City attorney: chancellor has ordered tax-sale process in part for TMG case; other lawsuits pending

City attorney John Cleveland briefed the board on pending litigation, saying a chancellor "granted in part" the city’s motion for judgment in the TMG tax-sale matter and appointed the clerk and master as special master to determine delinquent-tax amounts. Cleveland told the board he had proposed a stipulation to bypass a special-master hearing but was informed the opponent would not agree, so the city will proceed with the clerk-and-master meeting, a report to the chancellor, and then a chancellor hearing before a sale can occur.

Cleveland described the statutory process and said a taxpayer’s attorney could file interlocutory appeals that would further delay the sale; he said the timeline is uncertain and estimated 5–6 months was possible but not guaranteed.

On finances tied to TMG, Cleveland estimated about $850,000 in delinquent taxes (including interest, penalties and fees) are owed across city and county with the city’s portion at just under $300,000. He also noted the city earns interest on those funds at 18% per annum while the matter is pending.

Cleveland and staff also reported two recently filed lawsuits: one involving a fatality at a railroad crossing, which staff say is likely not the city’s liability because crossing maintenance is the railroad’s responsibility; and a police-related suit alleging the city should not have responded to or arrested parties at a residence. Both matters are being handled by PEP Partners counsel and status updates were promised as counsel develops the matters.

The board asked procedural questions about appeals, jury valuation and timing; Cleveland reiterated there is a multi-step process involving clerk and master, chancellor hearing and possible sale, with potential interlocutory appeals prolonging the timeline.