Oswego Council OKs Legal Action Against Delinquent Borrowers

by Steve Yablonski | October 23, 2017 11:33 pm

OSWEGO — The Port City will soon begin legal action regarding four borrowers that have overdue Community Development Office loans. City Attorney Kevin Caraccioli said it would be nice to see voluntary compliance on the foursome’s part.

Going to court to recoup the unpaid funds could take months, he admits.

The group owes approximately $160,000 overall.

The borrowers and business involved, including the amounts due, are:

• Historic Woodruff Block, LLC (Tom Millar, Principal), 17 W. Cayuga St. – $65,000+
• Alice Davis, Alice’s Scoops (Ice Cream Trailer), 241 Paddy Lake Road – $52,863
• Dayne Cory & Theresa Brase, (Mild 2XXX Wild), 194 Water St. – $29,221.36
• James V. Tesoriero III, 167 W. First St. (façade repairs) – $11,162.88

The attorney said he hopes to recoup a large portion of the outstanding funds.

“Assuming they don’t voluntarily comply, it’s a legal process, so you’re talking months before anything comes to fruition,” he said following the meeting. “There’s always the possibility (they might comply). But more than likely what will happen is we’ll receive a judgment, and then if they don’t pay, after a 30-day period, then we have the right to collect on the judgment.”

That could include forcing the sale of property, repossession and other possibilities, he noted.

When some of them borrowed the money, the city took some collateral, the attorney said, adding that “two of them we have a mortgage against.” One signed a mortgage against their private residence, he pointed out.

Alice’s Scoops signed a security agreement with the city.

The city has repossessed her ice cream trailer, Caraccioli said.

“We have the property. But, we don’t know what condition it’s in. We have to get it appraised. It certainly isn’t going to be worth $52,000,” he said. “If it’s worth, let’s say, $10,000 then she’d still owe us $42,863. That’s the portion we’d commence legal action for.”

Whatever course happens, it will likely be a while before the city actually receives any funds, he said.

“We will move things along as quickly as we can,” Caraccioli said. “But it still takes time. Wherever we can take action (like repossessing the trailer) we will. We’ll take the next step and pursue other avenues to collect the rest of the money.”

If any of the group were to call him seeking to work out some sort of payment plan, the attorney said he’d be willing to work with them.

“Absolutely. The city’s position is that we always strive for voluntary compliance,” he said. “We’re not unreasonable. We simply want to recoup that money so that we can repurpose it for other projects that are out there. What these folks may not realize is the money is to infuse small business with capital to get them going, they pay back the money and then we can turn around and lend it to somebody else.”

There are others (approximately 10) who may soon find themselves in the same predicament as the current four.

Initiating legal action against the four certainly sends a message out to others that the city of Oswego is serious about collecting money that it’s owed, he said.

“In the same sense, if anyone owes the city money, and wishes to call me up and work out a repayment arrangement, they’ll find a very receptive city attorney,” he added.

Source URL: https://oswegocountytoday.com/news/oswego/oswego-council-oks-legal-action-against-delinquent-borrowers/

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