City Council Refuses Newberry Village Loan Repayment Proposal

A proposal from the company that owns the Newberry Village Apartments in Burlington to pay off a loan first taken out in the 1980’s from the City of Burlington was denied during a Monday night city council meeting.

T&L properties, a company representing a group of 30 owners, wanted to repay the $1.2 million 1984 loan at a discounted rate, paying the city $800,000 to pay it off before it’s due in 2024. The company received an extension on that loan just last year, when it was originally due.

T&L Spokesperson Ted Oswald told the council that a buyer is lined up for the property, but before it can be sold, the title must be cleared of the loan. That loan was taken out to rehabilitate old housing structures.

Members of the city council were skeptical of the plan, however, saying that it would mean less money in the city coffers at the end of the day.

“If we accept $800,000, our citizens are going to be very upset…that we’ve given away $400,000,” said Councilman Tim Scott.

The council did make a counter-proposal, however, saying that they would be willing to settle on the loan for a price no lower than $1 million and passed a motion to that effect.