MASON CITY – The 5-year long debacle known as the Mason City Renaissance project is about to take another punch to the face as the council’s chosen hotel developer is teetering on the brink of defaulting on his agreement, City documents show.
The Mason City Renaissance project began in 2013, when Mayor Eric Bookmeyer, his city council and other local media mis-led the public in October of that year, telling the community a hotel would be built in a parking lot next to City Hall. Of course that never happened, but City Hall has spent an estimated total of 1 million dollars over the ensuing 5 years on expenses like parking ramp plans for a ramp that will never be built, city employee time and expenses, payments to a prospective developer called Gatehouse, and much more. The pit would be fuller of taxpayer dollars if the City’s Finance Department didn’t balk at Mayor Bill Schickel’s demands to pay Gatehouse another $110,000 before the developer flew away forever.
In Mason City Administrator Aaron Burnett’s Monthly Activity Report due to be delivered to the City Council Tuesday night, he explains that Hotel Developer Phil Chodur of G8 is about to default on his agreement to build a hotel as part of the Renaissance Project. Mr. Chodur has been paid an unknown sum of money by the city, but a recent invoice he submitted was for nearly $24,000 (see below); he demanded Mason City taxpayers flip the bill for his flight from Honolulu to San Diego (that request was denied.)
Hotel struggles will not derail the project, Mr. Burnett promises, however. See below for more details.
Mason City Administrator Aaron Burnett’s Monthly Activity Report (for council meeting of Sept. 18, 2018):
Mayor and City Council Members, Community outreach and volunteering continue to be strong in the community. Last month the city hosted the ‘Touch a Truck’ event and had a great response from the public. This not only lets community members interact with the various vehicles and equipment in the city, but also allows citizens to get to know the employees in the departments.
Additionally, this month the Newman Catholic Schools held their Service Day with over 80 people cleaning, fixing and preserving various aspects of the cemetery. While these activities are very positive, we are losing the Volunteer Coordinator to new position outside the city. This position will be covered by Pam in the short term but will have to be filled before next spring to ensure volunteer efforts continue to be strong in Mason City.
The River City Renaissance Project developer has not provided the city with the requested documents and accordingly has been provided with a Default Notice. This notice informs G8 of the default and provides them with 45 days to cure the default. This timeframe runs out on October 22nd. Considering the prior communication and reluctance from G8 to provide the financial documents required, the city will likely have to issue a new request for proposals once this date passes. I recently spoke with Director Debi Durham and the IEDA remains committed to the project in spite of this delay.
The city departments continue to carry out their normal tasks. However, transit ridership was up this month and has been trending higher over the year. We continue to look towards reducing maintenance on operating costs while increasing ridership. Additionally, Staff continues to trim and remove trees. While the Emerald Ash Borer (EAB) has not been identified in town, it is only a matter of time. The efforts of staff will help mitigate the damage when the EAB is active in the community. The Operation ReLeafe Program which provides trees to Alliant Energy customers at a minimal cost is currently underway and forms are available in City Hall. These efforts have helped replace the lost trees in the community and keep the community beautiful.
The city’s Quiet Zones efforts hit a snag during the review from the Federal Rail Administration. Several new issues were identified and city staff is working to clear these hurdles so the Quiet Zones can be implemented as quickly as possible. The issues will likely require modifications to the actions already taken, but will likely not significantly delay the project.
Kevin is working with various departments on researching the city’s permitting and payment portals. Multiple departments believe that improvements can be made to our process and software. These improvements will likely create a better e government presence and a smoother interaction for citizens.
I attended the annual Iowa League of Cities Conference this week and was able to learn about new programs and policies from several other cities and agencies, including better interactions with citizens over the web, improved communication amongst staff, and addressing generation issues within the workforce just to name a few items. Council members Jaszewski and Symonds also attended this conference and can provide their insights if you are interested.
Lastly, two wonderful items of note. First, the Mason City Fire Explorers continues to be a strong program and placed 5th overall in the Governor’s Fire Explorer Competition. Second, the City staff assisted the efforts of the Kiwanis Clubs in the establishment of the Kiwanis Park and the installation of equipment. Please take time to visit the park as it is an amazing asset to the community.
Sincerely,
Aaron Burnett
City Administrator
43 thoughts on “Mason City Administrator to tell city council time is about to expire on Phil Chodur and G8 downtown hotel”
What couple of real “winners” in this debacle.
Mehran Kohansiek,aka Mike Kohan, Mall owner who has a long history of not paying bill, not paying taxes and letting the Malls that he owns deteriorate.
He owns malls in many states many of which have been neglected, abandoned or foreclosed on.
He’s a scam artist.
The there is Philip Chodur, perpetual liar and snake-oil salesman that likes to sue people & cities.
He has never completed any major projects and fails to follow through on anything.
When Chodur likely defaults again, it would be great if the entity which proposed the hotel/water park/travel sports facility for Clear Lake would respond with their RFP for the River City Renaissance project. Seems like a win-win as the financials weren’t working for this project in Clear Lake so the access to state dollars the River City Renaissance project offers may help close that financing gap.
Convert the Mall to Assisted Living for those over 18, not working, and still living with MAMA! You may have to add on.
The DM Register had a great article a week ago about the New Smash Park opening in West Des Moines. They are very popular nation wide and many are going into old malls. They are basically a family fun center with ping pong, shuffle board, etc., including restaurants and shops. Add a Bowling alley and this would be a great fit for our dead mall. It would be a good draw and would benefit all citizens. But of course the Globe never mentioned it.
That’s a good idea, thank you. I miss the old arcades. In the big cities they have the throwback arcades of the past with all those machines like pinball and such. Big places with a lot of fun. This one place even served booze like the old bowling alleys. The kids and adults packed the place. Mason City could only be so lucky.
Visited this place last week. It is like a sports bar with lots of entertainment options. Sort-of family friendly. Might work in MC.
NIT will go far. Like a breath of fresh air it is the future done right.
https://www.youtube.com/watch?v=ad3muFUM4r0
The thought is good but the thing everyone is overlooking the overall view of Mason city. Mason city has a high rate of poverty, so people will not have money to spend at such places. There money is spent on just getting by or drugs. No, we will not draw out towners as a few many come but when they see the characters hanging out in Central park and walking the streets down town, there kids might be havein fun in the refurbished mall, but the parents will be within reach of there kids and keeping an eye on the exit for a quick get away. Could the mall be re-purposed into a place where tech companies could come to start there business. Recruit new companies with free rent, they pay there portion of the bills. Have them sign a contract that if they get off the ground, they move to a new location and stay for 5 years. If they don’t stay, they reimburse the property owner for rent. Maybe with in the five years they develop some roots anencephaly stay. The city will need to look at additional house developments, but that is another story since Mason city is land locked. Yes it is cement plants north, McNider everywhere less. Jobs may help with the poverty if we can educate the Central parkers.
You do realize the city does not own the mall and thereby cannot ‘repurpose’ it?!?!
Yes turn the mall into a retirement community then we can have confused ol d ppl walking around in traffic. How about take the money and build something people want? Something useful and entertaining that makes money that people who have to live in mason city could actually use and benefit from. They surf sucks for decent bands let’s build a good venue for live music. It could fit in the South parking lot and would make some sense. Before we do anything let’s fire all these slow lazy construction companies and hire someone who does more than state at their equipment doing Jack shit while our street are torn to shit and the detours force is to drive through residential areas bringing dangerous traffic to family neighborhoods. God damn!
Maybe you are too busy to look at what those construction contractors are doing. Maybe you have no idea the scope of what they are doing. So let me fill you in.
First off, under US 65 at the intersection of 5th Street South, there were storm sewers made of limestone pressed together with clay. The manholes were brick and mortar. The water mains going to the fire hydrants were deteriorated. The valves on the mains were also deteriorating. The conduits for the traffic lights and overhead lights were rusting (they had to be replaced anyway in order to get to the sewers and street drains).
The paving brick was still under the crumbling concrete and asphalt coating, On the east side of the intersection of Delaware, there was still railroad tracks under the pavement that went to the Gas Plant.
Up and down 5th Street, there was old infrastructure that had to be replaced. Replacing that took time. I have photos if you doubt me.
Every morning when I get a cup of coffee, I see the contractors and and sub-contractors going to work at 0630, actually working. Even on some Sundays they were out there. They all live out of town, and had only one day off last week.
I don’t know where you were, but I have been watching the whole process. I also watch the neer-do-wells tramping through the work areas (one tearing down the fencing put up to keep them out), riding their bikes in wet concrete, dumping trash in the area. I saw one idiot drive his car from President to Pennsylvania in the middle of the work zone, with dozens of workers in the process of building forms, hauling material, taking measurements, moving machines, unloading a truck.
Where were you?
If you think you can do a better job, by all means, call the DOT and tell them. Maybe you can win the contract for 6th Street South.
With all that old brick paving and such this is a good place for digging for old treasure. Dark is the best time. lmao
They found horseshoes and glass bottles to name a few items. I guess anything goes back then to use as fill.
For year the Elites (Chamber of Commerce have manipulated the people of this city for one reason only, to make more money for them. They don’t care that the taxes of the working people are paying for their get rich schemes as long as they get what they want. It is time to stop the madness and take back the city. Throw the elites out and recognize them for what they really are, thieves.
Amen to that!
Finally SOMEONE sees what is, and has been going on for years! Thank god not everyone is blind or deaf in M.C.! It’s NOT about what’s good for the taxpayers but rather how can we “the elite” make our bank accounts fatter off the taxpayers all the while laughing in their faces all the way to the bank! Just think about how much has been spent so far and what do you the “taxpayers” have to show for it? Can you list those things along side the money already spent by your fearless leaders and fellow bandits? Sadly as always, NOTHING will happen.
What have you personally done to try to improve this community?!?! Have you ever held a unpaid public office???? It’s a hard enough job in a regular town, but it’s an even moreso toxic environment in this town as we have so many mean spirited, poorly educated residents that are also very vocal. Plus we’re one of the few small cities that essentially has a tabloid news organization fronting as a ‘news’ site that preys on the elderly and poorly educated
You make a very toxic statement (description)regarding the taxpayers of M.C. You must be with the “elite” way of thinking! You certainly put “yourself” on a pedestal!
Again, What have you personally done to make this a better community?!?! Anyone loser can piss and moan about the folks that are actually trying to do something. I applaud the folks that actually make an effort to better this town rather than the ones who sit around being negative nellies on a tabloid ‘news’ site message board.
You must not be very old….or a life-long citizen to know the history behind Federal and the mom and pop stores that once was! You one of those “bought and paid for” puppets?
Scrap the scam and open up Federal again.
That old highway straight through downtown was straight out of a municipal engineers wet dream. Lyle Bergo’s sandwich shop might still be there. Hungry Mind I think it was called. Like the rest of the downtown whether it was daylight or night it rolled in cash. Bar Rest was another one. Colorful characters make the world go around.
This story just keeps getting worse. Let the mall go to tax sale, I think it would be a perfect place for a large assisted living community. That is what they did with the Hospital in Forest City and it is beautiful! I think the city could find an investor willing to do something like this.
That’s the best idea I’ve heard of for the mall so far!
Let it go to tax sale? You say that like the owner is getting special treatment in regards to delinquent property tax. He isn’t. Just like you or me, you can be one year in arrears in perpetuity.
This project is a dead horse, has been since the start, downtown businsses pushed it because of MC Hockey, no one had a clue.
Why, give G8 another 45 days? Cut a hole through the mall, open federal back up, and make MC great again.
AGREED!
You got the money for the new bridge over Willow Creek and traffic control?
Of course we do Peter. We will save 10 times that amount by shooting down this fiasco.
Peter, if that is you, why do you care, don’t you live in queer lake.
No, this is not the Peter that drove around with no doors or body panels on his car, nor the Pete that wanted to build a house of scrap tires and junk bottles.
If I dare say more, the post will likely be deleted. Suffice it to say, those that remember those incidents will verify I am not Pete.
Hey Peter rules dude!
Okay, suppose you punch Federal Avenue through, now what? Looking at a photo I took of the South “loop”, any new intersection with the current US 65 would create a very difficult intersection to navigate, much less build.
From 5th Street south, you would go 250 feet north to the new intersection, which would have to be governed by traffic signals. There is no room on either side for a turning lane, so you would have to sit and wait to go north, blocking one of the two lanes. The same would hold true for traffic going east on 4th Street South, a turn lane would be needed (because the current connector to northbound US 65 would have to be moved west at least 50 feet to accommodate the new Federal Avenue). Mind you, with a this new intersection, it would be impossible to go west on 4th Street South.
But all that would serve little purpose since Federal dead ends at 4th Street North. Unless you propose to bulldoze Fareway. And you would need to in order to build a new intersection with traffic lights to govern it.
Sorry, you cannot turn back the clock.
Yes you can turn back the clock. It is called engineering. There were more people and more traffic in town before they closed off the town. It can be reopened and it can come back. All we have done for years is pour money down the rat hole called downtown. Time to change back to what worked.
First off, back in the day before the Mall, you did not have the truck traffic you have now. Not just trucks, but trucks pulling 53′ trailers. Pulling loads of gasoline to the Ethanol plant. Pulling loads of ethanol back from the plant. You did not have truck loads of caustic soda either. That all came about with the opening of Manly Terminal and Golden Grain ethanol. It is not suitable for two lane city streets.
Then you have truck loads of cement. And truck loads of sugar. And many truck loads of corn and beans heading to Golden Grain and AGP. Add to it, LTL and truck loads of merchandise.
You really want all that on a two lane street?
That is why US 65 is a two lanes in each direction. That is called engineering. It is also called looking at the reality of traffic today.
You need to sit at State Street and Delaware, as well as State Street and Washington for a while and see what goes through. THAT is reality, not some pipe dream nor wishful thinking.
Think about it, funneling four lanes of traffic on the north, and four lanes of traffic from the south, into two lanes through the downtown area. That is not realistic.
As of this morning, I counted 14 vacant store fronts in the Downtown area, not including the Plaza or Mall. You shove all that truck traffic down Federal, and I am willing to bet that number would double within a year.
And, just why do you think those stores are empty? It is because they shut off access to Federal. You don’t have to be a genius to see that. Stay in queer lake and out of our city. We have enough flakes of our own.
I am willing to bet it was not lack of access. The vacant properties were not exclusively on Federal, but on surrounding streets. Note I said “Downtown area”. And all of those properties were easily accessed via Delaware or Washington. As to why they closed, there are various reasons. Some moved to different buildings with better conditions, some retired, one just closed. One have been vacant a very long time. I am sure given time, I can tabulate a precise list.
Now then, let me address for the last time, your notion of my being a person from Clear Lake. The person you allude to, was a big supporter of the use of illegal drugs. I am not. The person you suppose I am, was alleged to have lived in his mothers basement, I do not. The person you subscribe that I am, proposed, yet could not afford to support a music venue downtown for youngsters to hang out in all hours of the night. I said to the matter at that time, if there was money in the deal, someone would have already opened it. And lastly, as has been said here quite a few times over the years, I am one of those hated former Chicagoans. Peter is of local content and breeding.
I really hope that clears this up.
You sure sound like Peter and he was a waste.
I am not sure where you get the notion that access is cut off to Federal. There are five places where streets intersect with Federal downtown. People shop at stores like Dollar General. They visit Jay Lala for dental work. They make investments and get insurance coverage at several businesses. They purchase furniture at Brick. Yes, they even consume booze at 3 taverns (plus a brewery). All of them on Federal Avenue.
Now how could all that happen if, as you say, access to Federal was cut off? Use some logic and common sense.
Suffice to say, build it and they come. Pony up the cash. The easy way out was take the casino. Foresight seems to be problem with people hatching plans for this or that. After they fizzle it’s time for another plan. If your ancestors could see you now they beat you over the head with shovel. Mason City in it’s heyday was very progressive in it’s concerns and attitudes towards life in general. People got sh!t done back then.
What a joke.