MASON CITY – The Mason City City Council will consider an option agreement with a developer at its next regular meeting for a possible hotel to be built in a city-owned parking lot west of City Hall.
According to a City Hall memo, G8 Development and its owner, Philip Chodur, who has Mason City ties, have shown an interest in bringing a major chain hotel to downtown Mason City. The City entered into an exclusive negotiation agreement with G8 in June and since then have taken financial information from G8, which shows the company is “financially capable of completing downtown development projects” and “has experience with large scale hotels.”
There is no formal site development agreement in place. The exclusive negotiation agreement expires on November 25th but may be extended.
The memo claims that G8 “has been working with a major hotel chain” to develop a full-service hotel with restaurant and conference facilities and retail stores on an existing parking lot at Enterprise Alley between st Street NW and 2nd Street NW.
Mr. Chodur and G8 Development are seeking an option that extends property control to G8 so that Mr. Chodur can “formalize his arrangement with the hotel company. He wants to move forward with with design and initial financing, but is unable to do so unless he can show the hotel company that he has control of the property.”
The option “allows G8 to prove property control to the hotel company, but still allows the City and G8 time to negotiate the details of a site development agreement.”
The option agreement would expire six months after it is signed.