CCR2025.004-Resolution to Restructure Collateral for RLFCOMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #004-2025
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 RLF (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, on October 22, 2019, the Common Council passed Resolution #086-2019 which
reduced the security held by the City on the residential properties owned by Daryl Schure and
Scott Lewitzke from $125,000.00 each to $50,000.00 each with the previous provided
collateral of unlimited personal guarantees of both Schure and Lewitzke and the letter of credit
in the amount of $87,500.00 remaining in place; and
WHEREAS, the current amount outstanding on the RLF for Schulew LLC is $47,751.15; that
Schulew LLC is current on its loan payments to the City and has never been late or missed a
payment when due; that Schulew LLC is requesting a reduction in their Letter of Credit from
$87,500.00 to $40,000.00 asserting that said amount is adequate to protect the City for the
remaining loan balance plus this will reduce the annual fee charged by the bank to Schulew
LLC for providing the Letter of Credit; and
WHEREAS, the Finance Committee has reviewed the request of Schulew LLC and
recommended to the Common Council to approve said request and restructure the collateral
for the RLF at this time.
Resolution #004-2025
Page 2
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 following collateral be pledged by Schulew LLC to secure the RLF loan:
• 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.
• 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 $40,000.00.
DATED THIS 14th DAY OF JANUARY 2025.
SPONSORED BY:
FINANCE COMMITTEE
This is to certify that this is a true and accurate copy of Resolution #004-2025, which was
adopted by the Common Council of the City of Muskego.
City Clerk
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