Former Steamboat city manager asks city for 3rd extension on home loan
June 23, 2014
Steamboat Springs — A former Steamboat Springs city manager again is asking for more time to repay the home loan he got from the city eight years ago when the local housing market was near its peak.
Alan Lanning missed the June 5 repayment deadline on the $133,000 home loan.
He recently listed the home for sale and is asking the city for another two years to repay the loan.
“I think we’ve always been hopeful the market would turn around and everything would be OK, but you never know what it’s going to do,” City Attorney Tony Lettunich said Monday.
The Steamboat Springs City Council now has extended the repayment deadline on Lanning’s loan twice, most recently in June 2012.
The first loan extension was granted to allow Lanning’s children to finish school in Steamboat. The second extension was granted to give the housing market time to recover and for Lanning to sell the home.
Lanning, who commuted for a while from Steamboat to his job as city manager in Central City, put his home on the market May 1.
Lettunich said the former city manager recently accepted a city administrator job in Minnesota.
The city of Steamboat has not acted on the previous collection dates on Lanning’s loan because of the distressed housing market.
City Council members who have supported the loan extension in the past have called waiting the best course of action.
City Council President Bart Kounovsky said that with the city in the second position on a mortgage that remains underwater, waiting still could be the best option.
“We’re all just trying to make the best of a bad situation, both from the city’s perspective and from the Lannings’ perspective,” Kounovsky said. “If he has continued to make his payments (on the mortgage) and he’s trying to make the best of a tough situation, I would support giving him another two years.”
Kounovsky said the city “really doesn’t have any other options unless we want to foreclose on the property.”
The council is scheduled to consider extending the loan due date again July 1. Under any extension, the payment would be due in two years or when the house is sold, whichever comes first.
No payments on the loan have been made.
A message left for Lanning at his home was not returned Monday afternoon.
Lanning was given the loan after he was hired here in 2006. The contract required the loan be repaid six months after Lanning resigned in July 2008.
A provision in his contract read: “Given the difficulty in finding suitable and affordable housing in the city, the city agrees to loan Mr. Lanning an amount equal to 20 percent of the purchase price of a residence in Steamboat Springs.”
If the value of the home appreciates above what it was when Lanning purchased it, the city would receive 20 percent of that value increase on top of the loan.
The loan was unique for city managers in Steamboat. Lettunich said it was modeled after a loan arrangement Vail has used.
Lanning’s successor, Jon Roberts, did not get a similar loan and instead received a rental allowance for several months.