Title
Consider/Discuss/Act on a Resolution Approving a Settlement Agreement between the City of McKinney and Majgek Partners
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: November 5, 2024
DEPARTMENT: Legal
CONTACT: Mark S. Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution
ITEM SUMMARY:
• Majgek Partners was successful in establishing its overpayment of ad valorem taxes to the taxing entities, and this settlement represents an appropriate amount of refunded ad valorem taxes. The settlement was negotiated by the City’s tax collection firm, Abernathy, Roeder, Boyd, and Hullett.
BACKGROUND INFORMATION:
• On September 16, 2015, the Collin County taxing authorities (City of McKinney, Collin College, Collin County, & McKinney ISD) filed suit against Majgek Partners seeking to recover delinquent property taxes, penalties, and interest.
• On January 17, 2019, Majgek filed suit seeking to regain possession of the property sold at the tax sale and quiet title due to a technical defect in the lawsuit. On March 31, 2021, the trial court ruled against Majgek’s motion for summary judgment. Majgek appealed. On June 22, 2022, the appeals court reversed the trial court’s decision and remanded the case back to the trial court for further proceedings.
• On August 2, 2024, the Collin County taxing authorities and Majgek Partners entered into negotiations and agreed to a settlement of the excess proceeds issue, subject to each governing body’s approval. The City’s portion of the settlement is $22,493.02, to be paid by the City as a refund to the taxpayer.
FINANCIAL SUMMARY:
• Over the period of litigation, the City will receive approximately $15,022.64 over and above the ad valorem taxes paid (and that portion refunded).
BOARD OR COMMISSION RECOMMENDATION:
• N/A