Lewiston has decided to accept deals offered by two federal agencies to pay penalties for fraudulent loans made to a developer.

City councilors voted 7-0 Tuesday to accept the settlement offers.

According to the agreement, the city will pay $140,000 in reimbursements to the Housing and Urban Development Department and $40,000 to the Department of Justice.

The $200,000 in HUD loans to developer Travis Soule in 2007 and 2008 were meant to be used to renovate three apartment buildings.

The city learned in 2008 that much of the work Soule had submitted claims for had not been completed. Soule spent time in prison on fraud and embezzlement charges.

City Administrator Ed Barrett told the Sun Journal the agreement will allow the city to “bring the situation to a conclusion.”