ERIN MCDANIEL
City of Newton
NEWTON, Kan. — The Newton City Commission this week approved a settlement with MetroPlains Properties on a loan used for the development of Lincoln Park Apartments.
In 2002, the City received Community Development Block Grant funds from the State that were issued as an interest-free loan to MetroPlains to help redevelop Lincoln School into income-qualified apartments. The company since paid $5,100 on the $200,000 loan. In December 2023, the company asked the City Commission to consider forgiving $94,900 of the loan; the Commission rejected the request, and the City moved forward with foreclosure.
The City Commission on Tuesday agreed to accept MetroPlains’ follow-up offer to pay $169,900 on the remaining $194,900 debt. This releases the City’s lien on the property and facilitates its sale, which has been pending for some time. Commissioners said they saw this as a reasonable offer that will save further legal costs and will resolve the issue quickly for the benefit of the apartment residents.
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