MASON CITY – Today, Mason City released a document detailing an agreement between the city and a local non-profit to renovate the Music Man Square as part of the downtown Renaissance Project.
The downtown Renaissance Project consists of a multi-purpose arena to be built in Southbridge Mall; a music pavilion also to be connected to the north side of the mall; a 106 room Hyatt Hotel from Gatehouse Mason City, LLC; and a museum and conference center to be built in the current Music Mason Square. Lastly, a skywalk owned and maintained by the city of Mason City would be attached to the hotel.
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Supporters of the project say “The Music Man Square Complex & Hotel will be an integrated hotel and convention center projected to draw up to 40,000 visitors per year. This unique, ‘Disney-quality’ convention center will make it a crown jewel of the Midwest.”
Crucial items on the November 7 ballot will decide the fate of the project: 1) A lease between the city of Mason City and Kohan Real Estate; and 2) up to $14 million in general obligation bonds to finance parts of the project.
Music Man Square is owned by the Mason City Foundation, county records show.
Highlights of the agreement are below. The entire agreement is at the bottom of this story.
The Mason City Foundation is an Iowa nonprofit corporation duly organized and validly existing under the laws of the State of Iowa. According to the agreement released today by city hall, it has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as presently proposed to be conducted, and to enter into and perform its obligations under this Agreement.
The Foundation will cause the Museum Improvements and Convention Center Improvements to be constructed. The Foundation will use its best efforts to obtain or cause to be obtained, in a timely manner, all required permits, licenses, and approvals, and will meet, in a timely manner, all requirements of all applicable local, State, and federal laws and regulations which must be obtained or met before the Museum Improvements and Convention Center Improvements may be lawfully constructed.
Mason City believes that the Museum Property has been underutilized and is in jeopardy of becoming a blighting influence on the community.
The acquisition of the Museum Property and construction of the New Museum will require a total investment of approximately $1,500,000. The construction of the Convention Center Improvements will require a total investment of approximately $3,000,000.
The Foundation will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the New Museum and Convention Center Improvements.
The Foundation expects that, barring unavoidable delays, the new Museum will be completed by December 31, 2018 and Convention Center improvements will be completed by December 31, 2019.
The City has been presented with a proposal to be undertaken by the Foundation to develop the Museum Property into a Meredith Willson museum, renovate the current Music Man Square, and require certain other improvements to be undertaken by the Foundation. The Foundation is willing to cause a New Museum to be constructed on the Museum Property and Convention Center Improvements to be constructed on the Convention Center Property and the Foundation will thereafter cause the same to be operated in accordance with this Agreement; and Gatehouse and the Foundation have entered into a memorandum of understanding as a precursor to the final agreement for the renovation, management and operation of the Convention Center Property.
The City anticipates issuing one or more municipal bonds or notes (possibly up to $14 million if voters approve the ballot measure on November 7) to finance construction of the Convention Center Improvements, Museum Improvements and Skywalk Improvements.
http://northiowatoday.com/wp-content/uploads/2017/09/MC-FOUNDATION-AGREEMENT-WITH-MC.pdf
ALLEGED OVERAL FUNDING STRUCTURE FOR ENTIRE RENAISSANCE PROJECT VIA SUPPORTERS OF THE PROJECT AT MASONCITYSAYSYES.COM:
The Music Man Square Complex & Hotel $18.25 Million
Convention Center – $1 million
– Reinvestment District Funding
Hotel – $15 million
– Private Loan $9,250,000, Equity $1,500,000, & Interest Free Loan $4,250,000
Museum – $750 thousand
– Reinvestment District Funding
Skywalk – $1.5 Million
– Reinvestment District Funding and TIF funds
Multi-Purpose Arena $12.55 Million
$4.6 million – Iowa Reinvestment Act District
$4.25 million – City of Mason City TIF
$2 million – Mason City Youth Hockey
$1.2 million – Local Option Sales Tax
$500 thousand – Cerro Gordo County
Performing Arts Pavilion $1.65 Million
$1.65 million – Reinvestment District Funding
Sounds like our corporate owned corrupt county supervisors in worth county.
The Target Center holds over 20000 people and the construction cost was 100 million. How can installing bleachers in a old tire shop in Mason City cost 20 million? Why build bleachers when the mall and the museum combined can’t fill 1 seat and a SKYWALK THERE IS NOT EVEN A CROSSWALK THERE CURRENTLY AS A MATTER OF FACT, I HAVE YET TO SEE ONE PERSON CROSS THERE
the big wheels count millions like I count my pennies from my measly social security. they have what they think is a endless supply of money and I don’t
I think they will get 56,000 visitors the 1st year – most every local yokal and child will go twice the first year – Once to site see – spend no money -2nd time at xmas and then jump in the car and go to Walmart/Target – Told you before !!!!! IF you see that CON GAME WORD TIF – TIF ___YOU the TAXPAYER/PROPERTY OWNER are about to get SHAFTED/SCREWED by the bribed elected officals who work for these large corporations. Hell ! this common core corruption as we see it. Take a knee and say THANKS BUT NO THANKS. ps – the second year attendance will start it’s downhill path to the same level as your prior mall – There must be a better way to blow your hard earned money – or be casinoed out of it.
at this time, I am not seeing anyone stepping forward to try to sell this concept to uis. It looks like it will go down in flames. I have a big problem building and arena, paying for it and then turn around and leasing it after we have already lost millions on that mall already.
How many of the people pushing for this even live in Mason City?? Look at the videos of public presentations and tell us exactly which of the backers live where. Bet most of them don’t even live in town. Some of these business people rent space and live in other towns, or work here and don’t live here, but push for stuff like this to help their businesses. If it doesn’t work, they’re not the one on the hook for the money!
I very much doubt that youth hockey can raise two million and even if they could it would take way to much time to do it I would say five to ten years. So there is some more money the tax payers will be on the hook for, making up their short fall.
Reading this article scares the be-jeebers out of me.
Why in your wildest thoughts would you allow GOVERNMENT to build a Motel/Hotel with TAX DOLLARS to COMPETE with EXISTING motels in the Mason City area.
Our city government has no conscience.
This whole mess is wrong at every level!
I agree with you. Also why should my tax money go for some I will never use and most mason city citizens will also never use.
What a bunch of IDIOTS, 40,000 visitors my butt.
What a waste of money. What a joke
A project of this nature should have been done with the city putting together a plan for a URBAN RENEWAL PROJECT, complete with costs all the details. Right down the to the penny!
That URBAN RENEWAL PROJECT SHOULD THEN HAVE BEEN PUT UP FOR A VOTE. A VOTE SPECIFICALLY ON THAT URBAN RENEWAL PLAN.
******************MASON CITY DID NOT DO THAT*********************
The reason the city is not using an Urban Renewal program and going this route, entering into a lease agreement with the Mall Owner, they don’t have to go our and advertise for RFP’s or Request For Proposals. Doing RFP’s allows all interested parties to the URBAN RENEWAL PROJECT to BID ON THEM!!!!
They have already picked someone for the project called GATEHOUSE whoever the hell they are. This is wrong! This should have went out for bids!!!!
The process that our leadership is proposing is not only wrong, but opens up the city for all kinds of fraud, inside deals, cost overruns, and long term tax burdens for the taxpayers of Mason City.
BOTTOM LINE: We have scoundrels in charge who are dragging the city into a big hole should it be passed by an uneducated and the unsuspecting electorate.
So many dunderheaded comments in one post. Where to even begin.
Let’s start with your comment about why the arena is proposed to be owned by Southbridge Mall. Your conspiracy theory is friggin nonsense. The reason why the arena would be owned by the mall is because the financing doesn’t work if the city owns it. It has to be owned by a entity that pays property tax (cities don’t pay property tax) to get the TIF financing component of the funding.
The city did issue a RFP genious. 3 developers responded.
what good is privat owned if the fat cat dont pay his taxes kohan is $60,000.00 behind alreadyand counting is robin choking the air out of ur brain or what
Who is behind on their taxes? What taxes are they behind on (property, income)?
Insane!