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MASON CITY – The Mason City council unanimously selected Gatehouse Capital as the developer of choice to build a hotel in the downtown area.
The city council voted 5-0 (Bill Schickel absent) to direct city staff to meet with Gatehouse Capital representatives to negotiate and develop the terms of a development agreement related to their submitted proposal of the development of a Hotel and Convention space in downtown Mason City and have staff provide a memorandum report to the City Council on the expected employment, taxable valuation created, financial incentives method and cost for Mason City plus any other information regarding the negotiated agreement that will assist the City Council in analyzing the proposal.
Discussion was held regarding the opportunities, feedback from the community, and putting together a “win/win” agreement.
The item was placed on the city council agenda thanks to the leadership of John Lee – a rarity for a council member to put an item on an agenda for consideration while Eric Bookmeyer has been mayor.
“At the March 8, 2017, council worksession the council consensus was to set the date of March 21 as the date for making a decision on which hotelier to support,” Mr. Lee wrote. “I would like to hold the council accountable for that date and because of that, I would recommend staff be directed to work with Gatehouse to put together all the necessary documents related to the Development Agreement.”
On March 9, Lee wrote via social media “It is really simple to get excited about the Gatehouse plan, so did I, but that one will cost the citizens a lot more money, we will need a referandum vote, we will need to sale (sic) bonds somewhere in the neighborhood of 3.5 million dollars to just name some of the issues.”
Tentatively, Gatehouse would like to build their hotel, convention center and museum in the southeast corner of the Southbridge Mall parking lot near Younker’s, with a skywalk connecting to Music Man Square.
During comments from citizens at the beginning of the meeting, Cabin Coffee owner Brad Barber urged the council to “be bold … have a can-do attitude” in pursuit of a workable deal with Gatehouse.
Lindsey James told the council that Mason City has been “without a convention center since 2014.”
Gatehouse Capital’s David Rachie also spoke to the council and thanked City Administrator Brent Trout for his extensive work in getting the possible project to the point where the council was ready to give it the go-ahead.
Civic leader Max Weaver spoke twice at the meeting, urging the council to consider an optional path he put together to “right-size” the project and see the development through. He stressed the potential burden on the taxpayers with the possible multi-use ice arena, saying there is “no operations and maintenance money” to run the arena if it was built in the mall.
“I can save you $23 million,” Mr. Weaver claimed, “a gift,” if the council and others hear him out. He claimed after the meeting he was brokering deals with the council and other decision-makers to educate them on his idea.
At the same time, San Diego developer Philip Chodur appears to be on-track to build a hotel near the corner of 5th SE and Federal Avenue, not far from the proposed Gatehouse project (across from Kum & Go Central and the XXX book store). Mr. Chodur claims to have all the financing in order to build a hotel on this vacant parcel of land. He’s been trying for years to build a hotel in Mason City and has met extensively with the mayor and the late councilman Alex Kuhn in piecing together his hotel into the 5-point Renaissance project. That entire deal looks to be hanging by a thread, but Chodur – who has snapped up several properties in and near the downtown area – could still build if the city is welcoming, even as it pursues Gatehouse.
26 thoughts on “Gatehouse is city’s golden hotel development (photos & video)”
Are any of you as amazed, as I am, about how Gatehouse Capital will bank roll their hotel project? It seems that they want local tax payers to fork-over between $3 million to $3.5 million in gap financing, repayable in 20 years. Can you imagine where you will be in 20 years? And what happens if the hotel goes belly-up (like South Bridge Mall) in 20-years? We know Bookmeyer, and this gang of six, won’t be in office in 2037, so no skin off their noses. But try this: Go to your favorite lending institution and ask for a 20-year loan, and see your banker’s reaction. Don’t be upset when the guys in white coats show up to haul you off.
In 20 years these buildings will all be torn down. The tax payers ripped off again by yet another “project” that cost millions more.
Historically in Mason City the Chamber of Crime and City Hall are always promoting some kind of hair brained scheme to line their pockets with tax payer money.
Just saying!
Since the taxpayers are expected to help this company build its hotel, what happens if this actually takes off? Say the hotel actually starts making money, a prophet, will the taxpaying citizens get a fair share of the prophets? After all we would be investors. Nobody should get city money to build their own revenue machine. In business there are risks and sometimes rewards. They don’t always pay out, sometimes they payout quite well. That’s all part of it. Citizens shouldn’t have to gamble on a business venture for a private entrepreneur.
Prophet – That’s funny! Jeremiah or Ezekiel?
Word on the street is that Chodur is readying a lawsuit against the city; wouldn’t be the first nor will it be the last…..but if it runs true to form it will never get into n actual courtroom. This city has (the insurer ) has paid out hundreds of thousands under Bookmeyer’s regime….never once reaching a room with an actual judge in it.
Let’s hope not… but if so, NIT warned of this quite some time ago. It would be great if Mr. Chodur rose above any animosity and simply did it the American Way… build it and make a profit.
Why would the taxpayers subsidize a hotel in downtown Mason City? There is no tax relief to the taxpayers.
Also, the taxpayers of Mason City are not going to vote yes to build a Ice Arena in the Tollbridge Mall. There is no need for a downtown hotel. Gatehouse must be dumber than a box of rocks to believe anything the Mayor or City Council tells them.
This whole thing is nothing but a pipe dream!
Why? To leverage $10M in state funds an dto invest in quality of life enhancing amenities to curb decades of population decline.
This project will only serve to further Mason City’s population decline. So now you propose to ge 10 million of “free” money along with 18 million of local money to continue Mason City’s demise.
The more financial abuse you heap on the citizens of Mason City the more citizens will move away.
You people relay don’t get it do you!
Can you please enlighten us on what you think will make Mason City grow again? And please be specific…
Worth county residents are Number 1 in debt in the whole state of Iowa (99 counties) Now the worth county supervisors ( black Bartz the leader of the gang) want us to take on another $26,000,000.00 to pay for a large corporate gas line to Mitchell county. If Alliant wants a pipeline over there let them pay for it. Our supervisors are OWNED by Big Corporations in the area and the taxpayers of worth county have been really been getting screwed. Also I believe we have the highest property taxes in Iowa — Maybe with all the BS they are trying to feed your sheeple you could win the Number 1 bamboozled title away from Manly Ia. Good luck and spread your cheeks.
You’d have to pick me up off the floor if Worth County really has the highest property taxes in Iowa. I’m sure this claim is nowhere near true. Please prove your claim…What is your total tax levy in Worth County and what portion of that levy goes to the County?
As a citizen and tax payer in this town for 68 years, I have seen a lot of changes, some good and some not,(in my opinion.) We need progress, and something to make this city great again. While I like Gatehouses transparency and track record, I’m concerned about the hidden/unknown cost to tax payers. I don’t remember, but has a feasibility study been done on hotel/motel usage. Either way, two 100 room hotels a block apart can’t work (in my opinion). It would be nice if somebody would build something on the corner eye sore at 5th and federal, but not a hotel. It’s early in the planning stage, and things could get better before it’s time to vote. This city doesn’t need 3 money pits within 2 blocks of each other.
Hey, 200 more hotel rooms means 200 more meth labs. That’s good for the economy! Plus, the workers needed for all of those labs are already in town, professionally trained in Chicago, and waiting for those new jobs to open up. Then the justice system can have all of that new business from arrests and drug raids, meaning they can expand the police force and keep the jails nice and full. That’s the textbook definition of economic growth right there. Sounds like a win-win situation to me.
Dixie, I never thought of it that way, but you could be right. Just think, if it does turn out that way, we can be more diversified, when Amed and his family work the desks.
Sorry, I spelled Ahmeds name wrong.
The city is in dire need of low cost living quarters, ever since the travel lodge closed down by Family Video.
There is nothing in this for the taxpayer. Tourist mean nothing and what they are proposing will get old in a hurry just like Music Man Square and the Old whorehouse are now. Only the Chamber of Commerce gets something from this. The rest of us get the shaft. Get up a petition and VOTE NO!
Id suggest renaming this project The Golden Shower. I have a feeling thats whats going to happen to Mason City before this is all done.
Skipper don’t work for the Globe anymore that’s why he’s not there. I hear he writes from home now.
Skipper works out of the Suzi Q
reminds me of “Im gunna take my ball and go home.
Well, there is supposed to be a referendum on this “Ice Arena” and “hotel to nowhere” so the citizens of Mason City can REJECT this whole taxpayer funded bullshit.
Stay tuned.
So Chodur is going to still build his hotel? So three hotels in downtown MC? Pfffffft!!!
I safe assumption would be, that Chodur does nothing, except blow hot air. He hasn’t accomplished anything yet, why would this circumstance be any different?
I watched the city remove the snow from one of chodurs properties near east park. He cant even maintan proper property maintenance, how does he expect to keep a hotel running? Hire someone else to eun it, and go back to his trailer park in california? Hiring people, and not checking on them is probably why his snow and grass werent taken care of for almost two years.