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Council approves loan modification to extend repayment terms for upper-floor loans
Summary
The council approved a loan modification for upper-floor loans associated with Dale Burke that extends the maturity date to Oct. 1, 2036, sets a 15-year amortization and requires monthly payments to resume Nov. 1; the modification converts outstanding balance to principal and requires periodic financial statements to the city.
The La Crosse City Council on Sept. 24 approved a modification to three previously issued upper-floor loans associated with a borrower tied to Dale Burke, changing loan terms to extend the maturity date to Oct. 1, 2036, and implementing a 15-year amortization schedule with monthly payments resuming Nov. 1.
City staff (Julie) told commissioners the borrower had struggled with consistent payments over the past five years and that staff and legal reviewed the proposed modification as a path to recover city loan funds. The modification converts outstanding amounts to a principal balance without compounded interest and adds updated collateral coverage and fees; the borrower must provide financial statements and meet with the city upon request.
Commissioner Lee asked about confidence the borrower will stay current; staff said they were working with available options and that no better alternative was apparent. Commissioner Lee moved approval; Council president Dickerson (transcript also names "Dickinson") seconded the motion, and the council approved the modification unanimously by voice vote.
