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HomeMy WebLinkAbout06-242 Resolution No. 06-242 RESOLUTION AUTHORIZING THE EXECUTION OF A RELEASE AND SATISFACTION OF JUDGMENT FOR CASE NO. 01 OV 5351 ENTITLED CITY OF ELGIN V. CHAD LACEK WHEREAS, Chad Lacek is the owner of the property commonly referred to as 376 Park Street, Elgin (the "Property"); and WHEREAS, the city obtained a default judgment in the amount of$46,800 default against Lacek in housing court Case Number 01 OV 5351 because he had failed to maintain the Property in compliance with the city's property maintenance code; and WHEREAS, Lacek has corrected all the property maintenance code violations on the Property; WHEREAS, the marketability and economic rehabilitation of the property is not feasible unless the city's default judgment is reduced to an amount of fines that more properly reflects the nature of the property maintenance code violations that were existing on the Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Corporation Counsel William A. Cogley be and is hereby authorized and directed to execute a Release and Satisfaction of Judgment on behalf of the City of Elgin for Case No. 01 OV 5351, City of Elgin v. Chad Lacek on the condition that Chad Lacek tenders payment to the City of Elgin in the amount of Two Thousand Dollars ($2,000). s/Ed Schock Ed Schock, Mayor Presented: October 11, 2006 Adopted: October 11, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk '(,tof Etc, � \4 Agenda Item No. 1K 43 — City of Elgin irmwonammanows September 22, 2006 . , tui TO: Mayor and Members of the City Council (27 ort 1 FROM: Olufemi Folarin, City Manager Jerry Deering, Community Dev lopment Group Director SUBJECT: 376 Park Street - Reduction in Payment of Housing Court Fine Entered by Default Judgment PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a reduction in the payment of a housing court fine against the property located at 376 Park Street that was imposed through a default judgment. eink RECOMMENDATION It is recommended that the Mayor and members of the City Council agree to accept a reduced fine for the default judgment entered in housing court against the property located at 376 Park Street. BACKGROUND Chad M. Lacek is the owner of the property located at 376 Park Street. The City filed a housing court complaint against the property in November, 2001 for a variety of property maintenance code violations. The property owner failed to correct the violations stated in the complaint and also failed to appear in court for the trial. The court entered a default judgment (fine) in the amount of$46,800 in Case Number 01 OV 5351 on October 15, 2002. The amount of the default judgment was calculated on the basis of a minimum fine of $50 for each violation in the complaint for each day the violation continued to exist on the property. The property owner has since corrected all the property maintenance code violations on the property and is seeking to have the default judgment reduced so the property can be refinanced. The property owner does not have sufficient funds to pay the default judgment and the property will remain unmarketable if the default judgment remains as a lien on the property. The Code Administration staff is recommending that the default judgment be reduced to a fine in the amount of$2,000. • Housing Court Fine Reduction September 22, 2006 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. 4 FINANCIAL IMPACT The City would receive a fine payment totaling $2,000 and forego the remaining $44,800 due from the original court judgment. The monies received would be credited to the General Fund, Property Judgment, account number 010-0000-478.03-00 (Budget= $1,000; Actual $0). 145//1\lone. LEGAL IMPACT ALTERNATIVES 1. Reduce fine for the default judgment entered in housing court (No. 01 OV 5351) against the property located at 376 Park Street to $2000 or some other acceptable amount. 2. Do not reduce fine for the default judgment entered in housing court (No. 01 OV 5351) against the property located at 376 Park Street. Respectfully submitted for Council consideration. da