SMSC Approves $48 Million Loan for Lower Sioux Indian Community
The loan is for the Lower Sioux Indian Community and is divided into two phases.
(The following is a press release from the Shakopee Mdewakanton Sioux Community.)
The Shakopee Mdewakanton Sioux Community has approved a $48 million loan for the Lower Sioux Indian Community of Morton, Minnesota. The loan is divided into two phases, with Phase I funding debt consolidation up to $26 million, consolidating several loans into one, resulting in a lower monthly payment as well as lowering the overall interest rate. Phase II is a loan up to $22 million for a redevelopment project for Jackpot Junction Casino Hotel expected to start in May 2013.
The length of the new loan is approximately 12 and a half years. Lower Sioux will contribute $4 million of their own funds towards the Phase II construction project which will entail replacing the original 75,000 square feet casino built in 1984 with a new facility. The project will include an interior and exterior refurbishing of their 1999 hotel expansion. The existing casino will operate during construction but most of it will be torn down after the new facility is complete.
“We so much appreciate Shakopee for doing the recent refinancing economic development loan,” said President Denny Prescott. “How greatly appreciative we are for Shakopee to step up and help us in this situation.”
The Lower Sioux Indian Community is located in south central Minnesota in the Minnesota River Valley in Redwood County. Approximately 145 families live on 1,743 acres of tribal land. A total tribal population of 982 resides throughout a 10-mile service area and beyond. In fiscal years 2003-2005 the SMSC donated a total of $3 million to the Lower Sioux Community for the completion of the Children's Youth Center and the addition of a fitness room. An SMSC grant for $309,075 in 2010 supported several tribal projects.
To help other Indian nations grow and prosper while protecting their tribal sovereignty, the Shakopee Mdewakanton Sioux Community has a program of supporting economic development through tribal grants. Each grant is considered on its own merit by the SMSC Business Council within the fiscal year budget approved annually by the SMSC General Council. Due diligence is required before grants are awarded. The SMSC has made $500 million in loans to other tribes for economic and infrastructure development projects since 1996.