Former city manager Alan Lanning has until 2014 to repay home loan to Steamboat Springs
October 25, 2012
Steamboat Springs — The city of Steamboat Springs will continue to wait until June 2014 for former city manager Alan Lanning to pay back the $133,000 home loan the city gave him six years ago upon his hiring.
Lanning hasn’t repaid the interest-free loan because he still hasn’t sold his home in west Steamboat.
"It’s basically status quo," City Attorney Tony Lettunich said Wednesday. "We’re both waiting to see if and when the (housing) market improves."
After being offered the city manager job in Steamboat in 2006, Lanning purchased his current home for $665,000 with the help of the city loan. Citing the difficulty in finding affordable housing in Steamboat at a time when the housing market was near its peak, the city agreed to loan Lanning 20 percent of the purchase price.
Lanning resigned in July 2008, and his employment contract required that he repay that loan within six months of that resignation. He received seven months’ severance pay as part of a resignation deal he negotiated with the City Council.
The city didn’t act on the collection date.
The city first extended the repayment deadline to May 31, 2009, to allow Lanning’s children to finish school in Steamboat.
The latest loan extension, which the Steamboat Springs City Council approved in June by a 6-0 vote, was offered to Lanning because of his inability to sell the home in a depressed housing market. Cari Hermacinski was absent for the vote.
Lanning now has until June 2014 to repay the loan.
"We’re just hoping the market returns and the city can be made whole and Mr. Lanning can be made whole," Lettunich said.
Lanning told Lettunich in June that he planned to put his home on the market that month, but it has not been listed in Steamboat’s multiple listing service used by Realtors.
Lanning, who currently serves as the city manager in Central City, could not be reached for comment this week.
Steamboat’s most recent city manager, Jon Roberts, didn't receive a similar loan to help him buy a house when he was first hired. Roberts instead received a rental allowance for several months after becoming city manager in January 2009. He resigned earlier this month and received a six months’ severance package.