Rapid City SD – Tucked into a routine, $125,642.10 citywide utility write-off headed to the Rapid City Council on Oct. 5 is $33,840.53 in unpaid bills tied to Tzadik, the Florida-based landlord.
The debt is spread across 93 individual line items in Appendix A to Resolution No. 2026-077, ranging from a 17-cent credit to a $1,462.96 balance, tied to addresses on Crescent Drive, Kellogg Place, and Signal Drive — all Star Village — plus two accounts at 426 and 434 E. Fairmont Blvd, Aspen Park (Reso. 2026-077, Appendix A, pp. 18-20).
Resolution 2026-077 is item 2 of 11 on the Public Works Committee’s Sept. 29 consent calendar, filed as PW092926-02.
Consent items pass in a single bundled vote — alongside routine business like sewer-line televising bids and well-improvement contracts — unless a committee member specifically pulls one out for individual discussion.
Two Months Ahead of Schedule
The timing itself breaks a pattern. The city’s uncollectable-utility-account write-offs have landed in mid-to-late November every year on record: Nov. 15, 2022 (Resolution 2022-085); Nov. 14, 2023 (2023-090); Nov. 26, 2024 (2024-100); Nov. 21, 2025 (2025-143).
This year’s version arrived Sept. 29 — nearly two months earlier — with no explanation beyond the standard boilerplate language citing South Dakota’s six-year statute of limitations on collecting unpaid utility debt.
Sloppy Paperwork or a New Entity?
The write-off list also contains an inconsistency in how it identifies the debtor.
The two Aspen Park accounts are billed correctly, to “Tzadik Rapid City Portfolio I LLC.” Every one of the 91 Star Village line items — all sharing a single account number, 18857 — is billed instead to “Tradik RC Portfolio LLC.”
No entity by that name appears in the South Dakota Secretary of State’s business registry, searched both by “starts with” and “contains.”
Write Offs And Collections Attempts?
The write-off moves in the opposite direction from another recent city action involving the same landlord.
On Sept. 16, City Attorney Carla Cushman asked the Legal & Finance Committee for authority to retain outside counsel to sue five separate Tzadik-affiliated LLCs over a combined $643,206.21 in unpaid utility bills, as of Aug. 28, 2026 (LF091626-06).
None of the entities, account numbers, or addresses in that collection action match the ones being written off in Appendix A — two separate, non-overlapping pots of unpaid Tzadik utility debt moving through City Hall in opposite directions within the same month, one being pursued through litigation, the other being formally forgiven as uncollectable.
Star Village exited Tzadik Rapid City Portfolio I earlier this month via a court-approved settlement with judgment creditor Alejandro Arguelles, retitled to a new entity, Star Village Owner LLC.
Aspen Park remains in Portfolio I and is on track for a Nov. 3 public auction through Ten-X.
Sourcing:
Resolution No. 2026-077 and Appendix A, City of Rapid City Public Works Committee agenda, Sept. 29, 2026, item PW092926-02 (origination meeting 09/29/2026; council hearing 10/05/2026; staff contact Connie Namanny). LF091626-06, City of Rapid City Legal & Finance Committee agenda, Sept. 16, 2026. South Dakota Secretary of State, Business Information Search (queried for “Tradik,” starts-with and contains, no records found). Prior-year write-off resolutions: 2022-085, 2023-090, 2024-100, 2025-143, City of Rapid City Public Works Committee agendas.
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