SD Properties Inc., the tax-exempt property corporation affiliated with the Social Development Commission, appears to have avoided foreclosure on its building on Teutonia Avenue.
The organization owns 6850 N. Teutonia Ave., a location of SDC that contains a full commercial kitchen and a parking lot with several food delivery vehicles.
Milwaukee City Attorney Evan Goyke’s office planned to pursue “in rem” foreclosure against SD Properties if it did not pay its delinquent combined property tax bill for 2024 by July 8, according to a public notice published in May.
In rem foreclosure is a process that transfers legal title of tax-delinquent properties to city ownership after approval from the court.
However, the Teutonia building’s 2024 bill of $13,805.25 was paid in full on June 30, according to the City of Milwaukee’s online bill portal, which the Office of the City Treasurer confirmed.
“SD Properties has acted with the City Attorney’s Office to avoid foreclosure,” said Jorge Franco, who is interim CEO and board president of SDC.
Franco, who is also on the SD Properties board, said SD Properties recently received another bill and is confirming the correct amount needed to avoid foreclosure proceedings.
The treasurer’s office will notify the City Attorney’s Office of finalized redemptions before a hearing on Aug. 20.
Milwaukee City Treasurer Spencer Coggs is a commissioner on the SDC board but is not on the SD Properties board.
Franco said Coggs is not involved in discussions related to resolving the delinquent bills.
“SDC is grateful to the City Attorney’s Office, whose senior-level personnel have been graciously helpful to SD Properties,” Franco said.
More background
SDC used to occupy several locations around Milwaukee County and provided social services like tax assistance and job training before stopping operations two years ago. The anti-poverty agency has dealt with board rifts, multiple lawsuits and a loss of funding and is currently insolvent.
As a 501(c)(25) organization, SD Properties is exempt from paying tax on assessed property value. It is still required to pay for storm water, water, sewer and other delinquent municipal services or utilities that show up on its combined tax bill.
It currently owes $6,837.78 in unpaid storm water, weed removal and other city utilities on the Teutonia property’s 2025 bill, which was due on Jan. 31, 2026, according to the bill portal. The bill will continue to accrue interest.
Tax parcels become eligible for in rem foreclosure after being delinquent for one year, according to the Office of the City Treasurer.
Default judgment in contract lawsuit
Milwaukee County Circuit Judge Cynthia Davis ruled that SDC owes $240,100 to 20 Volga 9004 Lincoln LLC, according to a default judgment finalized on July 7.
SDC used to rent space in an office building at 9004 W. Lincoln Ave. in West Allis, which 20 Volga 9004 Lincoln owned until September 2025.
The company filed a contract lawsuit against SDC, Milwaukee County and the City of Milwaukee in February that claims it is owed unpaid rent from April 1, 2024, through Sept. 1, 2025, plus attorney’s fees and costs, according to court documents.
“SDC was not served with the complaint,” Franco said.
According to court documents, there were attempts to mail the summons and complaint and deliver documents by courier to SDC’s former main office at 1730 W. North Avenue, but SDC no longer occupies the building after going through foreclosure and a sheriff’s sale in January.
The Daily Reporter published a public notice about the complaint on multiple days in March, according to an affidavit.
Milwaukee County and the City of Milwaukee filed defenses in the lawsuit and are not mentioned in the judgment.
20 Volga 9004 Lincoln previously filed a small claims lawsuit against SDC, but it was dismissed.
SDC could appeal the decision.
Jonathan Aguilar is a visual journalist at Milwaukee Neighborhood News Service who is supported through a partnership between CatchLight Local and Report for America.
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