SIOUX CITY, Iowa (AP) - A California-based developer has defaulted on a $6 million bond agreement, raising questions about the future of a 12-story art deco structure built in 1933 that has fallen into disrepair in Sioux City.
Cedar Rapids Bank and Trust filed for foreclosure on the building earlier this month, saying Mako One Corp., its managing partner Bruce DeBolt and two other limited liability companies owe more than $4.4 million in principal, interest and advances, The Sioux City Journal (https://bit.ly/2q2eZ1G ) reported.
Officials with the bank say the default puts the issuance of state and federal tax credits in jeopardy, leaving it at risk of losing “a significant portion” of collateral.
“There is no possibility, absent an infusion of additional capital or loans, that the bank will be repaid in full without a different investor receiving the federal tax credits under different conditions,” said the bank in its petition filed in Woodbury County District Court.
The bonds’ initial maturity date under the agreement was June 25, 2014. Bank officials say the agreement was amended six times with a final maturity date of Dec. 12, 2016.
The petition says the bank didn’t receive payment of the bonds by that date and that it send a written default notice to DeBolt and his companies March 28.
The bank has asked a judge to appoint a receiver to take over the property. A court hearing has been scheduled for May 22.
DeBolt didn’t immediately return the Associated Press’ messages seeking comment.
The Badgerow Building was built in 1933 and is listed on the National Register of Historic Places.
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Information from: Sioux City Journal, https://www.siouxcityjournal.com
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