MASON CITY – In yet another bizarre twist to the downtown Renaissance Project in Mason City, the city council ditched the hotel developer they previously selected months ago in favor of G8 Development – which has a pending lawsuit against the city.
G8 Development, owned by Philip Chodur, was pitted against David Rachie’s Gatehouse Mason City, LLC, Monday morning in a bid-off in city hall. The “best deal” would then be chosen later that same night by the city council.
At that meeting, we learned Rachie didn’t change his deal, but Chodur came in asking for less dollars to get started on the hotel project and a smaller long-term interest-free loan ($3.7 million instead of $4.2 for Gatehouse). He allegedly missed deadlines on the Renaissance Project when his G8 was the hotelier of choice by city officials, leading them to snub G8 in favor of Gatehouse this past spring. He sued the city and Chamber of Commerce Director Robin Anderson for that and the lawsuit is pending, for now.
Monday night, the votes for G8 were not there – at first – and that proposal was voted down 4-2. It then became apparent that Gatehouse did not have the necessary 4 votes to pass after Mayor Eric Bookmeyer lambasted Rachie and his Gatehouse LLC, formed in Minnesota, and with no ties to the “real” Gatehouse hotel developer in Texas.
Councilman Travis Hickey promised that if Gatehouse was the chosen hotel developer – which it was until later that night – taxpayers could expect a tax increase later.
“This is not a great deal,” the Mayor said about working with Gatehouse. He pointed to “mistruths” about Gatehouse’s ability to follow through with the deal and the alleged inability of the Mason City Chamber Foundation to back up the security of the General Obligation bonds in the project.
Mayor-elect Bill Schickel then called for a recess to privately discuss the matter. He and Councilmen Paul Adams and John Lee adamantly supported Gatehouse as the hotel developer.
Coming out of the recess, G8 was selected on 5 votes to one abstention – by John Lee. Failure by the council to choose affirmatively either G8 or Gatehouse could have killed the entire Renaissance project.
The next steps in the Renaissance Project weren’t immediately clear, but supposedly, the City will have General Obligation bonds sold soon to get the project funded and off the ground.
Read their lips, no new taxes.
John Lee has no business on the city council. It has been absolutely ridiculous watching him in this position. How embarrassing.
“This is not a great deal,” the Mayor said about working with Gatehouse. He pointed to “mistruths” about Gatehouse’s ability to follow through with the deal and the alleged inability of the Mason City Chamber Foundation to back up the security of the General Obligation bonds in the project. ….can I just add OMG these people placed MC in an “all in” situation and now it’s falls apart.
JOHN LEE must have failed business and math at UNI so he became a history teacher. He leaks confidential information. Then can’t show up to the next council meeting. Then babbles during the meeting and ultimately doesn’t vote because him bill and Paul were the losers. Exactly who is he representing? Himself and that is why he needs to resign.
Still predicting in 10 to 15 years this will be yet another blighted area in Mason City along with Toll-bridge!
FYI: I hear there is a new retail development in the works including a Mall near here on I-35. This will be the end of Mason City retail and downtown forever should that come to fruition.
So will it be built by city hall now, or by music man square? this is ridiculous
Neither its going by Kum & Go central(yes way)
I-35 Mall will probably be built at 18 & 35, as the gas station and cement factory have been torn down. Prime ground & perfect location
Would have been a great location for an ice arena too.
There hasn’t been a mall built in this country since 2006. There is no mall being proposed off i35. No one in their right mind would build a new shopping mall anywhere.
If you were a retailer, where would you invest your efforts? In a indoor shopping mall or ecommerce???
Ever been to Jordan Creek, Eagan or Altoona?
What should we do now, Loni? Grab a bottle of wine; we’re all looking to you!
maybe the economic development expert/mens clothes sales clerk with the horrible haircut can help
…one other thing…Mz Solberg…you have just a few meeting dates left before you are out the door…either stick to your regular “non-informational back-slapping” gratuitousness and save the rest of us from our constant head shaking, whenever you speak!
…I am still laughing from the presentation put on by the current city council during last nights “vote”! This reminds me of the old “which color should we paint the new water tower bit”…just where do you people (council members) have your heads??? I voted to MOVE AHEAD with this project even as we have a much better site (the Sears shopping center) for the new ice rink, but in the end we the people of the city, watched last night as members of the council didn’t even have the guts to move for a motion, let alone trying to muster a “second” for the motion! Thank goodness we have another election coming in a couple years which will allow us to get rid of the rest of the “do-nothing” council members still “hanging” around…how embarrassing that show was! Mr Lee, you might want to start packing “your” bags now…!!!
The Sears site is terrible for a multi purpose arena! What possible ‘good’ qualities do you see with that site?!?!
Multi purpose arenas belong in city centers to maximize tax revenue generation.
Much better traffic flow at Sears sight. You need to take a poll and see how many people avoid the current mall and surrounding stores cause they hate to drive there and try to find a place to park. There is something to be said about easy access to your event.
BIG fallacy in your logic. The demand for a concert/show is nearly inelastic whereas the demand for clothes or shoes from a brick and mortar retailer is very elastic. People will go to a multipurpose arena no matter where it’s located because there are no close substitutes.
A multi purpose events center belongs in the city center because it maximizes revenue generation. It’s the very same reason a grocer puts the bread and milk at the back of the store
Is that where that kid gave Lee that letter by the milk and bread? I was thinkg probably by the baloney.
“Loni” any words of wisdom? “Oh help me Mr. Wizard”
John Lee you look like a whipped pup on tv. You need to swallow your pride and get the hell off that council. Man we can all see your not in the right frame and mind for this position. GET OUT,
Repeatedly trying to rescue deteriorated city centers is throwing good money after bad. When will people figure that out? Target the direction(s) the city is growing in for improvements/attractions. Fiasco #1 was putting the mall where it is: Blocking the N-S artery in town, Federal Avenue.
There is something truly wrong here, is the vote even legal anymore. I wonder how long Hickey knew that if Gatehouse was chosen, “taxpayers could expect a tax increase later”. This is turning into a FUBAR.
I am sitting here shaking my head. It was always obvious that Gatehouse was a “shell” corporation with no skin in the game.
Gatehouse and their contract with the city needs to be published now for us all to read. We should know our and their responsibilities before moving forward.
Moving forward we need wise council for our City Council and Mayor! Mason City needs to hire an experienced “project consultant” to act on our behalf to protect the City while moving forward.
There are just to many questions over the FINE details that need to be resolved before you sign on to the final product and insure success. A project manager would be an asset in getting to the final goal in a timely and succinct manor. Past experience tell me it would be cost saving to do so.
G8 – at least we know the project will not cost the taxpayers because it will literally not get off the ground
More cooked people in DC than our federal prisons.
In case you don’t recall – NYC had a skating rink under development for over 5 years never finished – Trump and his construction boys came in and finished it UNDER BUDGET ! It would still be sitting their unfinished – And this was BEFORE the Trump threw his hat in the political ring of liberal thieves and elite corporate owned republicans – More crooked people in DC than in most of our federal prisons.
Sell those bonds to the banks $$$$$ – Their the ones really making the moola on this deal – who’s the contractor $$$$$$ — Whom might be the losers ? Just a thought.
WE”VE BEEN DUPED!!!
I told you so!
Tax payer burden…..this whole project ‘could’ very likely be a tax payer burden. What happens to the ‘hockey arena’ at the fairgrounds? Is this project going to ‘fill the vacancies’ at the pathetic mall downtown? ……I’m done Christmas shopping….all done on line. { I’m a senior citizen }
$150,000.oo already given to Gatehouse…..bye, bye…tax payer money……. again ! Will Gatehouse ‘sue’ the City ?
Oh and……the city should hire within the Fire Dept to replace Dyer. Save tax payer dollars, please !
Did I hear Janet Solberg correctly when she stated, at the council meeting last evening, that there should be a ‘water park’ also built with the new hotel downtown?
John Lee…..pack your bags, take a permanent vacation, please.
What a Cluster F—K. When G8 fails, and it will fail, the city will be on the hook for all of these costs. Lee should resign, he is just a empty seat on the council.
What a Freakin’ joke! The people that voted for this project, voted for the Gatehouse project in the mall parking lot, NOT the G8 project with the hotel by city hall. What a mess! Now we lose the valuable parking lot downtown…This Stinks!
It is my understanding that the hotel will sill be in the Mall parking lot and pretty much the same project just with a different developer, G8 instead of Greenhouse, that gave the city a better deal. There will not be a hotel next to city hall or an parking ramp.
It’s a good thing they didn’t do all that infa-structure work like they wanted to last summer.
What a Cluster F–K. When G8 fails (and it will fail) the city will be on the hook for all the costs. Lee should resign. He is a waste of a seat on the council.
JOHN LEE needs to stick to teaching history. He has no business sense whatsoever. If you watched the meeting last night you will see that JOHN doesn’t understand simple math plus he can’t be trusted. Time to go JOHN.
Is it safe to assume that the revised G8 bid isn’t as bad for MC as the Gatehouse bid? It looks that way.
Fantasy land game, opt out option needed for those who do not wish to play.