MASON CITY – Times are tough at city hall in Mason City as budgets are tight, property assessments are on the rise, and a new tax levy is being introduced, but well over $400,000 has been spent on designs and legal fees for a parking ramp and hotel that may never be built.
Fourteen months ago, Mason City officials marched out three design concepts for a parking ramp that would be attached to a Marriott Hotel. Both structures were to be built in a public parking lot just west of city hall. NIT has learned that the cost out of city hall to have three parking ramp designs put together by engineers and additional legal fees total in excess of $400,000 and there is no end in sight. Mayor Eric Bookmeyer, the city council and city staff continue to push forward on the so-called downtown “Renaissance” project that includes a hotel, parking ramp, mixed-use building, music pavilion and of course, a multi-use ice arena. Promises were made as far back as four years ago that ground would be broken on the hotel – but Bookmeyer and company have never been able to deliver (see: Philip Chodur default on agreement with city to develop hotel).
Despite these promises and eventual failures over the years, city hall continues to spend big money on the projects. According to facts and figures gathered by citizens and then delivered to NIT:
Payments to WHKS for design/engineering work for parking ramp:
03/28/2016- $52,748.53
05/23/2016- $2,380.43
07/15/2016- $336.32
09/06/2016- $220,590.77
10/13/2016- $68,341.00
10/28/2016- $9,137.35
12/05/2016- 44,532.26
Total to WHKS is $398,066.66
Additionally, payments for legal work towards the development agreement for the hotel total $28,402.36, bring expenditures to a grand total so far of $426,469.02. Countless city staff hours and resources devoted to this project are not included.
The current status of the parking ramp is in total limbo at this time. Using hushed voices during a Monday night work session, the council and mayor huddled with city administrator Brent Trout to discuss the future of the arena and hotel. It was difficult to hear at times, but it was said by Bookmeyer and Mr. Trout that there is some hotel developer looming that might get involved in the project; those private dollars from a developer are crucial in order for up to $10 million in potential state dollars to come into the Renaissance project. No hotel, no area. No hotel, no parking ramp.
At the same time, concerns in the community are growing regarding two proposals city hall wants voters to approve.
One is $18 million in bonds for the multi-use arena. The other is a “capitol improvement” levy that will cost property owners up to 67 cents per $1,000 in valuation. Despite assurances out of city hall that the dollars collected in the levy would be used for vital city purposes and save on bonding and interest costs, some fear the levy is nothing more than a “slush fund” to cover the potentially exorbitant costs of maintaining a possible multi-use arena.
Tuesday night, the city council is likely to unanimously approve a March 7 election date for the capital improvement levy. To succeed, the item must get 50% +1 of the ballots.
Later this summer, voters will be confronted with an election for the $18 million in bonds to build and lease the multi-use arena. That proposal needs a 60% approval to pass.
More to come on this rapidly-evolving situation.
