Friday, Sept. 29

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Owner of old Mill restaurant wants out of liability

[SEPT. 29, 2006]  City attorney Bill Bates said he has received a letter from Phil Montalvo, an attorney representing the owner of the old Mill restaurant. Dennis Koehler is seeking to get out from under the liability for the structure he bought about two years ago.

Koehler would like to turn the property over to the city and requests that, in turn, he be relieved of all obligations for the property, including the city ordinance violation and fine of $32,000.

When he bought the property, Koehler intended to renovate the property, doing most of the work himself. However, his plans came to a halt when he was not able to afford the inspection cost that the Environmental Protection Agency requires since the building may contain asbestos.

There are private entities that have expressed interest in the property, Mayor Beth Davis said.

Council members were hesitant to consider that option. The cost to renovate or even demolish the property could be quite high.

"We're probably going to end up with it back in our hands anyway," Alderman Buzz Busby said.

Bates said that from a legal standpoint, in terms of costs and expenses, this is the less expensive. It gives the city the property without having to go through with a lawsuit and foreclosure. However, the city would be assuming the same liability as Koehler, he said. If asbestos is found, it could get quite costly.

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An alderman asked if it could be burned.

Fire Chief James Davis said he has had all three of his shifts assess the property in case it caught fire. It is too close to everything for a controlled burn, he said.

The matter was left open for future discussion.

[Jan Youngquist]

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