Dakotanews reported about this about a month ago;
Now, tenants of several Tzadik properties in Sioux Falls and Rapid City are facing another concern; foreclosure.
I was able to see the cover letter of the case;
Notice that the State and County are listed in title, why not the city? I think with all the code enforcement violations the city could have contributed to this suit. But also notice a certain company that has gleaned millions in tax rebates and TIFs from the taxpayers of Sioux Falls is also listed as a defendant. Yeah, would have been a bad look for the city to get involved in a case against a massive city campaign donor. Wouldn’t it?
I have told residents of TZADIK that the mayor doesn’t give two rips about your living situation, if he did, he would have came down on them hard, a long, long, long time ago. Instead he just whines and schedules another chiropractor appointment.
It appears the bank is suing the list of defendants (vendors) because they have received money from TZADIK during the period of the loan and the bank wants to it “clawback” from them.
TZADIK has been spending money on “fixing” the properties and not paying the mortgage. There has likely been some discovery to find out where the rent money has gone. There also could be personal “extravagant” lifestyle payments TZADIK ownership has taken instead of paying the loans.
The city has no skin in the financial issues of the present case. The city could have a case against them if they somehow were guarantors of any of the loans or if the city was being paid as a vendor, such as utilities and the bank wants that money back.
A look at the 2023 City Financial Report (’24 book has not come out yet) shows Tdzik Properties as #10 on the top ten property holders in Sioux Falls. This has taken place in the most recent years. So they had been busy buying up property the past 5 years. The city depended on their property tax assessments heavily these past few years. Wonder what the city is thinking now…since they are whining about losing property tax dollarfs
Microsoft Bing tells me that the SS. lines are a statement of venue, meaning the proceedings will be heard in the State of South Dakota, Minnehaha County court system.
Yes, this is a civil lawsuit between a bank versus a client and the client’s beneficiaries. A plaintiff can always pick their venue. Even though it’s an Indiana bank, they have chosen to sue in Minnehaha/South Dakota. Why they didn’t sue in federal court in South Dakota applying South Dakota, I don’t know. Perhaps, they are judge-shopping, or they ( the P) fear there is a lack of a long-arm relationship between the P and the defendants – other than Tzadik – to hold them all accountable in federal court under federal rules of procedure….. Maybe “Commentor” above could clarify this for us….. It’s been a long time since I was in law school
( and Woodstock adds: “Say, how do you pronounce ‘Tzadik’ anyways ….. Cuz, doesn’t his name pretty much admit he’s nothing but a ……
” )
Tzad the Impaler has 3 properties for sale. They’re on their way out. Problems started a few years ago at a full weekend impale for a Tzad executive and a prominent realtor in top floor jacuzzi suite at Phillips Hotel.