It is time to call in the State Auditor and investigators to look into the Renaissance Project. I believe there may be some wrong doing and it begs looking into!
Mason City has committed what I consider corrupt and underhanded activities in their run-up to promoting the Renaissance Project. Mason City taxpayers are ALREADY subsidizing this project and I find that criminal.
Just because the mall went through bankruptcy and the fellow from New York was able to purchase the mall for 1-1/2 million dollars does not mean the malls assessed value for tax purposes should have been set at 1-1/2 million dollars by the City Assessor. That City Assessor’s motive for setting the mall valuation that low should be investigated. Was the City Assessor pressured into setting the mall’s valuation that low for the purpose of the TIF project?
The Mason City Council should formally request an investigation by the State Auditor. My experience with Assessor’s has always been they have guidelines they use to set values.
I have purchased property below the properties assessed value and requested a lowering of my property taxes based on my purchase price. My request was denied and my property value was kept at its current valuation. Why wasn’t the same true for the mall?
It is my belief that the mall’s assessment has been set artificially low at 1-1/2 million dollars and is currently supposed to pay $48,500 per year. I believe for tax purposes the mall’s current property value is somewhere between 6 to 8 million dollars and at the very least should be paying $185,000.00 per year in property taxes. Remember It would cost over 20 million to build so my estimate is in the ball park.
Mason City taxpayers are losing approximately $136,500 per year in property tax collections!
I believe corrupt public officials have set the malls value artificially low to use the difference between the old valuation and the new valuation (TIF) to pay for Renaissance Project. If I am correct it means “we the taxpayers” are paying more in property taxes than we should because the mall is not paying their fair share. Or put another way, we taxpayers are paying taxes that the mall should be paying now.
I believe the TAXPAYERS of Mason City are already being scammed and their tax dollars diverted to create this project. It this is the case this is criminal, and those who set this up should be held accountable. This amounts to a diversion of public money for personal gain. Politically or financially it is both against the law.
The state auditor should be brought in and this should be investigated. If what I suspect is true someone should go to jail!
Letter to NIT from a concerned citizen, 10-29-2017
Mason City, Iowa
Send your letter to the editor to NorthIowaToday@gmail.com
NOTE: The opinions expressed in letters to the editor are not necessarily those of NorthIowaToday.com.
41 thoughts on “Opinion: $135,500.00 missing from Mason City tax collection, citizen claims”
Why is this article still up? Seems like when your leader of your ‘news’ site is running for office, you’d want to show the public your moral compass. Removing a ‘news’ article that has proven to be nonfactual and a blatant lie would be a start. Printing a retraction and apology would also be the minimum behavior i’d expect of an elected official.
The yes crowd promoting this con job are upset because they know all the BS they are putting isn’t going over. This crazy scheme is going to be voted down big time.
Just bulldoze the mall and send Federal back through town as a 2 way street unlike the bizarre current arrangement. The current layout was a huge mistake in the first place. This outsider, who has to go to MC for business purposes, can’t see wasting $$$$ on a decrepit old downtown, but IF you’re going to throw money at it, at least have it accessible.
Can we expect NIT to go ahead and take down this article and print a retraction and apology since it has now been proven to be TOTALLY bogus?
Knowing that this ‘news’ site has all the morals of a alley cat in heat, I’m guessing they won’t.
You have proven nothing. The mall is undervalued and you know. You just want to squelch freedom of speech.
Sounds like its overvalued. It just sold on a open market for $1.5M.
It helps if you know what you are doing. The “Mall” sits on 4 lots. The main east and west halves (2 lots) are at 100 S Federal Ave. They have assessed value of $1,514,540 and $1,532,450 (yearly taxes of $47,526 and $48,088). The two other pieces (mini mall and food court area) sit at 20 and 19 S Federal. Those are assessed value of $777,490 and $788,890 each (taxes $24,398 and $24,756). Total assessed value of $4,613,370 for taxes of $144,768. All 4 lots are owned by SouthBridge Mall Realty Holding, LLC. Lots 3 and 4 are under pending “tax sale”.
Ah ha ha ha ha ha ha ha ha! This is hilarious. NIT readers are the absolute dumbest people on the planet!
Any chance the original article author submits an apology piece and confesses to being a buffoon?
Not according to Becon, which is what Cerro Gordo has listed on their web site. You may have some “inside” information but what can be found for property assessments using Cerro Gordo property search values don’t agree with your figures at all.
The poster named ‘Duh’ is 100% correct. If you know what to look for (which most people that read NIT can barely read, yet alone navigate the assessors page correctly), its plain as day. Southbridge Mall is assessed for tax purposes at $4.6M.
TIF = money is taken from the general fund (our taxpayer dollars) and paid to the city assessor (city/county) for the property taxes in the TIF area for these corporations for 10 years -after 10 years -if the business is still in operation the money collected in that TIF area will be used to pay pack these loans – BTW – more than a few of these corporations have sold out or went bankrupt during the first 10 years so you the patsy property owner invested in a not so honest project – Does anyone have any data on 1 of these TIF projected that actually matured and the city/county benefited from it. Vegas odds 8 to 1 against it .
A bankruptcy would not jeopardize TIF funding. Tax liabilities are not dismissed by a bankruptcy. Real property does not ‘disappear’ if a company goes bankrupt – it still exists and generates tax revenue. If the tax liability is unpaid, it simply goes to tax sale where the city/county will still get 100% of the tax monies.
Jordan Creek Mall in West Des Moines was TIF financed. The City of West Des Moines has made money hand over fist on that deal.
Oh contrare’,
Southbridge went into bankruptcy and the Mason City Council agreed to cut their taxes in half. When the TIF District was established for Southbridge Mall, the Centers Company signed a contract with the city for a tax payment that would equal the City’s General Obligation Bond payment. This citizens were promised it would cash flow! That turned out to be a pipe dream. The taxpayers of Mason City ended up paying for approximately 1/2 of the Bonds.
The Renassiance Project is yet another pipe dream. It’s a horrible scheme that has been foisted upon the citizens of Mason City. Sell the folks a pie in the sky and everybody jumps on board going rah, rah, rah. In the end you end up spending a huge amount of money on a project that can’t succeed. This project too will never cash flow.
All the promises up front by the promoters just won’t hold up. Everybody makes their money DOING THE DEAL and could care less if it’s successful or not.
That is the way this whole thing will turn out. Mark my words!
I looked on the assessor’s property search page, and the mall is not assessed for $1.5M. It’s assessed for over $4.5M. I think the author of this letter is either confused or doesn’t have all the information.
Pretty easy to see that City Officials were planning on using the under assessed value to be re-assessed to the actual value of the Southbridge Mall after the new TIF district is created.
It looks to me that the Mayor and City Council intends on using part of our EXISTING tax base to help make the bond payment on the General Obligation Bonds.
I have to wonder if our City Council knew about this or they were kept in the dark too. With this out in the open the City Council needs to put this on the agenda and ask for a formal review of the assessed value before the TIF district is created. This is clearly ripping the tax payers off!
Assessments for tax purposes are based on market value. The market value of the mall is $1.5M. Even a NIT reader should be able to understand that.
The market value is more that 1-1/2 million dollars thank you. Time to get real!
The mall just sold in an open market between a willing buyer and a wiling sellerfor $1.5M. That is its market value. It’s the very definition of market value. What don’t you understand about this?????
This sounds pretty serious to me. I find it strange that some commenters want to minimize and ignore that Southbridge Mall is under assessed. This needs to be looked into and assessed valuation reviewed before and new TIF district is established.
Also, the some or all of the back taxes that are still owed were the taxes that were owed during the bankruptcy proceedings. Bankruptcy does not wipe out tax debt. I am sure the fellow that bought the mall from New York was aware that back taxes were owed when he bought the mall.
What ever happened to the school officials taking our money to give them selves rsises? They should be in jail and need to pay us tax payers back..the loser mall is no different . No one uses the music man square but let’s build a Skywalk to it..wtf!! This town is a joke!
And doesn’t the writer of the article know that the owners owe more than $200,000 in back taxes? Sheeesh, who is this clown?
Willowbrook Mall has had $800,000 in remodels done in the last six years, and in that same time Southbridge has had about $300,000. Now if you are to compare those numbers to the square footage you can easily that Willowbrook is in much better shape. The rationale that a larger building is worth more is just pure ignorance. That’s like saying a house built in 1900 is worth more than a house built in 2017 just because it’s larger, even if it’s in poor condition. Market value is determined by what a building is worth in the open market and what people would be willing to pay and a monstrosity like Southbridge isn’t going to have any buyers. Why would someone buy a mall that is empty and needs $3 million in updates? So really, the assessed value should be closer to $1 than $1.5 million.
Matt is the puppet master who is pulling your strings with tabloid “news” from made up anonymous sources. Matt and a few of his buddies are the infamous Concerned Citizen and you guys take the bait every time. Lol
No Phyliss, that is not the case. There are some very concerned citizens in Mason City that know this whole project is crooked through and through.
Mr. Marquardt has absolutely nothing to do with the issues I have raised. They are very real and they any right minded honest person should want them looked into.
There are many many people in Mason City who are very thankful to Mr. Marquardt for allowing us to have a voice and a platform to raise our concerns.
It is called Free Speech and Free thought.
Then let free speech step forward and identify himself, armed with some well researched information instead of shouting fire in the theater. Then I will buy your argument
Phyllis is really Philosopus who is really a certain banned Greek from Clear Lake.
Real property is to be assessed at 100% fair market value for the purpose of tax assessment. Since the mall just sold for $1.5M, its a very easy exercise in determining its full market value.
Your comparison to a home sale is not valid. There are hundreds of homes for sale every month and its quite easy to determine a market value for a home because there exists a HUGE database of comparable sales. There are few indoor shopping malls which come onto the market and consequently there is virtually no comparable sales data.
An appraisal will tell us all what the assessed value should be. Market value is not the only yardstick used when assessing property value. I am sure the fellow who was lucky enough to pick this up at a bankruptcy sale would be more than happy to sell it for 3 million. He could double his money.
With a mall that has 220,000 square feet and leased out 170,000 square feet at $7.00 per square foot you would gross $1,190,000 annual income. Allowing 35% overhead you will net $773,500 per year income. You would have your entire investment returned in 4 years. That is unheard of. The mall owner could drop his rent to $5.00/sq. ft. and still make money.
The new owner fell into a gold mine and the taxpayers of Mason City are being used. This mall has been nothing but a pain in the butt from the time it was conceived.
Common sense this requires a NO VOTE!
Market value is the ONLY value used for determining property tax assessments!!! That’s right in the Iowa Code.
I’m sure the new owner probably would sell for $3M too. Problem is, you’d have to find a buyer willing to pay $3M. Its the definition of market value: The value a willing buyer AND a willing seller would agree to. Market value is not what a geriatric curmudgeon from Mason City thinks a property is worth.
Your lease figures/sq foot would have been great in 1990. Look around. With few exceptions, in 2017, you can’t give away brick and mortar retail space. If you were a retailer investing your money…Where are you putting it? ecommerce or a enclosed shopping mall?
Fantasy numbers. Liars figure and figures lie. Imaginary numbers don’t count for much. Past performance adjusted for present conditions are in the ball park of the current accessed value.
Wake up all you conspiracy theorists! Let’s hear your wildest, most bizarre thoughts in reaction to an unnamed source with a vague notion about a mysterious allegation. Knock yourself out Jerks.
Why do yo think that it is necessary to call people names.
Why all the negativism? It does sound like there is something fishy. You are just mad because someone has exposed something underhanded that has went on. Clearly Southbridge should be paying more in taxes than Willowbrook! Duh.
Just talked to a Real Estate Appraiser and here is what has been recommend.
The Cerro Gordo County Board of Supervisors and the Mason City Council should both require a Commercial Appraisal be completed and meet with the County and City Assessors and demand that the assessed value for the Southbridge Mall be set at the proper tax assessment before the Southbridge Mall is placed into a new TIF district.
This whole project is fraught with contempt for the taxpayers. We must demand this action. Call your elected officials both county and city as this effects us all.
This why the folks of Mason City should really look at voting NO for this project. There are a bunch of young guns pushing for this but in if you listen to them they want NICE PLACES to go and drink, Vot NO
Willowbrook Mall for tax year 2016/2017 is assessed at $3,484,730 with a net tax of $111,720.00
Southbridge Mall is clearly bigger and worth more than the Willowbrook Mall.
This clearly begs for an INVESTIGATION. The taxpayers are being ripped off.
Assessment is based on Market value. What’s a bigger deal in real estate? Location or size? You know the answer.
Willowbrook market value is indisputably higher.
Why didn’t the Assessor have ask for an appraisal? Something clearly stinks here! Southbridge Mall is in good shape and would easily appraise over 6 million dollars.
Good shape? the roof is falling in.
While I agree it should be investigated, good luck getting this council to do it as they are complicit in the scam and so deep in Eric’s pocket they can’t see the light.
While I agree it should be investigated, good luck getting this council to do it as they are complicit in the scam and so deep in Eric’s pocket they can’t see the light.