The City Council unanimously voted in favor of allowing the owner of a hazardous structure to renovate the property during its last regular meeting.

The property at 708 Eighth Ave. NE in Austin, a tax forfeiture, was sold at auction by Mower County on Sept. 29 despite being on this year’s list of properties to be demolished by the city. The city had already spent $7,750.82 on asbestos removal. The county, however, did not provide sufficient information about the pending removal to the buyer.

“We did have some communication with (the county) about the property and about the pending demolition,” said Planning and Zoning Administrator Holly Wallace. “The person that bought the property was not entirely aware of the actions that had been taken regarding the property. If somebody does a title search on the property, they would be aware that there was a pending court matter.  Essentially, he bought a lawsuit along with the house.”

The owner, who plans to renovate the house to be a rental property, purchased another tax forfeiture property at 1300 Ninth Ave. SW during the same auction. That property was also on the city’s demolition list, and the owner has chosen to let that property be demolished.

He is, however, confident he can renovate the Eighth Avenue property for an estimated $30,000 to $40,000. Wallace expressed concern at the number, believing the property to require more than the estimated amount.

“In some cases, you will never get your investment back because of the condition of the property,” she said.

The council did establish certain conditions for the renovation. The owner is responsible for setting up an escrow account with several thousand dollars to allow for the city to finish renovation or demolish the property should he fail to complete it within the alloted time period. He will have to work with the building department to establish a schedule for the project and will be monitored by the city. He will also have to make sure the repairs maintain a certain level of quality and standards based on city codes and ordinances.

Although Wallace believes the cost to renovate the property is more than the owner claims, she understands the council’s decision.

“(The city doesn’t) want to tear down our houses,” she said. “If we can get someone to reinvest in them and get them to the point where they can be usable and come back into the tax base, it’s a positive result. We are picking houses that are far-gone.

The reason we remove these properties is to preserve the value of the surrounding properties and not allow the blight to continue to move down the block. It’s just a hazard in general.”

Planning and Zoning staff recommended that the work on the residence should be completed within 180 days of the Council’s decision.

The two properties purchased at the auction were on a list of seven houses and one garage slated to be demolished before the end of the year.