ENACTED 5/13/14
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Introduced by the Council President at the Request of the Office of
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General Counsel:
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ORDINANCE 2014-295-E
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AN
ORDINANCE
CONCERNING
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PROJECT;
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ACCEPTANCE OF PAYMENT OF THE CITY’S PRO RATA
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PORTION OF THE TRUSTEE’S RECAPTURE OF FUNDS
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FOR PAYMENT OF THE CITY’S UNSECURED CLAIM IN
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THE
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RESOURCES, LLC, ET AL, CASE NO. 09-11507 (U.S.
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BANKRUPTCY COURT, WESTERN DISTRICT OF TEXAS,
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AUSTIN
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RATA
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TRUSTEE,
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DOCUMENTS IF ANY ARE NECESSARY TO THIS END AND
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ALL OTHER COURT FILINGS THAT MAY BE REQUIRED
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BY
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PURPOSES
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ACKNOWLEDGING
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RECOVERED FUNDS REQUIRES FURTHER APPROPRIATION
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AND AN OPINION FROM BOND COUNSEL; REQUESTING
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EMERGENCY PASSAGE UPON INTRODUCTION; PROVIDING
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AN EFFECTIVE DATE.
APPROVING
PENDING
PORTION
THE
AND
BANKRUPTCY
DIVISION),
OF
WHICH
THE
OF
CASE
RE
THE
CRESCENT
THE
PRO
RECOVERED BY THE
THE
EXECUTION
TRUSTEE
ANY
IN
REPRESENTS
EFFECTUATING
THAT
“SHIPYARDS”
AUTHORIZING
FUNDS
AUTHORIZING
BANKRUPTCY
THE
OR
SUCH
OF
COURT
FOR
SETTLEMENT;
EXPENDITURE
OF
SUCH
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WHEREAS, 2011-560-E authorized the compromise of the unsecured
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claim made on behalf of the City of Jacksonville arising out of the
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bankruptcy of the corporation holding and controlling the Shipyards
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property; and
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WHEREAS,
the
history
of
the
transaction,
and
the
earlier
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return to the City of the real property itself is well documented
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in 2011-560-E and in previous legislation; and
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WHEREAS, the Trustee was successful in retrieving preferential
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payments made to other entities, to the material benefit of the
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unsecured creditors; and
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WHEREAS,
such
settlement
is
of
significant
value
and
the
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undersigned, along with the Trustee and bankruptcy counsel, has
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confirmed that the amount of the pro rata payment due on the City’s
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unsecured claim as set forth in Exhibit 1 attached hereto; and
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WHEREAS, bond counsel has advised the City that the funds can
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be deposited within the General Fund, and spent in accordance with
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certain guidelines to be provide to Council when authorization for
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the future expenditure of these funds is requested; now therefore
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BE IT ORDAINED by the Council of the City of Jacksonville:
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Section 1.
Approval of Bankruptcy Settlement on Unsecured
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Claims. The Council hereby approves the above-described settlement
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of the City’s unsecured claims in the amount of $13,435,692.45 and
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$717.33
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112.110(e) which reads as follows:
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disputed
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settlement
of
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modifying,
deciding
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approved by Council, then the settlement of such disputed claim,
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bill or judgment shall require approval by ordinance or resolution
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of the Council.” (Emphasis supplied).
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in
accordance
claim,
bill
the
Section 2.
Counsel
with
or
to
Municipal
Code
Section
“If the principal amount of the
judgment
disputed
not
Jacksonville
is
claim,
enforce,
$100,000
bill
or
or
or
more,
judgment
rescinding
an
or
if
involves
agreement
Authorization of City’s bankruptcy counsel and
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General
to
sign
necessary
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acceptance of these funds from the Trustee.
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counsel, Adams and Reese LLP, (f/k/a Volpe, Bajalia, et al),
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the City’s General Counsel are authorized on behalf of the City to
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sign and take such other actions as are reasonable or necessary to
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documents
to
effectuate
the
The City’s bankruptcy
and
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effectuate the settlement of the City’s unsecured claim amount that
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may be required by the bankruptcy court or bankruptcy trustee for
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purposes of effectuating such settlement, provided that all such
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other actions and all such other filings, orders or pleadings do
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not change the financial rights or obligations of the City and they
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are first approved by the General Counsel, or her or his designee.
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Section 3.
Confirming
further
legislation
is
needed
by
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Council before the funds can be expended. Due to the issuance of
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bonds on this project, and the need for a detailed analysis to
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ensure expenditures are in conformance with the tax-exempt nature
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of the bonds issued and the previous settlement with the City, the
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Council confirms its understanding that the expenditure of these
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funds will require further legislative action by Council and the
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Mayor.
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Section
4.
Requesting emergency passage upon introduction
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pursuant to Council Rule 4.901 Emergency. Emergency passage upon
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introduction of this legislation is requested. The nature of the
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emergency is that the payments have been sent via regular mail to
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the City, and the deposit of the funds signifies acceptance.
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funds are appropriately secured, and need be deposited as soon as
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possible due to IRS and other related matters due to the complex
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tax and bond related issues in order to provide the City with the
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most flexibility in the expenditure of these funds.
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Section
5.
Effective
Date.
This
Ordinance
shall
The
become
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effective upon signature by the Mayor or upon becoming effective
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without the Mayor's signature.
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Form Approved:
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/s/
Margaret M. Sidman
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Office of General Counsel
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Legislation Prepared By: Margaret M. Sidman/C. Laquidara
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g:\shared\legis.cc\2014\ord\apv bankruptcy settlement 04.22.14.doc
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