Mason City: Council tables vote on $15 million hotel development
(ABC 6 News) — The Mason City City Council tabled a scheduled public hearing and vote on a proposed hotel development project at their Tuesday meeting, further delaying a years-long effort from the city.
According to City Administrator Aaron Burnett, the item was delayed so officials could address issues with “code requirements and incentive packages,” but declined to give specifics on what aspects of the published proposal led to it being reconsidered ahead of the meeting.
“We’re still very optimistic about getting this project completed yet this year,” said Burnett. “It’ll come back before council at a future meeting.”
According to the agenda’s published proposal, the agreement “obligates the developer to purchase the hotel site to build a 4-story, 80-room hotel (reportedly the Hilton Home2 extended stay variety) with an indoor pool and connection to Music Man Square via the Delaware Avenue Skywalk.
In return, the city would provide an economic development loan of $1 million, which would be repaid over ten years at 3.25% interest, along with a grant of $1.75 million within 30 days after the hotel receives a certificate of occupancy.
The city will also make annual tax increment financing (TIF) payments totaling $1.9 million to the developer for ten years.
Mason City resident James Juhl planned to voice his opposition at the hearing before it was pushed back, he told ABC 6 it’s a project Mason City does not need.
“They should just move on,” Juhl said. “The developer said it would bring eight full-time jobs. Well, that ain’t nothing. A mom-and-pop shop could handle that. Why do they need Mason City’s money to bring them in here and let the taxpayers pay for a two tier understanding for a minimum of eight jobs?”
Mason City Mayor Bill Schickel said the hotel is a vital portion of the River City Renaissance project, aimed to revitalize downtown Mason City, an area he says is currently “thriving”.
“There’s some modifications that have to be made in the incentive package,” Schickel said. “Our team is working on that, and we expect to have it before the council soon.”
The Council did not reschedule the hearing or vote, and meet next on April 1 at 7:00 p.m. at the Mason City Public Library.