DES MOINES – Today, the IEDA board approved the maximum benefit amount of $9,162,600 for the Mason City Downtown Reinvestment District plan submitted by the City of Mason City. This approval was made with contingencies that include weekly project updates to IEDA staff and receipt of requested documentation by the deadlines outlined by the IEDA board.
This district includes four projects:
- The first project in the district is the proposed Downtown Hotel. Branded as a Marriott, this will be a 4-story, approximately 100-room “select-service” hotel, with guest amenities such as a workout room and “boardroom” meeting spaces.
- The second project is The Music Man Square Conference Center and the Meredith Willson Museum. The project includes renovating the existing Music Man Square into a conference center serving small to medium sized conferences, meetings, and receptions capable of accommodating up to 650 guests. Relocation of the Meredith Willson collection and other artifacts requires construction of a new Meredith Willson Museum.
- The third project is a Skyway over South Delaware Avenue/US 65.
- The fourth project is the Sports/Entertainment/Retail Complex. This project includes two components, the Performing Arts Pavilion and the Multi-Purpose Arena, both involved in the “repurpose” of Southbridge Mall.
The Iowa Reinvestment District Program is designed to assist communities in developing transformative projects that will improve the quality of life, create and enhance unique opportunities and substantially benefit the community, region and state. The program provides for up to $100 million in new state hotel/motel and sales tax revenues to be “reinvested” within approved districts. The full $100 million appropriation has been allocated with the approval of Mason City’s project. Districts cannot exceed 25 acres in size and must be in an Urban Renewal Area.
Iowa Reinvestment District plans must include tax revenues generated by “new retail establishments” and “new lessors.” New retail establishments cannot exceed 50 percent of the total proposed capital investment. At least one of the new proposed projects within the district must reach a total capital investment of $10 million. And, the total amount of new tax revenues to be remitted to the municipality cannot exceed 35 percent of the total cost of all proposed projects in the district plan.
There is no “lump sum” check issued to Mason City by the state for the $9.6 million.