Sioux City ordered to pay $1.2M on note guarantee

SIOUX CITY, Iowa (AP) — A judge has ordered Sioux City to pay $1.2 million on a promissory note guarantee the city made for the developer of a downtown movie theater complex.

The Sioux City Journal says (http://bit.ly/1cBjHXA ) says the judge also told the city on Tuesday that it must pay $300,000 a year from 2014 through 2018 if First National Bank has not received full payment of its loan to Civic Partners, the complex’s developer, by Jan. 15 of each year.

Sioux City Mayor Bob Scott and the city’s private attorney handling the case declined to comment.

In 2005 the developer refinanced a bank development loan under a promissory note and stopped making payments in 2009. The bank sued the city in August 2012 for breach of contract. Civic Partners has filed bankruptcy.

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Information from: Sioux City Journal, http://www.siouxcityjournal.com

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