City of Mason City
are being sued in
Cerro Gordo county
by G8 Development.
MASON CITY – The developer tentatively selected to build a hotel in downtown Mason City also has a pending lawsuit against the city’s top shot-callers and will drop the legal matter – but only when a final deal is signed, NIT learned Thursday.
G8 Development of San Diego was the original choice to build a hotel in downtown Mason City, dating back to 2013, but then was unceremoniously ousted this past spring after some delays. The City Council changed direction and chose David Rachie’s Gatehouse Mason City, LLC, to build a hotel. This prompted G8 to sue the City of Mason City and Robin Anderson of the Chamber of Commerce for allegedly meddling in the deal. In recent weeks, however, the tables turned. Two factions formed at the top of the feverish, public-money-hungry “YES” gang – one in favor of bringing G8 back into the hallowed Renaissance Project and another that favors staying the course with the new hotelier of the day, Gatehouse Mason City, LLC – called by some a “paper tiger” incapable of following through. Things came to a head at a late November council meeting when Gatehouse was revealed as a possible sham that could cause taxes to rise. As the Renaissance Project’s fate hung in the balance, Mayor Eric Bookmeyer and his council members that favor G8 brought the Gatehouse crew – Bill Schickel, John Lee and others – to their knees. Schickel was humiliated and forced to do something he didn’t want to do – sneak into closed-session, come back out with his tail between his legs and vote to bring back G8 as the favored hotelier in the Renaissance. It seemed the project was all set to move ahead.
Anderson:
SUED
However, things are not always as they seem in the politics of Mason City. State officials chased the “YES” gang out of Des Moines last week with more homework to complete – they must produce a signed agreement with a hotelier that can produce private capital of upwards of $10 million towards the project.
by Eric Bookmeyer and
brought to his knees,
forced to support G8 Development –
but is he secretly plotting
to bring Gatehouse back to town?
NIT and others have received word that as the out-going mayor and council leave office, seemingly with G8 as the Renaissance hotelier, Schickel and his downtown henchmen are plotting yet another revolt using their New Order set to take office. The word in the NIT newsroom is that Schickel, John Lee and others may or may not approve an agreement with G8 when the vote comes up at this Tuesday night’s City Council meeting. Regardless of how that vote goes (it could be a tie, 3-3), Schickel’s crew may have already begun working to bring Gatehouse Mason City, LLC, back into the mix then or soon thereafter immediately in January – perhaps as soon as the very first City Council meeting of the year – when a new council is seated.
As these developments and rumors continue to swirl, folks out West have been clued in and are learning more about a possible plan to again replace G8 with Gatehouse. This culminated in an ominous statement released Thursday by G8 Development regarding a key piece to the puzzle – the pending lawsuit they have that could drag the City and it’s Golden Keyholder – Robin Anderson – into a courtroom.
The statement from G8 Development reads:
In regard to certain questions presented to us about the Lawsuit Dismissal: (Timeline and why it has not been dropped yet?) Please see the attached draft of the dismissal that has already been prepared and is ready for signatures once the City has signed the PSDA.
Here is the Paragraph from the Purchase Sale & Development Agreement (PSDA) which states…
“Section 7.14. Dismissal of Litigation. Within five (5) business days after the Commencement Date, G8 shall dismiss with prejudice the pending litigation in the Iowa District Court in and for Cerro Gordo County captioned G8 Development, Inc. v. City of Mason City, Iowa and Mason City Chamber of Commerce Foundation, Case No. CVCV070631. Each party shall bear its own costs and expenses related to such litigation”
Our attorney will not allow the suit to be dismissed without a signed agreement.
Seemingly, if Bill Schickel and his new council once again oust G8 as the hotel developer in the Renaissance Project in favor of the questionable Gatehouse, G8’s lawsuit will be going forward and could possibly intensify. We’ll have to wait until Tuesday night to see what develops next. Theoretically, if G8 were to produce proof (a bank document, for example) at Tuesday night’s City Council meeting of adequate private capital to inject into the project, it would be hard for the council to turn them down. State officials would get the signed agreement from a hotelier with financing in order, they would then sign off on millions in state dollars, and the project could break ground.
Now Gateway is billing the city for expenses incurred. We have already paid in $150,000 for expenses on this dead deal and now they want more. This has been mismanaged by the city from the start. Nothing surprising for Eric and company.
You do know for a fact that NY City built a skating rink – 5 years later and double the cost – NOT FINISHED ! Guess who came in and completed the project for pennies — DONALD TRUMP and company – There are doers – talkers and CROOKS – in government mostly the latter.
Schickle should resign immediately. This is nothing but a Cluster F—-K!
What a Cluster F—-K!
cIty ought to open open up brothel there and bring in some good revenue. Know a few ladies that would be willing to go to work
The boarded-up American Inn is sitting a block away, and is an eyesore in the downtown! Could probably get that one pretty cheap, and clean up a mess at the same time. Isn’t it supposed to be for sale? There’s no sign anywhere.
Music Man Square’s website is down now, too.
Hey! One looks like a tax man and the other looks pleasing. So, what you gunna do. Vote yes/no? – Ace reporter
Shut down the whole damn project. It is nothing but a cluster F—–K.
Also just for shits and giggles can we start a web site here called What would Loni say as I feel she is the most educated on this project?????
Loni Dirksen is a nice young woman, but completely clueless.
In this case, she is nothing more than rah-rah cheerleader for Bergland-Cram & others.
She knows nothing about the intricacies and details involved in a project like this.
But but but Loni organizes an inebriated underwear party downtown. She must know a thing or two about a thing or two.
Come on Mayor and city council this pumpkin head is black mailing you guys. He wants the papers signed so when the deal falls through he will sue the shit out of the town of MASON CITY. Man we really got Trouble with a capital T right here in River City. Wake the f**k up!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!