City Council voted 7-0 Monday to allow the Eagles Club to halt payments until December 2011 on a $60,000 loan provided to them four years ago.

The purpose of the deferment is to aid the Eagles in paying off delinquent taxes that have been an issue since the club moved to 107 11th Street NE in 2006. The Eagles began having difficulties with tax payments at that time due to a significant uptick in property taxes at their new location.

Along with yearly property tax totals of more than $25,000, the club was also affected by the struggling economy.

The Eagles loan has a current balance of $35,750 and will continue to accumulate interest while the loan is in suspension through December 2011.

In a memo to the Mayor and City Council, City Administrator Jim Hurm said the County Board appears to be open to having the penalties and interest forgiven on the loan if the Eagles can achieve their goal of paying off delinquent taxes.

The County has also approved a reclassification of the Eagles’ taxes, which will reduce the Eagles taxes in 2012, allowing them to begin payments on the city loan again that year.