SIOUX CITY, Iowa (AP) - A California-based developer of a 12-story historic art deco building in downtown Sioux City has filed for bankruptcy protection, indefinitely delaying an effort by an eastern Iowa bank to foreclose on it.
Mako One Corp., of Carlsbad, California, has notified the court that it’s filing a Chapter 11 petition in U.S. Bankruptcy Court in the Southern District of California, according to the Sioux City Journal (https://bit.ly/2sBXghK ).
In its petition, Mako One lists nearly $1 million in unsecured creditors.
Cedar Rapids Bank and Trust filed for foreclosure on the Badgerow Building in April, saying Mako, its managing partner Bruce DeBolt and two other limited liability companies defaulted on a $6 million bond agreement to help finance work to renovate the building. The bank said it was owed more than $4.4 million in principal, interest and advances.
Attorneys for Mako One and the bank both declined to comment to the newspaper.
DeBolt bought the building for $440,000 in 2007 and announced a $10 million plan to renovate the building to attract corporate data centers, restaurants, professional offices and other businesses.
In 2013, DeBolt told the City Council he had spent about $6 million on renovations and had bonded for an additional $6 million.
The bonds’ initial maturity date was June 25, 2014. Bank officials have said the agreement was amended six times with a final maturity date of Dec. 12, 2016.
The petition says the bank didn’t receive payment by that date and sent notice of default on March 28.
The bank had asked a judge to appoint a receiver to take over the property, but a court hearing scheduled earlier this month was called off after Mako One’s bankruptcy filing.
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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