Mason City council approves agreement with G8 Development to build hotel in downtown (video)

MASON CITY – The Mason City council on Thursday night approved an agreement with G8 Development, Inc. to build a hotel in the downtown in connection to the Renaissance Project.

Infighting that divided elected officials in city hall and the shot-callers at the downtown Commerce Center into camps favoring G8 Development and Gatehouse Capital came to a head at Thursday night’s City council meeting as the Renaissance Project once again hung in the balance. A failed vote for G8 surely meant the Renaissance Project would be doomed; NIT learned just minutes prior to the city council meeting that the “VOTE YES” posse that recently trekked to Des Moines to lobby for millions in state funds was lambasted by at least one economic development board member for rampant disorganization and failure to produce key elements in the project. A signed agreement with a hotelier and that hotelier’s ability to inject millions of private dollars into their project was demanded by the board; the council knew that failure to produce Thursday night might be a deal-killer.

The drama quickly subsided, however, when known Gatehouse supporter Councilman John Lee stated he was not going to vote against the agreement with G8 (he had previously abstained). Days earlier, however, Lee may have been stoking the civil war in town when he apparently leaked an email he received from a Gatehouse executive to KGLO radio (known to support Gatehouse); this resulted in a story that slammed G8 supporter Mayor Eric Bookmeyer for alleged “malicious accusations” and used other terms or phrases like “reputation has been questioned” that might lead the reader to think of the word “lawsuit.” It’s widely known that G8 Development is suing the City and Chamber Director Robin Anderson for meddling in their business.

Prior to the vote, Chamber of Commerce honcho and Park Inn hotelier Steve Noto spoke at the public forum and expressed dismay at the continued, vicious infighting between the two camps who favor different hotel developers. Mr. Noto, who favors G8, put KGLO’s Robert Fisher on the hot seat for alleged questionable reporting. KGLO and some of its employees are known to support Gatehouse. In fact, G8 owner Philip Chodur blasted Fisher for his alleged bias in the matter, telling him in an email this week “Mr. Fisher, It is crystal clear what your agenda is since boss is Delena Barz, an outspoke critic of G8. I question your wisdom and Delena Barz’s wisdom in putting the State grant at risk.

“I question the integrity and moral compass of those that chose to interfere in the contractual relationship between the City and G8 Development for their own personal gain,” Mr. Chodur continued.  “If you and Delena are truly interested in the betterment of the City, it is time you stop the nonsense and get behind moving this project forward.”

Fisher wrote, “I will correct myself. I apologize.”

Former city councilman Max Weaver also spoke; he criticized the plan and alluded back to his “Plan B” project which he claims will cost the city less. He also blasted Councilman Bill Schickel, a known Gatehouse supporter, for his alleged dubious demand that the City pay Gatehouse tens-of-thousands of dollars for invoices that later proved to be “void”.

One Mason City property and business owner at the meeting told NIT, “If this is true, that Bill Schickel wanted to pay for bogus Gatehouse invoices for a project they will reportedly never complete – I weep for the future of this city. We know Schickel has a dubious past here as an elected official and he seems to be picking up right where he left off years ago. I am in shock and awe at his lack of real-world business experience and common sense. I hope NIT will dig into this serious accusation and find out if it is true. Perhaps he should resign if it IS true.”

Council discussion followed. It was clarified that Mr. Chodur’s lawsuit against the City would be dropped within days of a signed agreement with the City. Various elements in the agreement, such as a rebate on hotel/motel tax collections at the hotel, were discussed. The council voted 6-0 to approve the agreement.  The hotel would be built in the Southbridge Mall parking lot south of Younker’s as part of the Renaissance Project, which also includes a museum, skywalk, convention center, arena and pavilion.

Mr. Chodur told NIT Friday afternoon, “We at G8 want to thank the Mayor, Council, and City staff for their tireless efforts to push this project forward. We look forward to working with the Mason City Foundation, Gary Smidt and Steve Noto to create the best possible venue for Mason City. We truly believe that this will become the go to City between Minneapolis and Des Moines.”

Next, the “VOTE YES” posse will likely attend the next economic development board meeting in January in Des Moines and seek the board’s approval of millions of dollars in state tax kickbacks to the city to help pay off millions in general obligation bonds backed by city taxpayers.  An affirmative vote by the board would set off pre-construction planning and activities that would lead to ground breaking.