The sale of the Metropolitan Opera House will be one step closer to completion if the Grand Forks City Council approves a requirement put forth by a local bank.
The potential buyers, owners of Rhombus Guys pizzeria, haven’t announced their plans for the building but have secured a $1 million loan for its purchase. The opera house’s assessed value is $1.2 million, according to the county.
The loan, financed by Bremer Bank, requires an existing loan on the building to become a lower priority in terms of repayment.
The council’s finance committee gave the loan subordination preliminary approval at its Monday meeting. The full council is scheduled next Monday.
The existing loan is a forgivable $600,000 disaster assistance loan administered by the city using funding from the federal government.
Under that loan’s terms, $20,000 is forgiven each year until its balance reaches zero as long as the borrower continue to pay property taxes on time.
The council approved the transfer of the disaster assistance loan to Rhombus Guys from the opera house’s owner, development group Oriental Avenue, in June.
Oriental Avenue used the loan to renovate the building following the 1997 flood. Its second and third floors now house apartments, but the first level remains empty.