Shakopee Loans $48 Million to Lower Sioux for Debt Consolidation, Casino Redevelopment
The Shakopee Mdewakanton Sioux Community (SMSC), whose reservation is located just south of the Twin Cities in Minnesota, has a reputation for helping other tribes.
Now they are lending $48 million to the Lower Sioux Indian Community, based in south central Minnesota, with a length of approximately 12.5 years.
Divided into two phases, the first portion of the loan will fund debt consolidation of up to $26 million, resulting in a lower monthly payment for the Lower Sioux as well as lowering their overall interest rate. The second phase, a loan of up to $22 million, will fund the redevelopment project for Jackpot Junction Casino Hotel in Morton, Minnesota.
Starting May 2013, construction will begin on Jackpot Junction. The original 75,000-square-feet casino built in 1984 will be replaced with a new facility, and the interior and exterior of the tribe's 1999 hotel expansion will be completely refurbished. The existing casino will operate during construction but most of it will be torn down after the new facility is complete. Lower Sioux will contribute $4 million of their own funds toward the construction project.
“We so much appreciate Shakopee for doing the recent refinancing economic development loan,” said President Denny Prescott in a statement. “How greatly appreciative we are for Shakopee to step up and help us in this situation.”
The SMSC has previously assisted the Lower Sioux. In 2010, the SMSC granted the tribe $309,075 for several tribal projects. In fiscal years 2003-2005, the SMSC donated a total of $3 million to the Lower Sioux Community for the completion of their recreation center for youth and the addition of a fitness room.
Overall since 1996, the SMSC has made $500 million in loans to other tribes for economic and infrastructure development projects.
You need to be logged in in order to post comments
Please use the log in option at the bottom of this page