MASON CITY – The Mason City council will consider a request to authorize approval of a forgivable loan in the amount of $30,000 to the owner of the Ashley Inn Motel for rehabilitation of the structure.
Kelly Helgeland of Kelly Motel Corp. requests a forgivable CoRL loan in the amount of $30,000 to do several exterior repairs and upgrades to the property at 3451 South Federal Avenue, known as the Ashley Inn. The project proposes the following: 1) New siding for the office/caretaker’s residence; 2) Replace windows in the office/caretaker’s residence; 3) Replace the deteriorated motel doors with new doors; 4) Replace the roof on the motel with a new steel roof; 5) Repaint the motel; 6) Resurface the parking lot.
City documents say the total cost of these activities is $65,039. The applicant seeks the maximum forgivable loan of $30,000. First Citizens National Bank has provided a loan commitment of up to $30,000 to meet the 100% match requirement. The remaining $5,039 would be made up with the owner’s funds.
The Corridor Revitalization Loan (CoRL) Review Committee met June 29, 2016 to consider this application. City staff say in recommending approval by the council that “this applicant is making significant improvements to this building that will increase the assessed value of this property.” The Committee determined that the proposed exterior improvement will improve the aesthetics of the corridor and that the loan request meets the goals of the CoRL program. The Committee recommends approval by the council of a forgivable loan in the amount of $30,000.
The council will consider the idea at the July 5, 2016 regular meeting at the library.