Judge grants foreclosure on historic building in Sioux City
Jan. 19, 2018
SIOUX CITY, Iowa (AP) — A historic building in downtown Sioux City could be up for sale after a federal judge granted a bank's request to foreclose on the 12-story structure.
Chief U.S. District Judge Leonard Strand ruled in favor of Cedar Rapids (Iowa) Bank and Trust's foreclosure on the Badgerow Building on Jan. 11, the Sioux City Journal reported .
Strand also ruled that property owner Mako One Corp. and managing partner Bruce DeBolt owed more than the $5.2 million for the defaulted portion of a $6 million bond agreement. The bond was for financing the building's renovation.
The Badgerow Building was built in 1933. It's listed on the National Register of Historic Places for its art deco architecture style.
Strand appointed Minnesota-based Lighthouse Management Group to oversee the property during the foreclosure case.
The bank sought the foreclosure and Lighthouse Management Group's appointment in order to protect federal historic preservation tax credits. The credits were at risk after Mako One defaulted on its bond agreement with the bank.
The bank can now sell the property though a sheriff's sale or the U.S. Marshals Service. It has yet to take steps toward requesting the sale.
Sioux City Economic Development Director Marty Dougherty said the building could attract developers looking to create a downtown, mixed-use facility.
"Based on some of the general inquiries we've had, there will be interest in it," Dougherty said.
Information from: Sioux City Journal, http://www.siouxcityjournal.com