How do you lose 800K
August 7, 2016 Leave a comment
From the Racine Journal Times 8/6/16 link http://journaltimes.com/news/local/mayor-aldermen-discuss-k-loan-in-closed-session/article_bb6b4cb7-a371-5659-81b3-0414b556c72a.html
… “RACINE — The City of Racine’s Executive Committee met in closed session Thursday evening, at least in part to discuss an $800,000 loan the city proposed writing off in June.
The Executive Committee includes Mayor John Dickert and five aldermen — Dennis Wiser, Q.A. Shakoor II, Melissa Lemke, Jeff Coe and Terry McCarthy. Dickert said Friday that the meeting was called to keep the aldermen informed on the latest with the loan, made to the now-defunct Main-Lake LLC, between 1993 and 1995 to fund housing at 419-425 Main St.
“It was really just advising the council as to what’s going on,” the mayor said. “A lot of council members have been asking about it so we just wanted to say this is where we’re at.”
State law allows city officials to meet in closed session to discuss strategy with legal counsel. Dickert couldn’t comment on the exact progress made on evaluating the loan. …
when last we read the City of Racine was going to write off the 800K loan made in the 1990’s for the building had been sold twice (if not three times) and if I understand right a lean was never placed on this building and as the story,
… “According to the June release, Elaine Ekes, the city’s consulting attorney, determined that the city would be unable to recoup the loan because the Main-Lake enterprise has dissolved. There was also no collection agreement with Main-Lake’s former parent company, The Alexander Company Inc., a Madison-based real estate developer, or any sort of mortgage taken out on the loan.
The Alexander Company’s president, Joe Alexander, said his company ceased involvement in Main-Lake in late 1997.”
Strong word on the street is that the City of Racine is going to sue to recover the loan.
Who would they sue? The current owner has a clean title, as my guess is the lat owner did, as we will find, all owners did, So then who will the City sue?
How do you not follow what must be SOP anytime the city makes a loan THAT big?
Or maybe something else might explain what I can only call gross misconduct.
What do you think happened?
Begs the question what is going on with Machinery Row, after all been three months and no word on what is going on with the loan the City gave on this. Why?