City Council, landlord work out public loan agreement
Rockland — The Rockland City Council voted unanimously Monday, Sept. 24, to authorize City Manager James Smith to sign a settlement agreement with Timothy D. Payson.
In 2005 Payson obtained two Community Development Block Grant loans from the city for a total of $136,000 to upgrade his buildings. He made only a few payments on the loan and then stopped, according to public records.
The construction loans were used to upgrade apartment buildings on North Main Street. Payson owns Rockland rental properties at 83, 87 and 104 North Main St., 153 Broadway, and 45 and 67 Talbot Ave.
The city sued Payson this past March in Knox County Superior Court
Justice Jeffrey Hjelm on March 30 ordered Payson to repay the city $129,200 plus interest and more than $1,000 in unpaid personal property taxes
City Councilor Larry Pritchett said Sept. 24 that the loans were taken out just before the economic downturn in 2007.
"The repayment represents no loss to the citizens of Rockland," Pritchett said.
Courier Publications reporter George Chappell can be reached at 207-594-4401, ext. 117, or at email@example.com.