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HomeMy WebLinkAboutResolution 154-1998 RESOLUTION NO. 154-98 AUTHORIZING UNCOLLECTIBLE ACCOUNTS TO BE REMOVED LIQUOR STORE WHEREAS, The Brookings Municipal Liquor Store has received a total amount of $3,375.84 in uncollectible accounts; and WHEREAS, these accounts have been considered uncollectible; NOW, THEREFORE, BE IT RESOLVED that the checks totaling $3,375.84 be determined as uncollectible and removed from the records. Such checks will be retained by the Finance Office as inactive for possible subsequent collection of that debt. Passed and approved this 22"d day of December, 1998. Mayor , F U'��`,�pPORA)EQ.�cS • � M„R.9 �?'oo�/,��1• , aQ N�SC .S••� Finance Officer Enloe & Associates Inc. PO Box 2805 White City OR 97503 - 0805 September 29, 1998 Brookings Liquor Store PO Box 270 Brookings, SD 57006 Subject: First Edition restaura.nt Attention: Credit Manager Gentlemen, We were retained by Douglas McGath,DBA First Edition Restaurant to review their financial condition and develop an action plan. We have obtained an accounting of the accounts payable,bank loans, leases, federal payroll taxes, and state taxes. The combined total of this debt is over $750,000.00. Due to a lack of record keeping we are not able to obtain a sales journal or accurate bank deposit records and are unable to develop a balance sheet. We estimate the sales for the operating period of tiine to be �1,400,000.00. All of the restaurant equipment and fixed assests have liens thru the lenders and have no residual value. Being a cash sales business there are no accounts receivable or any cash reserves. Neither McGath or his partners have any assests nor the earning power to service a debt of this magnitude.Due to personal and business insolvency the secured and unsecured creditors are in the same position as ta collecting their accounts. This is a very unfortunate position for the creditors,but with no assests or potential eaniing pc�wer I see no way to service these debts. If further information is required on this matter I can be contacted at the above address or (541)-734-2428. Sincerely, �� � G'� � ���"" �'��� ,�. .�. £Kl,ec ���� O: R. L. Enloe - � C:1WPW1N60\WPDOCSIMCOATHI.WPD .� . CITY OF � � a�ooKirvGs City finaiir,e O((ice Ciry I l�ili • P.O. Hox 270 Brookinfls, S.D. �i7006 Phone (6O5�692-6281 � Fax (605)692-6907 Decem�er 16, 1997 , . Mr. Dc�ub McGai�' Country Inn Suites . I51 Tower Roac1 PO IIox 410 . Dakota Dunes, SU 57049 Dear Mr. McGa(T'. - You are l�ere�y notified tliat your cl�eck described as follows: • Date of check: November 28, 1997 • Amount of cl�eck: $3�375.84 • Name of bank: First National IIank • Department issued to: Brookings Liquor Store • • Service charge: $20.00 has been dislionocecl by your bank becluse of insufTicient fiinds/account closed. Your cl�eck is beinb helJ by tlie City l�inance O(lice at City [la(I, 311 1'hird Avei�ue, I3rool;ings for a ��eriod of live(5) �lays, fi-o�u the d�Ue of this notice. If you redeem this check by cash or money or�ler will�ii► five (S) days, tl�e service cl�arge will be waived. It is believed that tliis check is in violation of South Dakota State Law. DROOKINGS CI'I'Y rII�1ANCL ��_ _ � .. � Theo. C. Kryger � Tinance Otiicer . _:.��' � .;:� '';�A' r • ' F'y. i."�'•* .:,:r'�<"''I�j�Fifl ,�:�.; ,�: ��d��-.... � � � � 1324 Q N� , TriC FiRST EDITION I11 oe�osi�ORY • � 2515 - 6TH ST. PH. 605-692-9421 =''�a N S F=R { o CHECK� � 78_gyq� M m BROOKINGS, SD 57006 � ,� ( �. ,., � DATE 914 } o�- PAY�`'`-�-Z l� ��.z.� �/`�'g O L LA R S $ �7�S¢.� " � <= .. . ^ _�N To nie oao� �� � v� 1 ` �s �a °F � ^� L -.,r.,O��, -..�.�+. � ��t ' r���� v�o,n �ti`,�.n.F-c�/`�' L L j �-�-L� S I � � `► f.3Zli�' =�.�:,jj• � N�a a �� , I `_� • � �1+7� �yJlC9 � ' � '3� c r- ,,,=� ��BS�n�2� = � �z� �- . J � ; � � � ,� . � ; ii'00 L3 24�i' � 79 L40844��: �L8 2���950��� 2�i' ��'000033 ? 58�.��' � �� � � .�..... _ � ,l�} � ' . +j v � m SEND��: ' I � 'o •Comp�ete items t and/or 2 ror additiona�servfces. I also wish to receive the s � , _ a ■Comclete Rems 3,aa,and ab. following senrices(for an � m ■P�rn your name anC adtlress on the reverse at this fortn so tha!we can retum this eXtr3 f88)' i � card to you. � m ; 1 ` • � ■Att�this fortn to the horrt of the mailpiece,or on the badc'rf space does not �, p qddressee's Address ` _ ` f ' v m ■Wnie'Aetum Receipt Aeouested'on the maiioiece below the artide number. 2. ❑ qestricted Detivery y J � = ■The Retum Reeei�wiU snow to whom the artide was deuvered and the tlate ' -' . o de�ivered. Cansult postmaster for fee. � � � 'C �, � 3.ArtiGe Aaaressetl to: 4a.Actic�e N�mber � , . ti � � m_ ` . �141843�47 — � ' -� . '�i- Do�ig *?cGaff . ti � �...Servi^ � Cou�:try Inu Su�tes � �e�� " ��; � u.���fi,� e � . � I�i :ower Road p cr� 5�'� LO ❑•Insured � � PO Box 410 — .�m�e��for Marc'�aise p C�Q � - ' . Dakota Bunes, SD �7049 7�D f Deiyy� = ! _ � y`3�, �� � � 0 a+ � � 5.R ceived By: (Pnnt Name) 8.Addre +er9$4"d� (Only if requested � � � • and fee is m .� ' ..r'� s�fC,D�� � . � � ;._ 3 6.Signature>'(A?tdressee or Agenq J ° Y � ��Jr'�� 1 / .. � • - - , . � , . TeUruary 8, 1998 I3rookings Liyuor Slore City rin,incc o(�icc � 'iiy 11�,11 .i 1 ( .i��) i�v�. I�1� I��►x 1.11� 13rookinbs, Sl) 570UG Sut�jcct: First Acidition Rcstaurant Acc:ouni. . (;cnticn�cn: • 7'liis fiim lias Ueen retained by Douglas McGath to access tlie financial conditiai of tl�e . l�i�st Isclitic�ii ltesturauls to elevelop a action plati for debt retireiuetit,a�id aclir�inister tlie ac;livities. �� We are cwrently gathering all the operating rewrders and relateci c�ala so we c�u�deternune ilie currenl financial condition of il�is Uusiness. We will review the debt jx>sition of tlie secuted credilors, unsecured accotuits payaUle, fixed assets,ca91i position, and as►y reve��ue slreaui. Alier tl�is data has been correlated and reviewecl a deUt service plan will be developed and fc�rwarded to all creditors. If you l�ave questions concerning tliis matter contact; Richard�nloe � 'I'ele: 541-734-2428 F�uc: 541-734-4213 Writicii concs�ncicnce: I'snlac&Associatcs Inc. 1'.U. Ilox 28US Wliit�C'ily, Olt. 97503 -0805 . ��� To.l� �'• . �,,,�� �� �$'� '� � � c:�wrwnv�o�wr�ocs�can�Lwpn