Number
050064
Version
SUBSTITUTE 1
Reference
041411, 041516
Sponsor
ALD. D'AMATO
Title
Substitute resolution authorizing settlement of in rem action against Molecular Biology Resources, Inc.
Analysis
Resolution approves and authorizes settlement of in rem litigation for back taxes (2002-2004) and other charges against 6143 N. 60th Street, Tax Key Number 155-0404-000-0.
Body
Whereas, 6143 N. 60th Street (the "Property") is owned by Molecular Biology Resources, Inc. ("MB"), and is on the City's do-not-acquire list as it is suspected of being a brownfield and environmentally contaminated; and
Whereas, the City sued MB in personam for back taxes and charges against it (Case Number 04-CV-002351), and in that suit, MB alleged billing errors for the City local sewer charges (the "LSC") and Milwaukee Metro Sewerage District (MMSD) sewer charges; and
Whereas, MB and the City entered into settlement discussions concerning the in personam litigation, and a settlement offer was brought to the Council via File Number 041411, and the Council rejected that offer and placed the matter on file; and
Whereas, the in personam litigation was dismissed by stipulation of the parties, and the City, pursuant to Council Resolution File Number 041516, authorized in rem foreclosure against the Property notwithstanding potential environmental concerns; and
Whereas, the Property is currently in the City's 2005 No. 1 in rem filing, Case Number 05-CV-002643; and
Whereas, MB has made another settlement offer; and
Whereas, MB and the City Attorney's Office negotiated the proposed Settlement Stipulation and Order that is part of this file (the "Stipulation"); and
Whereas, pursuant to the Stipulation and this resolution, the in rem litigation would be settled by order of the Court, the Property would be dismissed from foreclosure, and MB would pay to the City $434,000 to pay and satisfy in full the outstanding amounts on the 2002-2004 tax rolls (May, 2005 balance is $671,760.59) (this includes 2002-2004 tax roll items for delinquent real-property taxes, special assessments, and special charges, including special charges for delinquent water, delinquent LSC's and delinquent MMSD sewer charges, and also including interest and penalties ($103,742.29) on those delinquent amounts), and MB would pay to the City $36,822.48 toward outstanding sewer and water charges against MB's water accounts 4-0109.300 and 4-0110.300 plus any other amount then owing on said accounts, and MB would pay an outstanding $55.00 inspection fee; and
Whereas, Milwaukee Economic Development Corporation (MEDC) has a second mortgage interest in the Property, behind a first-mortgage held by Park Bank; and
Whereas, MEDC has discussed with MB its financial situation, and MB hired a financial consultant; and
Whereas, MB has asserted that there is a risk that, if the City does not approve the Stipulation, MB may file bankruptcy and/or MB may cease operations at the Property (thereby jeopardizing jobs it provides to its employees); and
Whereas, since the Property is on the City's do-not-acquire list, there is the potential that if the City were to acquire the Property via the in rem foreclosure action, that the environmental clean-up costs could substantially reduce the sale price of the Property, thereby reducing the net sale proceeds for the Property; now, therefore, be it
Resolved, That City hereby approves and authorizes the Stipulation, City execution and entry into it, and the settlement of the in rem litigation on the terms and conditions contained in the Stipulation and in this resolution; and, be it;
Further Resolved, that when MB transmits the $434,000 called for under the Stipulation, that the same be deposited into the delinquent tax fund per Milwaukee Code of Ordinances ยง304-30, and that when MB transmits the $36,822.48 called for toward outstanding sewer and water charges, the same shall be tendered to the water department for credit toward 4-0109.300 and 4-0110.300; and, be it
Further Resolved, that the Comptroller and Treasurer are authorized to take such actions as are appropriate to eliminate the 2002-2004 property-tax-receivable balance from the Treasurer's records and the corresponding receivable balance for those delinquencies in the delinquent-tax fund.
Requestor
City Attorney
Drafter
City Attorney
Gregg C. Hagopian
4/28/05
1050-2004-3520:92538