SIOUX CITY, Iowa — A bankruptcy petition filed by a California-based developer of a 12-story historic art deco building in downtown Sioux City has been dismissed, paving the way for foreclosure proceedings on the Badgerow Building to resume.
A federal judge in California on Wednesday granted Cedar Rapids Bank and Trust’s motion to dismiss the bankruptcy filing by Mako One Corp., of Carlsbad, California, the Sioux City Journal reported.
The bank 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 at the time that it was owed more than $4.4 million.
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 prior to Mako One’s bankruptcy filing.
The Badgerow Building was built in 1933 and is listed on the National Register of Historic Places.
Information from: Sioux City Journal, http://www.siouxcityjournal.com