NORWICH – Although the City of Norwich currently has six community and economic development loans that are behind in payments in one way or another, Mayor Joseph Maiurano and Finance Director William Roberts say that is expected, and the situation is being handled.

For several months, the Common Council has dedicated time to discussing the status of the city’s 13 outstanding economic development loans. At Tuesday’s meeting of the Common Council, Fourth Ward Alderman Walter Schermerhorn told the council the 13 loans totaled $307,100 as of Oct. 31. Of the 13, seven loans are current and five of those are ahead on their payments. The current loans total $144,900. However, six loans, totaling $162,200, or 53 percent of the total amount, are behind in payments. Schermerhorn, who is the chairman of the Finance / Personnel Committee, requested a plan and a timeline for dealing with the past due loans to be presented at the next finance meeting on Dec. 4.

The City Finance Director explained in a later meeting that each loan has its own specific agreement which stipulates what can be done when a loan is in default for any reason.

“It gets intricate and complex. Some of the loans in default are looking to be restructured, which would provide for a new term and conditions,” Roberts explained. He said there are variations and determinations that need to be made concerning penalties and interest charges on the loans, and said that is what needs to be determined.