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
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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
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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
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A®1gned to
Councilman