Bank seeks $250,000 from Forestville to pay off note on 2009 demolition - The Buffalo News

Share this article

print logo

Bank seeks $250,000 from Forestville to pay off note on 2009 demolition

FORESTVILLE – Evans Bank has filed a legal action against the Village of Forestville seeing repayment of a $250,000 revenue-anticipation note to pay for the demolition of a building in 2009.

Village Attorney Michael J. Sullivan told the Village Board on Tuesday night that he has been negotiating with the bank over repaying the note. “We have already agreed that the village would put the item in their budget or 2013-14,” he said.

Sullivan added, “I guess they sued us so they would have a hammer. It should be a quick appearance in court.”

The matter is scheduled for State Supreme Court on April 7.

Members of the board have been discussing repayment of the note for the last several meetings. At one point, they directed Sullivan to try to use the village’s acreage as collateral. Sullivan said this was not acceptable because the village also owes debts for its water system and other projects and would not be allowed to use the land for one debt and not others.

In other matters, the board changed its plan to collect water system payments. At a recent meeting, it had decided to tax property owners based on the amount owed on financing water system improvements.

Deputy Mayor Kevin L. Johnson said Tuesday that using taxes as a repayment method would mean that any nonprofits could not contribute.

The new billing method will be $90 every other month used to repay the debt and for operation and maintenance plus $4 for each 1,000 gallons of metered water used. The motion was approved unanimously.

“It’s share and share alike,” Johnson said, adding that he endorsed having churches and the school pay a portion of the costs for the new system.

Board members also authorized new remote-read water meters. They said that the last week in March is the targeted time for changeover to the new meters. Residents will be asked to allow workers into their homes to switch the meters. After new meters are installed, the village will transfer from its old spring-fed system to the new well system, which has been completed.

There are no comments - be the first to comment