FORT SCOTT, KS — The Fort Scott City Commission is working to resolve multiple federal tax liens on the historic Moody Building to clear the way for a private restoration project.
During Tuesday night’s city commission meeting, business owner and developer Al Niece offered to stabilize the at-risk building at his own expense if the city can clear the title.
"First off, we've already spent some money looking at the building, talking to engineers and architects, and losing my mind—that building is the crown jewel in Fort Scott," Niece said, joining the meeting via phone.
Niece told the commission he has crews ready to stabilize the building and shield it from the elements.
"And my proposal right off the bat is we've got people on standby to get the thing at my expense to clean it out and start securing that wall, and even probably putting some of the floors in, but definitely get the windows in and get it dried in to where it's acceptable by Christmas," Niece said.
The biggest obstacle to the building's restoration is a series of federal tax liens of as-yet-undetermined value, which City Attorney Bob Farmer has been working with the IRS to resolve. While public records show five liens clouding the property's title, totaling nearly $240,000, it's possible some have expired due to age.
Farmer told commissioners the city has formally asked the IRS to release the property from the liens. The request cites the building's condemned status and the immediate public safety risk it poses.
"We're asking for the lien to be released from this property because it's been condemned, and we need the building so we can make an investment and improve the structure," Farmer said.
Farmer estimated it would take at least two months to hear back from the IRS. Niece told commissioners that all he needed was the city’s assurance that they would find a resolution to the problem.
“All I want is an assurance from the city that they're working on getting that stuff cleaned because I can't go get - if I've got to file a quitclaim on it, then I'm assuming that lien and I don't want to do that. I'm going to be putting a hell of a lot more money in than that lien.” Niece said.
Farmer told commissioners that in the short term, the only likely way for Niece's crew to begin work would be for the city to obtain a quitclaim deed from the building's current owners, which would then leave the city to resolve the liens itself.
"I like the idea, but I just can't in good conscience approve this without knowing what the total is," Commissioner Tim Van Hoecke said regarding the combined debt of the liens.
Van Hoecke suggested that the city could utilize some of the roughly $318,000 currently sitting idle in a lake development fund to settle the liens if federal negotiations fail. He said that the funds have been untouched for three years and could legitimately support local economic development.
"I don't want to pay that much in lien, but if let's say it's under $100,000 ... in open meeting and full transparency, there is a source there that could do that," Van Hoecke said. "This is economic development. This is a source that has been sitting there literally for three years."
City officials have said that, due to its size and location, removal of the building would be costly. During the May 19 commission meeting, Farmer said, "It might be cheaper to pay the lien as part of our economic development than tear the building down, because tearing the building down is going to cost a fortune."
Niece said that his restoration plan would rely heavily on local workers to boost area employment and trade skills.
"We want to use as many local contractors as we can. I don't want to sub it out to a big outfit. I think this is an opportunity for some of the local contractors to mentor or train some of the trades and that's a win-win for all of us, and I'm paying for it," Niece said.
He then added with a laugh, "Or Lu and I are paying — I'm going to take it out of Lu's account."
City Manager Brad Matkin cautioned that Niece cannot legally begin work inside the building until a formal property transfer occurs. Niece urged the city to act quickly, citing the worsening condition of the building's exterior.
"I just don't want to turn around and start something and - my shelf life is rapidly approaching," Niece joked. "So I'd like to get this going and leave it for the city. I want to do something really nice with it."
The commission took no formal vote during the session but expressed unanimous support for clearing the title barriers. Commissioner Julie Buchta concluded the discussion by thanking Niece for his generosity.
"I was just going to say, Al, we really appreciate how much you love our town and we're really, really grateful for your investments in our city and your faith placed here." Buchta said.
The federal tax lien records on the Moody building are linked below.
