PANAMA CITY — Commissioner Mike Nichols suggested the city conduct its own collection process for liens.
“We’re asking questions,” Nichols said Tuesday at the Panama City Commission meeting. “What are we doing as a city?”
The idea was raised during presentations from Municipal Capital Recovery and Credit Business Services, who want to take over collections of about 290 liens dating back to 2006. Panama City-based Credit Business Services offered a 70/30 split, favorable to the city. MCR offered a sliding scale of upfront money — from $25,000 to $80,000 — but the city could not collect after $50,000, $120,000 and $160,000, respectively, is collected by MCR, and the highest upfront cash comes with an 80/20 split in favor of the collection agency.
“You don’t have the time or the resources,” CB Services representative Tommy Cooley said. “It’s crazy, but not everybody pays when they say they will.”
City Manager Jeff Brown said he was unaware of any attempts by city code enforcement to contact lien holders. Nichols said it might be possible for the city to start with letters or calls with existing personnel in code enforcement and the accounting department.
“When I hear low-hanging fruit,” Nichols said, “I think, ‘God, are we missing the boat?’ ”
With low-hanging fruit, a phrase Nichols repeated at least six times, the commissioner was referring to claims by both agencies that they will be able to easily identify liens that will be easy to collect. Cooley said his company most often deals with individual cases that are more difficult. Panama City would be MCR’s first municipal customer; all the others are homeowners associations and condominiums.
CB Services is the city’s collector for delinquent utility bills.
The commission decided to table a decision on lien collection until the next meeting to give staff the chance to pursue in-house options.
Other action
- Delayed action on a request for a development order to build a 31-unit, low-income senior housing complex on land where the Marie Hotel currently sits, after the attorney for developer Royal American, Derrick Bennett, asked the commission to table the decision, citing ongoing negotiations with the city.
- Appointed Mayor Greg Brudnicki to lead negotiations for the purchase of properties on Beach Drive that it has pondered buying.
- Allowed John Reeves another month before the city places a $34,655 lien against his grocery store property, after he produced one letter from American Wholesale Grocers in Louisiana committing to a loan of almost $300,000 to stock the grocery store. Reeves also submitted a letter of interest from a bank, but the commission is looking for a more concrete investment.