SIOUX FALLS, S.D. (AP) - A South Dakota businessman is closing an entertainment complex he built last year for $20 million following passage of an interest cap that will also shutter his 11 payday lending stores.
Chuck Brennan is selling off millions of dollars in business property after South Dakota voters recently decided to cap payday loan interest rates at 36 percent, KELO-TV (https://bit.ly/2hNUPn2 ) reported. Brennan is not only closing his Dollar Loan Centers across the state, he will sell the sprawling 70,000-square-foot Badlands Pawn complex in Sioux Falls, Badlands Motor Speedway in Brandon and Brennan Rock and Roll Academy.
In a previous interview with the Argus Leader, Brennan said having to close and sell his property took him by surprise.
“We were blindsided because we really didn’t think we had anything to worry about, but we’ve reacted as quickly as we could,” Brennan told the newspaper. “The plain fact is that our main source of revenue in South Dakota is gone.”
Brennan said he used revenue from the lending stores to fund his other businesses.
The Badlands Motor Speedway asking price is nearly $10 million. Still, Brennan is hopeful the race track will open in May. He said he has captured local and national interest for the track and currently has two deals on the table.
As for the Badlands Pawn complex in Sioux Falls, Brennan said he hasn’t decided on a selling price for the property. He invested nearly $20 million into the complex last year.
He said he would like to see the complex converted into a concert venue, the largest sport’s bar in the state or a sporting goods store.
More than 400 employees will lose their jobs when the businesses are all closed.
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Information from: KELO-TV, https://www.keloland.com
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