ON MONDAY THE CITY COUNCIL OF SIOUX CITY WILL VOTE TO TERMINATE THE DEVELOPMENT AGREEMENT WITH LAMB ARTS TO RENOVATE THE PROPERTY AT 625 DOUGLAS STREET INTO A NEW PERFORMING ARTS CENTER.
IF THE COUNCIL APPROVES THE CONSENT AGENDA ITEM, THE CITY WILL THEN FORGIVE THE $350,000 LOAN MADE IN 2017 TO ENABLE LAMB TO PURCHASE THE PROPERTY, WHICH WAS PREVIOUSLY THE ORIGINAL CITY AUDITORIUM AND LATER WAS THE BROADCAST STUDIOS OF KVTV-KCAU CHANNEL 9 TELEVISION.
THE LOAN WAS ORIGINALLY TO BE PAID IN FULL ON OCTOBER 22, 2018, BUT LAMB REQUESTED MULTIPLE EXTENSIONS FOR THE REPAYMENT OF THE LOAN, WHICH WERE GRANTED BY THE CITY COUNCIL.
THE FINAL EXTENSION REQUIRED REPAYMENT OF THE LOAN ON OCTOBER 19 OF 2023. BUT LAMB FAILED TO REPAY THE LOAN IN FULL AND TO DATE, HAS MADE NO PAYMENTS ON THE DEBT.
LAMB FAILED TO PROPERLY MAINTAIN THE BUILDING WHICH LED TO THE BUILDING BEING DEEMED UNSAFE, INCLUDING A PARTIAL ROOF COLLAPSE, AND THE BUILDING WAS RED TAGGED LAST JUNE 3RD.
ON FEBRUARY 13TH, THE CITY SERVED A NOTICE OF DEFAULT TO LAMB, WHICH THEN NOTIFIED THE CITY THAT IT DID NOT INTEND TO REPAY THE NOTE AND WAS UNABLE TO MAKE THE NECESSARY REPAIRS TO THE BUILDING.
THE CITY WILL BE TAKING TITLE TO THE BUILDING IN LIEU OF FORECLOSURE AND WILL BE ASSIGNED RIGHTS TO ANY INSURANCE PROCEEDS ON THE BUILDING FOR AN EXISTING CLAIM WHICH IS UNDER APPEAL.
