NORWICH – After months of discussion, the City of Norwich Common Council Tuesday authorized the restructuring of one outstanding economic development loan. After a great deal of work, the city says the economic and community development loans are back on track.
In November, Fourth Ward Alderman Walter Schermerhorn told the Council that city had 13 outstanding economic development loans, totaling $307,100. At the time, seven of the loans, totaling $144,900, were current and five of those were ahead on their payments. The remaining six loans, totaling $162,200, were behind in payments.
Only a few months later, the loan situation is greatly improved, city officials said. On Tuesday, one of the loans that had fallen behind in payments was restructured, which brought the loan up to date.
The loan, which was distributed to Betty Bytheway, Jean Blackburn and Valerie Geisler for the purpose of purchasing Paragon Communications, Inc., was issued in June of 2003. Due to subsequent business conditions, monthly payments fell behind, city officials said. In July of 2007, the city entered into a mortgage priority sharing agreement, in order to allow the borrowers to refinance their loan with NBT Bank...