City of Reno

Staff Report
No Action Taken
Jan 10, 2018 10:00 AM

Staff Report (For Possible Action): Approval of the use of Blight Abatement Fund monies for the demolition of the building located at 265 Keystone Avenue, a city-owned property, with reimbursement from the future sale of this property and the immediate parcel to the west known as Assessor Parcel Numbers 010-610-05 and 010-610-06 and direction to staff to perform the work in an amount not to exceed $50,000. (Blight Mitigation Fund)


Department:Public WorksSponsors:
Category:Approval of Reports or PlansWards:Ward 1

Recommendation and Proposed Motion

Recommendation:  Staff recommends Council approve the use of Blight Mitigation Funds for the demolition of the building located at 265 Keystone Avenue with reimbursement from the future sale of APN's 010-610-05 and 010-610-06 and direction to staff to perform the work in an amount not to exceed $50,000.


Proposed Motion:  I move to approve staff recommendation.

Staff Report Formal Body

Summary: On September 30, 2017, Reno Fire Department responded to a structural fire located at 265 Keystone Avenue.  On October 6, 2017, Code Enforcement, Fire, and Building and Safety staff posted the building as “Unlawful to Occupy” based on an initial site visit conducted earlier in the week.  The structure fire was caused by transient activity and created significant damage to the roof rendering it unstable and requiring demolition.  There was one tenant (Team Nevada) using a portion of the structure that was given notice to vacate the premises which occurred in mid-November.  The Blight Mitigation Fund has approximately $184,000 currently and is designated for demolition and abatement of nuisances on properties with the caveat that the funds used are paid back to the City and into this account for future use.


Discussion:  Staff is requesting approval of the use of Blight Mitigation Fund monies for the rental of equipment and disposal fees to demolish the compromised structure located at 265 Keystone Avenue.  This fund was designated for the demolition and abatement of nuisances on properties with replenishment from liens to the owner at time of sale.  The demolition of this City-owned property which is a public nuisance would be in conformance with the use of the funds and is recommended to be paid back at the time of sale of the immediate property and/or the westerly adjacent parcel as shown on the attached map.  The Blight Mitigation Fund currently has $184,000 available and it is anticipated that the work contemplated would not exceed $50,000.


If staff is directed to perform the work, Public Works Maintenance and Operations will begin as soon as possible to secure the equipment and trucking needed to demolish the existing structure.  This work would be a training exercise for staff and the funds would be used for specialty equipment needed to accomplish the work to include trucking and disposal of the demolition and construction debris to an appropriate disposal site.  


Financial Implications:  If approved, funding would come out of the Blight Mitigation Fund and be reimbursed upon sale of the properties as identified.


Legal Implications:  Legal review completed for compliance with City procedures and Nevada Law.


Meeting History

Jan 10, 2018 10:00 AM Video Reno City Council Regular


Council Member Duerr and John Flansberg, Director of Public Works, discussed the current condition of the building, and plans to sell the property after demolition has occurred.

Council Member Duerr suggested that the property could be cleared and sold, or it could be sold "as is" with some kind of a discount for the demolition. She said that a letter from Kelly Rae offering to purchase the property and recycle the broken concrete was received, and suggested that the property could be put out to bid.

Council Member McKenzie stated that an offer to buy the property for the cost of demolition is unacceptable because the property is worth more than that. Demolishing the building and removing it from the property will make it even more valuable because it will be a blank canvas for someone to start with.

Kelly Rae, no address provided, said that she would like to make the building into a living facility. I can reuse the concrete and steel to make the building into residences, and I would be willing to buy it at market rate with the concrete building intact. I can put affordable housing there like we did at Tiny Ten where we put ten houses and ten garages on a half-acre lot, and keep all those materials from going to the landfill.

Barrie Lynn, 161 Wonder Street, said that the City should explore other options before demolishing the building.

Discussion ensued regarding continuing this item for two weeks and putting out a proposal for bids with or without the demolition piece. Health and safety issues associated with the building were also discussed, as was the possibility of affordable housing uses (subsidized or non-subsidized).

City Attorney Hall recommended that the Council continue this item due to the manner in which it had been agendized.

City Manager Newby said that staff will, given the direction provided at the meeting, proceed accordingly and bring the item back on a future agenda.