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City attorney: 8th Street foreclosure sale finalized; Garden Hotel litigation decision stands
Summary
The city attorney told the council a judicial sale for a foreclosed 8th Street property closed with a $42,063 bid to cover code-enforcement expenses; he also said the Garden Hotel defendants missed the deadline to appeal to the U.S. Supreme Court, leaving an $8,000,000 judgment in place and title to the property with the city.
At the Nov. 3 meeting the city attorney reported two significant legal developments affecting South Beloit.
He said a foreclosed property on 8th Street was sold at a judicial sale for $42,063, an amount that will cover city expenses tied to code enforcement; the proceeds will be deposited in the general fund and earmarked for community-development work. “It was a property that the city had foreclosed on as part of a code enforcement matter … an interested party came and bid $42,063 and covered the city's expenses associated with that code enforcement matter,” the attorney said.
Separately, the attorney told the council that defendants in the Garden Hotel litigation had passed the deadline to petition the U.S. Supreme Court, so the Illinois Supreme Court and appellate decisions now stand. He said the city will pursue collection efforts on an $8,000,000 judgment and that the property remains under city ownership until council decides its disposition. “So that case is over as it relates to the acquisition of that property … the property is now forevermore entitled to the city of South Beloit until the city decides what it's going to do with the property down the road,” he said.
The report was informational; the council did not take a separate action on either matter during the meeting. The attorney said the city will continue collection efforts related to the monetary judgment.
