SIOUX CITY — The Sioux City Council will be asked Monday to approve a subordination agreement so a Georgia-based developer can move forward with plans to transform the former Sioux City Hotel & Conference Center into a residence for upscale downtown seniors.
Atlanta-headquartered Fortune MD acquired the 12-story building at 707 Fourth St., through an LLC called Amera SL of Sioux City, for $5.35 million in late October from l ‘last year. The developer intends to invest approximately $15 million in the property to convert it into a mix of retirement homes and assisted living facilities at market rates. The investment includes major renovations to the atrium space.
“Their bank won’t provide the financing without that happening,” said Chris Myres, economic development specialist for the city. “There is an old development agreement on the property. They feel the development agreement prevents them from having proper security by taking a stand on the building as if they need to provide financing.”
People also read…
According to city documents, on September 21, 2015, the city council entered into a development agreement with Star Hospitality, LLC, the former owner of the property. The deal transferred space from the former city-owned escalator atrium to Star Hospitality and required that they invest $160,000 to improve the space and maintain it as a functional part of the hotel.
“Only very minor renovations were made to the atrium space prior to the sale of the hotel property to Amera SL of Sioux City, LLC. the atrium is now in a state of extreme disrepair,” the documents state.
In order for Amera SL of Sioux City, LLC to complete financing for the project, its lender, Heritage Bank, required the city to enter into a subordination agreement to address the city’s existing development agreement registered on the property.
Outstanding issues related to unfinished renovations to the atrium space and changes to the walkway easement through the property and public entry points to the walkway system on the property will be addressed in a future agreement that will be presented to the council, according to the documents.