CCR2019086-Collateral RLF-Schulew
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #086-2019
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, Since the new home has been completed and the required financing
obtained, Schulew LLC d/b/a Legacy Landscaping LLC is requesting 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 will remain in place; that Schulew LLC d/b/a Legacy
Landscaping LLC is current on its loan payments to the City; and
Resolution #086-2019 Page 2
WHEREAS, The Finance Committee has reviewed the request of Schulew LLC d/b/a
Legacy Landscaping LLC and recommended to restructure the collateral for the RLF 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 following collateral be pledged by Schulew LLC d/b/a Legacy Landscaping
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
$87,500.00.
ND
DATED THIS 22 DAY OF OCTOBER, 2019.
SPONSORED BY:
FINANCE COMMITTEE
This is to certify that this is a true and accurate copy of Resolution #086-2019, which
was adopted by the Common Council of the City of Muskego.
_________________________
Clerk-Treasurer