Number
210335
Version
Substitute 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing settlement of claims in the adversary proceeding entitled City Wide Investments, LLC v. City of Milwaukee, U.S. Bankruptcy Court Eastern District of Wisconsin, Case No. 17-22900, Adv. No. 17-02115.
Analysis
This resolution authorizes settlement of claims raised by Debtor, City Wide Investments, LLC, in the adversary proceeding entitled City Wide Investments, LLC v. City of Milwaukee, U.S. Bankruptcy Court Eastern District of Wisconsin, Case No. 17-22900, Adv. No. 17-02115 (“Adversary Proceeding”), for the total amount of $191,235.18, inclusive of interest.
Body
Whereas, the Debtor filed an Adversary Proceeding against the City on April 26, 2017. Trial of the Adversary Proceeding took place on September 19, 2017. The bankruptcy court issued a decision and order in favor of the Debtor and against the City on October 3, 2017, and judgment was entered in the amount of $280,894.56 for the Debtor and against the City the same day;
and
Whereas, on appeal, the bankruptcy court judgment was affirmed by the United States District Court for the Eastern District of Wisconsin, and
Whereas, the City has already paid the Debtor the amount of $100,808.30, and
Whereas, the City currently owes the Debtor judgment principal of $180,106.26 plus $11,128.92 in interest through August 31, 2021, for a total owed of $191,235.18, and
Whereas, the City possesses claims against the Debtor for delinquent real estate taxes for the following properties (“Debtor Properties”):
Tax Key Address Amount Owed as of 8/31/21
4670707000 2258 S Chase Ave $59,182.94
5070899000 3039 S 7th St $29,420.12
4971120000 2335 S 7th St $31,186.27
4690628000 2214 S 15th St $26,177.82
4692711000 2146 S 16th St $ 545.98
4590734000 1725 S 24th St $22,253.82
4600142000 1313-1315 W Rogers St $30,789.85
Including interest (and not taking into account any future payments by the Debtor between now and August 31, 2021), the Debtor will owe the City $199,556.80 in delinquent taxes for the Debtor Properties as of August 31, 2021; and
Whereas, parties have agreed to set off their respective claims such that the City would satisfy Debtor’s delinquent taxes on the properties shown above, up to a total amount of $191,235.18 inclusive of interest, with the oldest tax debt to be satisfied first and with any remaining tax delinquency or interest over and above the $191,235.18 to remain due and owing; and
Whereas, this resolution does not affect the rights of the City of Milwaukee to collect on any municipal court judgments, Water Works debt, or any other City charges, fees, or citations, subject to any applicable bankruptcy law; and
Whereas, the City Attorney recommends and the Common Council of the City of Milwaukee and its deems it expeditious and just to pay the judgment against it in this manner; now, therefore, be it
Resolved, by the Common Council of the City of Milwaukee that the proper City officials be and are hereby authorized and directed to issue City checks in the amount of $191,235.18 total, payable to the Treasurer’s Office, to be applied to the Debtor Properties up to the amounts listed above, in full and final payment of the judgment against the City in this lawsuit, including applicable interest, said amount to be charged to the Damages and Claims Fund (006300-0001-1490-0001-S118-2021); and be it
Further Resolved, That the funding of the settlement amount will be authorized by a resolution contemporaneously approved by the Common Council, and that the proper City officers are authorized to make the necessary transfers to the appropriate accounts or funds to disburse the settlement amount.
Requestor
City Attorney
Drafter
Hannah R. Jahn
June 25, 2021