Rockland council OKs deal to settle lawsuit against landlord

Posted Sept. 25, 2012, at 3:47 p.m.

ROCKLAND, Maine — The Rockland City Council gave unanimous approval Monday night to a settlement of a lawsuit it had filed against an apartment owner who owed the city for Community Development Block Grants.

The council voted 5-0 to accept the settlement negotiated by its attorney Kevin Beal with Timothy D. Payson.

Payson had obtained two Community Development Block Grant loans from the city in 2005 that totaled $136,000. He made a few payments on the loans, then stopped. The money was used to upgrade two apartment buildings he owns on North Main Street.

The city won a judgment against Payson in March in which he was ordered to pay $129,000.

The city agreed to a settlement in which he would repay $67,367.

The city attorney pointed out that the original loan agreements with Payson allowed him to be forgiven for half the loans if he made payments. Beal said the agreement reinstates that premise.

He has already paid the city $50,000 toward the settlement and he will pay the remainder over the next three years, a similar schedule to the original loan agreements, Beal said.

The attorney said that Payson secured additional funding to repay the city and that is why he has been able to make the payments.

Payson did not immediately return a request for comment left on his answering machine Tuesday morning.

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