Provo officially obtained title Wednesday to Academy Square, one day after the property was purchased by a former owner at a foreclosure sale.
Tuesday, Collier Heinz and Associates and Academy Square Land Associates foreclosed on a trust deed executed by the Community Service Foundation of Utah Valley. The foundation, which was unable to raise enough funds to renovate the dilapidated buildings, defaulted on the trust deed in November.Earlier in the month, city officials agreed to purchase the four-acre parcel and buildings for $765,000. Wednesday, Mayor George Stewart gave Collier Heinz a check for $715,000 to go with an earlier option of $50,000 to obtain title to the historic block.
Stewart, who also serves as the city's economic development director, said the city will not develop the property. If no developer steps forward soon to renovate the buildings, city crews will demolish the structures and the land will be sold as a vacant parcel. With the buildings removed, Stewart said the property will be worth about $1 million.
To open the door to tear down the buildings, city officials plan to use the abatement-of-dangerous-buildings provision in the building code to remove a 20-year-old historic easement on the property. The cost of renovating the buildings with the easement is estimated at about $20 million. Stewart says the buildings have deteriorated to the point that they now are a public safety and health hazard.
Historic preservation groups are likely to fight the city's plan to demolish the buildings. Stewart and other city officials, however, believe it's a battle the city can win.
The property was purchased with city housing funds. When the property is resold, the proceeds will be returned to the housing budget, Stewart said.