ORD 41658 - Interlocal Agmt - Omaha Municipal Land Bank for demolition of unfit and unsafe properties OF otAAFYA,^,Eg�P
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�s Law Department
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i «r Omaha/Douglas Civic Center
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44'D FEBR�r4 FAX:(402)444-5125
City of Omaha Paul D.Kratz
Jean Stothert,Mayor µ City Attorney
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Honorable President
and Members of the City Council,
Attached is an Ordinance to approve an Interlocal Agreement between the City of Omaha and
the Omaha Municipal Land Bank. This Agreement will provide for the contribution of funds
from the Omaha Municipal Land Bank to support and supplement the City's efforts to demolish
unfit and unsafe properties and the City law department's efforts to foreclose on demolition liens,
as provided for by law, in order to return the resulting vacant properties to productive use.
Your favorable consideration is requested.
Respectfully submitted, pprove .
ft> 11?
Jenni er J. Taylor Date Paul Kratz Date
City Attorney City Attorney
Approved as to Funding: Approved:
Step en Curtiss 14)4.1,41 to Q ''o Ande on ate
Finance Director ' A - - = aiming Director
ORDINANCE NO. _II) .g
AN ORDINANCE to approve an Interlocal Agreement between the City of Omaha and the
Omaha Municipal Land Bank for additional funding of demolition of unfit and unsafe
properties and the foreclosure of demolition liens through court proceedings; and to
provide for the effective date hereof.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
Section 1. That in conformity with Interlocal Agreements Act, approval is hereby given
to an Interlocal Agreement between the City of Omaha and the Omaha Municipal Land Bank,
additional funding of demolition of unfit and unsafe properties and the foreclosure of demolition
liens through court proceedings, for a four year term, as provided for in the Agreement.
Section 2. That this Ordinance, not being of legislative character, shall be in full force
and effect upon its passage.
INTRODUCED BY COUNCILMEMBER
S4. 64,'
AMJ APPROVED BY:
NOV 2 0 2018 -�. -1 1g
PASSED MAYOR OF THE CITY OF MAHA DA E
ACTING
ATTEST:
CITY CLE OF HE CITY OF OMAH ATE
t)E 8 APPROVED AS TO FORM:
25/ e
44)4• CITY ATTC F�] Y DATE
INTERLOCAL AGREEMENT BETWEEN THE CITY OF OMAHA AND THE OMAHA
MUNICIPAL LAND BANK FOR THE DEMOLITION OF PROPERTY
THIS INTERLOCAL AGREEMENT ("Agreement") is hereby made and entered into
this at) day of iJOVatkr, 2018, between THE CITY OF OMAHA, a political subdivision
organized and existing under the laws of the State of Nebraska located in Douglas County,
Nebraska (hereinafter the "CITY"), and the OMAHA MUNICIPAL LAND BANK, formed by
the CITY OF OMAHA, NEBRASKA pursuant to Neb.Rev.Stat. §§ 19-5201 through 19-5218
and constituting a public corporation acting in a governmental capacity as well as a political
subdivision of the State of Nebraska located in Omaha, Douglas County, Nebraska (hereinafter
"OMLB"). This Agreement does not create a separate legal entity to conduct the cooperative
undertaking envisioned herein. When referring to the CITY and OMLB collectively, this
Agreement shall use the term"Parties";
WHEREAS, the Omaha Municipal Code Section 48-91 requires any structure, which in
the code official's judgment is so old, dilapidated or has become so out of repair as to be
dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, and such
that it is unreasonable to repair the structure, to be demolished and removed;
WHEREAS, in the event the owner fails to demolish or remove a structure designated as
dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, within the
time prescribed, the City has the right to cause the structure to be demolished and removed,
either through an available public agency or by contract or arrangement with private persons.
The cost of such demolition and removal may be assessed as a lien against the real estate upon
which the structure is located, and may be collected from the owner pursuant to a civil action, as
provided by law;
WHEREAS, the number of properties condemned and identified for demolition often
exceed the funds and ability of the City to demolish said properties and, over time the City has
undertaken the demolition hundreds of properties. However, the City is rarely able to recover
the costs expended in demolition, which costs often far exceed the value of the vacant land that
remains, further hampering the City's ability to demolish all such properties in a timely manner;
WHEREAS, the Legislature has expressly found that Nebraska's municipalities are
important to the social and economic vitality of the state, and many municipalities are struggling
to cope with vacant, abandoned, and tax-delinquent properties. The Legislature also found that
vacant, abandoned, and tax-delinquent properties represent lost revenue to municipalities and
large costs associated with demolition, safety hazards, and the deterioration of neighborhoods
and that there is an overriding public need to confront the problems caused by vacant,
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abandoned, and tax-delinquent properties through the creation of new tools for municipalities to
use to turn vacant spaces into vibrant places; and
WHEREAS, land banks such as OMLB are one of the tools that can be utilized by
municipalities to facilitate the return of vacant properties to productive use;
WHEREAS, it is in the best interests of and mutually advantageous to the Parties to
cooperate in the demolition of structures deemed dangerous, unsafe, insanitary or otherwise unfit
for human habitation or occupancy, because doing so makes the most efficient use of their
powers on the basis of mutual advantage and positions the OMLB to better discharge its purpose
of facilitating the return of vacant, abandoned, and tax-delinquent properties to productive use;
WHEREAS, the Interlocal Cooperation Act of the State of Nebraska, §§ 13-801 et seq.
(Reissue 2012), expressly enables local governmental units such as the City and OMLB to
conduct a cooperative undertaking in order to make the most efficient use of their powers on the
basis of mutual advantage by providing for joint undertakings, services and facilities, in a
manner and pursuant to forms of governmental organization that will accord with best
geographic, economic, population, and other factors influencing the needs and developments of
local communities;
WHEREAS, cooperation between the City and OMLB in the funding of demolition
efforts and foreclosure of demolition liens through court proceedings will enable the Parties to
make the most efficient and economic use of their respective powers and will accord OMLB an
opportunity to begin taking measures to return vacant, abandoned, and tax-delinquent properties
to vibrancy and productive use by enabling OMLB to identify these properties at an earlier stage
than the current system permits;
WHEREAS, it is necessary for the Parties to enter into an agreement to set forth their
respective rights, duties, and obligations; and this Agreement is intended to provide the
methodology for the Parties' cooperation in the funding of demolition efforts by the City and
foreclosure of demolition liens through court proceedings upon vacant and abandoned properties.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
AGREEMENTS HEREIN CONTAINED, THE PARTIES DO HEREBY MUTUALLY
UNDERTAKE, PROMISE, AND AGREE AS FOLLOWS:
1. Purpose: The purpose of this Agreement is to delineate the cooperative undertaking
between the CITY and OMLB that is intended to support the demolition of properties
designated as dangerous, unsafe, insanitary or otherwise unfit for human habitation or
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occupancy and foreclosure of liens imposed as a result of unpaid demolition assessments in
order to return these vacant properties to productive use.
2. The Parties' Obligations: The CITY Permits and Inspections Division shall continue to
inspect properties and designate structures as dangerous, unsafe, insanitary or otherwise unfit
for human habitation or occupancy, as provided for in Chapter 48 of the Omaha Municipal
Code. The CITY shall also continue to cause the demolition or removal of any structure so
designated in event the owner fails to comply with a demolition order. The CITY Permits
and Inspections Division shall establish a list of structures so designated, in order of priority,
and cause the structures to be demolished or removed, either through an available public
agency or by contract or arrangement with private persons. The CITY shall also continue to
specially assess the costs of demolition as a lien against the real estate upon which the
structure is located.
The City shall undertake demolition or removal of properties as allowed by law, in the
order of priority established by the Permits and Inspections Division. The CITY
acknowledges that it does not have sufficient funds to undertake demolition or removal of
every structure designated as dangerous, unsafe, insanitary or otherwise unfit for human
habitation or occupancy, as allowed by the Omaha Municipal Code. The OMLB, in an effort
to further its efforts to return vacant properties to productive use, may grant funds, in an
amount equal to specific costs expended by the city for demolition of structures, as evidenced
by invoices submitted to the OMLB and as agreed upon by the Parties, to the CITY in
support of its efforts to remove or demolish properties designated as dangerous, unsafe,
insanitary or otherwise unfit for human habitation or occupancy, in order of priority as
established by the City Permits and Inspections Division.
The CITY Law Department shall undertake all appropriate efforts to diligently foreclose
upon the liens properly assessed against real estate for the costs of such removal or
demolition, in a timely manner, in order to obtain ownership or control of all such properties,
as deemed necessary and appropriate by the Parties, to further their mutual goals of returning
vacant and abandoned land to productive use. The Parties acknowledge and agree that all
activity and action needed to draft, file, process and complete the foreclosure actions for
demolition liens will be undertaken by the CITY and from time to time the OMLB will
provide additional information or assistance to the CITY Law Department, as appropriate
and beneficial to the Parties. At such time as the CITY obtains legal title, ownership or
control of properties pursuant to the foreclosure of demolition liens, such properties shall be
available to the OMLB at fair market value pursuant to Omaha Municipal Code Chapter 27,
Article III.
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3. Financing: This Agreement does not require the levying, collecting, or accounting of any
additional tax authorized under Neb. Rev. Stat. Sections 13-318 to 13-326 or 13-2813 to 13-
2816. Each Party shall finance its performance of its obligations in the ordinary course of its
respective business and no separate budget shall be prepared with respect to the cooperative
undertaking described herein.
4. Administration: This Agreement does not establish a separate legal entity. The CITY
Permits and Inspections Director shall provide the Executive Director of OMLB a list of
properties designated as dangerous, unsafe, insanitary or otherwise unfit for human
habitation or occupancy, in order of priority, upon request. OMLB shall refer to this list
when making a determination as to whether to contribute funds to the CITY's demolition
efforts.
5. Property: The cooperative undertaking shall not require the acquisition of real or personal
property separate and apart from real and personal property, except as provided for in
Chapter 27, Article III of the Omaha Municipal Code, and then only to the extent the OMLB
makes application the CITY to acquire available property.
6. Term and Termination: This Agreement shall become effective upon November 15, 2018.
This Agreement will terminate on December 31, 2022, unless extended as provided for
herein. Prior to the natural expiration of this Agreement, any Party may give the other Party
thirty (30) days written notice of the notifying Party's desire to renegotiate this Agreement.
During the pendency of these negotiations, this Agreement will remain in full force and
effect.
A Party may terminate this Agreement for convenience at any time for any reason by
giving the other Parties three (3) months written notice. Each Party shall be responsible for
performing its obligations as set forth above until the effective date of the termination. This
Agreement may also be terminated for a material breach not cured within a reasonable time
following written notice to the Party committing the material breach. Such notice, to be
effective must describe the breach or breaches complained of and provide a reasonable time
to cure which time may not be less than forty-five (45) days following receipt of notice,
unless such length of time is impracticable (for example, in the case of a breach relating to
performance of a duty for which Nebraska statutes proscribe specific dates or timeframes for
performance), in which case such time may be 7 (seven) days. Following a failure to cure,
the breaching Party may notify the other Party in writing that the Agreement is terminated as
to the breaching Party effective in one (1) year following the receipt of such notice. Each
Party shall be liable for performance of its obligations as set forth above until the effective
date of the termination.
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7. Amendment: The Parties herein reserve the right, by written request sent by registered mail
from the notifying Party to the other Party, to amend or extend the term, as provided herein,
any provision of this Agreement. To be effective, all amendments hereto must be in writing
and must be executed by an authorized representative of each Party. If on or after one
hundred and eighty(180) days of such amendment notice, amendment negotiations fail, then
a Party may notify the other Party in writing of that Party's intent to withdraw and that the
notifying Party's participation in this Agreement is terminated following 180 days after the
withdrawal notice. All such notices, provided for in this section, shall be sent by registered
mail as follows:
TO CITY
City Attorney
Omaha/Douglas Civic Center
1819 Farnam Street, Suite 804
Omaha,NE 68183
(402) 444-5150
TO OMLB
Executive Director
Omaha Municipal Land Bank
1141 North 11 th Street, FL 1
Omaha NE 68102
402-800-1240
8. Nondiscrimination: The Parties, in the performance of this Agreement, shall not discriminate
in violation of Federal or State law or local ordinances. In accordance with state and federal
law, the Parties shall not discriminate against any employee or applicant for employment, to
be employed in the performance of this Agreement, with respect to hire, tenure, terms,
conditions, or privileges of employment because of race, color, age, religion, sex, disability,
national origin or similar protected status of the employee or applicant.
9. No Waiver: The failure of either Party to insist on strict performance of any covenants or
conditions, or to exercise any option herein conferred on any one or more instances, shall not
be construed as a waiver or relinquishment of any such covenant, condition, right, or option,
but the same shall remain in full force and effect. For a waiver of a right or power to be
effective, it must be in writing signed by the waiving Party. An effective waiver of a right or
power shall not be construed as either a future or continuing waiver of that same right or
power, or the waiver of any other right or power. In addition, any act by any Party which is
it not obligated to do hereunder shall not be deemed to impose any obligation upon any Party
to do any similar act in the future or in any way change or alter any of the provisions of this
Agreement.
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10. Applicable Law / Venue: This Agreement shall be construed and all of the rights, powers,
and liabilities of the Parties hereunder shall be determined in accordance with the laws of the
State of Nebraska. Venue for any action under this Agreement shall be in Omaha, Nebraska,
Douglas County District Court or for any federal action, it shall be in Omaha, Nebraska, the
United States District Court for the State of Nebraska.
11. Severability: If any provision of this Agreement is determined by a court of competent
jurisdiction to be invalid or otherwise unenforceable, that provision will be severed and the
remainder of this Agreement will remain in full force and effect. The Parties further
recognize that this Agreement shall be subject to amendments in laws and regulations and to
new laws and regulations. Any law or regulation that invalidates, or is otherwise inconsistent
with the terms of this Agreement or that would cause one or both Parties to be in violation of
the law or regulation, shall be deemed to have superseded the terms of this Agreement,
provided, however, that the Parties shall exercise their best efforts to accommodate the terms
and intent of this Agreement to the greatest extent possible. Any law or regulation that
supplements the abilities of either Party to perform its obligations under this Agreement shall
be deemed incorporated within this Agreement if such incorporation may be accomplished
without amendment to this Agreement.
12. Third Party Rights: This Agreement does not create any third-party rights for those who are
not a Party to this Agreement.
13. Assignment: This Agreement may not be assigned or transferred, whether voluntarily or by
operation of law, nor may any of the duties and responsibilities be assigned or transferred,
whether voluntarily or by operation of law, without prior written consent of the non-
assigning Party.
14. Entire Agreement: This Agreement contains the whole understanding of the Parties and
supersedes all prior oral or written representations and statements among the Parties.
15. Indemnification: Each Party will indemnify, defend and hold harmless the other Party from
any and all liability, expense, cost, attorney's fees, claim, judgment, suit and / or cause of
action (whether or not meritorious), settlement, or demand for personal injury, death or
damage to tangible property which may accrue against the other Party to the extent it is
caused by the negligent acts or omissions of the Indemnifying Party, its officers, employees,
agents, or subcontractors while performing their duties under this Agreement, provided that
the other Party gives the Indemnifying Party prompt, written notice of any such claim, suit,
demand or cause of action. The other Party shall cooperate in the defense or settlement
negotiation of such claim, suit, demand or cause of action. This indemnification provision is
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not the equivalent of purchasing liability insurance and it is not intended to be a waiver of
either Party's sovereign immunity under Nebraska law.
16. No Joint Entity: It is agreed that nothing contained herein is intended or should be construed
in any manner as creating or establishing a partnership or joint venture between the Parties.
Any and all acts that the Parties or their personnel, employees, agents, contractors, or
servants perform pursuant to the terms of this Agreement shall be undertaken not as
employees of the other Party. The Parties shall, except as provided herein, act in their
individual capacities and not as agents, employees, partners, joint ventures or associates of
the other. An employee or agent of one shall not be deemed or construed to be the employee
or agent of the other for any purpose whatsoever. None of the Parties nor its personnel,
employees, agents, contractors, or servants shall be entitled to any benefits of the other. The
Parties shall not provide any insurance coverage to the other or their employees including,
but not limited to, workers' compensation insurance. Each Party shall pay all wages, salaries
and other amounts due its employees and shall be responsible for all reports, obligations, and
payments pertaining to social security taxation, income tax withholding, workers'
compensation, unemployment compensation, group insurance coverage, collective
bargaining agreements or any other such similar matters. Neither Party shall have any
authority to bind the other by or with any contract or agreement, nor to impose any liability
upon the other. All acts and contracts of each shall be in its own name and not in the name of
the other.
17. New Employee Work Eligibility Status: The Parties hereby agree to use a federal
immigration verification system to determine the work eligibility status of new employees
physically performing services within Nebraska. A federal immigration verification system
means the electronic verification of the work authorization program authorized by the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as
the E-Verify Program, or an equivalent federal program designated by the United States
Department of Homeland Security or other federal agency authorized to verify the work
eligibility status of a newly hired employee.
18. Captions: The captions used in this Agreement are for convenience and are not used in the
construction of this Agreement.
19. Force Majeure: Except as may be otherwise specifically provided in this Agreement, no
Party shall be in default under this Agreement if and to the extent that any failure or delay
in such Party's performance of one or more of its obligations hereunder is caused by any of
the following conditions, and such Party's performance of such obligation or obligations
shall be excused and extended for and during the period of any such delay: act of God; fire;
flood; fiber, cable, conduit or other material failures, shortages or unavailability or other
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delay in delivery not resulting from the responsible Party's failure to timely place orders
therefore; lack of or delay in transportation; changes to any of the following: government
codes, ordinances, laws, rules, regulations or restrictions, as to which either Party's
compliance is necessary to carry out the terms and conditions of this Agreement; war or civil
disorder; or any other cause beyond the reasonable control of such Party. The Party claiming
relief under this section shall promptly notify the other Parties in writing of the existence of
the event relied on and the cessation or termination of said event.
20. Joint Work Product: This Agreement is the joint work product of both Parties; accordingly,
in the event of any ambiguity, no presumption shall be imposed against or in favor of any
Party by reason of document preparation.
21. Dispute Resolution: Any dispute which, in the judgment of a Party to this Agreement, may
affect the performance of such Party shall be reduced to writing and delivered to the other
Parties. As soon as possible thereafter, the Parties authorized representatives shall schedule a
face to face meeting to resolve the dispute in a mutually satisfactory manner. Prior to the
institution of any formal legal proceeding, the Parties must meet in this manner to resolve the
dispute. This meeting must take place within ten (10) business days after service of the
written statement of dispute. During the pendency of negotiations, the Parties shall act in
good faith to perform their respective duties described herein. If the Parties are unable to
resolve their dispute using the process described above, a Party may commence a legal action
against the other Party.
22. Authorized Representatives and Notice: Except as provided in paragraph 7, above, the
following named authorized representatives for each Party are available as a point of contact
for any inquiries related to the performance of this Agreement. The Parties hereto expressly
agree that for purposes of notice, during the term of this Agreement and thereafter, the
following named individuals shall be the authorized points of contact of the Parties:
TO CITY
Mayor
Omaha/Douglas Civic Center
1819 Farnam Street, Suite 300
Omaha,NE 68183
(402) 444-5555
TO OMLB
Executive Director
Omaha Municipal Land Bank
1141 North 11 th Street, FL 1
Omaha NE 68102
402-800-1240
8
THE UNDERSIGNED HEREBY WARRANTS THAT SHE IS POSSESSED OF FULL AND
ACTUAL AUTHORITY TO SIGN THIS AGREEMENT ON BEHALF OF THE CITY OF
OMAHA,DOUGLAS,NEBRASKA.
L%-/
ACT IN(MAYOR to
STATE OF NEBRASKA )
) ss:
COUNTY OF DOUGLAS )
The foregoing i trum t was acknowle ed�,�( efore me on this o<U�'1 day of
�If,�a ,2018,by bLV) trg{ , A`'';'1V1'AYOR of the City of Omaha.
GENERAL NOTARY-State of Nebraska
KIMBERLY PUL.LIAM Notary Publ.
�*"+_ My Comm.Exp.Dec.14,2021
THE UNDERSIGNED HEREBY WARRANTS THAT HE IS POSSESSED OF FULL AND
ACTUAL AUTHORITY TO SIGN THIS AGREEMENT ON BEHALF OF THE OMAHA
MUNICIPAL LAND BANK.
VICE CHAIRPERSON, OMAHA MUNICIPAL Date
LAND BANK BOARD OF DIRECTORS
STATE OF NEBRASKA )
) ss:
COUNTY OF DOUGLAS )
cloo;i1Akle
fore oin ins nt w acknowledged before me on this 5 day of
(1,foregoing by vice Ch son of the Omaha
Municipal Land Bank Board of Directors.
GENERAL NOTARY-State of Nebraska
m LISA A KINGSBURY Notary Bublic
My Comm.Exp.July 27,2019 ""`�
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ORDINANCE NO. LEI (1 5g
Item Submitted By: Jennifer Taylor
Department: Law
Council Meeting Dates:
First Reading: October 30, 2018
Second Reading and Public Hearing: November 6, 2018
Third Reading: November 20, 2018
An ordinance to approve an Interlocal Agreement between the City of Omaha and the Omaha
Municipal Land Bank for additional funding of demolition of unfit and unsafe properties and the
foreclosure of demolition liens through court proceedings.
PUBLICATIONS t Ja
PUBLICATION OF HEARING: I )l —
PUBLICATION OF PASSAGE:
Presented to City Council
November 20, 2018
APPROVED 7-0
tlizabeth Butler
City Clerk