When the city received a loan from the United States Department of Housing and Urban Development to build part of the mall, part of the deal included repayment of the loan tied to sales receipts. A portion of the Nordstrom sales over $40 million would be earmarked to repay the loan.
Mike Adolfae told the Spokane City Council last week that Nordstrom did not clear a $40 million threshold for its first reporting period and there's no way of anticipating if the store will perform better in the future.
When the city received a loan from the United States Department of Housing and Urban Development to build part of the mall, part of the deal included repayment of the loan tied to sales receipts. A portion of the Nordstrom sales over $40 million would be earmarked to repay the loan.
The city receives approximately $4.5 million a year from HUD to fund block-grant projects in city neighborhoods. Officials fear if the debt on the mall loan is not paid in a timely fashion, the neighborhood projects would be jeopardized.
Seattle-based Nordstrom has been experiencing rough financial times. In February, the company reported a 59% drop in its fourth-quarter 2000 profits.
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