(ABC 6 News) – The City of Mason City took ownership of Southbridge Mall Monday, May 13, after developer MCCH, LLC and SBMC, LLC missed a financial commitments deadline May 11.

The City terminated its agreement with the group and is seeking a new owner for the mall and for a proposed downtown hotel, according to a statement from mayor Bill Schickel.

“Moving forward with a new developer and mall owner is now a top priority,” city administrator Aaron Burnett said in a statement. “The city remains confident the project vision is viable, meets a regional need, and can be achieved with a new developer and a fresh start.”

According to Burnett, ending the agreement “protects mall businesses from possible business interruptions.”

The City of Mason City already owns and operates the Mason City Parks and Recreation Department Offices and Mason City Arena, which are located in Southbridge Mall’s former J.C. Penney space.