Number
210709
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the transfer of up to $192,000 from the Common Council Contingent Fund to the City Attorney’s Office’s Damages and Claims Special Purpose Account for the purpose of paying the judgment against the City of Milwaukee 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
Resolution authorizing the transfer of up to $192,000 from the Common Council Contingent Fund to the City Attorney’s Office’s Damages and Claims Special Purpose Account for the purpose of paying the judgment against the City of Milwaukee 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.
Body
Whereas, a judgment was entered against the City of Milwaukee 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, and
Whereas, the unpaid principal balance of the judgment is $180,106.26 plus interest, for a total that will not exceed $192,000 before October 31, 2021; and
Whereas, the City has exhausted its appeal rights for the above judgment; and
Whereas, City Wide Investments, LLC (“Debtor”) is delinquent on property tax payments for seven other properties it owns in the City of Milwaukee, with total delinquent taxes exceeding $192,000; 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 below, up to a total amount of $192,000 inclusive of interest, with the oldest tax debt to be satisfied first and with any remaining tax delinquency or interest over and above the $192,000 to remain due and owing; and
Whereas, City of Milwaukee retains its right to collect on any municipal court judgments, Water Works debt, or any other City charges, fees, or citations owed by Debtor, subject to any applicable bankruptcy law; and
Whereas, the City is obligated to make the judgment payment out of the City Attorney’s Damages and Claims Fund; and
Whereas, the judgment amount exceeds the available balance in the Damages and Claims Fund Special Purpose Account (006300-0001-1490-0001-S118-2021); and; now therefore be it
Resolved, By the Common Council of the City of Milwaukee, that the City Comptroller is authorized to transfer up to $192,000 from the Common Council Contingent Fund (0001-9990-0001-C001-006300), to the City Attorney’s Damages and Claims Fund (006300-0001-1490-2632-S118) and, be it
Further Resolved, that upon transfer of these funds, the City Attorney is authorized and directed to expend up to $192,000 from the City Attorney’s Damages and Claims Special Purpose Account toward the following tax delinquencies, with the oldest debts on each property to be paid first:
Tax Key Address Up to Amount Owed 9/30/21 or 10/31/21
4670707000 2258 S Chase Ave $59,662.13 $60,141.32
5070899000 3039 S 7th St $29,653.30 $29,886.49
4971120000 2335 S 7th St $31,426.58 $31,666.91
4690628000 2214 S 15th St $26,396.62 $26,615.46
4692711000 2146 S 16th St $ 545.98 $ 545.98
4590734000 1725 S 24th St $22,437.89 $22,621.97
4600142000 1313-1315 W Rogers St $30,582.05 $31,265.82
; and be it
Further Resolved, That the proper City officers are authorized to make necessary transfers to the appropriate accounts or fund to disperse the settlement amount.
Requestor
Budget and Management Division
City Attorney
Drafter
Hannah Jahn
August 31, 2021