PLATTEVILLE — The saga of Darrel L. Kallembach, the Platteville landlord who owes the city $309,804.84 in fines, has taken another turn.
Kallembach, 53, Argyle, stopped a sheriff’s sale of seven of his properties Sept. 25 by declaring Chapter 13 bankruptcy the morning of the sale.
A federal Chapter 13 bankruptcy is a rescheduling of payments due to creditors. It requires submitting a payment schedule to creditors.
“Mr. Kallembach never did submit a payment schedule, and he never made the first payment on the payment schedule,” said City Manager Larry Bierke.
Bierke said the city had sought to force a Chapter 7 liquidation bankruptcy, but “that was not considered” by the federal bankruptcy trustee. “We’re back to square one.”
The city had planned to bid on Kallembach’s properties at 222 N. Elm St., 605 Southwest Road, 390 W. Pine St., 160 E. Mineral St., 420 and 440 Southwest Road, and 310 W. Gridley Ave., using the $309,804 Kallembach owes the city that at the time had not been paid. Those seven properties are assessed at a combined $566,900 in value, but have an estimated fair market value of $280,650, according to city records.
Instead, the city will be bidding on all 22 properties at a sheriff’s sale Jan. 15. In addition to those seven properties, Kallembach also owns properties at 235 Third St.; 230 Elm St.; 605 and 605½ Southwest Road; 260 and 430 Chestnut St.; 85 Water St.; 375 Irene St.; 255, 335 and 465 Division St.; 565 Cedar St.; 530 and 540 Mineral St.; and 185 Center St., according to city records.
Kallembach’s first citations from the City of Platteville came in January 2008, when he pleaded no contest to five citations for failing to remove furniture from the exterior of a building. From then until July 30, 2010, Kallembach was issued more than 100 citations for allowing occupancy without a valid rental license, allowing occupancy of more than four unrelated persons, and second- and third-offense citations for allowing occupancy without a valid rental license.
The city won a judgment against Kallembach for a total of $309,804.84 in March 2011. On Oct. 31, Dane County Circuit Judge David Flanagan issued an order prohibiting Kallembach from leasing or renting any of his 21 properties until he obtained a city rental license. Flanagan also ordered Kallembach to provide a copy of all of his existing leases to the city and to have his properties inspected. Kallembach also was ordered to provide notice of violations within 10 days of a citation’s being issued.
An arrest warrant for contempt of court was issued for violating the court order. Kallembach was taken into custody by Platteville police at property he owns at 440 Southwest Road June 27. He was jailed until Nov. 4.
Kallembach claimed in a letter to The Platteville Journal in February that the city had no authority to cite him “unless my refusal to permit inspections and obtain rental licenses resulted in substantial interference with the comfortable enjoyment of life, health, or safety of others.” Kallembach’s claim was based on a 1981 state Supreme Court decision that defined a public nuisance as “an unreasonable activity or use of property that interferes substantially with the comfortable enjoyment of life, health, or safety of others.”