MASON CITY – The ever-evolving Renaissance project in Mason City is inching closer to becoming a reality after changes to the plan were approved by the city council Tuesday night and City Hall told state economic development officials it is time to make final approval of nearly $10 million in state kickbacks to the city.
Tuesday night, the Mason City council approved moving G8 Development’s hotel north in the Southbridge Mall parking lot. They also approved a plan to purchase a run-down building south of Music Man Square to build a ballroom. Some in the community are questioning how these changes mesh with what citizens actually voted on last fall; in a low-turnout referendum, voters at a 75% clip OK’d bonding for a multi-use arena and other pieces in the Renaissance Project. They were promised over and over again that the taxpayers were at no risk; that turned out to be false after city documents revealed potential plans to hike taxes to cover shortfalls.
Even so, now, honchos that run the city – mainly unelected individuals who have commandeered the ears and gotten into the heads of the city council and the mayor, not to mention city staff – claim that due to the slow-down effect caused by vicious in-fighting between factions that supported two different hotel developers (one supported by Mayor Bill Schickel that skipped town with tens-of-thousands of taxpayer dollars and has since vanished) the Renaissance Project is better than ever. Last night’s vote by the council solidifies those changes.
Meanwhile, hours earlier, City Hall’s point man on the project, Steven Van Steenhuyse, sent a letter to economic development officials in Des Moines, saying that hotel Developer G8 has put together a plan for nearly $10 million in private financing (backed by the USDA) that is required by state law to go into the Renaissance Project in order for the city to unlock millions (theoretically) in state kickbacks (spread out over decades) connected to the state’s Reinvestment District program.
Here is the text of the letter from Mr. Steenhuyse to state economic development officials:
After nearly four years of writing applications, creating maps and spreadsheets, and working with developers and citizens, it’s gratifying to know that we are close to bringing approval of this project to a successful conclusion. On behalf of the City, I want to thank you for all of your help and support during this process.
Although there have been many twists and turns in this project, we now have all of the pieces in place to ensure that the Downtown Hotel project can happen. The Downtown Hotel plan (which has concept plan approval by the City) has been received enthusiastically by an investment group currently working with G8 Development. This group includes the firm Thomas USAF, an investor in USDA-backed loans with a track record of financing hotel projects, based in Atlanta; Lantern Capital Advisors, a development consultant, also from Atlanta; and Byline Bank of Indianapolis. These firms have experience with G8 Development.
Representatives of all three investors visited Mason City at the end of April. They viewed the Hotel site and met with City representatives. Their enthusiasm for the project and their confidence in G8 Development was evident.
The attached letter from Michael Callas, representing Byline Bank, is a commitment to finance the Downtown Hotel, subject to completion of underwriting (the loan is anticipated to close by June 30). Note that this letter includes a statement by the bank that the USDA is expected to provide a 70 percent guarantee for the $10 million loan. This bank and investment group are proven lenders in the hotel market.
In addition, please consider the attached letter from Mr. Robert Klocke of First Citizens Bank, Mason City, who contacted the Business Programs and Cooperative Services Director for the Des Moines office of the USDA. Based on Mr. Klocke’s discussion, we are confident of USDA approval of a loan guarantee for this project.
We believe that the above referenced document provides the confidence that the IEDA Board seeks in order to approve the Mason City Downtown Reinvestment District. Also attached are several letters of support from our partners, indicating their continuing commitment to this project.
With the formal approval by the City Council on May 15 of the Amended and Restated Development Agreement between the City and the Mason City Foundation, the two contingencies placed upon us by the IEDA Board in February, to be addressed by May 18, are met. The remaining contingencies will be met by December 31, 2018. Thus, on behalf of our partners, the City respectfully requests that the Board agree that the pertinent contingencies have been met at the May 18 meeting, and formally approve the Mason City Downtown Reinvestment District.
As noted above, there have been several events and decisions made in the past few months that have led us to where we are today. For your convenience, I have summarized all of these events in the attached memorandum. This information provides the background and justification for the actions taken by the City and our partners. We wanted to assure you that the prior uncertainties or delays were based on our desire to make the River City Renaissance the best project it could be, for both Mason City and the State of Iowa.
Again, the City greatly appreciates all of your assistance and the guidance we have received from you and the members of the Board. We look forward to a successful conclusion on Friday. As always, please contact me if you have questions.
Sincerely,
Steven J. Van Steenhuyse, AICP Director of Development Services City of Mason City, Iowa
Attachments:
1. Loan Commitment Letter, Byline Bank
2. Letter from Robert Klocke, First Citizens Bank, Mason City
3. Letters of Support from Mayor Bill Schickel
4. Partner Letters of Support: Mason City Chamber of Commerce; Mason City Foundation
5. Addendum, with background information
6. Concept site plan (Exhibit “G” in the Amended and Restated Development Agreement between the City and the Mason City Foundation
Renaissance Project. They were promised over and over again that the taxpayers were at no risk; that turned out to be FALSE after city documents revealed potential plans to hike taxes to cover shortfalls.
Bob K = Mr. MC HOCKEY HIMSELF
Not the same project at all, this requires another vote, this is manipulation at it’s best.
And Dalena Barz in NOT from MC , she’s from Ventura,
Who is ‘they’??? Who was promised that would tax payers were not at risk???
The portion of this project that the public voted on has not materially changed at all and it’s basically completely unchanged since its initial conception.
I think you’re confusing the private investment component (the hotel) with the public portion of the project (the multi purpose event center).
Have you been paying attention through all this? The taxpayers WILL BE paying big time for Robin,Slick Willy,and loyal sponges get rich off the taxpayers scheme!
Do you have any proof to back up your allegations or is this just your opinion? My bet is you will not be able to provide any proof at all and your come back will be something along the lines of “do your own research” because you will not be able to show us any facts. I truly am hoping you prove me wrong and can provide some proof/facts .
You indicated the taxpayers were not notified they would be at risk? It was right in the ballot language, had you cared to vote read the ballot.
If you do not like the structure of the agreement, you can thank Max Weaver and his pals as they were the ones who petitioned for the city to uses general obligation bonds (which are backed by the full faith and credit of the city).
Regardless, you’re overrating the ‘risk’ to the taxpayer which is involved with this project. Sure its a $38M project, but the taxpayer is only at risk for a SMALL percentage of this as it has a large component which is private investment dollars.
Yep-here we go again. Going to save the town and bring back business to the dead downtown area just like Northbridge, Streetscape, Park Inn and Central Park. Screwed again.
yep 5 $10 per hour jobs, this is huge…..NOT
and MC Hockey pays what to get their arena????
Surprise! The hockey assoc. pays NOTHING! It’s ALL on the taxpayers backs NOW!
Hey Bob K…show us the money or DO NOT SPEAK FOR US, MC Hockey has bent us over enough!
everyone needs to start saving their money so that when your taxes are raised you have some to pay them!!! its not will my taxes go up, its my taxes are going to go up. Bend over and get ready, I myself bought a bunch of shares to Vaseline, im sure it is going to go up with all the sales
Did I miss the letter of commitment from the youth hockey organisation?
Surprised?
That is one of the recent changes that WAS NOT disclosed. Taxpayers will now be responsible…. at no cost to the hockey organization. A huge THANK YOU to all the taxpers who donated!
and they get to name the place plus pull in sponsorships, MC Hockey wins, Mason City loses.
Having another ice arena and one more hotel in the community are going to dramatically improve the quality of life in Mason City, and show people all across this country, that moving to Mason City is the answer. This is sooo exciting, I just cant wait!
That just means they won’t have the access they were wanting without forking over appropriate rental fees.
Taxpayers have their backs when it comes to $$$$$
It’s been their plan all along.
For all of you that believe this is all on the up and up, read and remember that someone told you so:
All smoke and mirrors! We’ll see how the taxpayers really feel when the truth comes out down the road. And it will!!! Ask yourself one important question: Have the taxpayers of Mason City EVER been lied to or mislead about ANYTHING regarding this whole project since the beginning of the mall?
If you want to see the future…..research the past! It’s as clear (and predictable) as the sun rising and setting each day. Mason City needs some serious changes if it wants to be successful….starting with leadership and it’s loyal sponges!
Déjà vu
Hurry political leaders and loyal sponges, before the citizens and taxpayers of Mason City figure out just “how bad” you lied, misled and screwed them over. You all are a sad excuse for leadership in M.C.
dead on correct
Maybe Mrs Barz needs to learn how to run a radio station FIRST, earning reports don’t lie.