Steamboat Springs — Former City Manager Alan Lanning is asking the city of Steamboat Springs to agree to a short sale of his house in a deal that still won’t make the city whole on a $133,000 home loan it gave Lanning nearly a decade ago.

Because of the difficulty he has had selling his home in the Silver Spur neighborhood just west of town, previous city councils have granted Lanning three separate extensions on the home loan, which was supposed to be repaid six months after Lanning’s resignation in July 2008.

Lanning purchased the home in 2006 for $665,000 when the local housing market was near its peak.

He wants to sell the home in a short sale on March 14 for $625,000, according to a proposed sale contract. The mortgage lender is currently owed $535,803.

According to City Attorney Dan Foote, Lanning anticipates the sale would allow him to have $80,000 available to pay back the city, which is still owed $133,000, and a local bank that is owed $50,527. Foote said how much each entity would get is subject to negotiations.

He added Lanning has expressed a willingness to sign a new promissory note for any remaining balance of the city loan that wouldn’t be repaid at the conclusion of the short sale.

Last year, a proposed short sale was going to go to council for consideration but the deal fell through, and the council didn’t hear the request.

If nothing changes, Lanning has until July 1 to repay the loan the city gave him.

The City Council on Tuesday night could meet in a closed-door session to discuss its options.

Due to liens on the property, Lanning cannot close on the sale of his home without the mortgage lender, the city and the local bank agreeing to the terms.

“These things can be complicated to negotiate, so it drags out the contracting process,” Foote said.

A message left for Lanning at his home on Monday wasn’t immediately returned.

Since leaving the city manager’s office in Steamboat, Lanning has been involved in multiple controversies involving public funds at new city administrator jobs.

According to a CBS Denver news report, he took heat in 2012 as city manager of Central City because of circumstances related to a job interview in Burlington, Iowa. Some elected officials in Central City alleged that Lanning had no intention of taking that job and went on the trip just to visit family in Illinois on the taxpayers’ dime.

Lanning said the charge was “not accurate,” according to the news report.

Lanning also took fire for having taxpayers fund his participation in a golf tournament hosted by the Colorado Municiplal League.

CML has since cancelled that tournament after concerns were raised about public funds that were being used to pay for the players involved.

Lanning resigned from Central City in 2014.

He was the city administrator in Lake City, Minnesota, for a little more than a year before he left that post in July 2015.

According to a news report last week, Lanning is one of three finalists for a city manager job in Winston, Oregon.

To reach Scott Franz, call 970-871-4210, email scottfranz@SteamboatToday.com or follow him on Twitter @ScottFranz10