Published: December 29, 2008 10:09 pm      

City increasing tax to pressure owners of blighted properties

By CARRIE STAMBAUGH

ASHLAND — City officials have raised the property taxes on two blighted downtown properties in an effort to encourage the owners to take action.

Almost a year after the Ashland Board of City Commissioners issued an ultimatum to Perry and Susan Madden to come up with a plan for the property, the corner of 17th Street and Winchester Avenue remains fenced off and inactive.

According to Mike Miller, acting director of planning and community development, the code enforcement board voted Dec. 9 to classify the six-story former Sears building and its neighboring vacant lot — once the site of a JC Penney store — as blighted and abandoned property. He said the vote allows the city, under terms of a 2007 ordinance, to increase the ad valorem property tax rate on the properties by fourfold.

According to City Attorney Richard “Sonny” Martin, the ordinance requires the city to notify the county property valuation administrator of the classification before Jan. 1. The Maddens must be notified by March 1 and have the right to appeal the decision before April 1, he said. The increased taxes would be due on the building in June, he said.

The building was condemned last May after city officials asked the Maddens to come up with a plan for the property by March 1 and the deadline passed without a presentation of plans or an appearance by the Maddens before the commission to discuss the property.

To date, the Maddens have paid only a $75 fine as a result of the condemnation, but Miller said the couple will receive a second notice of violation and $150 fine this month.

The Maddens had planned to refurbish and convert the former Sears building into housing and retail space and build a 40-unit senior housing complex next door where the JC Penney store was razed in 2006.

Perry Madden did not immediately return calls seeking comment on Monday.

City officials say beyond the fines and property tax increases, they can do very little.

Estimates to demolish the former Sears building stand at more than $270,000, said City Manager Steve Corbitt. He told commissioners last week, “We’re doing what is within our ability” to urge progress on the property.

Acting Mayor Kevin Gunderson said last week more aggressive action needs to be taken.

“Short of court, I’m not certain (what), but I’m willing to go to court,” Gunderson said. “That building is an eyesore for downtown and it needs to be demolished and not left in its deplorable condition.”

Razing the building at its own expense is not a current option for the city, he said.

CARRIE STAMBAUGH can be reached at cstambaugh@dailyindependent.com or (606) 326-2653.