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RES 2004-0051 - Settlement agmt with Union Plaza Apartments Ltd A 0N1AHA• oF, Planning Department f ,:. . r •5;�; t(e}r'� �� p i� �. Omaha/Douglas Civic Center •r.'ir n "C 1819 Farnam Street,Suite 1100 cam• ' s Omaha,Nebraska 68183-0110 o• to ~ ! (402)444-5200 op 4° C� Y e� c (402)444-5150 4rFD FEBRJr 1,q t i �, 11 �'f� �`� Telefax(402)444-6140 City of Omaha Robert C.Peters Mike Fahey,Mayor Director January 13, 2004 Honorable President and Members of the City Council, Transmitted herewith is a Resolution authorizing the Mayor to execute and the City Clerk to attest the attached Settlement Agreement between the City of Omaha and the Union Plaza Apartments, Limited, an Iowa Limited Partnership, in full settlement and release of a claim held by the City of Omaha against the Union Plaza Apartments on property at 1517 Jackson Street. This claim arises out of a Reorganization Plan approved by the United States Bankruptcy Court in 1993 wherein the City,as an unsecured creditor,was to receive funds pursuant to a certain schedule approximately 20 years after confirmation. This Resolution authorizes the City to accept payment of$53,203.18 in full payment of its claim against Union Plaza Apatlsuents. Settlement of this case in this fashion is recommended by the Planning Department, and your favorable passage of this Resolution is respectfully requested. Sincerely, Referred to City Council for Consideration: eVie (2 •2Z-GI a' /Za Robert Peters Date or' ice ate Planning Directo P:\P1n5\9999pjm.doc SETTLEMENT AGREEMENT AND RELEASE �d4 r On this Ai" day of 6, 200g the City of Omaha Municipal Corporation, hereinafter referred to as "City" and Union Plaza Apartments, Limited, an Iowa Limited Partnership, hereinafter referred to as "Union Plaza" do enter and make the following Agreement. WITNES SETH WHEREAS, Union Plaza owns the Union Plaza Apartments located at 16th and Jackson Streets in Omaha,Nebraska. WHEREAS, due to financial problems, Union Plaza filed for relief under Chapter 11 of the Bankruptcy Code of the United States; WHEREAS, by Order Confirming Third Amended Plan of Reorganization Filed by Union Plaza Apartments, Limited, filed August 30, 1993, the United States Bankruptcy Court for the District of Nebraska approved a Chapter 11 Reorganization Plan; WHEREAS, the Third Amended Plan of Reorganization called for payment of the unsecured claim of the City of Omaha pursuant to a method laid out in the Plan; WHEREAS, Union Plaza has approached the City about accepting payment in settlement of its claim and thereby releasing Union Plaza; and WHEREAS, the City and Union Plaza have agreed to settle their differences with respect to the claim without any further proceeding or litigation, on for the following terms and conditions. NOW, THEREFORE, in consideration of the promises and mutual covenants and the Agreements contained herein, it is agreed by and between the City and Union Plaza: 1. Union Plaza will make payment in the amount of Fifty-three Thousand Two Hundred Three Dollars and Eighteen Cents ($53,203.18)to the City of Omaha within fifteen(15) days of execution of this Agreement. 2. In sole consideration of the receipt of the funds identified in Paragraph 1 by Union Plaza, the City releases and discharges Union Plaza, its successors and assigns from any and all claims, damages, actions, causes of action, suits at law or equity, or whatsoever kind or nature as a result of its claim against Union Plaza detailed by the Order Confirming a Third Amended Plan of Reorganization filed by Union Plaza Apartments and a Third Amended Plan of Reorganization which was entered by the United States Bankruptcy Court on August 30, 1993. 3. This Agreement constitutes and contains the entire Agreement between the parties and supercedes all prior negotiations and all agreements proposed or otherwise written or oral concerning the same subject matter. 4. The City agrees to take whatever further action necessary to release any claim it may have on the property of Union Plaza as a result of the debt claimed in the above-referenced bankruptcy reorganization. 5. STRICT COMPLIANCE - All provisions of this Agreement and each and every document that shall be attached hereto shall be strictly complied with as written, and no substitution or change shall be made except upon written direction from an authorized representative. 6. INTEREST OF THE CITY - Pursuant to Section 8.05 of the Home Rule Charter of the City of Omaha, no elected official or any officer or employee of the City shall have a financial interest, direct or indirect, in any City contract. Any violation of this section with the knowledge of the person or corporation contracting with the City shall render the contract voidable by the Mayor or Council. 7. INTEREST OF THE CONTRACTOR - The Parties covenant that they presently have no interest and shall not acquire any interest, direct or indirect, which would conflict with the performance of this Agreement; they further covenant that in the performance of this Agreement, no person having such an interest shall be employed. 8. NONDISCRIMINATION - The Parties shall not, in the performance of this Agreement discriminate or permit discrimination in violation of federal or state laws or local ordinances because of race, color, sex, age, disability, political or religious opinions, affiliations or national origin. 9. INVALID PROVISION - In the event that any covenant, condition, or provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity of any such covenant, condition, or provision herein contained shall not affect the validityof the remainder of the covenants, conditions, or provisions of this Agreement which shall in all respects remain a legally binding contract with the invalid portion being deleted; provided that the validity of any such covenant, condition, or provision does not materially prejudice either the City or Parties in their respective rights and obligations contained in the valid covenants, conditions or provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed these presents on the day and date as indicated below. This Agreement may be executed in counterparts. EXECUTED this /VI day of .:M.Ju , 200 ATTEST: CITY OF OMAHA, a Municipal Corporation -.. ..L..4 fc)7)-1-D-1,. , 4 { F ;f By )#.\ B,us er Brown,City •lerk Mayor Mike Fahey I6 `. EXECUTED this day of OCC lr^'1 kt- , 2003. `"LAZA APART EN TS, EN S, an Iowa Limited Partnership,by its General Partner STATE OF NEBRASKA ) ) SS. COUNTY OF DOUGLAS^ ) On this , W day of ,/ (', , 2003, before me, a Notary Public, in and for said County,personally came the above named Philip L. Ullerich, general partner of Union Plaza Apartments, who is personally known to me to be the identical persons whose name is affixed to the above instrument and acknowledged the instrument to be his voluntary act and deed for the purpose therein stated. WITNESS my hand and Notarial Seal the day and year last above written. -. .,_ _ .. --- - / .(.( ALe _ /1/4-----1 (A- _ ',:, I�,r v E.t��I G NOTARY PUBLIC `i,_;;;,, ,: h,i c.:U!: i:MON EXPIRES AP,nI 28• ,2G04 Y My Commission expires . - -- APPROVED AS TO FORM: /2 03 ASSISTANT CITY ATTORNE c-25a CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, Union Plaza Apartments, an Iowa Limited Partnership, is the record owner of property located at 1517 Jackson Street in which the City had an unsecured claim; WHEREAS, in 1991, Union Plaza Apartments, Limited, filed for reorganization under Chapter 11 of the United States Bankruptcy Code; and WHEREAS, on August 30, 1993, the United States Bankruptcy Court for the District of Nebraska entered an Order confirming a Third Amended Plan of Reorganization filed by Union Plaza Apartments, Limited, which called for the City of Omaha to receive partial payment of its claim based on a specific formula; WHEREAS, Union Plaza Apartments, Limited, approached the City concerning resolution of its pending claim against Union Plaza Apartments by payment of the present value of the amount owed the City; WHEREAS, the City of Omaha and Union Plaza Apartments, Limited, desire to settle their differences with respect to the City of Omaha's claim against Union Plaza Apartments without further proceedings, litigation, or passage of time; WHEREAS, the City of Omaha and Union Plaza Apartments, Limited, have set forth their respective understanding and agreements with respect to settlement of this matter including the payment of consideration in the amount of$53,203.18 by Union Plaza Apartments to the City of Omaha; and WHEREAS, the circumstances and the questions suggest that this would be in the best interest of the City and the residents thereof to resolve the claim at this time. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, the Mayor is authorized to execute and the City Clerk to attest the attached Settlement Agreement and Release between the City of Omaha and Union Plaza Apartments, Limited, an Iowa Limited Partnership, and any other documents required to effectuate this Settlement in a lawful manner (1517 Jackson Street). P:\P1n5\10000pjm.doc APPROVED AS TO FORM: By Welt tuber � sl 8/4�ouncilme -''� / r^ /4"S c7 CITY ATTORNEY DATE Adopted •l N 1 3..2004. 9-0 -_ City Clerk Approved . ''�"�_ - /S 7 ayor c . \ / ? ? a g ® 3 pzI \ g 0- \ 0 0 o - IR � R F ^m CD z \ / \ § P e E L_ » z _ \ / p \ 0 / / # o / § ) 5 / \ \ ? / / = 7 p \ . § ) 3 \ 9 n § \ . m n \ _ & § § • 1 r" w , .\ \ w3_ _ ( 4 ^/ 2 .- R-