Sioux City is appealing a judge's order that it pay $1.2 million on a promissory note guarantee the city made for the developer of a movie theater complex.
Attorney Jeff Wright, who is representing the city, says Sioux City is "challenging the ruling as a whole."
District Judge John Ackerman ruled in August the city must pay $1.2 million to First National Bank for defaulted payments and $300,000 annually through 2018.
The case stems from the bank's loaning more than five-point-six million dollars to Civic Partners in 2003 to build the $13 million dollar Promenade Cinema 14 movie theater and retail space.
Interim City Manager Bob Padmore says the city would not enter into a similar loan venture again:
Civic Partners stopped making payments in 2009.
It could be up to a year before the Iowa Supreme Court or Court of Appeals rules on the case.
Associated Press contributed to this story