MASON CITY – Despite no money and no commitment from the hotel company, plans appear to be in full motion for that structure and likely four others to be built in downtown Mason City.
The city of Mason City is seeking $9.8 million from the state to build a Marriott Hotel and four other projects near Southbridge Mall. Presentations by several communities, including Mason City, were made in the last week to state officials, and the decision on that funding will come in June. The cost of the 5-point project sought by Mason City – including the hotel, parking ramp, commercial/living space building, pavilion and hockey arena – is estimated to cost roughly $36 million dollars.
However, no one knows where the other $26 million will come from to complete the vision. Other communities seeking state dollars for similar projects – like Coralville, which also wants a hockey arena – say their developments will take state funding and then fill the gap with private funds.
That hasn’t been stated in Mason City, at least not publicly, and the best the taxpayers have heard thus far from city hall is that the project will go forward – with or without the $9.8 million from the state – using what was dubbed “creative financing”. The claim has been made by elected city officials that no tax dollars would be used to build these five projects. Tax Increment Financing, a favorite of city hall, has been the rumor to fill some of the gap, but how much is available is unclear.
Last week, surveying crews were spotted in the public parking and lot and alley west of city hall, along 1st Street NW and 2nd Street NW. The parking lot and adjacent alley between it and city hall is now dotted with colorful lines and other markings. A man with spray paint and an orange vest – not a city employee – was there. He said he was marking for gas lines for a hotel that was going to be built. He also said he was marking along North Federal Avenue and the corner and 2nd Street, where a supposed building with commercial retail spots and residential condos or apartments is envisioned.
A city hall employee told NIT that if the hotel is built (it will face south along 1st NW) the hotel will sit just a few feet west from the edge of city hall, the alley will be gone.
Once the state decides who will get a piece of the $40+ million in state economic development funds that are available, city hall will be on the line to fill the $26 million gap, and folks will be very interested to see how they accomplish this.
Let me make sure I got this straight. We are going to go in debt up to our a$$ so some tear 3 hockey team has a new place to play.. NA3HL is this a church league or bar league?
They can stay in that old Morton building / cattle barn out at the fair grounds where they belong.. Now that we don’t have a fair perhaps it’s just the grounds..
What’s sad about the whole mall situation is that if people would have been supportive of the stores there. And would have shopped there, maybe things would be different. Too many people rush to Walmart and it has hurt the mall. I go to Walmart once in a great while. Probably once every few months. It’s ridiculous how people flock there thinking they are saving money. Alot of their prices on grocery items are higher than Hy-Vee and Fareway.
The entire Indianhead area was a death knoll for the mall, but times change anyway. Rumor is, eventually, Northwood will be a shopping center (near the casino). That will hurt MC further. That’s the people of MC’s fault for turning away the casino and letting a vocal, hypocritical group dictate the future of this town. You can’t let a few idiots (yes, I said it) dominate; the rest of the town should have stepped up on that one. I also blame the mayor at the time, Jean Marinos, for horrible leadership. We missed the boat and the karma will keep on paying back.
Time to call in the State Auditor!
I hope they don’t get the money and do this anyway, it will make it even more fun to watch it fail… It will make the council meetings way better to watch when the old rubes find out they need to start forking over more tax money, they will storm the podium.. And I’ll be tuned in, enjoying a beverage and laughing..
Seems the most likely scenario right now is that the state will give MC the $9.8 million. Then, the city will announce this whole deal is going ahead. There will be some fancy-speak as to how the next $26 million will get raised… but not likely until the city elections are decided. Then the city will scramble to explain how this will work with TIF. I don’t see any private investment to speak of coming through on this, therefore, the $26 million has to come from somewhere. Where else but – in the end – the backs of the taxpayers? It fits perfectly in line with the other developments along 000 block of North Federal. A number of those newer, reformed buildings were all aided by BIG taxpayer dollars. You know the lineup.
Maybe we can go to LALALAALALALALALALA Land and see if he has some more beer we can gulp
…the hotel we will lose the parking lot behind city hall that is KEY to these and future events, as well as much needed citizen parking downtown. “Another fine mess they’re getting us into.”
If the hotel gets built, and this parking is gone, the only spot left would be the parking lots west of JC Penney. There is some room along the river for something… they originally wanted to put a pavilion there (where haven’t they tried this?) in the grass by the Washington bridge.
Those locations will NOT be the same. The lot behind city hall is perfect for these downtown events and it will be GONE FOREVER! Bad Move!!!
The mall continues to fail as yet another long time store pulls out (Finish Line) But this is not OUR problem, we don’t own the mall, though it has cost the taxpayer plenty. I certainly don’t think it’s a good idea to spent millions more on this project. Even if they say it won’t cost the taxpayer, we all know IT WILL, for many years to come. And what happens when THIS too fails? I really think the recent Band Fest and Ragbrai last year were real successes downtown but with this project and…
I was at the mall today and Finish Line has a sign in their window that they are hiring. Who said they were moving?
Thee GLOB. I also heard Victoria Secret and Bath and Body were leaving.
Victorias secret and Bath and Body are owned by the same company. I didn’t hear they were leaving, but I did hear that their corporate people would be doing an evaluation this summer to see if they will stay or not.
Interesting information. We’ll see what happens.
Here’s another interesting – and disturbing – fact in this construction project: Our source in city hall says the city’s FINANCE DEPARTMENT has NEVER been consulted on this. These are the professionals that manage the city’s money, and they are left out of the loop, not consulted at all. The mayor and council are taking this deal all the way home based on their own supposed “expertise” … and they have none to begin with. They are not accountants or financial experts, but they are playing with tens of millions of dollars the city does not seem to have. If you think the city can afford this, take a close look at the budgets over the last several years: Service cuts, layoffs, threats to close or privatize departments.
This is probably one of the topics that have been discussed in those back room closed budget meetings. Great job by the state ombudsman, for doing nothing.
The ombudsman is a joke. If you call them, you are wasting your breath. Total hacks.
Another fiasco by city administration. I don’t care where they get the money as long as it isn’t from the taxpayers. But watch out, we have been screwed before. Lots of times. I see the state is questioning all T.I.F.’s as they should. That is just another way to stick it to tax payers.