NorthIowaToday.com

Founded in 2010

News & Entertainment for Mason City, Clear Lake & the Entire North Iowa Region

Park Board meeting minutes reveal more on $36 million hotel/arena project

Don Nelson of the Mason City Park Board
Don Nelson of the Mason City Park Board

MASON CITY – City hall continues to wheel and deal mostly out of the public eye on a $36 million dollar downtown project, park board minutes show.

The reason this information had to come out, it turns out, was due to the fact that the park and recreation board must be involved in the 2400 seat hockey arena. That was the impetus for former city councilman and current park board member Don Nelson to ask a series of questions (and get answers) to city administrator Brent Trout and councilman Alex Kuhn, who is spearheading the 5-point development.

MC PARK BOARD MEETING MINUTES: Multi-Purpose Facility

Councilmen Alex Kuhn & City Administrator Brent Trout gave a presentation regarding the downtown Development Proposal. This was the actual Presentation that was given to the Iowa Economic Association Development Board. The Iowa Reinvestment Act was passed by Legislators in 2012, allocated a Hundred Million dollars, for Cities that comply for projects that had to be within a District that was less than 25 acres. The City Council voted on a District downtown. In that District if that Community is approved, very competitive process. We were lucky to be one of the Communities to receive over seven million dollars from the State. In that District, the way the money is set up, the money that would go to the State, Hotel / Motel tax, State sales and Service tax, that would go to the State, the department of Revenue will reinvest that money over 20 years into our District.

Projects are, the Courtyard by Marriott Hotel, JC Penney’s space / arena / ice, parking ramp.

District consists of Central Park, Park Inn Hotel, City Hall, City Hall parking lot where Marriott Hotel will be, also a City owned 4 story 210 space Parking Ramp and area west of Old Chicago Pizza.

The Arena will hold 2,400 seats; it will be ice from October to April. The Mall will own the Arena; we will have a 30 year lease from the Mall, and sublease to the Hockey Association during those months. The Performing Arts Pavilion Project will also be included.

Questions from the Park Board:
Don Nelson: What would be the deal buster on this downtown project?
Mr. Kuhn stated:If Mr. Chouder decided against building the Hotel downtown, the Arena & the Pavilion would not happen. Mr. Trout commented; the City would then look for another investor.

Southbridge Mall
Southbridge Mall

Don Nelson: Who owns Southbridge Mall? US Bank is the owner.

Don Nelson: Is there City budget plans to increase staffing in the Recreation Dept., we assume the Hockey Association will provide some staff too?

Mr. Trout stated: Half of the year Hockey will manage it, the other 6 months of the year will be a City Staff person, the person we will hire will run the Concession stand, will maintain and operate. Other 6 months of the year that person will manage other Events that we will have (concerts, sporting events, etc.)

Don Nelson: Is the Hockey Association in the process of raising funds?

Mr. Kuhn: Yes, they’re Board voted unanimously to raise two million dollars; we have a signed memorandum of understanding. They will have exclusive rights, for all the naming rights inside the building. They’re very confident they can raise that money.

Don Nelson: The Mall will own the Multi-Purpose Center right?

Mr. Kuhn: Yes.

Don Nelson: Southbridge is half full, downtown retail is hurting, intention was, by locating it there, it would bring retail to the businesses, why did you decide this location.

Mr. Kuhn: the main reason is because if you built 2 sheets of ice anywhere else, you would have to do a Bond, which would be an increase on everyone’s property taxes; this is the reinvestment Act, State money. This was the only avenue; we’re taking a seventeen million dollar investment from the private developer and leveraging that into a thirty six million dollar private. The Hotel becomes your anchor, to this project. The Mall themselves are going to invest one million dollars for improvements.

Don Nelson: People have asked, you’re going to build it with tax payer’s money, and we don’t own it, is that correct?

Brent Trout
Brent Trout

Mr. Trout stated: There are good reasons.

Mr. Kuhn: Two million will come from Hockey private money, the Pavilion is private money, other funds are State money, yes, tax money, but if we would have said no, it would have went to another Community. The reason it has to be private, the Iowa Reinvestment Act, there’s a threshold of 35% of the project that can to be retail. If we would have owned it, we wouldn’t generate any property tax.

Don Nelson: Is there something in the Lease Agreement that if the Mall closes? Mr. Trout, there will be. Don Nelson: What’s the next step? Mr. Kuhn, we have monthly reports from the State, basically to show we’re tracking, the Hockey group is ready to start their Capital Campaign, and they may wait until their Hockey season begins. Everyone has to make sure the Hotel is actually going to happen, before really starting anything.

What are the dates? When are you going to meet in Des Moines again? Mr. Trout, the target right now, is to have all of our steps necessary to get our final approve done by December 31, 2015, we have to have it done by March 15, 2016.
Kyle Easley: The other Lot by Old Chicago, do they have plans as to what they’re going to do with it?

Mr. Kuhn; that will be a mixed use building, with retail on the first floor and 2nd / 3rd floors will be market rate condos.

Kyle Easley: You talked about a Financial Advisor, is there something involved if things don’t pan out like how we hope they’ll pan out?

Mr. Trout: We have Financial Analysis that will show us how each project is going to work. We will have that Study, bottom line every one of these projects are moving forward without a large debit load, the debit that’s going to be sold will be paid back by financing, investment district and private funding.

Don Nelson: Are you still in negotiation with the Lease?

This will be a 30 year Lease, with 2 options of 5 year extensions.

Don Nelson: What is US Bank putting into this Project?

Mr. Kuhn: We’re tracking, it’s all part of the processing, no one is fully funded, and there is a small gap to fill. Mr. Trout, US Bank will be paying approximately an additional One hundred Twenty Thousand dollars in property tax.

0 0 votes
Article Rating
Subscribe
Notify of
guest

6 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Even more news:

Watercooler

Need help with your website?
Call your local professional,
Breakthrough Web Design:
515-897-1144
or go to
BreakthroughWebDesign.com

Copyright 2024 – Internet Marketing Pros. of Iowa, Inc.
6
0
Would love your thoughts, please comment.x
()
x