demanded that invoices worth $110,000
be paid despite being invalid.
MASON CITY – Bill Schickel demanded bogus invoices totaling $110,000 from Gatehouse Mason City, LLC, be paid by the City even as they were owed nothing and the process of signing a final agreement with a hotel developer for the Renaissance Project was still in motion.
LOCATION IN MINNEAPOLIS
NIT has confirmed that former city councilman and newly-elected Mayor Bill Schickel marched into the City’s finance department between November 16 and November 21 and demanded that invoices from Gatehouse Mason City, LLC – invoices that turned out to be “void” or bogus – be paid by the the City. The invoices totaled $110,000 and were submitted via email to the City’s finance department at 2:37 PM on November 16 by Donald A. Kaiser, who owns 5541 Clinton Avenue in Minneapolis – the single-family house where Gatehouse Mason City, LLC is located. At 3:51 PM that same day, the finance department responded by saying “Any payment will take place after” a November 21 city council meeting in which the council was considering an agreement with Gatehouse.
Additional to the fact there was no final agreement in place, as the Globe Gazette reported on November 18, “No payments are due to Gatehouse until there is proof a senior lender has been secured.”
A high-ranking City employee who handled the invoices told NIT, “Bill Schickel stopped in and asked that they be paid.”
Schickel admitted he went to the finance department in reference to the payment of the invoices. He told NIT, “There are obligations that we place on developers and obligations that the city commits to.”
Schickel was then lectured by this City employee on “the need for a signed development agreement.”
The City did not pay Gatehouse Mason City, LLC, for the questionable invoices. There has never been a signed final agreement between the City of Mason City and Gatehouse Mason City, LLC, to build a hotel – but Schickel wanted these three invoices ($30,000, $30,000 and $50,000) paid, anyway. This would have been in addition to $150,000 that was sent to Gatehouse’s David Rachie for a “Predevelopment Plan”. Bill Schickel and the rest of the city council voted unanimously on May 11, 2017 to hand over the $150,000 to David Rachie’s Gatehouse.
Interim City Administrator Kevin Jacobson told NIT on November 29 the $150,000 is gone and not recoverable.
“I would imagine it is all spent,” Mr. Jacobson said. “I’m not sure what he did with the money.”
for one more payday when
$110,000 of questionable invoices
were sent to City Hall,
and why did Bill Schickel
demand he get paid?
On March 21, 2017, the city council voted 5-0 (Bill Schickel absent) to direct city staff to meet with Gatehouse Capital representatives to negotiate and develop the terms of a development agreement. Although the City continued to work with Gatehouse in the following months, frustrations mounted at a lack of progress and later, Gatehouse altered its original proposal to the city. This opened the door to the city accepting competing bids for the hotel in connection to the Renaissance Project. G8 Development, Inc., ousted by the city council in March as the hotelier of choice in favor of Gatehouse, submitted a competing bid on November 21. This led to a bid-off at City Hall between G8 and Gatehouse on November 27. As a result of that bid-off, G8 Development was selected that night by the city council to be the hotelier of choice with the Renaissance Project.
Speculation continues to swirl in the community as a new mayor and council are seated tonight as to whether the City is done playing musical chairs with hotel developers. Will Gatehouse be brought back, and as millions of dollars hang in the balance, will state officials stand for yet another change to the Renaissance Project?
————
INVOICES SUBMITTED ON NOV. 16 BY DONALD KAISER:
“Please find attached invoices for Preconstruction Services for Gatehouse Mason City for November and December, as provided in Section 9.1.b of the Purchase, Sale and Development Agreement. Also attached id the invoice for the Hyatt Place Application Fee Deposit.”
44 thoughts on “Bill Schickel demanded bogus Gatehouse invoices totaling $110,000 be paid”
Matt, How about contacting Bill Schickel and asking for an interview? I think that would make for some interesting reading, plus he gets to air his side of the story. How could he deny your request?
Buzz, we have a serious problem of apathy. The people of Mason City feel it is a hopeless cause. We are in desperate need of a leader that can bring about positive change.
We need a MAKE MASON CITY GREAT AGAIN!
Great watchdog work NIT. This is a clear, clear example of the YES mob run amok. Voters were mis-lead, illegal campaign tactics got them the elections. Schickel and crew think they have open checkbook as result. Sick.
That’s because ole dill pickle Bill was getting kick back. You scratch my back I will scratch youra.
Voters should literally pick a homeless person and elect them to city positions. Do the opposite of everything you thought to be true. Put Transition center people on the Council. Flush it all out and start anew.
Duh there is a group. See? Haters only know hear what they want and spin it their way.
Sickening
What’s this Max is irrelevant shit. Your’re irrelevant when off the planet dummie, even you, yikes even you. DUMB statement. ANYONE who stands up for your right or gets out the other side of the story is relevant. Damn it, exactly why we Are where we Are in This town, so F-ing Stupid!!!!!!!
First of all, Max is Max and he does what he does. The problem is Max can’t get elected! That makes him irrelevant when it comes to getting his message out and motivating people to get off their dead ass and raise hell to help him so the tax payers quit getting screwed.
One man can’t do it alone.
Tehe, right Max is the one person taking it on. You get out there and tell the truth about everything….you’ll be hated too. That alone tells you how strong he is, who wants to be hated?
People cannot handle the truth in any situation, you get called out and denial rears it’s ugly human trait. Which is going on with so many citizens of the town, especially the ones who vote.
Clearly obvious.
Why don’t some of you who are so willing to speak here form a citizens group and go into the neighborhoods and inform the people in all the little houses what is going on.
Show some leadership instead of yelling Max, Max, Max.
Come on lets see some grit!
G8 has until today to drop the law suit against the city or else they are back to square one and I am pretty sure the state will say no way. The Cluster F—–k goes on and on.
HAHAHA – take that yes voters!! HAHA
As usual another “story” driven by editorial gossip and innuendo. If Matt had a pair he would confront Shickel directly.
I do not give a hoot how decorum is served up.
I want the truth and I want my money when our leaders are involved.
None of this quiet ramblings of a mouth that you have to say wWHAT? See recent videos. I’m still asleep.
Any well rounded brain knows….Max is right on !
Right or wrong Max is still irrelevant. His time has passed. It is time for the community to learn to stand on it’s on two feet instead of putting that responsibility on one person.
We need a new face of reason to surface in Mason City and provide some leadership. At this point it is sadly lacking!!!!
Shut the f up. If Max had that much power you think he’d stay here.?
I really like you saying that, it really proves he does.
As long as the truth be told as he certainly does he is relevant!
You are just passed he was on to you or told you whatever you are in denial about. Sooo funny!
Really a despicable display of power by the mayor-elect. It is not the job of elected officials to micro-manage city staff. Especially city staff that are in another stratosphere of expertise than Schickel could ever dream of. This demand by Schickel puts the employee in a position of doing the task or possibly facing a consequence.
Headline: “Bill Schickel demanded bogus Gatehouse invoices totaling $110,000 be paid.”
Source: “Bill Schickel stopped in and asked that they be paid.”
Editorial bias, anyone?
When an elected City official tells a City employee to do something – that is a demand. Their job could be at stake by saying “no”.
Things like this happen quite a bit in this city government. It goes against policy/rules, but do it anyway.
I call it, Editorial Truth!
I call it someone’s always on the take!
He’s a little banty rooster, in a coop of foghorn leghorns.
You folks do know that Schickel is a Left Wing Liberal posing as a Republican.
you are 100% correct
Cripes whateeeeveeeer….if you are a guy you should love a strip club..if a woman your just scared your husband would go. Don’t like em don’t go. Simple.
Mason City was a blast in those days! The pea brain leaders now should reflect to then, this place could be fun again! Other things going on not just strippers. It started with the mall. DUMB!!!! Oh and you have it all worded wrong about Weaver and Target AND strip clubs for that matter. No one really listens to Max, try it ONCE. RISE above your hate for him .
If he offended you in your history with him and that’s why you hate him ask yourself and dig deep now, if it was true or accurate. Bet you a mil it was! WHAAAAAA!
We NEED Weaver !
No, Max is no longer relevant! We need new INTELLIGENT leadership.
Sorry Max, it is what it is.
Weaver is an idiot who has a self serving agenda to keep resist all change. The man has literally chased away business through his childish antics and lack of decorum.
Does schickel ride around town on a bicycle? I think it was him I nearly hit last summer when he blew through a stop sign. Probably thought sharrow made it ok.
This gets more bizarre by the day. The State needs to nonfund this debacle.
Haaha, pretty true. The Good news…..THE 2000 THAT VOTE ARE THE DUMMIES !!! I MEAN LOOK AT WHERE WE ARE AND WHAT WE HAVE….YIKES, YES YOU KNOW WHO YOU ARE…..you rallied, you payed people to vote your way, you run the place with your money, ya you know who you are. I wouldn’t call the state of our city in great shape and faaaaar from being cool, so YOU made it this way…YES YOU!
Probably better start believing what Weaver is trying to get in our hateful brains,, because we hate him makes for a dead ear, I think we should turn up the volume and take heed of what he says.
Too many times Weaver is right, I hate to admit it. I have cringed when it all turned out the way Weaver had warned but new year new thought process for our own good. I really can’t take much more of the raw shenanigans by now this mayor and crop of voted in dummies.
Ahhhhhhhhh? Weaver wanted strip clubs downtown and thought that Pursuing the Target distribution center was a bad idea. The guy is a total dullard
Weaver stood up for the “rights” of owners of strip clubs. They too have rights you know. Your demeaning of Weaver it a turn off to intelligent people.
The fact is Weaver is usually right when it comes to the issues. If you want to complain about his approach to issues you will find many that agree with you, including me.
The problems you Weaver haters have is you just hate for the sake of hating!
The one thing Weaver is not is a Dullard. I don’t always agree with Max but he always does his homework. He knows where to look and knows a lot of people. I disagreed with him on the Park Inn and still do. It has done absolutely nothing for the taxpayers of the city. Like all the other schemes by the Chamber of Fools it benefits special interest and the expense of the taxpayer. This new project will be the same thing.
Spot on! And the only reason Weaver supported the Park Inn was to curry favor with some of the elite. It didn’t work. The Chamber and elite will never support Weaver. Mr. Weaver’s elect-ability is “O”.
He reminds me of Steve Bannon. He pouts when he don’t get his way!
You may be right, but it is to bad. No matter what people think of Max he always has the interest of the city in mind. As I said I don’t always agree with him but I do respect him. He can do a lot of good by keeping the crooks on the council honest.
So instead of strip clubs, what do we get? More bars, no difference their, just more places to keep Mason drunk and stupid.
I can no longer trust Bill Schickel and that is why i DID NOT vote for him! This whole project is a corrupt mess!
Why would anyone in their right mind PAY someone to enter into a development agreement?
Have we no bid process to protect the taxpayers?
This entire process defies logic!
Protect the taxpayers? Are you joking? The rich are robbing this town blind! And the citizens are too dumbed out to care or do anything about it. It’s a free for all!
So why isn’t anyone standing up and actually investigating this if it’s bogus? Are people scared to speak out or they just done care?
FOR A STATE INVESTIGATION NOW!!!!
Kickbacks???