City of Deadwood writes off $1.3M historic preservation loan, biggest everDEADWOOD (AP) — The city of Deadwood has written off what is likely a record amount of debt due to bad loans for a hotel.
DEADWOOD (AP) — The city of Deadwood has written off what is likely a record amount of debt due to bad loans for a hotel.
The media reports that city officials were forced to write off about $1.3 million in bad loans through the Historic Preservation Revolving Loan Fund. The loans went to the former owners of the Hickok's hotel and casino, which was recently the subject of foreclosure.
Mayor Francis Toscana says the city has written off other debt before, but nothing this large. Finance Officer Mary Jo Nelson says the next-largest loss likely was $198,000 on another hotel financed through the same loan fund.
A bank paid $4.5 million for the building at a sheriff's sale. The hotel and casino remain open.