Title
CIP Investment Properties, LLC Agreement and Mutual Release.
Body
Recommended Action: Approve Settlement of Bankruptcy Claim and Authorize Chairman to sign agreement.
Background: On June 21, 2013, the County was served a Summons in an Adversary Proceeding in In re: CIP Investment Properties, LLC, Case No. 12-21952-RDB, Adv.Proc.No. 13-06056 challenging the County's claim for taxes, interest, and fees for tax years 2007-2011.
Analysis: After negotiation, the parties have arrived at a settlement of the claim in the amount of Two Million Eight Hundred Eighty Three Thousand Seven Hundred Sixty Eight Dollars ($2,883,768.00) subject to approval by the Commission. A Settlement Agreement and Release has been executed by the parties.
Alternatives: N/A
Financial Considerations: Taxpayer has been making regular monthly payments on the County's claim since October 2013. Taxpayer will continue to make regular monthly payments on the County's claim over a four year period or until paid in full, whichever is sooner.
Legal Considerations: Settlement of the claim and execution of the agreement and release will bring a final resolution of the matter without further legal proceedings or expense. Tax disputed claims may be settled by the Board of County Commissioners pursuant to K.S.A. 79-1703.
Policy Considerations: N/A