Explanation
The Department of Finance and Management has two uncollectible receivables, one each for Jacobson Stores and Singletary Company, Inc., and the Department of Development has one uncollectible receivable for Singletary Company, Inc. This ordinance seeks to write off these three uncollectible receivables.
Jacobson Stores: In 1986, the city entered into a Federal Urban Development Action Grant (UDAG) $780,000 contract with Jacobson Stores. Payments to the city were made through 2001. In the spring of 2002 Jacobson Stores went into bankruptcy. The city eventually received $294,829.67 through bankruptcy proceedings leaving an outstanding receivable of $396,954.85. This delinquent loan amount needs to be written off as uncollectible; any debt to the City has been discharged by the Federal Bankruptcy Court and this loan is uncollectible.
Singletary Market: In the late 1970's and early 1980's, the City of Columbus was involved with an urban renewal project on the east side of Columbus to develop retail services, especially a full-service grocery store, to serve the immediate area. This project was known as the Mt. Vernon Plaza Urban Renewal Project and was authorized by Ordinance of Council 1173-1977.
The Neighborhood Development Corporation (NDC) leased land owned by the city and sublet it to the Singletary Company, Inc. d.b.a. Singletary Plaza Mart (Singletary). Over the next few years, the City's Departments of Development and Finance and Management (formerly Office of Management and Budget) loaned federal Community Development Block Grant (CDBG) monies and UDAG monies to Singletary and to the project overall.
Unfortunately the project failed. All entities involved went bankrupt, and all buildings were foreclosed upon and sold at sheriff's sale. The City, however, is still carrying the outstanding loan amounts on our books as accounts receivable. These delinquent loan amounts need to be written off as uncollectible. It has been dete...
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