There is nothing that the previous owner will be obligated for nor is there anything to declare to the IRS...unless they have capital gains in their situation...but they may not have those either. 

So if and when the time comes to sell that LLC would have to do the 1031 exchange and the members go along with it.I spose you could also simply form a JV where they brought in the land and you brought in the muscle but each retained control of their own assets and crafted a very strong JV agreement. 

@Derek Sperzel The declaration pages of your insurance should answer that question because if there was a mortgage the lender’s mortgagee clause should be listed. 

:-) 😅😅 He's nearly 12 pounds now and solid muscle.

Making erroneous declarations about the mechanisms creating the savings, and subsequently what their actual effect is on the savings, is something I would categorize as 'misleading' at best.So, while good on you for saving yourself a healthy chunk of money, don't be surprised when people challenge you on the assertion that it's coming from the tooth fairy leaving it under your pillow.

He gave us a promissory note, and then declared bankruptcy.  

Don't muscle urself into a bad deal

But I'm assuming that process is much more complex than just declaring that it's no longer a partnership!

Also as a side note you should be proud of your bargaining skills, if those were indeed done by you, but reading between the lines it seems like you are instead trying to "flex your muscles" rather than presenting your case.

I have searched far and wide and cannot find anything on how to get a property officially declared "blighted" (or abandoned), other than New Orleans.