CITY HALL — Officials on Monday announced the upcoming auction of one of five homes acquired by the city as a result of a $12-million settlement to homeowners whose properties were damaged in a January 2005 mudslide.
The mudslide Jan. 10, 2005, in the 1600 block of Gladys Drive came down onto Glenmore Boulevard during heavy rains, causing severe damage to several properties and forcing several residents to evacuate.
Nine residents filed lawsuits against the city, claiming shoddy construction of storm gutters with inadequate capacity to handle the rains.
A public auction will be held Aug. 24 for the parcel at 1338 N. Jackson St. — one of five acquired through the settlement. The city will continue to own four other propertiesas construction continues in the area.
Any funds raised in this month's auction would go toward filling a deficit in the city's liability insurance fund, which was hit hard by the massive payouts, officials said. The city has also filed a lawsuit against American International Group, claiming the insurance company failed to cover and investigate the claims.