CCR2023.072-Collateral RLF-SchulewCOMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #072-2023
RESOLUTION TO RESTRUCTURE THE COLLATERAL
FOR THE REVOLVING LOAN FUND (RLF) PROVIDED TO
SCHULEW LLC D/B/A LEGACY LANDSCAPING LLC
WHEREAS, on November 28, 2017, the Common Council adopted Resolution #097-2017
which approved a $125,000.00 loan fund application submitted by Schulew LLC d/b/a Legacy
Landscaping LLC; and
WHEREAS, on March 15, 2018, the City of Muskego provided a $125,000.00 Revolving Loan
Fund (RLF) out of the Community Development Block Grant Program for Schulew LLC to assist
the company with the purchase of the real estate that it was leasing at S81 W18510 Gemini
Drive and lease it to Legacy Landscaping LLC. In addition to purchasing the real estate, funding
for the project included the construction of bulk storage bins and a new building that would be
occupied by Legacy Landscaping; and
WHEREAS, Resolution #097-2017 outlined the collateral to be pledged by Schulew LLC to
secure the loan, which included real estate mortgages in the amount of $125,000.00 on the
residences of the two owners, Daryl Schure and Scott Lewitzke as well as unlimited personal
guarantees of Mr. Schure and Mr. Lewitzke and an irrevocable Letter of Credit in the amount of
$87,500.00 issued by Citizens Bank of Mukwonago to the City of Muskego; and
WHEREAS, since the loan was granted, Mr. Schure sold his home in Wind Lake and built a new
home in Muskego. Because his Wind Lake home needed to be sold free and clear of all
encumbrances, the City satisfied its mortgage and entered into an Escrow Agreement with Daryl
and Kimberly Schure, husband and wife, on May 23, 2019, whereby the City is currently holding
the amount of $125,000.00 from the proceeds of said sale in escrow; that said funds were to be
released and a subsequent mortgage entered into when Schure completed final conversion of
a construction loan into conventional fixed rate financing for the new Muskego property located
at S81 W13413 Boxhorn Drive, Muskego, WI 53150, along with providing proof of equity in the
new home to the City in the amount of $125,000.00; and
WHEREAS, once the new home was completed and the requested required financing obtained,
Schulew LLC d/b/a Legacy Landscaping LLC requested that the City reconsider this matter and
change the security of its loan to include junior real estate mortgages on the personal residences
of Schure and Lewitzke, partners of said LLC, in the amount of $50,000.00 each, instead of
$125,000.00, because the available equity of both residences can now support the loan amount;
the previously provided collateral of unlimited personal guaranties of both Schure and Lewitzke,
as well as the Letter of Credit in the amount of $87,500.00 remained in place; and
WHEREAS, that on October 22, 2019, the Common Council granted Schulew LLC d/b/a Legacy
Landscaping LLC's request and restructured the security of its loan as follows:
• Third mortgage on Daryl Schure's residential property in Waukesha County such that
sufficient equity is available to secure the City's loan.
• Third mortgage on Scott Lewitzke's residential property in Waukesha County such that
sufficient equity is available to secure the City's loan.
• Unlimited personal guarantees of Daryl Schure and Scott Lewitzke.
Resolution #072-2023
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Irrevocable Letter of Credit from Daryl Schure and/or Scott Lewitzke for the length of the
loan issued by Citizens Bank of Mukwonago in the total amount of $87,500.00; and
WHEREAS, due to the fact that the balance on the loan as of December 31, 2023 will be down
to about $62,000.00 and Schulew LLC d/b/a Legacy Landscaping LLC is and has remained
current on its payments, it has requested at this time that the City lower the Irrevocable Letter of
Credit from $87,500.00 to $60,000.00; and
WHEREAS, the Director of Finance has reviewed Schulew LLC d/b/a Legacy Landscaping
LLC's request along with the loan balance and payment history and, in consultation with the City
Attorney, is satisfied that by lowering the Irrevocable Letter of Credit to $60,000.00, the City will
remain adequately secured on the loan; that the other forms of security as listed above will
remain unchanged; and
WHEREAS, The Finance Committee has reviewed the request of Schulew LLC d/b/a Legacy
Landscaping LLC and recommended to lower the Irrevocable Letter of Credit amount provided
as security for the RLF loan as stated herein to the Common Council.
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of Muskego, upon
the recommendation of the Finance Committee, does hereby approve the following:
That the Irrevocable Letter of Credit provided as security by Schulew LLC d/b/a Legacy
Landscaping LLC for the RLF loan be reduced from $87,500.00 to $60,000.00.
• That all other current forms of security for the RLF loan as referenced above remain
unchanged and in full force and effect.
DATED THIS 24th DAY OF OCTOBER 2023.
SPONSORED BY:
FINANCE COMMITTEE
This is to certify that this is a true and accurate copy of Resolution #072-2023, which was
adopted by the Common Council of the City of Muskego.
City Clerk
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