Lafayette Gatling says he still wants to do business with the city.

“We’re responding to it,” Gatling said in a brief telephone interview today about Monday’s decision by city council to find him in default and end his contract to buy the Roanoke Rapids Theatre through a lease agreement. “We aren’t planning on running away. We plan to do business.”

Asked about reasons he got behind on his theater payments, Gatling referred questions to his attorney, Larry Armstrong.

“All you have to do is pick up a newspaper,” Armstrong said, referring to budget cuts, banks not making loans and unavailable sources of capital. “Mr. Gatling is working on the project. He felt like he was seeing the light at the end of the tunnel.”

Armstrong said Gatling is still interested in the project.The Enfield attorney said the reason there have not been many shows at the theater goes back to the same reason Gatling got behind on the payments and because Carolina Crossroads has been slow to develop. “The shows don’t make money unless you have everything in place. His timetable slowed down. The city obviously fails to appreciate that.”

Gatling is trying to resolve his differences with the city, Armstrong said, and is committed to making the project work.

In a statement, Armstrong said Gatling, through his company L&M Hospitality, “Has made a substantial investment in the Roanoke Rapids Theater property in his effort to bring quality entertainment to the theater, acquire additional land and develop the entire Carolina Crossroads area.”

Armstrong explains the legal relationship created among L&M Hospitality, the city and Bank of America is extremely complex and allowed Gatling to create equity in the theater property by periodic payments. “Mr. Gatling was both surprised and disappointed to learn that the City Council had declared the limited liability company in default and was seeking to terminate the relationship of that company with the City.

“The company had been involved in negotiations with the City to amend the contract in a way that would have temporarily reduced the monthly payments due.Certain matters had already been agreed upon which would reduce the monthly payments, but would provide sufficient money for the City to meet its financial obligations to Bank of America without any additional expenditure of City funds.”

Said the statement: “Mr. Gatling was under the impression that the negotiations were continuing when he was advised that the City Council had voted to terminate the contractual arrangement. Mr. Gatling will continue his efforts to resolve differences with the City and is committed to bringing quality development to the Roanoke Rapids area.”  

Council made its decision after meeting in closed session for one hour and 25 minutes Monday.

Gatling currently owes the city $182,000.