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HomeMy WebLinkAbout1998-01-12 98-90 ORDERCOUNCIL ACTION Item No. 98-90 Date January 12, 1998 Item/Subject: Authorizing Settlement of Tax and Sewer Claims -- Rich's Department Stores, Inc., Account No$. PP 50333 and SW 066-083 Responsible Department: Legal Commentary: Rich's Department Stores, Inc., which formerly operated a department store at the Airport Mall on Union Street, filed for bankruptcy reorganization under Chapter 11 of the federal Bankruptcy Code on March 13, 1996. The case was converted to a Chapter 7 liquidation on April 8, 1997. The City of Bangor has filed a claim for FY 1996 and FY 1997 personal property taxes plus FY 1997 sewer charges, totalling $20,723.68. Rich's has proposed a settlement that would recognize all PY 1997 "poet -petition" claims of the City of Bangor, paying those claims in full, but not paying. "pre-petition" claims for PY 1996 personal property taxes. The settlement amount, $9,225.35, is based on reallocation of Two tax payments made by Rich's after the March 13 1996 Chapter 11 petition date. The proposed settlement was reviewed by the Finance Committee on January 5, 1998. At that time, the Finance Committee recommended acceptance of the offer. Department Head VU Associated Information:aWNn Finance Director , 1 city Solicitor VV Introdpged for _� Passage First Reading Referral Page I_ of 2 Assigned to Crurdor Lear January 12, 1998 ryp CITY OF BANGOR (T)TLE.) Orbgr. _._,., Autborixing„Settlement of_. Tax and Sewer claims -- Rich's Department Stores, Inc., Account Nos. PP 50333 and SW 066-083 .------------.. .............. ...__........_. ..... ......... . By tAe CUY Cauaml of Gs Qq MltssaA� ORDERED, TWT the City Solicitor 1s hereby authorized, on behalf of the City of Bangor, to accept a proposed settlement in the amount of $9,225.35, as a final settlement and compromise of City claims for FY 1996 and PY 1997 personal property taxes, account no. PP 50333, and FY 1996 sewer charges, account no. SW 066-083, owed by Rich's Department Stores, Inc. The City Solicitor is further authorized to executeall documents necessary for this purpose. the City Treasurer shall apply the settlement amount against FY 1997 sewer charges and accrued interest, and PY 1997 personal property taxes and accrued interest. upon receipt and application of the settlement amount, any remaining balance due for FY 1996 or FY 1997 personal property taxes and interest shall be abated as uncollectible due to bankruptcy pursuant to 36 MRSA 5 841(3). IN = COUNCIL January 12, 1998 Passed Cx r' 98-90 ORDER Title, Authorizing Settlement of Tax and Sewer Claims - Rich's Department Stares, Inc., Account Nos. PP 50333 and SW 066-083 ...................................... �........................... w�sQO. A®1gned to Councilman