with the City Secretary within thirty(30)days from the date
of notice of the Board's written decision which is the date of this letter.This appeal must state specifically any error
alleged to have been committed by the Board or that the decision of the Board would cause undue hardship and state
the reasons for the hardship. Prior to the institution of any appeal in a court of law by an aggrieved person from a
decision of the Board,appeal must first be perfected to the City Council. The decision of the City Council shall be final
unless the aggrieved party appeals by instituting suit for that purpose in any court having jurisdiction within fifteen(15)
days from the date on which the decision of the City Council was rendered.
It may be necessary for you to obtain the proper permits before initiating demolition or repairs as required by the Board.
A permit can be obtained at Development Services located at 2406 Leopard Street, Corpus Christi Texas.Please contact
Code Enforcement Division located at 1201 Leopard Street prior to obtaining the permit(s).
Please contact Diana T.Garza,Building Standards Board Liaison,if you have any questions regarding this matter.She can
be reached at(361)826-3009.
Sincerely,
Diana T.Garza
Building Standards Board Liaison
Code Enforcement Division
Attachment:Board Order
Case number 15-568
P.O. Box 9277 Corpus Christi,Texas 78469-9277 • (361)826-3046 • htto://www.cctexas.com/
FINAL ORDER OF THE
==T. BUILDING STANDARDS BOARD )
U ;
i
i '!!'. Case No. 15-568 ,..,...,..--
Property
'=Property Owner(s) RE:625 Gordon
OWNER: Corpus Note Acquisitons LLC LOT:W 24.4'Lt 9 all Lts 10 thru 12 W 64.48 Lt 13
c/o Tim Dowling BLOCK:40
ADDRESS: 1001 Third Street ADD'N:Lindale Park 4
CITY STATE ZIP: Corpus Christi Texas 78404
This final order is issued pursuant to the authority granted to the Building Standards Board("Board")of the City of Corpus Christi,
("City"),Nueces County,Texas in accordance with the Charter of the City,Chapter 13 of the City's Code of Ordinances("Code")and
the Texas Local Government Code.
On September 24,2015,the City of Corpus Christi Building and Standards Board held a public hearing and made the following
findings regarding the building located at the above referenced property:
1. Pursuant to the provisions of Chapter 13 of the Code,on April 9,2015 an inspection for substandard conditions was
made of the building(s)or structure(s)located within the City at the above referenced property;
2. On June 1,2015 a notice of violation(s)and request to correct the violation(s)was sent to the owner and all known
interested parties. Additionally,on August 10,2015 and August 11,2015 notice of violation(s)was posted in the
Corpus Christi Caller Times;
3. Thirty days elapsed since the notice of violation(s)was provided and such violation(s)were not cured;
4. Code Official,Diana T.Garza,filed a complaint with the Chairman regarding the above listed property on September 9,
2015,and the public hearing was held not less than ten days and not more than 45 days after the complaint was filed;
5. Notice of the public hearing was sent to the owner and all known interested parties on September 10,2015,which was
at least ten day prior to the public hearing. Additionally,on September 10,2015 and September 11,2015 notice of the
public hearing was posted in the Corpus Christi Caller Times;
6. After considering the testimony and reviewing the documentation and information submitted by City Staff and after
affording the owner and/or other interested parties the opportunity to address the Board and present testimony,
documentation and information the Board finds the building located at the above referenced property is substandard
and/or constitutes a nuisance.
7. The City of Corpus Christi will vacate,secure,remove,or demolish the building or relocate the occupants of the
building if the action ordered below is not taken within the allotted time.
The Board further finds:
The substandard building shall be ordered secured by the owner,lien holder or mortgagee from unauthorized
entry within 30 days.
OR
The substandard building or structure can reasonably be repaired by the owner,lien holder or mortgagee,so as to
be in compliance with this code,therefore it shall be ordered repaired within thirty(30)days. Repairs must be in
compliance with City Ordinance Section 13-22(G).
The substandard building or structure can reasonably be repaired by the owner,lien holder or mortgagee,so as to
be in compliance with this code,therefore it shall be ordered repaired within (31 days to 90 days)days.
Repairs must be in compliance with City Ordinance Section 13-22(G). Further,the owner,lien holder or
mortgagee shall secure the property in a reasonable manner from unauthorized entry while the work is being
performed and work shall be commenced and performed in accordance with the time schedules established by the
Board,to wit:
The substandard building or structure is so damaged,decayed,dilapidated,unsanitary,unsafe,or vermin-infested
that it creates a serious hazard to the health or safety of the occupants or the public,therefore it shall be ordered
to be vacated within days. The building or structure shall be placarded to prevent occupancy until the building
or structure is brought up to all minimum standards of this code within thirty(30)days.
The substandard building or structure is so damaged,decayed,dilapidated,unsanitary,unsafe,or vermin-infested
that it creates a serious hazard to the health or safety of the occupants or the public,therefore it shall be ordered
to be vacated within_days. The building or structure shall be placarded to prevent occupancy until the building
or structure is brought up to all minimum standards of this code within—days. Work shall be commenced and
performed in accordance with the time schedules established by the Board,to wit:
The structure or premises cannot be repaired because of the refusal of owner or its intrinsic state of disrepair or
both and is dilapidated or substandard,therefore,it shall be ordered removed or demolished by the owner,lien
holder or mortgagee,within thirty(30)days.
_ The structure or premises cannot be repaired because of the refusal of owner or its intrinsic state of disrepair or
both and is dilapidated or substandard,therefore,it shall be ordered removed or demolished by the owner,lien
holder or mortgagee,within_(31 days to 90 days)days.
OR
The Board finds that the owner,lien holder or mortgagee has submitted a detailed plan and time schedule for the work and the
owner,lien holder or mortgagee has established that the work cannot reasonably be completed within 90 days because of the scope
and complexity of the work;therefore:
The owner,lien holder or mortgagee is required to regularly submit progress reports to the Board to demonstrate
compliance with the time schedules established for commencement and performance of the work,to wit:
The owner,lien holder or mortgagee shall report monthly to the code enforcement office with progress reports.
The above listed property,including structures or improvements on the property,exceeds$100,000,in total value
the owner,lien holder or mortgagee shall post a cash or surety bond in an amount adequate to cover the cost of
repairing,removing or demolishing the building or structure not later than the 30th day from the date of this order.
Clarissa Beltran FOR Tim Honea FOR
Lee R.Hassman FOR Craig S. Loving FOR
Matthew Ezell FOR Shane Torno FOR
Ordered this 24th day of September,2015.
Date Filed Oaes
Signed under authority of the Board: 11:0,444/.., Signed under the authority f the Board:
Chairperson Vice-Chairperson
ecca Huerta
Filed. City Secretary DATE TIME Secretary
625 Gordon/BSB-August 10, 2015 1
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5
6 TRANSCRIPTION OF
7 CITY OF CORPUS CHRISTI
8 BUILDING STANDARDS BOARD MEETING
9 AUGUST 10 , 2015
10
11 REGARDING THE PROPERTY AT 625 GORDON
12 MULTIFAMILY APARTMENT COMPLEX
13
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DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 2
1 SPEAKER: This case we have representation by
2 Rebecca Pezzi, Code Enforcement Official . The case is
3 14-1052 . Owner of the property is listed as Corpus Note
4 Acquisitions, LLC. Property is at 625 Gordon. It ' s
5 multifamily apartment units .
6 Staff recommendation is demolition. Structure
7 is 62 percent delapidated overall . And under the
8 provisions of Section 13-22H1C of the Corpus Christi
9 Property Maintenance Code, and due to the substandard and
10 delapidated condition of the property, of the structure,
11 it is a hazard to the health and safety and welfare of
12 the public and is henceforth declared -- yeah, sorry, I
13 lost my place -- therefore, the owner will be required to
14 demolish the structure within 30 days . If demolition is
15 not started or completed as required, then the City will
16 be authorized to demolish.
17 And then we have Rebecca Pezzi presenting on
18 this property.
19 MS . PEZZI : Hi , I 'm Rebecca Pezzi . I started
20 this case in May 2014 from the occupants and tenants
21 complaining to me about the living conditions . It was
22 built in 1963 , so it ' s been there a little bit, but the
23 first building and apartment I 'm going to -- sorry in
24 advance, it ' s kind of long because there ' s so many
25 apartments .
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 3
1 In the first apartment, we found signs of mold
2 and mildew. There was heavy water damage, broken
3 windows . There ' s no screens on any of the windows .
4 Sheetrock damage and cracks in the walls . And we went
5 over there, and Norm from Development Services, and then
6 we brought other entities over there as well , but you can
7 see the water damage in there .
8 Number 2 , Apartment Number 2 , there was damaged
9 sheetrock as well . The copper was taken out of the
10 walls . Water heater and the A/C were disconnected.
11 SPEAKER: Were these occupied units at the
12 time?
13 MS . PEZZI : When I first started, yes . But now
14 they' re not in these pictures .
15 SPEAKER: Okay. And how many units total are
16 there?
17 MS . PEZZI : 42 . There ' s broken windows, and
18 then also no screens . Water damage, ceiling damage in
19 the restroom area. Door frame damage, and the paint was
20 deteriorating. Door frame, holes in the wall, damaged
21 light fixtures, broken windows , missing screens .
22 Number 16 had sheetrock damage, holes in the
23 walls . The copper was taken, mold and mildew, paint
24 deteriorating, ceiling damage in the restroom area.
25 Number 34 , again I 'm sorry, this is very
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 4
1 consistent throughout all of them. But sheetrock damage,
2 holes in the walls . This floor was very soft when I --
3 it felt like it was buckling when I would walk on it .
4 Exposed wiring. The floor was soft in here as well .
5 That ' s what that picture is . More exposed wires . There
6 was holes where people came in as well through the
7 ceiling after it was boarded up. Damaged counter.
8 Apartment Number 35 had damaged sheetrock,
9 holes in the walls . The copper was taken also from this
10 apartment . The A/C and water heater were disconnected.
11 Had broken glass at the window, and the A/C was
12 disconnected. And this floor was buckling as well .
13 Apartment 36 had sheetrock damage, holes in the
14 walls, damaged door frame, missing screens, taking --
15 stolen copper from the walls .
16 Number 37 had a damaged door frame, the rotten
17 sill , water damage, and possible signs of mold
18 and mildew, a damaged front door. Exposed wiring,
19 missing screens and broken glass, cracks in the ceilings
20 and walls . And that ' s where the floor was soft . The
21 switch covers were damaged, and someone coming in through
22 the ceiling.
23 Number 17, damaged door frame from people
24 coming in. This one had fire damage . This was one of
25 the apartments that was set on fire . And it has, it had
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 5
1 heavy water damage before and after the fire, but there ' s
2 damaged sheetrock, holes in the walls, and they took some
3 of the copper from this apartment as well .
4 Number 18 had heavy water damage, and this is
5 when people were living in there . Signs of mold
6 and mildew, paint deterioration. It had a broken window
7 frame and broken glass and no screens in that apartment
8 as well .
9 Number 19 had water damage, holes in the walls,
10 sheetrock damage, missing screens and broken glass . One
11 of the lavatories is loose from the wall . Had a damaged
12 countertop, cracks in the ceilings .
13 Apartment 38 upstairs, this is above the one
14 that was on fire . They had some damage from that fire .
15 A/C and water heater disconnected, sheetrock damage, door
16 frame, broken glass and screens .
17 MR. RODRIGUEZ : Isaac Rodriguez, Police
18 Department . We were actually told by Development
19 Services not to go to that apartment because the walkway
20 to that was, looked dangerous . So I just wanted to put
21 that in there . She still went, though.
22 MS . PEZZI : That ' s a different one .
23 MR. RODRIGUEZ : Sorry, I misspoke .
24 MS . PEZZI : Apartment 4 -- I 'm sorry -- 39 had
25 holes in the walls . This is when it was occupied. She
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 6
1 was showing me where all the floors were very soft and
2 buckling when we walked on them. She wouldn' t even let
3 me go in certain areas because she knew the soft spots .
4 Sheetrock damage . They had a leak in the bathroom,
5 broken windows, no screens . And again, there ' s another
6 soft spot in the floor.
7 Apartment 40, another upstairs apartment, had
8 cracks in the ceilings, broken glass and no screens .
9 Apartment Number 20 had damaged sheetrock,
10 water damage, stolen copper. The A/C and the water
11 heater were disconnected. Broken switch covers, holes in
12 the walls . Oops, I 'm sorry.
13 Number 21 is the, where the fire was that he
14 was talking about, or it -- we wouldn' t go in there .
15 Development Services wouldn' t let us go in there . So we
16 just took what we could from the door and -- but it was
17 arson, correct?
18 MR. RODRIGUEZ : Yeah, I ' ll talk about that in a
19 minute . But --
20 MS . PEZZI : Okay.
21 MR. RODRIGUEZ : They both were arson.
22 MS . PEZZI : Well, he had told me that, so I
23 wasn' t sure . But I ' ll let you talk about that in a
24 minute .
25 Number 41 was sheetrock damage, holes in the
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 7
1 walls, and this is the upstairs apartment . Copper taken.
2 The paint was deteriorating, and ceiling damage . Missing
3 screens . The shower, this is how it was when they were,
4 it was occupied. You can see next door.
5 And Apartment 42 , Development Services didn' t
6 want -- Norm didn' t want to go upstairs because of the,
7 not the patio but the --
8 SPEAKER: The balcony.
9 THE WITNESS : Thank you, the balcony, it was
10 not sound. They didn' t want to walk on it . I went up
11 there, I had went up there already and took pictures,
12 just myself, and people had come in through the wall .
13 The A/C and water heater were disconnected, broken glass,
14 missing screens, and light fixtures were damaged as well,
15 broken windows .
16 This, I just want to put a little bit in here,
17 this is a laundry room. This is a, there ' s a hole on the
18 right side of -- whoa, I 'm sorry, I forgot it was a touch
19 screen -- there ' s a hole to the outside . It ' s just a
20 cover on the outside blocking that hole on the right side
21 of the picture . When there were washer and dryers, it
22 was like that .
23 Some of the exterior pictures of the outside,
24 of the brick, and it ' s not veneer, so it ' s actual brick,
25 and the cracks in the mortar.
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 8
1 Here, there was a pipe attached to the wall
2 with all the copper wiring, they had cut that down and
3 removed it and cut all the wire off of that as well .
4 This was taken from all the buildings . There ' s
5 no one in particular in order. That ' s part of the
6 balcony that was burned that you can see there . And the
7 covers were all kind of patch job, and so they had water
8 damage because they weren' t weatherproof, so they' re
9 rotting.
10 The porches and stairs were, weren' t in really
11 good condition. The stairs were replaced with pieces of
12 wood. And some, if they weren' t even, were wedged with
13 pieces of wood to make them even, but it was very
14 unstable . And it was separating from the actual balcony,
15 the stairs in certain areas .
16 They had rotten wood. Some were missing boards
17 on the steps . And the balconies, some had inadequate
18 support . It had missing handrails . Some were rusted
19 through. Uneven landing on the balconies on the second
20 floor, and loose support posts .
21 The bottom right, you can see it ' s rusted.
22 It ' s not even connected any more to, the railing, to the
23 bottom of the stairs . More rust connecting to the patio .
24 Again, that ' s not even connected, the post .
25 This is what we had, just threw this in here,
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 9
1 what it looked like before we had filled it . The tenants
2 were just throwing stuff in there . But it ' s no longer
3 like that . We filled it . So it ' s just there now.
4 The roof, we had the drone come and assist us
5 with this to take aerial photos . We found rotten eaves,
6 rotten rafter tails, and the roof was weathered and worn
7 on all the buildings . All right . I tried to hurry.
8 MR. RODRIGUEZ : I 'm sorry, I ' ll try to hurry,
9 too. Isaac Rodriguez, Police Department . Just to give
10 you a background and kind of the criminal history of the
11 property, this, due to the living conditions and due to
12 the criminal activity at this location, it was turned
13 into a Interdepartmental Nuisance Abatement Task Force
14 case, and we contacted the landlord or the management
15 company at that time . They agreed that it was in bad
16 condition, so they were going to evict everybody to fix
17 all the problems . They evicted everybody. Everybody was
18 finally out in December of last year, and they said that
19 they were going to fix it . They haven' t done that since
20 then.
21 Just to give you some more history as far as
22 the criminal history, there have been, in the two-year
23 period there the past two years, there have been 98
24 reports filed for this location, and 19 of those were
25 felonies .
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 10
1 Out of those 19 felonies, there are three
2 arsons . One was a bed that was set on fire in the lot .
3 The other two were the two apartments, and they were
4 considered arson by the Fire Department . One they found
5 lighter fluid and they saw -- they had a witness that saw
6 three Hispanic males leaving the location.
7 Some of the other reports that have been placed
8 there are prostitution, possession of controlled
9 substance, of which I think one was heroin and the other
10 one was for sure synthetic marijuana .
11 There are other cases where the Gang Unit
12 advised me that it was, it ' s - - it was weird because they
13 called it a gang melting pot . Usually gangs, they stick
14 in one place and there ' s only one gang. This had several
15 different gangs in one location. So they were constantly
16 going by and they would find all this stuff going on.
17 And other criminal stuff that happened there
18 were they had garbage, refuse and other waste, which they
19 had raw sewage leaking out into public areas where the
20 kids were playing, and that happened twice . We had to
21 give them two citations, one on 6/11/2014 and the other
22 on July 1st, 2014 .
23 The property has been left, after, after it was
24 empty, reports stopped being made because there was
25 nobody there to make them. But officers still went by.
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 11
1 And I advised, after it was completely empty, I advised
2 the management company that on 1/30/2015 that they were
3 getting into the apartments and they were stealing the
4 copper and that they needed to find a way to secure them,
5 make sure that nobody got in there .
6 They didn' t do anything. We had to secure the
7 building. We had to board up all the apartments, and
8 they are still going in there and stealing copper.
9 They' re still going in there to this day.
10 Actually, I have a report here on July 31st,
11 there was an officer doing a routine patrol, because it
12 is a very, very high traffic, high problem area, doing
13 routine patrol . He found two individuals, one -- that
14 were trying to steal copper. He arrested them for
15 criminal trespass . They didn' t get a chance to steal the
16 copper, so he was unable to charge them with that .
17 We 've done, I think, nine board-ups total in
18 that place, and that ' s just the ones that we were able to
19 get approved. We had to wait some time to where we can
20 maybe get it done . We were trying to make contact with
21 the landowner and get them to do it, but they wouldn' t do
22 it themselves .
23 And just also to go on, not only is the Police
24 Department doing a continuous patrol of the area, the
25 Fire Department does that as well . One time whenever we
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 12
1 were there doing an inspection, the Fire Department
2 pulled up, and I was like, "Is there a call here?" They
3 said, "No, we come here every once in a while to check
4 the property because we 've had so many calls here . "
5 So it is a high crime area that is not being
6 taken care of . The kids from the Ray High School right
7 across the street, they make their way over there
8 sometimes . It is a dangerous place . As you can see, the
9 railings are there . Transients go in there . As you can
10 see by some of the toilets on the pictures that were in
11 the presentation, they go in there, they stay in there .
12 They use the facilities . They sleep overnight . We ' re
13 just kind of concerned about the kids going and being in
14 contact with that, so --
15 MS . PEZZI : While I was there with Officer
16 Mihalko, there was a man coming out of the boarded
17 apartment . And they' re -- at first they were taking them
18 off and going in, and now they leave them on there and
19 just kind of squeeze in. And we heard the wood hit the
20 building, and we turned around and someone was walking
21 out, and he ran from the officer.
22 MR. RODRIGUEZ : I do have a sampling of some of
23 the, the reports here . I have 13 reports, and then I
24 have the three arsons, if you do want to take a look.
25 MS . PEZZI : They also have $44 , 411 in back
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 13
1 taxes as well . I mean, that ' s in the book, but --
2 MS . CANTU: I have a couple of things to add as
3 well, Tracy Cantu with Code Enforcement . Up to this
4 point, since we went back for September, and I think that
5 was when the board-ups and the abatement events began,
6 there have been a total of 11 abatement events that have
7 had to be conducted by Code Enforcement, totaling almost
8 $20 , 000 , as far as fees and funds expended for abatement .
9 We did also ask our Building Official, Gene
10 Delauro, if he could make a general statement on some
11 requirements from building inspections that might be
12 needed if the property were to be rehabilitated, some of
13 the requirements, just have him make a statement about
14 that, if you don' t mind, Gene .
15 MR. DELAURO: Gene Delauro, Building Official .
16 So this project, as with any project, would be subject to
17 the 50 percent rule . And the 50 percent rule is that if
18 you perform work, the value of that work, if it exceeds
19 50 percent of the taxable value of the building, then the
20 entire building has to come up to current standards and
21 codes .
22 So, difficult to tell , we have big buildings
23 here . We 've got obviously a lot of damage that needs to
24 be done . But what ' s probably unknown at this time is
25 what ' s behind those walls and how that water has
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 14
1 deteriorated that building. And that probably wouldn' t
2 be known until, until that was all removed.
3 So, but if the value of the work exceeded the
4 taxable value, the entire, all the buildings would have
5 to come up. And I don' t know what the taxable value of
6 these buildings are . Given their current state, they' re
7 liable not to be very high, which means the threshold for
8 doing the amount of work you want to do is probably,
9 could push these things to be brought up to current
10 standards .
11 SPEAKER: The current taxable value is
12 $1, 233 , 000 .
13 MR. DELAURO: So if you did -- I 'm sorry,
14 1 . 2 million? So if you did in excess of $600, 000 of work
15 to these buildings, you' d have to bring, bring all the
16 buildings up to current standard.
17 And that is measured in a 12-month period. So
18 you can ' t, you can' t do a certain portion of work one
19 year, come back the next year. You know, you have to --
20 can' t do a project in January, do another one in May, do
21 another one in November. We count all the work across
22 twelve months for that valuation.
23 SPEAKER: Anything more from staff?
24 MR. RODRIGUEZ : Just add one more thing for
25 Apartment 17 with all that water damage, we were the ones
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 15
1 that found the leak. We were the ones that had to get it
2 shut off to prevent further damage . I just wanted to let
3 you know that the City has been taking care of this place
4 for a very long time .
5 SPEAKER: Okay. Any questions of the board to
6 the staff?
7 SPEAKER: About how many people were living
8 there whenever you went?
9 MS . PEZZI : They were full , occupied, and there
10 was more than two to three in each one, so -- including
11 children and --
12 SPEAKER: So all 42 units? Wow.
13 MS . PEZZI : 40 , Apartment 40 -- actually,
14 Apartment 40 was the only one that was not in horrible
15 condition. I guess she was good in with the previous
16 owner and he kind of took care of her. But the rest of
17 them were kind of, they took their money and that ' s it .
18 SPEAKER: And was management on site, or no
19 management on site?
20 MS . PEZZI : We would call her and she would --
21 the previous manager would kind of avoid our calls and
22 didn' t communicate what was happening, and then when she
23 did, it was kind of like not happening. It was kind of
24 like blowing smoke kind of thing, just to prolong it or
25 kind of hold off .
DepoTexas, Inc.
625 Gordon/BSB-August 10, 2015 16
1 SPEAKER: Do we have ownership representation
2 here? Okay. Then at this time I ' d like to open a public
3 hearing for the property at 625 Gordon.
4 SPEAKER: (Inaudible) -- licensed engineer here
5 in the State of Texas . Right now I 'm representing the
6 management company (inaudible) . If I could get
7 (inaudible) . It ' s a very good report, I 've heard. I do
8 appreciate the thoroughness of it . One thing I ' d like to
9 mention, though, is that it does sound like it ' s more of
10 an indictment of the management and the maintenance
11 operations of the previous owner. There ' s currently a
12 new owner now. It ' s a different owner.
13 SPEAKER: Well --
14 SPEAKER: I 'm sorry?
15 SPEAKER: I 'm sorry, go ahead.
16 SPEAKER: This owner is wanting to repair the
17 property and bring it up to speed and has been making
18 some visible changes . I understand, and I do appreciate
19 the law enforcement ' s opinion of this, and we don' t want
20 the property to be any part of a detrimental or
21 deleterious facility in the community. We don' t want to
22 see that .
23 We are in the process of putting up a fence
24 around it and boarding up windows . In the report, it was
25 noted that there was damage in various areas, including
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625 Gordon/BSB-August 10, 2015 17
1 doors, windows, walls, ceilings, roofs, seemed to cover
2 everything. What I did see, though, is that most of the
3 damage now did seem superficial in its nature, in that it
4 was people pulling off sheetrock to be able to get to the
5 copper behind it . They pulled the copper out .
6 That ' s, if you look at those photos again, you
7 could see the studs in the wall were still red. They
8 weren' t that dull gray that you get when wood gets old
9 and is not in very good shape .
10 So when I walked the site, yes, I did notice
11 that you had a lot of damage to the sheetrock. You had a
12 lot of damage to doors . You had a lot of damage to
13 windows . The property was purchased in a foreclosed
14 condition. It was a distressed property. I don' t think
15 that the current owner was fully aware of what, of how
16 bad it might have been. However, since that, we 've done
17 some walk-throughs . We 've looked at it . We 've done a
18 couple of reports internally to look at it to see what it
19 might would take to bring it up to speed.
20 I do understand that there ' s a lot of damage,
21 but in terms of sheetrock, we ' re going to replace the
22 sheetrock. In terms of the windows, if we ' re going to
23 bring it up, as Mr. Delauro said, to Windstorm
24 compliance, I 've got to put new windows in. I 've got to
25 put new doors in. The windows and doors are going to
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625 Gordon/BSB-August 10, 2015 18
1 have to be Windstorm required.
2 So in my mind, we 've got an owner here who is
3 willing to spend the money, and it ' s probably the only
4 man in the world that ' s willing to spend the money to
5 bring this place up to speed. We ' re not asking for time
6 for us to get the money to work on it . We ' re asking for
7 time to be able to set aside the legal issues that we
8 have currently from the transfer of the property from the
9 previous owner to the current owner, because the previous
10 owner left the property in a distressed condition.
11 And so what we would like to do is develop the
12 property. We ' d like to rip out all that sheetrock. We ' d
13 like to rip out all that wiring. We ' d like to put on a
14 new roof . We ' d like to fix the doors . We ' d like to fix
15 it all . And we 've got the money to do it .
16 And we ' re taking steps currently to put a fence
17 around and keep it up. And we understand the previous
18 owner just threw his hands up and had nothing to say or
19 do about it, and that caused the City actually to shell
20 out the money to do that previous owner' s responsibility.
21 And we ' re not that type of owner. We don' t
22 want to do that . We don' t want to see that . We want to
23 be a responsible owner of the building in the community.
24 We know that -- we want people to move back in there .
25 That will increase the tax base .
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625 Gordon/BSB-August 10, 2015 19
1 We don' t want to see it flattened and go to a
2 vacant lot, and who knows how long it will sit there as
3 vacant . That ' s kind of a built-up area, and people are
4 wanting to build up in other areas of town.
5 So what we ' d like to do at this point is ask
6 you for the ability to allow us to rehabilitate the
7 facility. And I understand, as Mr. Delauro says, we are,
8 I can guarantee you, above that 50 percent, so we will
9 have to bring this up to code . And so we ' re not asking
10 for it to be any code waivers or anything like that .
11 And again, as Mr. Delauro said, when we get in
12 there and start ripping up boards and find some of these
13 spongy floors, it might be that it ' s just the plywood, or
14 it might be that it ' s the structure . But in either case,
15 we plan on fixing that .
16 Is there anything that you guys have, a
17 question for me in terms of how we ' re intending on
18 proceeding forward that might help you with your
19 decisions?
20 SPEAKER: When do you intend on beginning this
21 project?
22 SPEAKER: Right now, we are currently fencing
23 it in, and we understand the law enforcement community' s
24 issues and concerns about having it open to the public .
25 I have children in school . I don' t want them -- you
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625 Gordon/BSB-August 10, 2015 20
1 know, I understand kids from Ray getting over in
2 there and doing things . We don' t want that either. So
3 we are currently wrapping it now with a fence .
4 SPEAKER: Has the Police Department seen the
5 fencing that ' s being installed? Is that adequate to
6 secure the property?
7 MR. RODRIGUEZ : If they continue, yes . But
8 they only have put fence in the front part of the
9 property and not the back part where the school is .
10 SPEAKER: We ' re waiting on the remainder of the
11 fence to be brought in. But yes, we do plan on bringing
12 the whole site and locking and securing it .
13 SPEAKER: And damage to the floors, a lot of
14 comments and photographs of floor condition --
15 SPEAKER: Spongy floors? Go ahead, yes, sir.
16 SPEAKER: And then also the exterior, all the
17 cracking in the brick. There is a structural engineer
18 who ' s going to be involved in the assessment?
19 SPEAKER: We would have a full team, yes . It
20 would be an architect, civil engineer, structural
21 engineer, and a MEP team.
22 SPEAKER: When did the owner acquire this
23 property? I don' t think I --
24 SPEAKER: (Inaudible) -- I 'm with McLemore
25 Management . The owner has asked me to get involved since
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625 Gordon/BSB-August 10, 2015 21
1 about August 1st . I believe he acquired the property in
2 2014 , sometime August, September. At that time when he
3 acquired the property, he became aware of the dire nature
4 of, you know, the issues that the property had and went
5 through an eviction process to get everybody off the
6 property.
7 He ' s since then been kind of tied up in
8 litigation with the previous owner trying to work out,
9 you know, getting some money back for this deal . He
10 acquired this as a package of, with multiple other
11 properties, so he wasn' t fully aware of the conditions of
12 the place .
13 So, yeah, you know, he ' s ready to move forward
14 with at a minimum an evaluation on what it ' s going to
15 cost to really get this property up, up to speed. That ' s
16 what we ' d like right now is just some time to do that .
17 We ' re going to secure the property. We ' re
18 actually doing that as we speak. It ' s taken a little
19 time getting the temporary fence up around there because
20 there is so much construction in Corpus right now. So,
21 you know, within a couple of weeks, though, that should
22 be secure .
23 We ' re looking to hire a security company to do
24 a daily patrol there . They' re maintaining the landscape,
25 keeping the grass cut . We ' re keeping the trash off the
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625 Gordon/BSB-August 10, 2015 22
1 property. I have a guy that goes out there once a week
2 to check on all that stuff .
3 So, you know, that ' s what we ' re asking for at
4 this time .
5 SPEAKER: In your letter, it says it ' s about an
6 18- to 24-month time frame to complete all of the
7 repairs?
8 SPEAKER: Total construction. That ' s total
9 construction. We intend on gutting the facility,
10 bringing, taking everything back down to structure so
11 that we can get in there and find out where any issues
12 are . Such as if we 've had water leaks around a window,
13 we want to pull that floor up, we want to open that wall
14 up to see how the structure is in there . And if we need
15 to make repairs in there, then we need to do that .
16 But in terms of the overall construction, I 'm
17 estimating about a year-and-a-half to two years for the
18 total construction, before they can start leasing out
19 again.
20 SPEAKER: (Inaudible) -- pictures looked really
21 bad (inaudible) and they are, but a lot of it is just
22 cleaning it up, getting that out of there, the sheetrock.
23 As Ward said, you know, the framing generally looks
24 pretty good. It ' s a brick building. It ' s not like we 've
25 got a bunch of siding that ' s rotted (inaudible) . You
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625 Gordon/BSB-August 10, 2015 23
1 know, our client would like to not (inaudible) by tearing
2 it down, so --
3 SPEAKER: How much do you think it ' s going to
4 take to --
5 SPEAKER: We ' re thinking in the range of
6 a million, maybe (inaudible) . Yeah, we ' re going to do a
7 thorough evaluation. If it comes back and it ' s two
8 (inaudible) , this is not (inaudible) -- like the time to
9 evaluate (inaudible) , get the job done within the
10 1 . 2 million, like (inaudible) .
11 SPEAKER: When will you have that decision made
12 on the total renovation versus demolition?
13 SPEAKER: Mr. Ward on his time line there kind
14 of has some points there that (inaudible) .
15 SPEAKER: Well , we need probably, Shane, about
16 two or three weeks to be able to get in there, do some
17 destructive testing of our own. What you all were seeing
18 earlier was our advanced destructive demolition team.
19 They were pretty good, weren' t they?
20 But beyond all that, we would need maybe a
21 month to get in there to look, to see, to contract with a
22 structural engineer to get in there and really look, to
23 bring in an architect .
24 I noticed that, you know, a lot of the plumbing
25 fixtures are gone . We ' re going to replace those anyway.
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625 Gordon/BSB-August 10, 2015 24
1 So the water heaters, we ' re going to replace those
2 anyway. Air handlers, air conditioning units, we ' re
3 going to replace those anyway. And we have money set
4 aside for that .
5 But to be able to go in and make that initial
6 determination as to whether or not to release those funds
7 to be able to do that work, we would need a little bit of
8 time to bring professionals in, do some destructive
9 testing, so that we can visually get in there and see
10 what we need to do and what ' s going to be required to be
11 able to do that .
12 SPEAKER: When' s our next scheduled board
13 meeting?
14 SPEAKER: September 23rd is the next
15 scheduled --
16 SPEAKER: 24th (inaudible) . Y' all mention
17 affordable housing in your packet here . What is
18 affordable housing? What are these units expected to
19 rent for?
20 SPEAKER: (Inaudible) would manage that or
21 have -- units of this size would be in the range from 700
22 to $900 a month. Generally renting apartments for about
23 700 bucks for a one bedroom. Two bedrooms are going in
24 the $800 range; three bedrooms in the $900 range .
25 SPEAKER: (Inaudible) I mean, as we understand
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625 Gordon/BSB-August 10, 2015 25
1 it, there ' s a bit of a affordable housing crisis here
2 (inaudible) .
3 SPEAKER: Further questions from the board?
4 The security company you mentioned, that would be --
5 what ' s the plan for the requirements?
6 SPEAKER: I 'm sorry? Say that again?
7 SPEAKER: What ' s the plan to require them to
8 patrol?
9 SPEAKER: Right now we ' re actively just looking
10 to find a company that can do the job. We haven' t
11 secured a company yet .
12 SPEAKER: You understand the Police
13 Department ' s concern and the neighborhood concern about
14 crime in the area .
15 SPEAKER: Absolutely. Absolutely. And we ' re
16 taking steps to secure the property. You know, if
17 somebody really, really wants to get on that property,
18 they' re going to be able to. There ' s nothing we can do
19 about that, other than catch it quickly.
20 But we ' re going to make it difficult for people
21 to get on there, and we ' re paying attention to it . And
22 you know, in the last year, nobody' s paid attention to
23 the property, other than the City apparently. So that ' s
24 changed now.
25 SPEAKER: I think to Shane ' s point, though, if
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625 Gordon/BSB-August 10, 2015 26
1 you only have a security company that ' s going around once
2 a day, that ' s really not going to be enough to -- people
3 will figure out the patterns .
4 SPEAKER: You know, we, we need some help from
5 the City as well . I mean, my client has multiple
6 properties in this town, pay a lot of taxes, you know, we
7 need some help from the City, too .
8 SPEAKER: Yeah, well, we don' t want to see the
9 City lose $45 , 000 in revenue off of the taxes .
10 SPEAKER: (Inaudible) -- a lot of that is
11 because it ' s an easy (inaudible) close to certain things,
12 like (inaudible) . Hopefully some of that nuisance
13 (inaudible) . Property certainly (inaudible) back onto
14 the site, grab whatever remaining (inaudible) hopefully
15 that kind of nuisance . Before now, I mean, you could
16 just grab and run (inaudible) . As before, someone came
17 out of an apartment while they were there and took off
18 running.
19 SPEAKER: You know, a daily patrol is at least
20 going to, if somebody' s in a unit and squatting in a unit
21 or staying in a unit overnight , they' re going to catch it
22 quickly. And I think once somebody' s checking on that
23 place on a daily basis, you know, it ' s going to cut it
24 down dramatically.
25 I mean most, most crime like this is easy
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625 Gordon/BSB-August 10, 2015 27
1 opportunity. And as Jim' s saying, like right now you can
2 just freely walk through the property. And making it
3 difficult to do that is going to prevent that, or at
4 least prevent 90 percent of it , you' d think.
5 SPEAKER: What we ' d like to present is that you
6 have a new owner, and (inaudible) previous owner did not
7 care (inaudible) call and complain with water leakage and
8 things like that, and the management company would not
9 respond. And that ' s one of the reasons that we led into
10 this sale where it was in foreclosed condition.
11 So with the new owner now, we ' re going to bring
12 this away from -- we want to get away from that kind of
13 management, be able to bring it back up. We think we
14 have the money to rebuild it . We ' d like to be able to do
15 a little bit more investigation just to be sure, but we
16 think we have everything in place to be able to move
17 forward in a positive way. We ' d just like to ask for
18 assistance in that, allow us to do that .
19 SPEAKER: In our City ordinance --
20 SPEAKER: Yes, sir.
21 SPEAKER: -- codes, I 'm sorry.
22 SPEAKER: Yes, sir.
23 SPEAKER: (Inaudible) about the bond?
24 SPEAKER: (Inaudible) about the watchman
25 requirement she ' s about to read just to remind the
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625 Gordon/BSB-August 10, 2015 28
1 property manager.
2 SPEAKER: It ' s in the UBC, Section 13-3012 ,
3 Watchman Required: "If boarding, fencing, or the use of
4 electronic monitoring systems, or the use of other
5 methods fails to keep unauthorized persons from entering
6 or occupying a vacant building, the owner shall have a
7 watchman on duty upon the premises every day continuously
8 between the hours of 4 : 00 p.m. and 8 : 00 a .m. "
9 Section B, "The watchman must remain on duty
10 daily during the required hours until the building is
11 either legally occupied, demolished, or sold. " So I
12 think it would take a little bit more than a drive by.
13 SPEAKER: That sounds like the trigger is if
14 law enforcement comes back and says we still have a
15 nuisance . And they can' t stop that nuisance from
16 happening, other than putting a watchman on 24/7 , then we
17 might can do that .
18 But at this point, let ' s do what the ordinance
19 says, let us put the fence on, let us board the windows
20 up, and if we still hear from Officer Isaac that we have
21 an issue there, then we ' ll look at other options . We
22 certainly will, yes, sir.
23 MR. RODRIGUEZ : Let me add something real
24 quick. I was -- that would be the next course of action,
25 because the board-ups are definitely not working. So the
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625 Gordon/BSB-August 10, 2015 29
1 next way would be to put the fence up. So I do concede
2 that .
3 But I do want to also just let you know, this
4 is not a new owner . The owner, this owner has had the
5 property since we 've been working the case the whole
6 entire time . So he keeps saying new owner, new owner.
7 SPEAKER: Well , that ' s why I asked when he
8 acquired the property.
9 SPEAKER: It is a new owner in terms of the
10 issues that we ' re having. The issues that we ' re having
11 are coming from the previous owner, the previous
12 management, and the style they had to operate the place .
13 The style was that we take the tenants ' money and we do
14 nothing. And that ' s why it, over time, deteriorated. It
15 went into foreclosure . The new owner bought it in a
16 distressed condition and has been tied up legally and
17 can' t, we can' t go on to the property now and do anything
18 really until we get the legalities out of the way.
19 SPEAKER: So what ' s the time frame for that?
20 Because earlier you said that we would be able to
21 determine a month from now the feasibility of rehabbing
22 it, but --
23 SPEAKER: I 'm not directly involved in that,
24 but as I understand it, that has been resolved to the
25 point where we can move forward.
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1 I think the main thing here is our client took
2 the property over in August, September of last year.
3 There was three or four months of getting everybody off
4 the property, and he ' s been in this litigation with the
5 previous (inaudible) trying to get some things resolved.
6 So, you know, things probably could have
7 progressed a little more quickly. He also had, the Reid
8 property was part of (inaudible) and these properties
9 came in, tied up with that . You know, he ' s spending a
10 lot of money. He doesn' t have an endless supply of
11 money. You know, we, he has to raise funds (inaudible) .
12 You know, he ' s had (inaudible) related to this
13 deal (inaudible) , the Reid Apartments, which is across
14 the street that we had torn down (inaudible) . Gordon has
15 just unfortunately been a little bit pushed back, but
16 we ' re ready to do something now.
17 SPEAKER: What ' s a reasonable time for the
18 feasibility? Can y' all have it back by September 24th?
19 SPEAKER: (Inaudible) getting close
20 (inaudible) . We can give it a shot, but it ' s going to be
21 close . We can probably get a preliminary one, not a
22 thorough one, that would give you maybe a rough
23 indication of kind of whether or not yea or nay.
24 We could pick some of the more worse areas,
25 where we had the water damage and things and pull that up
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625 Gordon/BSB-August 10, 2015 31
1 and see where we ' re at, like the spongy floors and
2 things . Some of the exterior work, like the balconies,
3 patios and stair rails, we ' re planning on repairing that,
4 replacing that in total . We ' re not going to try and put
5 boards up.
6 SPEAKER: (Inaudible) have a pretty good idea
7 by that time, but realistically we ' d like two months to
8 do that .
9 SPEAKER: Well , our next meeting isn' t till
10 November after that, which we ' re going to continue with
11 maybe some of the same problems, hopefully not with the
12 fence, but --
13 SPEAKER: Right .
14 SPEAKER: Prolonging some of this --
15 SPEAKER: I would like to -- I ' d be more than
16 happy to come back and kind of give you guys an update
17 for your next hearing (inaudible) helpful , and
18 (inaudible) at that point . It ' s a hard project we have
19 ahead of ourselves here, and (inaudible) .
20 SPEAKER: If we table this , we will expect it
21 to be brought forward again. I mean, to table it will
22 mean it comes forward to us again for action at the next
23 meeting. And the Police Department and Code Enforcement
24 will all be here with an update for us, including the
25 owners, if y' all have something to add. If not, we have
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1 the opportunity to take action at that time .
2 SPEAKER: That ' s reasonable .
3 SPEAKER: Any discussion questions further?
4 SPEAKER: I think also that we need to point
5 out that the City also has the right to request a bond or
6 a surety bond -- is that correct, right, on Page 5 --
7 that will, you know, you put up a bond of a minimum of
8 $100, 000 , and then you've got to provide also a financing
9 letter as well, or some kind of letter determining that
10 this is something that the owner can do, because you did
11 say that they have a bunch of other properties and not an
12 endless supply of money. So I think that might be, might
13 help your case as well, if that ' s --
14 SPEAKER: (Inaudible) state law is where she ' s
15 at .
16 SPEAKER: (Inaudible . )
17 SPEAKER: Other questions? Okay. If not, I 'm
18 going to close the public hearing. Thank you.
19 SPEAKER: Thank you.
20 SPEAKER: And if there ' s nothing further from
21 staff, we ' re going to have a motion made .
22 SPEAKER: All right . I would like to add one
23 thing.
24 SPEAKER: Please .
25 SPEAKER: We did have the opportunity to meet
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625 Gordon/BSB-August 10, 2015 33
1 with the management yesterday, and they gave us a prelude
2 to what they were going to discuss and their intent for
3 the rehabilitation of the property. And we did explain
4 to them that we had to go ahead and move forward with the
5 board. The case had already been set to come to the
6 board, and that was due to the neglect of the owner, the
7 current owner, and his nonresponsiveness up until this
8 point .
9 We have, you know, followed due diligence and
10 due process of law to notify the owner and any
11 responsible parties . Again, I made the point of the
12 amount of money that the City has put out to maintain and
13 to secure this property up to this point, and we are just
14 looking for some assurance and accountability.
15 And you know, I know that they do have a plan
16 now, but just making that point that , you know, the
17 reason we had to get here was because of the
18 nonresponsiveness .
19 So just, we would like to continue with the
20 discussions with the management group in coming to, you
21 know, with an actual formal plan so that when we do come
22 back before you next month, you know, there is something
23 more concrete with some firm deadlines and we ' ll continue
24 working with them if that is what the board decides .
25 SPEAKER: (Inaudible) motion.
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625 Gordon/BSB-August 10, 2015 34
1 SPEAKER: So I would like to make a motion --
2 let ' s see if I can get through this -- that we table this
3 for our next meeting for September - - what date is it?
4 SPEAKER: 24th.
5 SPEAKER: 24th, but in the meantime -- and we
6 will rehear the case at that point . In the meantime,
7 that the property be secured, that the fence be put up,
8 that a third party security company be hired as well, and
9 then that we will be provided with some financials and a
10 more definitive plan at the next hearing.
11 MR. TORNO: Shane Torno, second the motion.
12 Discussion? Okay. Then we ' ll vote from left to right .
13 SPEAKER: Aye .
14 SPEAKER: Aye .
15 SPEAKER: Aye .
16 SPEAKER: Aye .
17 MR. TORNO: Thank y' all .
18 (End of recording. )
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625 Gordon/BSB-August 10, 2015 35
1 STATE OF TEXAS
2 COUNTY OF NUECES )
3
4 I, MOLLY CARTER, Certified Shorthand Reporter
5 for the State of Texas, do hereby certify that the
6 foregoing 34 pages, numbered 1 through 34 , constitute a
7 full, true and correct transcription, to the best of my
8 ability, of the proceedings had in the above-captioned
9 cause; thereafter, reduced to typewritten form by me and
10 under my supervision.
11 Certified to by me this 25th day of January
12 2016 .
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15
16
MOLLY CARTER, CSR, RPR, CRR
17 CSR NO . 2613 , Expires 12-31-17
18 DepoTexas - Firm No. 644
615 N. Upper Broadway, Suite 1450
19 Corpus Christi, Texas 78401
Telephone : (361) 883-3400
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625 Gordon/BSB-September 24, 2015 1
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6 TRANSCRIPTION OF
7 CITY OF CORPUS CHRISTI
8 BUILDING STANDARDS BOARD MEETING
9 SEPTEMBER 24 , 2015
10
11 REGARDING THE PROPERTY AT 625 GORDON
12 MULTIFAMILY APARTMENT COMPLEX
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DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 2
1 SPEAKER: Okay. Staff has recommended that we
2 go ahead and address Gordon. They' re prepared with the
3 slides for that one, so we will move to 625 Gordon.
4 SPEAKER: Okay. So at this time we ' ll hear
5 from the staff regarding the property at 625 Gordon
6 Street .
7 MS . PEZZI : Hi , Becky Pezzi, Code Enforcement .
8 This property was built in 1963 . I had first responded
9 to the property on the 19th of May 2014 reference broken
10 windows, bed bugs, floors sagging, ceilings collapsing.
11 And when the tenants let me in, I confirmed all of those
12 things . And on the 20th of June 2014 , I went and did my
13 reinspection and no issues were resolved.
14 On 7/18/2014 , Norman Walters with Development
15 Services accompanied me over there with the Fire Marshal,
16 the health inspector, Jennifer Richter, and we did an
17 inspection for them, seeing as there was raw sewage,
18 exposed wires, and there was water leaking onto the water
19 heater with exposed wires while tenants were living
20 there .
21 On August 5th, I was advised there was new
22 owners as of the 4th, which would be the Corpus Note
23 Acquisitions, LLC. And so I started a new case on the
24 20th of August, when I was able to go with the manager at
25 the time .
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625 Gordon/BSB-September 24, 2015 3
1 SPEAKER: That was 2014?
2 SPEAKER: August -- yes, August 20th, 2014 , and
3 observed the same things there . I kind of did a
4 walk-through with them, explaining what I had issues
5 with, so they could let the owner know. On -- while I
6 was there, I had high weeds, there was solid waste on the
7 property as well as the minimum standards .
8 On September 15th, 2014 , there were vacancies .
9 They were starting to evict people, and people were
10 moving out, and they weren' t securing the property. And
11 the management said she couldn' t get, didn' t have access
12 to the money, and she was waiting for approval, so I
13 boarded it up as an emergency board-up, with seven
14 openings .
15 On February 24th, 2015 , I did a, started a
16 vacant building case, seeing as a lot of the apartments
17 were vacant, and also another case for the high weeds and
18 stuff on the property.
19 I 'm going to go over a slide, the slide show in
20 a minute, because there was a few people that weren' t
21 here the last time, just kind of recap on the pictures so
22 you could kind of see what I was talking about . It ' s not
23 as long as the last time .
24 They did, since the last meeting, since it was
25 tabled, put a fence around it . It was a very minimal
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625 Gordon/BSB-September 24, 2015 4
1 effort fence . There ' s no lock. People can just walk in,
2 and there was also holes in the fence, in the wooden
3 fence, so they can just come in any way.
4 They never, they hadn' t reboarded what I had
5 asked them to board. And I had sent e-mails with the
6 manager kind of asking, and for example, on September
7 9th, I e-mailed the manager Ryan and letting him know
8 that I have openings that need to be resecured. The
9 boards were still there, just needed to re-screw them on
10 the frame .
11 I didn' t get a reply till the 14th, and while
12 waiting for that, I went on the 11th with AEP. I got a
13 call from Officer Rodriguez saying that AEP was on the
14 property and they had issues there I needed to come, you
15 know, because of this case we were working on.
16 And I believe AEP is here, so they' ll talk
17 about that when they' re, what they found when they come
18 up . But when I got the reply on the 14th from the
19 manager, with the information saying that -- I replied to
20 him saying, "Well, what is the status? What is the plan?
21 Do you have an engineer, you know, evaluation and
22 report?"
23 He didn' t reply till the 22nd, and he did say
24 the fence was finished, but it was around the 16th or
25 17th when I went that it just had been done . So, and
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625 Gordon/BSB-September 24, 2015 5
1 then that ' s - - again, I asked him if he needs me to go
2 show the contractor that they have, what openings I 'm
3 talking about, because they would leave the boards on
4 there and, you know, come in.
5 But there was several -- well, first of all , it
6 was -- utilities were terminated on April 2015 , just to
7 show when it ' s, how long it ' s been vacant . And again,
8 I 'm going to recap the pictures and what the issues are
9 on the property.
10 On the interior, there were signs of mold
11 and mildew, due to water leaks, and possible plumbing
12 issues in and under the building. Damaged sheetrock, and
13 there was copper stolen from the walls, but they' re just
14 missing pipes everywhere in the walls now because of
15 people that have broken in through the boards .
16 The A/C and water heaters were removed and
17 disconnected. There ' s heavy water damage . When people
18 were living there, it was like that . Walls were missing
19 and sheetrock damage . Some rotten wood inside due to the
20 water leak.
21 Broken window glass, and rotten frames on the
22 window and the door. Holes in the walls and ceilings
23 again. And right here you can see on the cabinet, it ' s
24 really warped because of some of the water. This is just
25 one of the apartments .
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625 Gordon/BSB-September 24, 2015 6
1 Some of the bathrooms and the sinks in the
2 kitchen were disconnected and taken, because they weren' t
3 on the property. There was pipes dug out from underneath
4 there . There ' s exposed wires and cracked ceilings and
5 walls . The floors in some of the apartments were very
6 soft and felt like they were buckling when I would walk
7 on them, in multiple places in certain apartments .
8 Fire damage in two of the apartments . There
9 were three at the location, but only two were in the
10 apartment .
11 On the outside of the building, there was a,
12 found rotten corner boards, rotten wood and charred wood
13 from the fires . This is indicating foundation shifting
14 from the cracks in the veneer brick, or the brick on the
15 outside . And there were rotten eaves and rafter tails
16 due to the water damage .
17 On the steps, they were all in pretty bad
18 condition and all the eaves as well, but some of the
19 railings, the secured posts were not secured to the
20 building at all . That ' s by one of the fires in the
21 apartment . That one ' s in bad condition. And there
22 again, it ' s not attached, it ' s just sitting there, the
23 post .
24 Handrails were missing. Steps were missing.
25 And they, it felt like on certain areas of the balconies,
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625 Gordon/BSB-September 24, 2015 7
1 there was, it was very shaky and unstable, like it
2 wasn' t -- I was questioning if it was going to support my
3 weight .
4 There was a lot of rust as well on the
5 handrails and on the balcony and loose support boards .
6 And some places like that, it was kind of separating from
7 the building.
8 I just went there recently, but this is from,
9 since the last hearing when we tabled it . They did have
10 a partial fence put in the front that kind of stopped in
11 the front . That was on the 3rd of September, this year.
12 And if you look, there is a little red, I guess it ' s a
13 PVC cut pipe, and that ' s a live, those are live wires,
14 according to AEP . But again, he ' s here, he ' ll explain
15 that to you.
16 This is on the 11th. These are all open.
17 That ' s why I ' m taking pictures of these boards showing
18 that it ' s these ones in particular.
19 I 'm showing these because I , I feel like it ' s a
20 lack of effort, like they say they were going to do a
21 lot, but -- and I would try to encourage them and work
22 with them, but it just wasn' t, not much was getting done
23 it felt like . And in this picture, they had cut the wire
24 that was a live wire as well . Sorry. When we took the,
25 the power was cut, there was what was on there, and I
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625 Gordon/BSB-September 24, 2015 8
1 guess whoever possibly got shocked.
2 On the 16th, still the openings after I had
3 e-mailed him asking him to meet with his, his contractor
4 so I can show him the board-up . And these were the
5 fences, this is when it was complete . But the wires are
6 just holding them together, so it ' s very, again, minimal
7 effort on the fence . It feels like it ' s not very secure .
8 And we never saw anybody walking the property, like the
9 security or any other, anybody else to watch the
10 property.
11 I was forwarded this picture . It ' s not very
12 clear on this, but the gate is open, the one that it was
13 unsecured. That was obviously at night, and they, it was
14 wide open. So someone had been in there, because when I
15 went back the next morning, it was closed. And the
16 police were called out there to, you know, check the
17 property.
18 But , and this was the 22nd. We were here again
19 just checking on the property. And there were some
20 differences in the property, and we found someone inside
21 one of the properties, one of the apartments . And he was
22 arrested for criminal trespass, I believe .
23 There were still the same openings again, and
24 the wires holding together the fence . And the weeds have
25 started to grow. I put a City lock on the gate to try to
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625 Gordon/BSB-September 24, 2015 9
1 deter them, but I don' t know, there ' s a hole on the fence
2 on the right side in the wood that they can just go
3 through.
4 We were trying to show how high the grass was .
5 It was pretty high. And I put in a work order to have it
6 mowed, since it hadn' t been done . It was mowed and
7 boarded up by the City again.
8 And as of, sorry, we were advised that there
9 was a pending lawsuit due to back taxes totaling about
10 $45, 164 . 09 . We, including the cleanup yesterday, the
11 City is, has a total of $20, 897 of what we 've paid to
12 have it taken care of since we started, so --
13 SPEAKER: What ' s that number again?
14 SPEAKER: 20, 897 .
15 SPEAKER: That ' s separate from the 45, 000
16 that ' s back taxes?
17 THE WITNESS : Yes . That ' s just back taxes,
18 yes . And so because of the issues we continue to have,
19 the City is recommending still demolition. But I believe
20 Isaac has the legal side of it he wants to add.
21 MR. RODRIGUEZ : Isaac Rodriguez, Police
22 Department . I just wanted to give you a recap, for those
23 that weren' t here the last time, of the criminal history
24 of the location. In a two-year period, there have been
25 98 reports taken at this property, and 19 of those have
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625 Gordon/BSB-September 24, 2015 10
1 been felonies . They range from possession of controlled
2 substance, Penalty Group 1, which is the hard-core stuff,
3 like crack and heroin, stuff like that; possession of
4 controlled substance, Penalty Group 2A, which is
5 synthetic marijuana; prostitution; arson; aggravated
6 assault with a deadly weapon; and of course, copper
7 theft .
8 The two, I 'm going to go into the two arsons .
9 They were, they both happened last year, and they both
10 happened in vacant apartments . The first one happened on
11 10/9/2014 in Apartment 17 . There were three Hispanic
12 kids, I think from the high school right across the
13 street, that went into the room. They had lighter fluid.
14 They sprayed a teddy bear. Because actually myself and
15 Officer Pezzi were in that very room that morning taking
16 photos trying to tell the owners that they needed to
17 board it up, and later that day, the kids set it on fire .
18 The arson investigator said that it was, of course,
19 arson. We tried looking for the kids . We couldn' t find
20 them.
21 The next fire happened on 12/17 of 2014 . By
22 that time, all the apartments were abandoned. They were
23 all evicted. And that was Apartment 21, and there were
24 no suspects . There was nobody around to see who set the
25 house on fire, but again -- or the apartment on fire, but
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625 Gordon/BSB-September 24, 2015 11
1 again, that was arson.
2 The copper theft started around January 30th,
3 2015 . I notified the management company, which is the
4 same management company that ' s still in charge of it,
5 just a different name . I just wanted to make that clear.
6 Back then it was called Fairway. I believe now it ' s
7 McLemore . Yeah, McLemore . And they didn ' t do anything
8 about it . So the copper theft continued, continued,
9 continued, and now they are where they' re at now with all
10 the copper missing.
11 Also, I want to go into the extra effort that
12 the Police and the Fire Department have been doing. Like
13 I stated last time, the Police Department has been going
14 back and doing continuous checks to make sure that this
15 property is safe; however, we cannot be there 24/7 , and
16 stuff still happens .
17 The Fire Department also has taken it upon
18 themselves to go by, because there have been so many
19 fires here, like Officer Pezzi said, two actually, the
20 two that I talked about in the apartments, and then the
21 one outside . They set a mattress on fire .
22 And we 've all been increasing our frequent
23 patrol , and the last time, I don' t know, the manager, he
24 said that he was going to do his part . I talked to him
25 in the back. I said, "We ' ll do our part, we ' ll keep, you
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625 Gordon/BSB-September 24, 2015 12
1 know, keep an eye on it, but we need you to do your part
2 and put up a fence . " Well , as per the board' s request,
3 I 've been keeping up with the property, and I 've been
4 going back weekly.
5 On the 3rd of September, myself and - - my
6 partner and myself went by the location. Nothing had
7 been done . It was the same . On the 11th, that ' s
8 whenever I got the call from AEP saying that they got,
9 they had several meters missing, which was very, very
10 weird, and he ' ll go more into it . They don' t just go
11 missing, so, as far as getting signal back to the main
12 office .
13 So when we got there, we noticed that more
14 copper had been stolen. Still nothing had been done .
15 The fence hadn' t been put up. However we did talk to a
16 guy that was there to mark where underneath the ground,
17 you know, there was pipes and stuff like that . So they
18 were starting the process, but still nothing had been
19 done to, no board-ups or anything like that .
20 On September 17th of this year, we went back
21 again. They had finally put the fence up, but -- or
22 actually, we went back September 16th. They had finally
23 put the fence up, but it was not secured. It didn' t have
24 a lock. The only thing that was holding it was a little
25 piece of string that wasn' t even tied or anything like
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625 Gordon!BSB-September 24, 2015 13
1 that .
2 And that night , that ' s whenever I got the call
3 from Officer Pezzi saying that the gate was open. So I
4 sent some units by there . They checked the property.
5 They didn' t find anybody at that time, but they did tell
6 me that there was obvious signs that somebody was staying
7 there and that it needed to be secured. So that ' s
8 whenever we started to put, we thought it would be a good
9 idea to put our own lock on it .
10 And then, of course, on the 22nd of this month,
11 which is on a Tuesday, that ' s whenever Officer Orozco and
12 Officer Mahunkle arrested that individual for
13 trespassing, for criminal trespass . He said he had been
14 living there for three weeks, and you know, it was just
15 open, it ' s open to the public .
16 But the main, the main thing that I want to say
17 about this property is that it is a, a safety hazard.
18 Not only is it open to the public so anybody can go in
19 there, and the walls are about to come falling down. I
20 know that there are just veneers, but bricks are still
21 heavy. And the railings are falling off . The railings
22 do not support anything. If a kid goes up there, leans
23 on the railing, they' re going to fall over.
24 Thank God to AEP that they finally shut the
25 power off, because there were exposed wires all over the
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625 Gordon/BSB-September 24, 2015 14
1 place . And again, he ' ll go into that .
2 So it ' s just one huge big safety hazard that we
3 are having to take care of that they are not doing a
4 thing about, and we would like for your permission to
5 demolish it . Thank you.
6 SPEAKER: All right . I believe we have some
7 other individuals from other city departments and other
8 agencies that are here to speak about the property.
9 Rebecca, do you know who we want to bring up first?
10 MS . PEZZI : Yes . Jennifer Richter is here from
11 the Health Department, and she also had given you some
12 papers on her report .
13 SPEAKER: If you could turn on the podium,
14 please .
15 MS . RICHTER: Hello? Okay. Hi, I 'm Jennifer
16 Richter. I 'm with the Health Department . We were sent
17 out there on numerous occasions . We would deal with the
18 pool violations and when it came to raw sewage . So I 've
19 been on this property since March of 2014 countless
20 times, both for complaints with raw sewage on the
21 property, which meant lines were broken, or we ' d get
22 calls from tenants who were living there, they would have
23 raw sewage back up in their sinks and the bathroom and
24 the kitchen. Or let ' s say the neighbor above them was
25 having problems, they would have overflow in their
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625 Gordon/BSB-September 24, 2015 15
1 downstairs apartment .
2 So for me, what I can talk about is the pipes
3 and the plumbing there is really bad. Of course, we 've
4 had the water off for many months and no tenants, so I
5 haven' t been out there lately, but I can just tell you
6 it ' s going to be very costly for them to do major repairs
7 when it comes to the plumbing.
8 But we were out there on countless times for
9 ongoing issues . And it took them a long time to finally
10 fix it . I can say some of the property, the lines were
11 fixed on the outside of the property, but they never
12 really did plumbing repairs on the inside of any of the
13 units .
14 And the pictures they gave you were pictures
15 from both inside and outside the apartments when we had
16 overflows . Any questions?
17 SPEAKER: Are the house issues restricted to
18 the property premises, or do they have any effect on
19 surrounding areas and neighbors?
20 SPEAKER: When we have raw sewage on the
21 property? Then it became, I would think, a community
22 issue, because you had kids walking through there, you
23 know, pets walking through there . So it ' s anybody that ' s
24 living in the area .
25 MR. RODRIGUEZ : If I can add to that -- I 'm
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625 Gordon/BSB-September 24, 2015 16
1 sorry, Isaac Rodriguez, Police Department . We actually
2 had to shut down the water at one point because of sewage
3 coming out into the roadway and going to the curbs and
4 draining onto the gutter.
5 SPEAKER: So it does affect the community as
6 well?
7 MS . RICHTER: Oh, yes . It goes into our storm
8 water.
9 SPEAKER: Other questions?
10 MS . RICHTER: Thank you.
11 MS . PEZZI : And next is Tom Grant from AEP.
12 MR. GRANT: Good afternoon. My name is Tom
13 Grant . I 'm with AEP . I 'm a meter servicer. I respond
14 to outages on the new smart meters . When the signal goes
15 lost in the command center, we do not have meter readers,
16 so we don' t know what ' s going on with the meter, if it ' s
17 gone dead, if something' s, a line ' s fallen down and
18 nobody has power, so we respond to those .
19 On the 11th I responded to four outages on one
20 building. And what it was was in the pictures, what they
21 had done, and it ' s going to be this one right here, they
22 had gone in and cut all the main wires coming in -- these
23 are hot, so if somebody grabs onto them, they' re going to
24 get electrocuted - - and stolen all of the other wires
25 going to the meter.
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625 Gordon/BSB-September 24, 2015 17
1 Now that ' s what we found on that one building.
2 As we went through the property, we found multiple issues
3 where wires were missing. The office was still an active
4 account , and we had to shut it off due to a safety issue .
5 And that was the meter can for the office .
6 There are supposed to be wires going to it . On this
7 bottom left right here is the hot wires that were still
8 hot, coming into where, the meter box, to feed the power
9 to the office . It also fed the pool at the time .
10 And then from there, it goes to the top, where
11 the meter fits into it . Wires go up there, and then they
12 come back down, and then they go out at the bottom right
13 there to the breaker box. Everything' s been stolen.
14 There was two other active accounts there, and
15 they were at the gates . Each wrought iron gate on the
16 Swantner side -- no, Swantner? Swantner side . This was
17 the, there was an electric motor that was there . Those
18 wires are live . It was stolen. So that ' s a safety
19 issue . If somebody walks by, steps on it, they could get
20 electrocuted. We shut that account down also for safety.
21 And it was the same way on the other side .
22 On one building, if you look at this picture
23 right here, this was a main breaker box. It was a huge
24 breaker box that they had hooked on to with a rope and
25 pulled it off of the wall . And the next picture down
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625 Gordon/BSB-September 24, 2015 18
1 where you see the wires that are laying on the ground,
2 the big ones, this one, that ' s where it was . Those wires
3 that are laying down there were hot . So this is another
4 one that we cut it off due to safety, to keep the general
5 public from getting electrocuted.
6 When we got to the center, as we went building
7 by building, this is the type of thing we found. These
8 wires were hot, and they had cut wires that they needed
9 or wanted and just left everything energized to where if
10 somebody grabbed onto it, they would be electrocuted.
11 SPEAKER: What was the date of that visit?
12 MR. GRANT: That was September 11th. The
13 meters had gone missing a few days before that, and so we
14 responded to it as we got to it . And that ' s what we
15 found. I had called Sergeant Rodriguez to explain to him
16 that I needed to go out there because of this issue .
17 Sorry, a few of them are out of order from what
18 I was doing. The main one that I was responding to was
19 these four, and that ' s the, that one picture I showed you
20 that the three wires were hot, they were cut off . This
21 is the electrical trough right here . As you can see, all
22 of those same size wires are gone . And so this killed
23 all four of these meters . And that ' s what the initial
24 response was for, at the two main buildings off of
25 Swantner.
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625 Gordon/BSB-September 24, 2015 19
1 This was still hot when we found this . They
2 were trying to steal this wire . And that ' s these . I
3 don' t know if they got shocked or not, but this was still
4 welded in place to the breaker box. And once we cut the
5 service at the pole, then we removed them safely. Any
6 questions?
7 SPEAKER: Is there any kind of hospital visits
8 associated with that time frame that y' all noted? Okay.
9 MR. RODRIGUEZ : None that were reported, sir.
10 I 'm sorry.
11 MR. GRANT: Everything that was cut off, it was
12 due to safety. But there was such an issue of people
13 stealing the copper, we had no choice but to make it safe
14 for the public . Because at the time we were out there,
15 there was no fence, and we didn' t know that they were
16 going to put up a fence . That ' s upon what the City was
17 doing.
18 We know we have to make it safe for the general
19 public, because I know people could still go through
20 there . So that ' s why we cut the electricity to the whole
21 complex.
22 SPEAKER: Would you say that ' s an unusual or
23 extreme circumstance, or is this something that kind of
24 happens?
25 MR. GRANT: I ' ve worked for the company for 18
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625 Gordon/BSB-September 24, 2015 20
1 years, and I ' ve never cut off a whole complex. This is
2 the first time in 18 years that I 've ever seen it this
3 bad.
4 SPEAKER: Okay. And was there a response from
5 management when it -- were they notified about the AEP
6 situation, and did you get a response?
7 MS . PEZZI : I e-mailed, but he didn' t mention
8 anything about it, I mean, on replying about AEP being
9 out there .
10 MR. GRANT: And we 've had no response from them
11 why we cut it off . And like I said, there was three
12 active accounts, and they were, all belonged to the
13 owners or management company, but they were cut off due
14 to safety.
15 SPEAKER: Thank you.
16 MR. GRANT: Thank you.
17 MS . PEZZI : And now I have Norm Walters from
18 Development Services that was out there with us on a few
19 occasions .
20 MR. WALTERS : My name is Norm Walters . I 'm
21 with Development Services . First time I went out there
22 was in March of ' 14 , we got a call to assist Code
23 Enforcement for possible building violations or safety
24 issues with electrical on the site .
25 When we got there, we did find several air
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625 Gordon/BSB-September 24, 2015 21
1 handling units, which is the heaters inside the building,
2 with wires that were not properly secured to, or
3 installed to the units .
4 We found condensers that were actually leaking
5 water out onto the floors in the apartments, and actually
6 weakening the floors . We had a couple of apartments we
7 walked through that actually, if we put two or three
8 people there, it was a good possibility we could have
9 gone through the floor. It was that soft . It was like
10 trying to walk on real thick, heavy carpet .
11 We found one apartment we went into, as we were
12 heading that direction, we found a gentleman coming out
13 with a bucket, and he was pouring it all out on the lawn,
14 and it was human waste, which was coming out of one of
15 the waste lines because the line was plugged, so he had a
16 clean-out in there .
17 And what they were doing is they left the plug
18 out of it, and they left this bucket sitting there, and
19 when the bucket got filled, they were throwing it out
20 onto the property. And at that time there was an officer
21 with us, and I believe he cited them for that . And they
22 got with management to get them moved to another
23 apartment or get it fixed right away.
24 We also found a couple of apartments on the
25 second floor, I think it was Building 2 , you went into
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625 Gordon/BSB-September 24, 2015 22
1 the bathroom, and you could watch the person in the
2 bathroom in the other apartment next to them. There was
3 no walls there . It was just the studs . Everything was
4 missing.
5 And several of the apartments had no ceilings
6 left at all in the second floor in the restrooms, and
7 there was one that looks like someone made an entry
8 through a roof and went from unit to unit to rob copper
9 out of some of the units as they came dropping down
10 through the ceilings .
11 We also found that the services, we had asked
12 them to secure those because the panels that they were
13 using to cover all the stuff was falling apart . And some
14 of those panels were open, like somebody was looking at
15 them to try to want to steal something or whatever. And
16 we closed those up, you know, when we were there to
17 secure them to keep people ' s hands out of them. Told
18 them they needed to get something, you know, bring an
19 electrician in and just secure these things .
20 And we had another unit that was in the back --
21 was that Building 2 , the one with the parking lot in the
22 back of it? Yeah, the one facing the high school . Oh,
23 yeah, one of the services was totally falling off the
24 building.
25 And we actually asked, we had placed an order
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625 Gordon/BSB-September 24, 2015 23
1 with AEP to shut the power off on that one until they
2 could straighten that out . And then we found out later
3 after we shut it off that there was still a couple of
4 tenants living in there . So after they got it fixed, we
5 okayed them to turn those two units back on until they
6 went through the process to get them out of there .
7 But that had, overhead laterals were hanging
8 way too low, and everything was at least, a couple of
9 pieces were almost a foot away from the walls . And it
10 was just pulling them away from the wall, and they were
11 all ripped out . There was nothing supporting it except
12 the wires themselves . So they had to fix that .
13 And we found many a service panel that had
14 open, openings in there where the breakers would go that
15 were not properly capped where children could stick their
16 fingers inside and actually touch the hot bus bars in the
17 panel . And there was children running all over the
18 place . And it seemed like the tenants didn' t really care
19 if the kids put their fingers in there, because matter of
20 fact, we stopped one that was getting ready to stick a
21 pencil in it when we went into the apartments .
22 And there was, I mean, there was like waste
23 coming up in the sinks in a couple of the kitchens . They
24 couldn' t use them. There was actually raw sewage sitting
25 inside some of the sinks because they were backing up .
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625 Gordon/BSB-September 24, 2015 24
1 And that was on a second floor apartment, and that was
2 backing up in there .
3 And so we advised them that they needed to get
4 plumbers in there and take care of the plumbing issues,
5 and we need to get electricians in there, and they need
6 to get some permits to get this stuff fixed.
7 And we went back with them again later after
8 they started evacuating people, and we found the decks
9 were falling away from the building. We had one deck
10 there must have been almost four inches from the
11 building, and you could see the bolts that have already
12 been pulled out of the wall .
13 And there was the one that had the fire . No
14 one did anything to actually prevent anybody from going
15 up on those decks, and there was no support on those
16 decks whatsoever from the second floor unit . Everything
17 was burned out from below it . So we advised them to
18 cover that or board that up so that no one could get up
19 on that deck.
20 And at that time there was still children
21 running around, but it wasn' t from tenants . It was just
22 from the neighborhood. There was like nothing to stop
23 them from getting in there . And we just, we actually
24 advised them that it would be a good idea to just shut
25 everything down, because the electrical was in bad shape,
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625 Gordon/BSB-September 24, 2015 25
1 and most of the units were really going to require some
2 major rewiring.
3 We walked through there and we found two-inch
4 copper lines missing from the drain lines and stuff .
5 They were removed. Most of the copper in all the
6 apartments were gone .
7 Most of the hot water tanks were not properly
8 installed. They all had electrical safety issues to
9 them, because they all had exposed wiring, all the ones
10 we saw, and they were just sitting in closets . They
11 weren' t properly secured or ventilated for any of the
12 heat . So we have actually advised them that they needed
13 to get these, these units rewired or redone .
14 And I think the second time we went around, the
15 owners were with us, and they were, "Oh, we ' re going to
16 go and remodel , we ' re going to do all this, " you know.
17 So we gave a complete list of what was going to be needed
18 to Code Enforcement, which they should have been in your
19 packet with them.
20 And that ' s pretty much it . I mean, my
21 recommendation is that it needs to come down. Questions?
22 SPEAKER: Thank you, sir.
23 MS . PEZZI : I would just like to add something
24 really quick. Becky Pezzi , Code Enforcement . On the
25 last e-mail I got from Ryan, who ' s the property manager,
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 26
1 he had attached the engineer' s report, and I put one all
2 on your desk.
3 He also said in his e-mail that they would need
4 about three months to get the plans together for what
5 they want to do and their construction crew or whatever.
6 But he said he wasn' t going to be able to make it today.
7 SPEAKER: At our last meeting, talking with the
8 project manager and talking with the apartment or the
9 property manager, I believe they agreed to have the fence
10 in place, totally and secured, and they also mentioned a
11 security officer. Have y' all seen --
12 THE WITNESS : No .
13 SPEAKER: -- or witnessed any security?
14 MR. RODRIGUEZ : No, sir. We 've gone through
15 there several times a day. I have done it personally
16 just to keep an eye to see if, what they' re doing. I
17 have not seen one .
18 So, and also I wanted to add, on this report,
19 the engineer' s report says that fire damage, or possible
20 water damage to adjacent units from firefighters '
21 efforts . That water damage is from the leak that we had
22 to stop because they had a water heater leaking in the
23 adjacent units .
24 So it wasn' t because of the firefighters . It
25 was because of their lack of effort . We found the water
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 27
1 was coming from above Apartment 17 . It was leaking all
2 over the place, so we had to tell the Water Department to
3 shut it down. Thank you.
4 SPEAKER: Has there been any improvement as far
5 as the number of offenses that you've been responding to,
6 or the Health Department has, is, are those issues still
7 continuing?
8 MR. RODRIGUEZ : As far as the drug-related
9 arrests and all the criminal stuff, as far as the
10 possession of controlled substance, that has gone down
11 because there, nobody' s living there . And actually the
12 only time that we ever find anything is whenever we go,
13 whenever the Police Department goes, because there ' s
14 nobody there to call, and there ' s, they have free reign.
15 And the last time that we came here, they had
16 arrested somebody for stealing copper, and that ' s because
17 the officer was doing proactive and he was doing a
18 frequent patrol of the area, and like a, on yesterday
19 with the, or the day before yesterday, the person that
20 was arrested was arrested because we did proactive, we
21 went by the place .
22 So the number of arrests have gone down,
23 because there ' s nobody there to call . But every time
24 that we go there, we do find stuff .
25 And actually today, before the meeting, we did
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 28
1 go by and we found evidence of drug use because we found
2 a marijuana pipe in the area. So I 'm thinking the kids
3 are coming from across the street, and they' re hanging
4 out in the area.
5 SPEAKER: And Mr. Chairman, we also have
6 Captain David Blackmon, who ' s the director of our Code
7 Enforcement Division. He would like to say a few words .
8 MR. BLACKMON: Good afternoon, Board.
9 Actually, David Blackmon, Captain, CCPD. You know,
10 really what I want to say is I think we have building
11 standards cases that we bring before this board that need
12 to come down because frankly they' re delapidated and
13 they' re blighted and they' re a mark on the City of Corpus
14 Christi .
15 And then we have these, these type of issues
16 where not only are they blighted, but they' re a safety
17 hazard for the residents, not only that live around this
18 thing, but a school that is less than 100 yards from
19 this, where the kids are obviously, by proof, are coming
20 into these .
21 So, you know, we as a City and Code Enforcement
22 have a duty to protect these kids, because we all know
23 that children are children, and they' re going to, they' re
24 going to be brave, and they' re going to experiment, and
25 they' re going to do what they think they can do .
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 29
1 So we 've already seen the arsons, the stability
2 of this, this building. So we have both. We have, in
3 this particular case, we have a safety issue, and we have
4 a health issue . The health issue is not only the past
5 with the sewer that we have that has been allowed to soak
6 into the soil and into our storm drains, but we have
7 wires that have been allowed to exist even after advising
8 these property owners that people are stealing the
9 copper, and allowing these wires to stay hot .
10 The property owners have, for lack of a better
11 word, they have grossly failed to meet their needs of
12 this apartment complex.
13 And this isn' t an isolated incident with this
14 company. Y' all may remember that last year we brought
15 another one of their buildings, which is on the Reid
16 Apartments, which were right next door to this one . And
17 we brought it before y' all, and y' all ordered demolition
18 because it was, frankly it was the same exact scenario.
19 They would go through and they' d say, "We need to get an
20 inspector, " and nothing was done until we finally had to
21 bring it before this board and have it ordered to be
22 demolished.
23 And coincidentally, during that one Building
24 Standards Board meeting, we had told them, "Hey, this
25 property here is next unless you do something with it ,
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 30
1 because it is in bad shape also. "
2 And at that point, they said they were going to
3 start working on it . They were going to fence it . They
4 were going to board it up, and they were going to
5 rehabilitate it .
6 And from that point to this point today,
7 nothing has been done with this building. We, the City,
8 have been charged with maintaining this property and to
9 assure that the citizens of the city and the children are
10 safe .
11 The grass, we have to mow. Y' all have seen, we
12 have, what, 40 , 000 or 20 , 000 -- I 'm sorry -- $20 , 000 that
13 we 've, in fees that we 've encumbered because of their
14 lack of responsibility, these absentee landlords from
15 outside the state, who are, who are holding these
16 residents hostage because they frankly, they want to own
17 the property, but they don' t want to do anything with it .
18 And I just think that we have a duty to protect
19 the residents . And I believe, like I said, not only is
20 it a health concern, and structurally the building
21 because of the damage that has been done to this thing
22 through fire, and the electrical, the stealing of the
23 copper, that frankly the cost to bring this building back
24 up to code would be such that it ' s not worth that .
25 And I think, you know, and then we ' re being
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 31
1 held hostage unduly, and I think we have a duty to bring
2 this building down. Any questions for me? Thank you.
3 SPEAKER: Anything further from the staff?
4 Okay. Then questions --
5 MS . PEZZI : No .
6 SPEAKER: -- from the board to the staff at
7 this time?
8 Okay. Then at this time I ' ll open the public
9 hearing regarding the property at 625 Gordon. Is there
10 anyone present who wants to speak in favor or against the
11 motion? Seeing no one, I ' ll close the public hearing.
12 At this time, I ' ll entertain any motions from
13 the board.
14 SPEAKER: Mr. Chairman, for the record, I do
15 need to go ahead and state the case . We didn' t do that
16 ahead of time, so if you will bear with me .
17 The Case Number is 15-568 . Owner of the
18 property is Corpus Note Acquisitions, LLC. The location
19 is 625 Gordon, multifamily apartment complex.
20 Staff ' s recommendation is demolition, because
21 it is 62 percent overall deteriorated. The board voted
22 at the last meeting to table this case at their last
23 public hearing held on August 20th, 2015 .
24 The representatives of the owner, owner agreed
25 to secure the property with a completed fence, and the
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 32
1 property was inspected several times since then and was
2 found to be noncompliant, under the provisions of Section
3 13-22H1C of the Housing Code, and due to the substandard
4 and delapidated conditions of the structures, and the
5 hazard to the health, safety and welfare of the public is
6 henceforth declared; therefore, the owner be required to
7 demolish the structure within 30 days . If demolition is
8 not started and completed as required, then the City be
9 authorized to demolish.
10 SPEAKER: Okay. Motion from the board?
11 MR. TORNO: Okay. This is Shane Torno. For
12 the property at 625 Gordon, the multifamily apartments, I
13 move to accept the staff recommendations that the owner
14 be required to demolish the structure within 30 days . If
15 demolition is not started and completed as required, then
16 the City be authorized to demolish.
17 MR. HASSMAN: Lee Hassman, second. Lee
18 Hassman.
19 SPEAKER: Okay. Any discussion?
20 SPEAKER: I think it should be noted and
21 relayed to the property manager or owners or whoever was
22 supposed to show up and didn' t show up, that the City did
23 try to give them many, many options and lots of time .
24 They came before the board. I think it was our
25 expectation that they would at least fulfill two
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 33
1 commitments, which was the security guard and the fence,
2 and that they've been a repeat offender.
3 And to the City' s Staff case, y' all built a
4 very strong case in order for us to recommend demolishing
5 it . We really don' t like to demolish properties that
6 have a high value and bring in good property taxes for
7 the City, but they just really were very noncompliant .
8 And you shouldn' t have to be guarding a
9 property and not protecting the rest of the citizens on
10 your regular daily duties . All right, that ' s it .
11 MR. HASSMAN: I tend to agree with that
12 wholeheartedly. The thing that concerns me the most is
13 the effect that it ' s had on the community as well as the
14 property owners and the citizens . And we have to
15 remember that the community still stands first in this
16 City.
17 SPEAKER: Okay. If there ' s nothing further,
18 we ' ll take a roll call vote from left to right, please .
19 SPEAKER: Aye .
20 SPEAKER: Aye .
21 SPEAKER: Aye .
22 SPEAKER: Aye .
23 SPEAKER: Aye .
24 SPEAKER: Aye .
25 (End of recording. )
DepoTexas, Inc.
625 Gordon/BSB-September 24, 2015 34
1 STATE OF TEXAS
2 COUNTY OF NUECES )
3
4 I , MOLLY CARTER, Certified Shorthand Reporter
5 for the State of Texas, do hereby certify that the
6 foregoing 33 pages, numbered 1 through 33 , constitute a
7 full, true and correct transcription, to the best of my
8 ability, of the proceedings had in the above-captioned
9 cause; thereafter, reduced to typewritten form by me and
10 under my supervision.
11 Certified to by me this 25th day of January
12 2016 .
13
14
15
16
MOLLY CARTER, CSR, RPR, CRR
17 CSR NO. 2613 , Expires 12-31-17
18 DepoTexas - Firm No. 644
615 N. Upper Broadway, Suite 1450
19 Corpus Christi, Texas 78401
Telephone : (361) 883-3400
20
21
22
23
24
25
DepoTexas, Inc.
625 Gordon — Sub-standard Building Case Chronology:
(Activity Prior to September 24, 2015 Building Standards Board
Hearing)
• Law suit pending on property due to back taxes totaling - $45,164.09
• Abatement charges for mowing, clearing and securing openings- $20,897
• Since the property has been vacant there have been fires and numerous arrests.
• Ray High School is across the street. The property has become an attractive
nuisance.
Neighbors state they have seen students leave the school campus and go into the
property.
• The Apartments were built in 1963
• 05/19/14 - First complaint investigate: Minimum standards — "BED BUGS,
BROKEN WINDOWS, STAIRS, WATER FLOOD IN APT 5, POOL, FLOORS
SAGGING, CEILINGS COLAPSING, MISSING WALLS *APTS
VACANT..FAIRWAY ADVS THEY WILL BE REMODELING AND FIXING ISSUES
APT BY APT. SPOKE TO CAT IN APT 32 AND OTHER TENANTS WHO HAD
ISSUES WITH THEIR APTS AND LET ME INSIDE TO SEE. TOOK
PICS..TENANTS SAY THERE ARE BED BUGS.. WALL PARTS
MISSING..BROKEN WINDOWS..LAUNDRY ROOM DOESNT WORK AND
HOLES IN WALLS.. TENANTS SAY FLOORS ARE COLAPSING. POOL BAD
CONDITION AND STANDING WATER IN APT 5 BEEN AT LOC FOR OVER A
WEEK."
• 06/20/14 - Reinspection was on property was found non-compliant A citation was
issued to owner Gadi Shushan.
• 07/18/14 - Norman with Development services, fire marshal and health inspector
Jennifer Richter went to the property to inspect and it was decided that the property
would be recommended to become an INAT (interdepartmental nuisance
abatement team) case.
• 08/05/14 - Advised there were new owners of the property - Corpus Note
Acquisitions LLC
• 08/20/14 - Started a case for new owners for tall weeds, accumulation of litter &
solid waste on the property, and dangerous well (large hole behind building near
parking lot in back). A case for raw sewage was addressed by the Health
Department)
• 09/15/14 - Emergency Board up of vacant apartments.
Page 1 of 2
o Seven abatements to re-secure and/or board up openings between
09/15/14 - 04/1/15
• 02/24/15 -Vacant building case was started for tall weeds, accumulation of litter&
solid waste, sidewalk curb & gutter; and, right-of-way violations.
o The property has mowed/cleaned 3-4 times by the city
• 08/20/15 - Building Standards Board Heard - This property was tabled until the
September 24th meeting to give the owner/manager time to secure the property,
have the property patrolled by private security and provide an engineer's report.
o The property was not secured successfully to prevent entry. A minimal
effort was made to erect a security fence around the property; however the
fence was not secured and, was held together by pieces of wrapped wire.
A city lock was placed on the gate. However, there was a hole in the wooden
fence where it is possible to gain access.
o No security company was ever seen at the property. Management's
maintenance man was supposed to be going by weekly to check boards.
• 09/22/15 During a check for openings Police Officers found a subject inside one
of the apartment units. The subject claimed to have been living in the apt for 3
weeks. The subject was arrested at that time.
• 09/24/15 property was again abated for violations of tall weeds and unsecured
openings.
EMAIL/ Communication
• 09/09/15 - Emailed Ryan (with the management company) saying that I found
openings and that they need to be re-secured. Reply no received until five days
later on 09/14/15.
• 09/11/15 - Checked on the boards that were open on 09/09/15 and they were still
unsecured. There was a contractor on property, so showed him the openings that
needed to be secured.
• 09/14/15 Ryan with management replied to my request on 09/09/15 to secure
openings. I sent Ryan this information...had no contact with Ryan until 09/22/15
when he stated the security fence had been installed. I replied the same day asking
if there is a potential plan or if they have the evaluation from the Engineer and
asked about the openings again still offering to walk property.
• 09/23/15 received a copy of the Engineer's assessment via email from Ryan.
Page 2 of 2
625 Gordon — Sub-standard Building Case Chronology:
(Activity After September 24th Building Standards Board Hearing)
• 11/13/15 — the property was found in violation and was mowed and cleaned, the
total price was $158.50.
• 11/16/15 —the property was found in violation and was boarded up, the total price
was $122.50
• 11/20/15 — the property was found with unsecured openings and boarded up, the
total price was $100.00.
• 12/30/15 — the property was found in violation and was mowed and cleaned, the
total price was $220.00.
• 01/11/16 Compliance Officer R. Pezzi received an email from a field Captain
Robert Alvarado requesting the status of this property due to the high number of
calls the Police Department has to make there
• 01/12/16 a new case was started for an Emergency board up due to other case
expiring, attempted to contact Mac Lamar management but they advised Code
Enforcement that they no longer are the management company for 625 Gordon.
• 01/13/16 was the reinspection and the property was still in violation, a contractor
was assigned the board up, and the total was $640.00 for 14 openings.
• 01/15/16 identified 14 additional unsecured openings. Contractor assigned to
board up openings, the total was $640.00.
• 01/26/16 the correction notice was sent to owner for the emergency board up.
• $1871.00 in abatement charges for mowing, clearing and securing openings
since the BSB hearing held on September 24, 2015.
A total lack of property maintenance by the property maintenance over the last 20
months has resulted in a total of$22,768 in abatement costs spent by the City.
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II
ANDERSON GASLIGHT SQUARE
A L B M 1001 THIRD, TREES,SURE
LEHRMAN CORPUS CHRISTI,TEXAS 7$404
BARRE TELEPHONE(361)884-4981
TELECOPIER(361)884-9618
L AW FIRM M A R A I S T, L.L.P. www.ALBMLAW..CCM
'NEW MEXICO OFFICE
ANDREW J. LEHRMAN' SANTA FE.NEW MEXICO 87507
TEXAS BOARD OF LEGAL SPE
BOARD CERTIFIED CML TRIAL LAW RECEIVED TELEPHONE 1505)424-4981
OA.IZATION
•AOMrtTED IN TEXAS&NEW MEXICO DOUGLAS D. MCLALLEN
CERTIFIED Mm+ATDR
OCT
J. LEHRMAN"
www.Lehrman-Mediation.com O C T 2 3 Z015 ”ADMITTED IN TEXAS NEW YORK&NEW JERSEY
ROBERT ANDERSON
DENNY BARRE OF COUNSEL:
KEVIN M. MARAwST DOUGLAS E BIRCHER
Boum
CERTIFIED BUSINESS BANKRUPTCY NIT T S ET H1 S MARVIN J.WANNER
TEXAS BOARD OF LEGAL SPEOALIZATION BOARD CERTIFIED ESTATE BANNING&PROBATE
TEXAS BOARD OF LEGAL SPECIALIZATION
TIMOTHY P.DOWUNG
BOARD CERTFIED BUSINESS BANKRUPTCY LAW
TExAS BOARD OF LEGAL SPECIALIZATION
DIRECT Fax(361)884-1286
EMAIL:(dordinaEI lkm(ari.Cam
October 23,2015
By hand delivery
Rebecca 1-luerta
City Secretary
1201 Leopard Street
Corpus Christi,Texas 78401
Re: Appeal of Building Standards Board's order dated
September 24, 2015 in Case No. 15-568
Dear Ms. 1-luerta:
Enclosed is a Notice of Appeal regarding a final Order of the Building Standards Board
in the above case. The owner of the property in question, Corpus Christi Note Acquisitions,
LLC, by this Notice of Appeal hereby appeals the final order of the Building Standards Board in
the above case.
I would appreciate it if you would please within the next few days give me a call to
discuss scheduling the hearing regarding this appeal, and the appeal procedure before the City
Council. Thank you.
Si ely yours,
Timothy P. Dowling r
By hand delivery to
Yvette Aguilar
Assistant City Attorney(5th floor)
1201 Leopard Street
Corpus Christi, Texas
(copy of Notice of Appeal enclosed)
Diane Garza
Building Standards Board Liaison
Code Enforcement Division(2"d floor)
1201 Leopard Street
Corpus Christi,Texas
(copy of Notice of Appeal enclosed)
TPD/ap
Enclosure
Corpus note 1/letters/October 2015 letter to City's secretary re Gordon appeal
2
In re appeal of Building Standards § BUILDING STANDARDS BOARD
Board's ruling regarding apartments §
at 625 Gordon,Corpus Christi, § CASE NO.I5-568
Texas §
Notice of Appeal of Final Order of Building Standards Board
Corpus Note Acquisitions, LLC("Owner"), the owner of the 42 unit Gordon Apartments
("Apartments")property located at 625 Gordon St., Corpus Christi (the"Property")addressed by
the Final Order of the City of Corpus Christi's Building Standards Board ("Board") in this case
(Case No. 15-568),which final order is attached hereto as Exhibit 1 ("Order")and is
incorporated here in my reference,hereby files this Notice of Appeal of the,Order. The Property
is located two blocks northwest of the corner of Alameda and Texan Trail. The City Council of
Corpus Christi ("Council") should reverse the Board's Order for the reasons explained below.
I. Affirming the Order is contrary to the public interest and would be manifestly unjust.
1.This City very badly needs of many more units of affordable housing. Two recent
articles from the Corpus Christi Caller-Times regarding this"crisis"are attached hereto as
Exhibits 2 and 3. The Owner will seek in November 2015 a substantial grant from the Texas
Department of Housing and Community Affairs to assist in the rehabilitation of the Apartments
to enable them to once again serve as low income housing(but this time, in marked contrast to
their condition when they were owned by another party prior to August 5,2014, in a much
improved condition).The Owner expects to have a decision about whether this grant request will
1
be approved in approximately two to three months. As Exhibit 3 indicates,the Texas Department
of Housing and Community Affairs recently approved two apartment projects in Corpus Christi.
Until it is known whether this grant application is approved or not, it clearly would be premature
for the Council to require the demolition of the Apartments.
2.The highest and best use of the Property is as low income housing. Rehabilitation of
the Apartments for that purpose would not only serve the interests of the City by increasing the
number of badly needed low income housing units, but this would also be in effect new units of
low income housing in a very well-established area of the City(in short, new housing in an old
area of the City).
3. Having the Property once again serve this purpose would also be very beneficial to the
City because this will consist of"in-fill"redevelopment that would not require the extension of
new infrastructure to previously undeveloped areas of the City. Allowing the Property to be
rehabilitated for the purpose of low income housing would be a"double win"for Corpus Christi:
there would be an increase in the number of low income housing units,and this would occur in
an area where the City would not have to spend"new money"for infrastructure.
4. The Council should also not approve the Board's Order requiring demolition of the
Apartments,because the Board either did not consider at all,or did not adequately consider,the
engineering report regarding the condition of the Apartments that is attached hereto as Exhibit 4
("Engineer's Report"; the resume of the engineer(Jennifer Scheffler, P.E.)who prepared the
Engineer's Report is attached hereto as Exhibit 5). The Engineer's Report indicates that there are
conditions at the Apartments that need correction, but that the"building structural framing and
foundation systems appear to be in good general condition... with the exception of a few isolated
2
areas"(emphasis added) noted in this report. Structures in "good general condition"should not
be demolished. Furthermore,the interior of the apartments units are typically in substantially
better condition than one might expect given the cosmetic or other detractions to their exterior
appearance.
5. Requiring the demolition of the Apartments,rather than letting the existing structures
be rehabilitated, would require a much larger expenditure to rebuild from the foundation up,
compared to rehabbing the Apartments with the existing structures.The demolition the Order
requires would make it much more unlikely that there will be any rehabilitation of the Property at
all (or much, much later)since the cost to do so would be radically increased.
6. The person who is the sole owner of the Owner, Mr. Gen Shibayama,has been
involved in many apartment projects locally for several years. Many Corpus Christi apartment
units have been substantially improved because of his work. Mr. Shibayama's resume showing
his involvement with many multi-family housing units in Texas, with a great many of them in
Corpus Christi,is attached hereto as Exhibit 6. Mr. Shibayama's resume shows his involvement
with fifteen different real estate transactions in Corpus Christi in the last 22 months, thirteen of
them involving apartments(totaling 318 units)(not counting the Property). He also has extensive
real estate experience in other parts of Texas. Mr. Shibayama has the ability, the desire,and the
experience to rehabilitate the Apartments.The Apartments should not be demolished,especially
in light of the fact that there soon will be a grant application pending to assist in their
rehabilitation as very desirable low income housing in the center of the City.
7. At substantial expense the Owner placed a six foot high chain link fence around the
Property to secure it. This has surely reduced the need for police involvement with the Property.
3
There is no need to rush to demolish the Apartments when the upside of the Property is so
substantial if it is rehabilitated for low income housing.
8.Section 13 - 24(b)of the City's Municipal Code dealing with appeals from rulings by the
Board states in relevant part that . The city council, on appeal, may vary the application of
any prop ision of this Code to any particular case when the enforcement thereof[I] would
do manifest injustice and would be contrary to the spirit and purpose of this Code,the
Corpus Christi Property Maintenance Code or[2] public interest or when, in its opinion.the
decision of the board should be modified or reversed"(emphasis added). Clearly the "public
interest"would be best served by not requiring demolition of the Apartments. Requiring their
demolition now would be"manifestly unjust."
11. Ordering the demolition of the Apartments would impose an undue hardship on the
Owner.
9. Sections 13-23 and 13-24 of the City's Municipal Code both provide that the Council
can reverse a decision of the Board if the Board's ruling would cause"undue hardship"for the
property owner. Demolition of the Apartments would cause such hardship to the Owner for the
reasons explained below.
10.The Property was formerly owned by Gordon Street Apartments, LLC,an entity
unrelated to the Owner or Mr. Shibayama. PlainsCapital Bank held a first lien on the Property.
The Owner purchased the indebtedness on the Property from the Bank, along with the
indebtedness related to three other local properties, for a large seven-figure sum in late March
2014. Gordon St. Apartments, LLC then filed Chapter 11 bankruptcy on March 31,2014 to
prevent'foreclosure of the Property the next day.The Owner then had to engage in expensive
litigation on a very accelerated schedule in the Bankruptcy Court.The net result of this litigation
4
was that the Owner was allowed to foreclose on the Property. That occurred on August 5,2014.
Corpus Note Acquisitions, LLC on that date became the owner of the Property. Prior to August
5,2014 the Apartments had been generating substantial revenue for Gordon Street Apartments,
LLC although they were in poor condition.
11. Promptly after obtaining control of the Property after foreclosure, the Owner removed
all of the then current tenants(and squatters) from the Property at substance expense with the
intention of rehabilitating the Property.The Owner has not received a single cent of income from
the Property since he became its owner on August 5,2014.
12. After obtaining control of the Property after August 5, 2014, the Owner learned that
the Property was in substantially worse condition than it believed. This means that the Owner has
been faced with the prospect of having to spend much more money to rehabilitate the Property
than expected.The cost to rehabilitate the property is expected to be well in excess of$1 million
if the Apartments are not demolished. The Owner has been attempting diligently over many
months to obtain necessary financing to rehabilitate of the Property or to locate a buyer at a fair
price for the Property. These efforts will include in November the Owner's attempt to obtain a
low income housing grant to assist in the rehabilitation of the Property. It is expected that a
decision regarding this grant will be made in early 2016.
13.The nineteen unit Reid Apartments also come under the Owner's ownership and
management by the same process described in paragraphs 10 and I I above. The Reid apartments
were in much worse condition than the Apartments. Che Owner had them demolished at a cost in
excess of$85,000.Just as with the Apartments,the Owner has received absolutely no income
from the Reid apartments.
5
14.The owner's acquisition of the debt related to the Property,the expensive litigation
that followed in the Bankruptcy Court to obtain control of the Property,and the subsequent lack
of any income from the Property, has meant that the Property has been an unexpectedly large
financial drain on the Owner's resources.To now require the Apartments to be demolished,
thereby dramatically reducing their value,particularly in light of the Owner's substantial expense
of securing the Property by fencing,would impose an unjust and undue hardship on the Owner
This would be particularly unjust and inappropriate given Mr. Shibayama's success in
redeveloping other apartment properties in Corpus Christi that were badly in need of it.
Accordingly,even if allowing the Owner to rehabilitate the Apartments was not in the"public
interest"as it is(see pages 1-5 above),the Order should be reversed because of the"undue
hardship"that would he imposed the Owner by failing to do so.
III. Action that the Owner requests that the Council take
15.The Owner requests that it be granted sufficient time to present this appeal to the
Council, which it estimates to be 30-45 minutes,not counting time for questions by members of
the Council and replies to the same(and also not including comments by staff of the City of
Corpus Christi and replies to the same). Failure to give the Owner sufficient time to present this
appeal to the Council will deprive the owner of the due process of law it is entitled to under the
Texas and United States Constitutions. Owner therefore objects to any procedure before the
Council that does not proceed it sufficient time to present its case regarding why the Order
should be reversed.
16. For the reasons explained above Corpus Note Acquisitions, I.LC,requests that the
Council reverse the Order, or alternatively do so subject to just and appropriate conditions that
6
would enable the Owner to have adequate time to rehabilitate the Apartments on appropriate
economic terms.The Owner also requests that the Council grant it such further additional relief
as is just and appropriate.
Respectfully submitted,
Cf11-1C-
Timothy P.Dowling
State Bar No.06083900
Anderson,Lehrman, Barre& Maraist, LI.P
Legal counsel for the Owner
1001 Third St.,Suite 1
Corpus Christi,Texas 78404
Telephone:(361) 884-4981
FAX: (361) 884-1286
Email: tdowling(a?albmlaw.com
VERIFICATION
STATE OF TEXAS
§
COUNTY OF TRAVIS §
The undersigned,Gen Shibayama, being the sole member of Corpus Note Acquisitions,
LLC,hereby swears or affirms that the statements contained in paragraphs 1-16 above are within
his personal knowledge and are true and correct.This document was sworn to before me on
7
October 23,2015,by Gen Shibayama,the sole member of Corpus Note Acquisitions, LLC,a
Texas limited liability company,on behalf of said limited liability company.
GEN SHIBAYAMA
SUI3SCRIBED AND SWORN TO BEFORE ME by GEN SCHIBAYAMA on October
23, 2015.
Cit...vi' ,�. DIANA BOLLING
0, MY COMM[SSIONEXPIRESz+'�/rtA- tSk7' Febwsy 19,2418
NOTARY PUBLIC, STATE OF 'ERAS
CERTIFICATE OF SERVICE
the undersigned attorney hereby certifies that on October 23, 2015 a true and correct
copy of this Notice of Appeal was filed with the City Secretary of Corpus Christi and was also
served by hand delivery on the persons named below:
By hand delivery
Diana T.Garza
Building Standards Board Liaison
Code Enforcement Division(2"d floor)
1201 Leopard Street
Corpus Christi, Texas 78401
Yvette Aguilar
Assistant City Attorney
City of Corpus Christi (5th floor)
1201 Leopard Street
Corpus Christi,Texas 78401
\\P--,....,------ —
Timothy P. Dowling
8
Exhibits to this Notice of Appeal
Exhibit 1: Final Order of the Board
Exhibit 2: Corpus Christi Caller-Times 8/2/2015 article about the great need for affordable
housing in Corpus Christi
Exhibit 3: Corpus Christi Caller-Times 8/5/2015 article about tax credits for affordable housing
(refers to the City's"struggles with a housing crisis")
Exhibit 4:Professional engineer's report regarding the condition of the Apartments
Exhibit 5: Resume of Jennifer Scheffler, P.E.
Exhibit 6:Resume of Gen Shibayama
Corpus NuteI/City-Gordon letters/notice of appeal
9
P.O.Box 9277 Corpus Christi,Texas 78469-9277• (361)826-3046 • http://www.cctexas.com/
a1 � F ,
,r • " FINAL ORDER OF THE frtk 7w-
Awn. ni
``_.-., ' BUILDING STANDARDS BOARD
4
3'Jj
Case No. 15-568
Property Owner(s) RE:625 Gordon
OWNER: Corpus Note Acquisitons LLC LOT:W 24.4'Lt 9 all Lts 10 thru 12 W 64.48 Lt 13
c%Tim Dowling BLOCK:40
ADDRESS: 1001 Third Street ADD'N:Tindale Park 4
CITY STATE ZIP: Corpus Christi, Texas 78404
This final order is Issued pursuant to the authority granted to the Building Standards Board("Board")of the City of Corpus Christi,
("City"),Nueces County,Texas in accordance with the Charter of the City,Chapter 13 of the City's Code of Ordinances("Code")and
the Texas Local Government Code.
On September 24,2015,the City of Corpus Christi Building and Standards Board held a public hearing and made the following
findings regarding the building located at the above referenced property:
1. Pursuant to the provisions of Chapter 13 of the Code,on April 9,2015 an inspection for substandard conditions was
made of the building(s)or structure(s)located within the City at the above referenced property;
2. On June 1,2015 a notice of violation(s)and request to correct the violation(s)was sent to the owner and all known
interested parties. Additionally,on August 10,2015 and August 11,2015 notice of violation(s)was posted In the
Corpus Christi Caller Times;
3. Thirty days elapsed since the notice of violation(s)was provided and such violations)were not cured;
4. Code Official,Diana T.Garza,filed a complaint with the Chairman regarding the above listed property on September 9,
2015,and the public hearing was held not less than ten days and not more than 45 days after the complaint was filed;
5. Notice of the public hearing was sent to the owner and all known interested parties on September 10,2015,which was
at least ten day prior to the public hearing. Additionally,on September 10,2015 and September 11,2015 notice of the
public hearing was posted in the Corpus Christi Caller Times;
6. After considering the testimony and reviewing the documentation and information submitted by City Staff and after
affording the owner and/or other interested parties the opportunity to address the Board and present testimony,
documentation and information the Board finds the building located at the above referenced property Is substandard
and/or constitutes a nuisance.
7. The City of Corpus Christi will vacate,secure,remove,or demolish the building or relocate the occupants of the
building if the action ordered below is not taken within the allotted time.
The Board further finds:
The substandard building shall be ordered secured by the owner,lien holder or mortgagee from unauthorized
entry within 30 days.
OR
The substandard building or structure can reasonably be repaired by the owner,lien holder or mortgagee,so as to
be in compliance with this code,therefore it shall be ordered repaired within thirty(30)days. Repairs must be in
compliance with City Ordinance Section 13-22(G).
EXHIBIT
The substandard building or structure can reasonably be repaired by the owner,lien holder or mortgagee,so as to
be in compliance with this code,therefore it shall be ordered repaired within_(31 days to 90 days)days.
Repairs must be in compliance with City Ordinance Section 13-22(G). Further,the owner,lien holder or
mortgagee shall secure the property in a reasonable manner from unauthorized entry while the work is being
performed and work shall be commenced and performed in accordance with the time schedules established by the
Board,to wit:
The substandard building or structure is so damaged,decayed,dilapidated,unsanitary,unsafe,or vermin-infested
that it creates a serious hazard to the health or safety of the occupants or the public,therefore it shall be ordered
to be vacated within_days. The building or structure shall be placarded to prevent occupancy until the building
or structure is brought up to all minimum standards of this code within thirty(30)days.
The substandard building or structure is so damaged,decayed,dilapidated,unsanitary,unsafe,or vermin-infested
that it creates a serious hazard to the health or safety of the occupants or the public,therefore it shall be ordered
to be vacated within days. The building or structure shall be placarded to prevent occupancy until the building
or structure is brought up to all minimum standards of this code within,days. Work shall be commenced and
performed in accordance with the time schedules established by the Board,to wit:
The structure or premises cannot be repaired because of the refusal of owner or its intrinsic state of disrepair or
both and is dilapidated or substandard,therefore,it shall be ordered removed or demolished by the owner,lien
holder or mortgagee,within thirty(30)days.
The structure or premises cannot be repaired because of the refusal of owner or its intrinsic state of disrepair or
both and Is dilapidated or substandard,therefore,it shall be ordered removed or demolished by the owner,lien
holder or mortgagee,within (31 days to 90 days)days.
OR
The Board finds that the owner,lien holder or mortgagee has submitted a detailed plan and time schedule for the work and the
owner,lien holder or mortgagee has established that the work cannot reasonably be completed within 90 days because of the scope
and complexity of the work;therefore:
The owner,lien holder or mortgagee is required to regularly submit progress reports to the Board to demonstrate
compliance with the time schedules established for commencement and performance of the work,to wit:
The owner,lien holder or mortgagee shall report monthly to the code enforcement office with progress reports.
The above listed property,including structures or improvements on the property,exceeds$100,000,in total value
the owner,lien holder or mortgagee shall post a cash or surety bond in an amount adequate to cover the cost of
repairing,removing or demolishing the building or structure not later than the 30th day from the date of this order.
Clarissa Beltran FOR Tim Honea FOR
Lee R.Hassman FOR Craig S.Loving FOR
Matthew Ezell FOR Shane Torno FOR
Ordered this 24th day of September,2015.
1{/! Lbi.f/rs
Signed under authority of the Board: Signed under the authority f the Board:
Chairperson Vice-Chairperson
Filed. City Secretary DATE TIME
16+22/2015 Voucher applications skew high,but give window into affordable housing need
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10i22t2015 Voucher applications skew high,but give window intoaffordatie housing need
Several experts and officials have expressed doubts there are Medical examiner releases
47,817 households that applied for Section 8 housing vouchers. Annaville fire victims'causes of
TOP But if even 10 percent of the applications aren't duplications, it
death
would represent a significant increase -- and, if accurate,
perhaps the first quantifiable snapshot of Corpus Christi's Get ready Coastal Bend,rain is
soaring rents and housing crunch. here to stay
When voucher lists are opened, it's common for urban areas to Corpus Christi native Mikal
see a flood of applications in the tens of thousands,said John Watts faces indictment in BP
Henneberger,co-director of the Texas Low Income Housing cases
Information Service. Having 47,000 applications in an area with
about 58,000 renter households would be unusual, he added, Surely we all want the same —
good streets
calling 47,000"gargantuan."Even 8,000 to 10,000 for an area
like Corpus Christi would be very high, Henneberger said. Still, Investigators seek cause of
it's indicative of a problem. Annaville fire,which killed two
"If there were 47,000 applications, there are a lot of people Committee seeks improvement
desperate for housing in Corpus Christi,"he said. "Nobody fills ideas for 78415 area
out an application for fun. People do it because they need(it)."
ORakuAYten
DISSPl
Housing authority CEO and president Gary Allsup reported to
This ad may have been matched to your interest:
the City Council about two weeks ago that residents submitted on your browsing activity.
more than 46,000 applications for Section 8 housing vouchers— Rakuten tvlediaForge selected this ad for you.
a sum that was followed by an audible gasp in City Halt Rakuten MediaPorge's privacy policy
LvG
chambers.
About 1,200 applied when the waiting list was last opened in
2010, Allsup said.This year,the agency expected 2,000
applications.
It is a sure thing that the 47,000 figure includes duplicated and
incomplete applications, but staff has just begun the process of
weeding those out, Allsup said.
The number was shocking, he told the council.
"1 think there's been a lot of discussion about the affordable
housing crisis that Corpus Christi is experiencing,"Allsup said.
"I think this is great,point-on evidence that there is a crisis
amongst us."
HOUSING CHOICE
The Section 8 choice housing vouchers are highly prized.They
httplJwww.caller.comhnews/building-o r-ktturetgrowlWvoucher-application-skew-high-but give-wirxlow-into•affordable-musing-need-1b7f5ge1-a41&282b-e0... 2/7
10121/2015 Voucher applications skew high,but give window into affordable housing need
give recipients who make less than 50 percent of the area
median income the opportunity to secure subsidized private-
market rental housing.The program requires households to
provide 30 percent of their income for rent, with the U.S.
Department of Housing and Urban Development covering the
remainder.Only 1,000 will make the local list but even then,
many will wait years before receiving a voucher.
The housing authority previously accepted applications through
call-ins and hard copy on a first-come, first-serve basis. When
the waiting list opened five years ago, the line wrapped around
the building.
Allsup said in the past, the housing authority could see as many
as 100 applications within the first 20 minutes of opening the list
for applications.
"Essentially the difference between 9 and 9:15(a.m.)could have
been a difference in the waiting list of two years,"he said.
This year,the applications were only accepted online and instead
of accepting the applications on a first-come, first-serve basis,
the housing authority kept the list open for a month.The
applications will be selected through an online lottery in an
effort to keep the selection as fair as possible, officials said.
It's thought that the new process could be a factor in a higher
number of applications. Providing applications online and
keeping the list open for several weeks increased accessibility
and availability.
Most people who applied will likely be families who already
have some kind of housing, Allsup said.
"They're struggling, or they lost jobs, or they have been cut from
hill-time to part-time(work),"he said. "There are a thousand
different possibilities of how someone might wind up in need of
assistance with housing."
Some of those who applied are likely living with friends or
family,said Eddie Ortega, director of the city's Housing and
Community Development division.
"A lot of families live together. ... I'm sure there's a lot of folks
http•IMrww.calier.com/newslbuilcing•aur-fulure/growth lvoucher-applications-skew-high-but-give-window-into-affordable-housingneed-1b71a9e1-a41&282b-e0... 3(7
18222015 Voucher applications skew high,but give window into affordable housing need
out there looking for their own place," he said.
Others are disabled or elderly, and some are single mothers who
may not receive child support or have difficulty securing child
care, Henneberger said.
After the list is filled with 1,000 randomly selected applications,
it will be some time before it is known whether those who made
it are eligible.
Eligibility is determined at the time applicants are to receive the
voucher because circumstances can change after a resident has
applied,officials said. For example, if a resident applies while
within the income threshold but later attains a high-paying job,
they would be excluded. HUD considers a single-person
household making no more than$19,500 as eligible, for
example.
The housing authority can supply an average of about 25 to 30
vouchers per month, Allsup said
AFFORDABILITY
What's considered affordable by experts is fluid, but it is
typically defined as housing costs that do not exceed more than
30 percent of an individual's monthly income.Affordable rent
for someone who makes$2,400 per month would be no more
than$720 per month. Someone who makes$1,900 per month
would spend no more than$570.
Hard numbers on affordability, income and average rental prices
show a distinct gap.
In the report by the National Low income Housing Coalition,
affordable housing for a 40-hour-per-week minimum wage
worker in Corpus Christi would be$377 per month. For a
modest one-bedroom apartment,a minimum wage worker would
have to work 74 hours per week,states the report.
The price of an average one-bedroom apartment without a den
costs$774 per month in rent,according to a recent ALN report
by Apartment Data Inc.
"We often find it's typical that a household with two minimum-
httplMrww.caller.coun/newslbuilding-our-futiue/growWvoucher-applications-skew-high-hurt-give•window-into-aftordable-housing-need-1b7t59e1-a41 8-282b-e0. 417
167112015 Voucher applications skew high,but give window into affordable housing need
wage workers can't afford the rent on a modest-amenity
apartment," Henneberger said. "A housing voucher is extremely
important to working-class families to make ends meet."
Paying more than 30 percent of income on housing means
foregoing other essentials,such as utilities and transportation, he
added.
In an email to the Caller-Times,chief economist at Texas A&M
University-Corpus Christi Jim Lee wrote that the state has seen a
squeeze on the housing market, but the Eagle Ford Shale's effect
has made the situation particularly acute in this area. Statistics
indicate there has been a 30 percent decline in home
affordability in less than three years,he added.
"For the past two years, my biggest concern has been not so
much how fast our economy is growing in terms of job and
income growth, but instead how we can catch up with the rising
cost of living relative to the rest of the nation," he wrote. "The
housing expense,of course, is a major part of this picture. Rapid
regional economic growth in recent years has benefitted little the
very low-income residents who tend to be unskilled and rely on
minimum wage jobs."
Although the housing authority has not yet had time for a full
vetting process, the 47,000 reported applications"makes it even
more pronounced for me(that)this is an issue for our
community,"said City Councilwoman Lillian Riojas.
It's an opportunity,too, for various organizations--including
realtors,a city board that oversees sales taxes and the housing
authority— to partner and discuss more about what can be done
to address affordable housing,she added.
It's a significant problem that communities are not always aware,
Henneberger said.
"What you see in these numbers is the housing crisis that most
people who don't live it never see," he said.
Twitter: @CallerCrow
httpfiwww.caller.com/news/building-our-future/growWvacher-applicalians-skew-high-but-give-window-into-affordable housing-need-1b7f59e1-a418-2821}e0 5!7
10r22r2O15, Tax credits to go to 2 affordable housing developments
CORPUS CHRISTI
SECTIONS Search P CaUt 1Meg i 73° ,�•SUBSCRIPTION
jib fi VVV// �`�/♦ • tion info.
V MMED1 E�i. - •Emergency notifications•Weather alerts
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•
® OUR GROWTHBUILDING OUR FUTURE
HOME NEWS�BUR OUR FUTURE.OUR GROWTH
Our Bridge Our Growth
Our Bayfrnnt Our Downtown
Tax credits to go to 2 affordable housing developments Our Sweets Throwback Thursday
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EXHIBIT
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@BUILDINGCC
Credit:Rachel Denny Clow Tweets by @BuildingCC
Rachel Denny Clow/Caller Times file The proposed River View at Calallen Apartments would be built at this tI,
location in the 12000 block of Leopard Street. ..:,01)(J
ZU�IfLj
By Kirsten Crow of the Cotter Times '1I 10
f
SHARE • \sA,/L l *it.04' )
A state award of tax credits is expected to
fboost affordable apartment options as the T -'r
city struggles with a housing crisis. � f s
IF
2+ Late last week,the Texas Department of ' 3 !
® Credit Rachel fenny Clow Housing and Community Affairs awarded
Rachel Denny Clow/Caller Times tax credits to two proposed developments
file The proposed River View at NOW TRENDING
!� Calallen Apartments would be in the city,said Eddie Ortega,director of
built at this location in the 12000
AA block of Leopard Street the city's Housing and Community
Development department. One would LIVE:Get the latest weather updates
in Coastal Bend
gPinnewomminP demolish and rebuild an existing apartment
~Ma : complex in Flour Bluff,and the other Investigators seek cause of Annaville
�"' would construct a new apartment complex fire,which killed two
TOP in the Calallen area.
Credo Rachel Denny Clow Committee seeks improvement ideas
Rachel Denny Clow:Caller Times The tax credit awards are good news,not for 78415 area
file Open windows vent the
laundry room at the Glenoak only in helping to address the housing
Apartments in Flour Bluff There situation,but also in offering opportunities
Get ready Coastal Bend,rain is here
are plans to demolish and rebuildg pl
the apartment complex to children of families who will live in to stay
httpfiwww.cal ler.etmhtews/buildng-our-future/growthrtax-credits-to-go-to-2-affordable-housing-developments-1c3647B5-c2cd-3eab-e053-01000071917a-3206. 1/4
14+2212015 Tax credits to go to 2 affordable housing developments
those locations,said Mayor Nelda Martinez. Are you FlatsWorthy?
"These are two excellent school districts where(the)children will have a Odem,Taft rivalry heats up as both
great opportunity to get a quality education,no matter the socioeconomic teams are undefeated
background they come from,"she said.
Corpus Christi native plays lead role
One development receiving tax credits would tear down an existing complex in Chicago play
at 711 Glenoak Drive and replace the 40-year-old structure with a$13.8
million development that would include new amenities,such as after-school10-1,1
programs and tutoring,city documents state.According to a council
V
presentation,the households that would be served make less than SO percent
of the area's median income.Avenge median income in Corpus Christi is
$47,481.
Demolition of Glenoak could begin as early as May,said Raymond Lucas,an .Breaking news&updates•Evacuation info.
independent assessment manager with Housing and Community Services,a •Emergency notifications'Weather alerts
developer of the project. ACTIVATE NOW11.p11C1L lIRP$
City Councilwoman Colleen McIntyre,who represents the area,said Tuesday
that work on the 40-year-old apartments is greatly needed.Coupled with
additional updates such as masonry exteriors and computer labs,the
demolition and rebuild will create a better environment for residents who live
in the complex and also enhance the surrounding community,she said.
The second tax credit award would help push forward the construction of a
complex called River View at Calallen in the 12000 block of Leopard Street.
City documents show plans for 120 new units that would serve households
bringing in less than 60 percent of the area median income.A presentation
shown to the council lists Madhouse Development Services as the developer
of the property.Representatives could not immediately be reached for
comment this week.
New apartment complexes,particularly those intended to be affordable,
frequently see controversy.Common arguments against the construction of
apartment complexes include concerns ranging from increased traffic,noise
and crime to drops in property value.
Proponents generally dispute those fears,frequently citing a"NIMBY"
sentiment:"Not In My Backyard."Advocates also emphasize that the new
affordable housing complexes don't look as they did in the 1960s and 1970s,
but are now designed as attractive top-market apartments.
The City Council in February approved without dissent resolutions of support
for five developments.The city was eligible for the award of tax credits for
two developments this year.
The resolutions matter because the state weighs community support heavily
when considering tax credit awards.
Last year,resolutions of support for three proposed developments in the
Calallen area failed in a 4-4 vote by die council after concerns were raised
hlipJiwww.caller.comknews/buildirx}au-rubra+gravthitax-crus-tago-tat-affordable-housing-developments-1 o30478Sc2cb3eab-e053-01000071917a•3206. 2/4
0222015 Tax crecits to go to 2 affordable housing developments
about overcrowding in the school district.
City Councilwoman Carolyn Vaughn,who has represented the Calallen area
since January,said Tuesday she hoped residents would respond favorably to
the proposed complex at the corner of Leopard Street and Caliicoatte Road.
"Everyone has to have a place to live,"she said.
']hitter.@CallerCrow
1. About Kirsten Crow
(4 Kirsten Crow is an enterprise reporter for the Caller-Times and covering city
government
f t/@CallelCrow in kirsten.crow@catler.com of 361.886.4316
LNV
Solutions Today with a
engineers { architects contractors Vision for Tomorrow
September 23,2015
GPM Engineering
5440 Old Brownsville Road
Corpus Christi,TX 78415
Attn: Mr.James Ward,P.E.
Project Manager
RE: GORDON STREET APARTMENT COMPLEX BUILDING
CURSORY STRUCTURAL WALK-THROUGH ASSESSMENT
Ladies/Gentlemen:
As requested,LNV performed the cursory structural walk-through of the Gordon Street Apartment
Complex, located at 625 Gordon Street,Corpus Christi,TX. This walk-through was requested to
provide an opinion of the current condition of the building structure, based on available visual
observation only. Geotechnical data and construction plans were not reviewed or provided for review
for this limited assessment.
Findings:
The apartment complex was built in the early 1960's according to the Nueces County Appraisal
District. Most of the units were boarded up at the time of our visit on September 4.2015;however,we
were able to enter three units in three different structures, including a second floor unit,and observed
the exterior of all structures in order to note similarities in condition and form a general opinion of the
integrity of the main structural framing elements. A list of findings based on the units that were
accessed,framing members that were visible and exterior observations is as follows:
• Differential foundation movement evident by cracking in the exterior brick veneer.
• Site drainage appears to be directed toward the building foundations at several structures.
• Minimal cracking was present in the drywall on the interior walls and ceilings of the units that
were observed.
• "Soft"feel in isolated areas of floor while walking through second floor unit.
• Broken window glass at windows not covered with plywood.
• First floor unit in northernmost structure had previously sustained fire damage
o Fire damage appeared to be somewhat contained and limited to the finishes on the
interior of the unit rather than the framing system.
o Exterior walkway framing above this unit was severely damaged,requiring
replacement.
o Possible water damage to adjacent units from firefighting efforts.
• Apparent fire damage outside first floor unit of southeastern most structure.
• Exterior stairs accessing the second floor units are in poor condition.
• Handrails on the exterior second floor walkway are in poor condition.
• Detached/deteriorated fascia board in isolated areas at exterior second floor walkway.
o Exposed exterior walkway framing ends have water damage.
EXHIBIT
801 NAVIGATION I SUITE 300 I CORPUS CHRISTI,TEXAS 78408
OFFICE 361.883 1984 FAX 361 883 1986 WWW COM
GPM Engineering
Gordon Street Apartment Complex
Cursory Structural Walk-Through Assessment
September 23,2015
Page 2 of 2
Professional Opinion:
Overall,the building structural framing and foundation systems appear to be in good general
condition, based on our visual cursory waikthrough,with the exception of a few isolated areas
previously noted. Differential foundation movement is a common occurrence In this area due to the
native highly expansive clay soils. Proper site drainage improvements and positive drainage away
from foundations will minimize further or future differential movement in the foundation systems.
General Comment*:
My professional services have been rendered with care and diligence and In a manner customary for
professionals involved with structural assessments.
I hereby certify that 1 have no interest, present or contemplated, in this property or its improvements;
that my visual observation was made with reasonable care; and that the information contained in this
report is based on my best professional judgment. This letter report is not a guarantee and carries no
warranty,expressed or implied.
We appreciate the opportunity to assist you with this cursory walk-through. If you have any questions
regarding the content of this letter report please call me at 361-883-1984 or email me at
j s c h efts a r(cill n e i n c.com.
Sincerely,
L N V
engineers I architects I contractorsAF OF t �N1
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GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk Through
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Photograph No. 2 — Google Map Satellite View of Project Location
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GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
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Photograph No. 3 — Front Face of Building, Exterior Walkway and Stairs
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Photograph No. 4 — Rear Face of Building
LNV
TBF'E Firm F-366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
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veneer ". `.w.a' m - `
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if .....:r+Y 11.MI,h.4 •.
indicating :�«« "" ` "'
differential ="IrtY4.4 `;
movement of ,
the foundation
system .. 09, 04 '7.915
—1`.
Photograph No. 5—Typical Cracking Seen in Brick Veneer
Crack in '�`'",�,, ,�
brick veneer
indicating �" x
differential t ,s Building end
movement of --s ' t wall
-
the a
foundation i
4 1F. trlr: r,*
system �,»..�..,.r.. ;�a:�- -,
i
it
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09 11ri::)11,,
Photograph No. 6— Cracking in Brick Veneer
LNV
engine..s architect mntr.c or,
TBPE Firm F-366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
O.
•
Ceiling/second
floor framing ` 4q
system with
minimal
discoloration - .•
and no fire ;it 7 f
damage ►+�',.
Fire damaged
drywall/gypsum
?: .,'I '.)i board
Photograph No. 7— Fire Damaged Apartment Unit
A\;". Damaged exterior
Fire damaged `• g
exterior walkway � ~ �e �� � � � * �. walkway handrail
framing y system
members ;,
•
09.E 04;1015
Photograph No. 8— Fire Damage at Exterior Walkway
LNV
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TUNE Ann F•366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
t
Deterioration -
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present at edge Missing
of walkway of at
..- ' edge of
>,. 0000,
_ walkway
Photograph No. 9— Exterior Walkway
liorr'''
Interior
' ... 00 � ,; framing
between units
in good
general
1 A. condition
,i S
\ ",,..
Cllr At,_
Photoqraph No. 10 —Typical Interior Framing
IAN
enconerhe architects contractors
TOPE Firm F-366
JENNIFER D. SCHEFFI ER, PE
PROJECT ENGINEER
EDUCATION: Bachelor of Science, Civil Engineering, 2006
Texas A&M University-Kingsville
Ms. Scheffler has more than eight years of structural engineering experience on a wide
variety of projects. She focuses on the design and analysis of municipal, commercial,
residential and industrial structures, as well as projects for the U.S. Army Corps of
Engineers.Her diverse client base includes municipalities,architects,various naval facilities,
port authorities, energy companies and contractors (through the design-build delivery
method). Ms. Scheffler is well-versed in the latest 3D finite element modeling software
for detailed structural analysis and design, and she specializes in structures comprised of
steel, reinforced concrete and timber materials.She is also a windstorm inspector certified
by the Texas Department of Insurance.
OLD NUECES COUNTY COURTHOUSE ASSESSMENT, CORPUS CHRISTI, TEXAS
Ms.Scheffler served as structural project engineer,which comprised providing professional
services to perform a structural assessment of the old Nueces County courthouse and
provide a report with findings, opinions, and recommendations. LNV prepared and
submitted the Phase I report to include results of the assessment and recommendations
for further study and investigation as necessary to determine a restoration design of
the building. As part of this assessment, LNV presented the findings in an open forum
to Nueces County during a regular county court session. In addition, a presentation was
made to the Texas Historical Commission in Austin, Texas.
SIDBURY HOUSE STRUCTURAL ASSESSMENT, CORPUS CHRISTI, TEXAS
Ms.Scheffler served as structural project engineer,which comprised the detailed structural
assessment of the structures first and second floor systems of an existing Heritage Style
Home located in Corpus Christi to become an office to hold one of the smaller departments
for the City of Corpus Christi. The existing structure is completely wood framed with
both floor levels consisting of wood joists spanning between wooden girders with wood
flooring. A check of the mechanical and electrical systems was also performed.
LA MIRAGE CONDOMINIUMS PHASE II AND PHASE III, CORPUS CHRISTI, TEXAS
Ms. Scheffler served as structural project engineer, which comprised designing repairs
for an exsiting concrete condominium structure back to original condition. The existing
structure had numerous large areas of corrosion and deterioration such as spalled
concrete, corroding steel rebar, large cracks in the concrete columns and beams, and
cracks in the floor slabs. LNV prepared all necessary drawings and specifications showing
all construction details for the necessary repairs and provided inspections during the
construction phase.
SEAGULL CONDOMINIUMS - BRICK VENEER REPAIRS, CORPUS CHRISTI, TEXAS
Ms. Scheffler served as structural project engineer, which comprised engineering design
services for the Seagull Condominiums in Corpus Christi, Texas. The scope included the
assessment and repair of the brick veneer at the condos elevator tower.
EXHIBIT
Bio of Gen Shibayama/Oyster Real Estate Investments Inc.
Tokal University,Kanagawa,Japan 1990,B.A.in Economics.
Founder/Principal of Oyster Real Estate Investments,Inc.,San Francisco-based real estate investment consulting
company,serving clients in Japan/Asia and California and New York states.
• Currently focusing on clients'real estate investments in Austin,San Antonio,and Corpus Christi,Texas.
• Have managed 250+property transactions/consultations mostly in Texas.
• Experienced in finding and managing value added and creative financing properties.
Prior to founding Oyster Real Estate Investments, Inc., Gen Shibayama held senior management positions in
various multinational corporations:
• McCann-Erickson Tokyo/San Francisco/Account Supervisor: April 1990 to January 1997
• Levi Strauss&Co/Asia-Pacific Consumer Marketing Manager: January 1997 to August 1999
• Yahoo! Inc./Senior Director of International Sales and Marketing: November 1999 to January 2004
Gen Shibayama or Oyster REI throughout various entities own and manage approximately 300 apartment units
in Texas.
$40 million+in transactions have been completed over the last 21 months.
• Dec 2013 — Acquired 1801 and 1802 Staples Corpus Christi, TX 78404 (20,000 SQF office bldg. x 2 in
Corpus Christi)
• March 2014-Acquired 1525 Ocean Dr.,Corpus Christi,TX 78404(6 units apartment in Corpus Christi)
• April 2014-Acquired 3816 Speedway,Austin,TX 78705(38 units apartment in UT area in Austin)
• July 2014-Acquired 210 Lake Drive,Taylor,TX(Austin Suburb 19 unit condominium)
• July 2014-Acquired 619 Tancahua and 800802&806 Hancock,Corpus Christi,TX 78401(47 units)
• July 2014—Sold 2118 Edgehill Drive,San Antonio,TX(21 unit apartment complex in Alamo Heights)
• Aug 2014-Acquired 4000 Wildcat Dr.,Portland,TX(40 units—foreclosed as lender)
• Aug 2014-Acquired 3241 Reid Dr.,Corpus Christi,TX(19 units—foreclosed as lender)
• Aug 2014 - Acquired 319 N. Mesquite St., Corpus Christi, TX (Loft, Office and retail mix use building in
downtown Corpus Christi—foreclosed as lender)
• Sept 2014-Acquired 3120 Santa Fe St.,Corpus Christi,TX(29 unit apartment complex)
• Sept 2014—Acquired 3535 Cottonwood St.,Corpus Christi,TX(72 unit apartment complex)
• Sept 2014—Acquired 302 and 240 Indiana St.,Corpus Christi,TX(8 unit apartment complex)
• Sept 2014—Acquired 4712 Depew St.,Austin TX(12 unit apartment complex in UT area)
• Sept 2014 — Acquired 14334 Cruiser St., Corpus Christi, TX (11 unit luxury townhome in North Padre
Island)
• October 2014—Sold 4000 Wildcat Dr.,Portland,TX(40 unit apartment complex)
• December 2014 - Acquired 425 Schatzell Street,Corpus Christi,TX 78401 (Loft/Commercial Bldg. in
downtown Corpus Christi)
• December 2014 -Acquired 1517 Ocean Drive,Corpus Christi,TX 78401(6 plex)
• December 2014 -Acquired 1519 Ocean Drive,Corpus Christi,TX 78401(6 plex)
• January 2015—Acquired 2704 French Place,Austin,TX 78722(21 units near UT)
• January 2015—Acquired 3237 S.Staples St,Corpus Christi,TX 78411(48 units)Casa Linda
• January 2015—Acquired 453 Eldon Drive,Corpus Christi,TX 78412(42 units)
• March 2015—Acquired 201 S Chaparral St,Corpus Christi,TX 78401(29 units)
• April 2015—Acquired 4325 NW Loop 410,205,San Antonio,TX 78229(33 units)
• May 2015—Acquired 121 Woodward St Austin Tx 78704(52 units)
• June 2015—Acquired 700 Nelray Dr Austin Tx 78705(12 units)
• June 2015—Acquired 1601 Ocean Dr Corpus Christi Tx 78404(6 units)
• September 2015—Acquired Hickory Park Townhomes in College Station Tx(34 units)
EXHIBIT
"S
ANDERSON, LEHRMAN, BARRE & MARAIST, L.L.P. DATE: If _
ERRAND REQUEST, RECEIPT AND REPORT TIME: I t
INSTRUCTIONS:
ITEM(S)TO BE:
4 DELIVERED:
O PICKED UP:
DESCRIPTION AND CONTENTS
DELIVER TO INDIVIDUALS NAME: Q-P
OR rdoI ( O /a
PICK UP FROM: COMPANY OR FIRM NAME: �r�i .
STREET ADDRESS: CifY Ina
CITY AND ZIP CODE:
O DELIVER TO INDIVIDUAL NAMED ONLY
O RECEIPT REQUIRED
O RECEIPT NOT REQUIRED
❑ SPECIAL INSTRUCTIONS:
TYPE OF ERRAND: • B
❑ REGULAR -TO BE RUN AT NEXT REGULARLY SCHEDULED ERRAND RUN
❑ EMERGENCY-TO BE RUN AS SOON AS MESSENGER CAN BE DISPATCHED OCT 3 2fli5
O NO HURRY-TO BE RUN WITHIN 24 HOURS WY SECRETARY OffiCE
AUTHORIZATION:
Charge to: Client No. I 1 1 1 1 1 File No. ( 1 1 1 1 l
Client Name Re:
Authorizing Atty Approved By
E RINT ATTORNEY OTHER
ACCOUNTING / MESSENGER USE ONLY:
MILES HOURS AMOUNT$
MESSENGER: POSTED BY:
DATE DELIVERED: TIME DELIVERED:
FURTHER DETAILS:
RECEIPT: THE UNDERSIGNED ACKNOWLEDGES RECEIPT OF THE ITEMS DESCRIBED ABOVE.
RECEIVED BY:
DATE:
TIME:
SENDER'S COPY,WHITE-RECIPIENT'S COPY,YELLOW-ACCOUNTING COY,PINK
LNV
Solutions Today with a
engineers architects contractors Vision for Tomorrow
September 23, 2015
GPM Engineering
5440 Old Brownsville Road
Corpus Christi, TX 78415
Attn: Mr.James Ward, P.E.
Project Manager
RE: GORDON STREET APARTMENT COMPLEX BUILDING
CURSORY STRUCTURAL WALK-THROUGH ASSESSMENT
Ladies/Gentlemen:
As requested, LNV performed the cursory structural walk-through of the Gordon Street Apartment
Complex, located at 625 Gordon Street, Corpus Christi,TX. This walk-through was requested to
provide an opinion of the current condition of the building structure, based on available visual
observation only. Geotechnical data and construction plans were not reviewed or provided for review
for this limited assessment.
Findings:
The apartment complex was built in the early 1960's according to the Nueces County Appraisal
District. Most of the units were boarded up at the time of our visit on September 4, 2015; however,we
were able to enter three units in three different structures, including a second floor unit, and observed
the exterior of all structures in order to note similarities in condition and form a general opinion of the
integrity of the main structural framing elements. A list of findings based on the units that were
accessed, framing members that were visible and exterior observations is as follows:
• Differential foundation movement evident by cracking in the exterior brick veneer.
• Site drainage appears to be directed toward the building foundations at several structures.
• Minimal cracking was present in the drywall on the interior walls and ceilings of the units that
were observed.
• "Soft"feel in isolated areas of floor while walking through second floor unit.
• Broken window glass at windows not covered with plywood.
• First floor unit in northernmost structure had previously sustained fire damage
o Fire damage appeared to be somewhat contained and limited to the finishes on the
interior of the unit rather than the framing system.
o Exterior walkway framing above this unit was severely damaged, requiring
replacement.
o Possible water damage to adjacent units from firefighting efforts.
• Apparent fire damage outside first floor unit of southeastern most structure.
• Exterior stairs accessing the second floor units are in poor condition.
• Handrails on the exterior second floor walkway are in poor condition.
• Detached/deteriorated fascia board in isolated areas at exterior second floor walkway.
o Exposed exterior walkway framing ends have water damage.
801 NAVIGATION I SUITE 300 I CORPUS CHRISTI,TEXAS 78408
OFFICE 361.883.1984 I FAX 361.883.1986 I WWW.LNVINC.COM
GPM Engineering
Gordon Street Apartment Complex
Cursory Structural Walk-Through Assessment
September 23,2015
Page 2 of 2
Professional Opinion:
Overall, the building structural framing and foundation systems appear to be in good general
condition, based on our visual cursory walkthrough, with the exception of a few isolated areas
previously noted. Differential foundation movement is a common occurrence in this area due to the
native highly expansive clay soils. Proper site drainage improvements and positive drainage away
from foundations will minimize further or future differential movement in the foundation systems.
General Comments:
My professional services have been rendered with care and diligence and in a manner customary for
professionals involved with structural assessments.
I hereby certify that I have no interest, present or contemplated, in this property or its improvements;
that my visual observation was made with reasonable care; and that the information contained in this
report is based on my best professional judgment. This letter report is not a guarantee and carries no
warranty, expressed or implied.
We appreciate the opportunity to assist you with this cursory walk-through. If you have any questions
regarding the content of this letter report please call me at 361-883-1984 or email me at
jscheffler a(�Invinc.com.
Sincerely,
L N V ``
engineers I architects I contractors =0,OF r ,‘
TBPE Firm No. F-366 g'�P•''•"•••'4 •.;f,4 1sioq_ IS
* : �\
• *
} D�. JENNIFER D. SCHEFFLER$i
ennif r D. Scheffle .E. 1 �/ 111687
Project Engineer � .�'•���ENSE. �; .%
2.1
LN%JSohjTons Today with a
Vision for Tomorrow
engineers I architects contractors
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
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Photograph No. 1 — Google Map of Project Location
ParkingZ,, : 1Av. . 1
structure � ., `. ''t
n
off
OS1 �- R r
` ,,,,. '�,�' *, Apparent fire
Fire damaged `•.-
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,' .,--"
i damage
unit entered ' ' �:,, observed at
on first floor t` >};,� "' a,
- exterior of
rfirst floor unit
First floor unit entered ,, .
r
� ,,'-...r.". r {_
Second floor i +
unit entered -..'14' 4-
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/- Parking
Apartment structure
structures
Photograph No. 2 — Google Map Satellite View of Project Location
LNV
engineers a'ch'e-
TBPE Firm F-366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
Original stair
'ire"-
treads no =,
longer present. it Building
Replaced with ,r `« 1. structure in
wood .-.1 -" .' good general
r
members. condition
Dirt and debris
A indicate site
'AI1 drainage toward
,",ik i .. --- .6 , building
foundation
Photograph No. 3 — Front Face of Building, Exterior Walkway and Stairs
1
Building
structure in
good general '
condition h ■
Open and
' broken window
glass
• t..4-,.-;,....+
09/04/2015 Covered
openings
Photograph No. 4 — Rear Face of Building
LNV
eag goers a'chisects contractors
TBPE Firm F-366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
t"1"k'. . #
I
til,� Building end
A , . ,
J _ wall
__ _, .
Crack in brick — x > ='
r��I t
veneer .-
T---- iiii11111161111111,
indicating
differential f"-
movement of
the foundation
ma ` '
system
09/04/2015
al/
Photograph No. 5 — Typical Cracking Seen in Brick Veneer
Crack in --- _., ., .
i
brick veneer '- �. -.
}..•.x YAC n
indicating
differential Building end
movement of wall
the
foundation
system
09/04/2015
Photograph No. 6 — Cracking in Brick Veneer
LNV
enq neers rc.h-
TBPE Firm F-366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
Ceiling/second
floor framing - A '
system with "� r'
minimal
discoloration "s +
andnofire f
damage —«Y-
Fire damaged
drywall/gypsum
09/04/2015 board
i
Photograph No. 7 — Fire Damaged Apartment Unit
..�.
Damaged exterior
Fire damaged •
walkway handrail
exterior walkway 0. system
framing
members
•
•
/ p "c
-- - 09/04/2015
Photograph No. 8 — Fire Damage at Exterior Walkway
LNV
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TBPE Firm F-366
GPM Engineering Gordon Street Apartment Complex September 2015
Cursory Structural Walk-Through
•
Deterioration // ✓1
present at edger Missing
of walkway
handrail at
� �_ ��'���./, � edge of
'°"l, %�- -. walkway
5# �J
Photograph No. 9 — Exterior Walkway
t
Interior
framing
between units
in good
general
condition
Photograph No. 10 — Typical Interior Framing
LNV
^gineers architects contractors
TBPE Firm F-366