Bankruptcy battle takes cash from city coffers - KTIV News 4 Sioux City IA: News, Weather and Sports

Bankruptcy battle takes cash from city coffers

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By Kristen Johnson, Multimedia Journalist/ Weekend Anchor - bio | email
SIOUX CITY, Iowa (KTIV) -

The California company that developed part of Sioux City's downtown entertainment district went belly-up.  Now, the city is paying up.

Civic Partners developed the building that houses the Promenade Movie Theater about ten years ago.

In, 2009 Civic Partners was faced with foreclosure.

After they filed for bankruptcy, the bank holding the loan, Liberty National, took the money they were owed out of the city's account, more than $500,000, because Sioux City guaranteed the loan.    

"Fourth Street has change dramatically, and the growth easily should be able to cover the cost," said council member Keith Radig.

The city's attorney says they now have to wait for a bankruptcy judge to decide what Civic Partners owes the city.  They do plan to go after the company "aggressively" in the future.

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