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Opinion: Citizen discusses Renaissance project with state economic development official, is appalled at what he hears

A Mason City citizen discussed the proposed downtown Renaissance Project with a spokesperson at the Iowa Economic Development Authority and wanted to pass on what he learned:

Visited today with Aliana Santizo at Iowa Economic Development Authority, a staff person for this Iowa Reinvestment Act Mason City is involved in.

Had an excellent visit.

Some of what she told me:

There is NO big grant check to a City for the sum awarded by the Board. The city DOES NOT receive a check for $7 million or $10 million or whatever amount the board might “approve” for the city.

Rather, the law allows the state 5% sales tax on new motel/hotel room sales to be sent on a quarterly basis to the City for up to a maximum of twenty years toward reaching the sum awarded. In addition, they send 4% of the 6%
regular store sales tax. But this State tax support is only on NEW facilities built WITHIN the 25 acre Urban Renewal District. No help from sales tax on existing businesses In that district.

Get this. If after 20 years your tax take from the new businesses fails to reach the sum awarded – tough luck. City ends up short. Has to make it up from
other local tax INCLUDING the property tax levy.

If these state sales tax revenues from the new places in the 25 acre District reach the approved sum before the time limit, 20 years, the support
ends at that point. No windfalls to the City.

So just how much of this did you know?

Just how much does the average Mason City resident know? I’m guessing very little, as the city and their stooges hide and manipulate the facts into fictitious talking points, many of them content to outright ignore these realities.

So at this point the only new business that MAY get built in this downtown
Urban Renewal District is this 106 room hotel. Do you believe that one little hotel in this market will produce room sales sums with the above % tax rates sufficient to ring up $9.5 million to the City to use toward paying down
their $26.5 million of General Obligation Bond debt plus millions
additional for the interest on this $26.5 million?

Dream on.

Which should show the RISK that MC taxpayers will face for this River City Renaissance Plan to end up needing other City tax dollars left and right potentially including a property tax levy during or all of the 20 years of debt service on this $26.5M plus interest.

Still want to fund a $12.5M ice arena and give it away plus this little Pavilion to this NY bottom feeder who has all of $1.5M of his money in this failing Southbridge Mall?

A Concerned Citizen
Mason City, Iowa


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