HomeMy WebLinkAboutItem P03 P3
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor James K.Scholl,District 3
The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2
Craig Cates,District 1
David Rice,District 4
Holly Merrill Raschein,District 5
Board of County Commissioners Meeting
February 19, 2025
Agenda Item Number: P3
2023-3628
BULK ITEM: No DEPARTMENT: County Attorney
TIME APPROXIMATE: STAFF CONTACT: Anjelica N. Harden-Ivanoski, Esq.
N/A
AGENDA ITEM WORDING: Approval of Settlement Agreement regarding claims filed by Monroe
County, on behalf of the Monroe County Tax Collector, in U.S. Bankruptcy Court Case No. 23-11154,
Southern District of Florida, in which the debtors are Michael J. McMahon and Sergei Nikoshchenkov.
Authorization for the County attorney or his designee to execute the approved settlement agreement on
behalf of the Board of County Commissioners.
ITEM BACKGROUND:
Delinquent tourist development taxes were accrued in connection with vacation rental properties owned
by debtors in Key West, Florida. The County Attorney's Office, at the request of the Monroe County
Tax Collector, filed claims in the debtors' 2023 bankruptcy case, in an attempt to collect the delinquent
taxes. The settlement figure of$120,500.34 is a compromised claim to satisfy the the debtors'
delinquent tourist development taxes, interest,penalties, and administrative fees.
PREVIOUS RELEVANT BOCC ACTION:
The BOCC discussed the settlement during a closed session held on January 15, 2025.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Proposed_Settlement Agree ent_County.pdf
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FINANCIAL IMPACT:
The general fund will receive $120,500.34 as a result of the settlement.
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UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF FLORIDA
MIAMI DIVISION
www.flsb.uscourts.gov
In re: Case No.: 23t11154-RANI
MICHAEL JOSEPH MCMAHON and
SEROEI NIKOSHCHI:NKOV, Chapter 11
Debtors.
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SETTLEMENT AGREEMENT
This Settlement Agreement the "Agreement")
( � ) is entered into by and among Debtors
MICHAEL JOSEPH MCMAHON and SERCIEI NII OSHCHENKOV (the "Debtors") and
Monroe County (the "Creditor," and collectively, the "Parties") in resolution of Creditor's Proof
of Claim No. 15 (the `.'Proof of Claim").
WHERE,AS, the Creditor filed the Proof of Claim on July 18 2023, asserting a claim in the
amount of$255,047.61;
WHEREAS, the Parties have engaged in discussions and reached a resolution regarding the
Proof of Claim, subject to the terms and conditions set forth herein;
WHEREAS, the Parties desire to memorialize their agreement and avoid'further litigation
regarding the Proof of Claim.
NOW, THEREFORE, for good and valuable consideration, the receipt aid sufficiency of
which are hereby acknowledged, the Parties agree as follows:
1. Payment by Debtor. The Debtors shall pay the sum of$120,500. 4 (the "Settlement
Payment") to the Creditor. Payment shall be made within fourteen!(14) days of the
execution of this Agreement by all Parties and shall be sent to the �ollowing address or
account specified by the Creditor: [Specify Address or Payment Instructions].
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2. Full Release. Upon receipt of the Settlement Payment in cleared funds, the Parties
mutually release and discharge each other from any and all claims, demands, causes of
action, liabilities, or obligations arising out of or related to the Proof of Claim. This
release shall include, but not be limited to, any claims arising under applicable non-
bankruptcy law and any claims that could have been asserted in connection with the
Proof of Claim.
3. Effectiveness of Release. The release set forth in Paragraph 2 sha111 be effective upon the
Creditor's confirmation of receipt of the Settlement Payment and shall have no force or
effect if the Settlement Payment is not made as specified herein.
4. Reservation of Jurisdiction. The Parties agree that the United Stites Bankruptcy Court
retains jurisdiction to interpret, implement, and enforce the terms of this Agreement.
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5. Binding Effect, This Agreement shall be binding upon the Parties;and their respective
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successors and assigns.
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b. Execution in. Counterparts. This Agreement maybe executed in'one or more
counterparts, each of which shall be deemed an original, but all of which together shall.
constitute one and the same instrument. Facsimile and electronic signatures shall be
deemed valid and enforceable.
APPROVED AND AGRE ED:
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Dated- ro Dated:
a �
By
M.
Joel l re 17e; tors
y t"� �� Anjelica l-larden-lvan�Oski, F..sq
Counsel fi)r (.7reditor onr oe County
JO'EL M. ARESTY, P.A. Monroe County Attorney's Office
309 1st Ave S 1 l l l 12th Street; Suite 408
Tierra Verde, FL 33715 Aresty@Mae.com ley West, Florida 33CJ40
(305) 9 4-1903 lllarden-Anjelica( ,M nroeCounty-FL. ov
(305) 292-3470
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