No Action On Derby Alderman’s Dilapidated Property

The Derby Board of Aldermen again took no action Thursday (Jan. 26) on whether to add an Alderman’s property on Gilbert Street to the city’s blight list.

The city’s blight officials and an Aldermanic subcommittee have recommended that Alderman Stephen Iacuone’s multi-family house at 40 – 42 Gilbert St. be added to the list because the property is in poor condition and has generated complaints from neighbors. Click here to read reaction from the neighbors.

The full board has been talking about Iacuone’s house since November.

No one lives in the house. It has broken windows, an unsafe porch, a roof in disrepair and trash strewn across the yard, according the reports on file in City Hall.

The city’s blight list is a tool used to clean up neglected or abandoned properties. Property owners face fines if they do not address the issues raised by the city.

Nearby properties have been added to the city’s blight list while elected officials keep bouncing Iacuone’s property between a subcommittee and the full Board of Aldermen without making a decision.

Other Circumstances

While no one doubts the Gilbert Street property is a heap, Iacuone and his attorney — fellow Alderman Barbara DeGennaro — have argued the property is in its current condition due to the city’s failure to fix drainage problems in the Gilbert Street area.

Flood water has essentially washed away the rear yard and damaged the foundation of the house, according to past correspondence between DeGennaro and the city.

The city has been talking to Iacuone about purchasing the property and then making repairs to its troubled drainage system — the problems of which originate at a pond next to Witek Park, a mile or so above Iacuone’s property.

The city’s part-time blight inspectors, specifically Andrew Cota, have argued the extenuating circumstances with Iacuone’s property are not directly related to the numerous issues with the house.

Furthermore — every property owner on the blight list has extenuating circumstances as to why their property is failing, officials have said.

Private Talk, No Results

On Thursday, the Board of Aldermen met in an executive session to discuss Iacuone’s property.

Executive session meetings are closed to the public. They are allowed under certain circumstances, such as when the city is discussing a real estate transaction.

The Aldermen’s agenda item was nebulous as to what they planned to discuss. It simply read ​“Executive Session: 40 – 42 Gilbert Street and Gilbert Street Project — Discussion and Negotiations with property owner” Iacuone.

FILEFormer Republican Aldermen Joe Bomba, speaking as a citizen, questioned whether the executive session was proper, since blight issues are traditionally not discussed behind closed doors.

No one on the Board of Aldermen questioned the executive session.

When the Aldermen emerged from executive session, they voted to table the matter until elected officials could consult with the city treasurer. 

Ron Sill, president of the Board of Aldermen, told the Valley Indy elected officials want to check with the city treasurer to see how much money is available to possibly purchase Iacuone’s property or a portion of Iacuone’s property.

DeGennaro and Iacuone recused themselves from the vote and declined comment.

It is unusual for a legislative body to talk in executive session directly with the parties they are negotiating with. Often, with real estate transactions, attorneys get together privately and hash out a deal.

A city attorney will then brief the legislative body on the proposed deal in an executive session — outside the presence of the party to which they are making an offer.

However, no one on the Board of Aldermen has ever objected to Iacuone or DeGennaro being involved in the executive session meetings. It’s been happening since 2010.

It appears that the Aldermen are talking about purchasing Iacuone’s property outright — or paying him for a portion of his property.

Past correspondence from DeGennaro and the city show Iacuone wanted $120,000 for the property in 2009. That price included costs Iacuone incurred to replace a gas furnace and water heaters in the house, among other items. The property itself was valued at $90,000 in April 2009.

Iacuone’s property has been on the radar of the Derby blight inspectors for several years, who noted in documentation the house is ​“abandoned and has been for years.” Documents on file in City Hall show photographs of the property dating back to 2008. 

More on this issue:

No action on Derby Alderman’s dilapidated property

Neighbors to Derby Aldermen: Do Something

Derby to again consider adding Alderman’s property to the blight list

Derby blight officer explains his e‑mail

Should Alderman’s property be on the blight list?

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