MASON CITY – Five years after a hotel was announced for downtown Mason City but has yet to materialize, the saga continues as the city council will consider terminating an agreement with a hotel developer who allegedly refuses to furnish vital documents.
The meeting was announced Monday afternoon and will be held Tuesday at 5 PM in the second floor conference room in City Hall. At this meeting, per a recommendation from City Administrator Aaron Burnett, the city council will once again consider whether to fire a hotel developer who loves to cash checks from Mason City taxpayers, but has yet to deliver the required multi-million dollar private investment in the form of a hotel that is required for the glorious Renaissance Project to commence. Mr. Burnett tells the council that G8 Development of San Diego is in default of its agreement with Mason City after it allegedly failed to turn in documents in connection to the on-going project, most notably bank financing proof. Therefore, he is recommending the City terminate its agreement with G8 Development and its owner Philip Chodur.
Back in December of 2017, the Mason City council approved an agreement with G8 Development, Inc. to build a hotel in the downtown in connection to the Renaissance Project. This was the second time the City got into business with Mr. Chodur (2013 was the first time); they dumped him back in March of 2017 for a developer – Gatehouse Capital’s David Rachie – who also gleefully submitted thousands in invoices to City Hall for payment before he was ousted by the Council and disappeared, much like parking ramp plans the City Council bought in connection to the project that cost taxpayers over $400,000. That ramp, of course, will never be built, just like Rachie’s hotel, and probably like Mr. Chodur’s.
As NIT has reported for years, some citizens have always doubted this project would work out, and with this latest setback, some say the Renaissance is dead. The project seemed far-fetched from the beginning to some, with a skywalk, an arena dominated by special interests, questionable developers, no-bid construction deals, millions in taxpayer-backed bonds that officials lied about, etc. But NIT has learned that due to a special relationship between certain un-elected shot-callers in downtown Mason City who truly run the town and at least one top honcho with the Iowa Economic Development Authority, the project is not likely to be dead at all. The City will most likely continue to search, like a small boy for his long lost puppy, for a hotel developer to enter into the mix. Knowing that the City will pay for almost any invoice they may submit, the City and its un-elected puppetmasters are likely to dredge up someone willing to get into the game and this soap opera will drag on for years to come, making Mason City a punchline at watercoolers across the region.
Mr. Chodur threatened to sue Mason City after he was ousted for Rachie and Gatehouse. He dropped the suit when the City Council brought him back on board last year. Now, he seems to be thinking lawsuit again, as documents show his legal team at the Fitch Law Firm in San Diego is gearing up for a fight if the council sends him packing.
“This conduct by the City … is unacceptable,” a letter from Fitch to City Hall reads. In the letter, Fitch seems to indicate that the City is bowing to pressure from the Iowa Economic Development Authority in asking for documentation from G8.
37 thoughts on “Mason City council to meet Tuesday to consider terminating agreement with developer on downtown hotel”
When will they ever learn?
Mason City is trying to put a square peg in a round hole. We are being led by “zero thinkers”. 40 million dollars for what? A skating rink!
Why don’t they give that money to an industry that will bring new jobs and new money to town?
There are hundreds of open jobs here, just look at the hiring signs outside almost every business in town. Very few of them pay a living wage, so each person looking would need two, and the people who want them can’t get hired by stupid managers.
Where would this $40M you speak of come from to just ‘give away” to a industry???? You do realize that cities cannot simply print money or pull it off of a tree, right????
I suspect you erroneously think that incentives are not already offered to prospective industry to locate in town? We already offer tons of incentives, but why would any industry come to this town knowing they will have their name dragged through the mud by bitter senior citizens in city council meetings when they are only asking for incentives they know they can get in any other city? I find it interesting HyVee didn’t even consider Mason City for their distribution center which is being built in Austin. City Council conduct was undoubtedly a factor in that decision.
Hey dummy, it’s the 40 million the idiots are spending on a skating rink and all the bull shiX that the fools are wasting money on to build with it.
The guy/gal has the right idea, put that money to work on POSITIVE JOBS. Jobs that will support a family. Lord only knows this dead end ass town needs the new money that the 40 million would generate. The skating rink sure ain’t going to do jack shit for the people in the cheap seats paying the bills.
Right back atcha dummy. You still haven’t explained where your magic $40M for this industry would come from. You’re not understanding that money isn’t simply created because you wish it.
The $40M for the renaissance project Isn’t available to ‘give away’ to industry as it’s a portion private investment dollars and mostly money that results from the tax liability created by the improvements to the mall and new hotel. It’s simply money that doesn’t exist unless the hotel and arena are constructed. You following, brah?
May I chime in? Government can and does use TIFF, Economic Develop Money, Local Tax Money, Hotel Motel Tax Money, General Obligation Bond Money FOR ANYTHING THEY WANT TO USE IT FOR!!!! Been doing it for decades.
I like the idea to spend the money on JOB CREATION instead of a ridiculous skating rink.
Cripes! What don’t you guys understand about this?!?!?!? WE ALREADY offer these very same types of incentives to most any prospective business!!!!! Business aren’t coming to Mason City despite the offer of incentive money because they can get this incentive money from ANY city ANYWHERE.
If you’re HyVee looking to build a new distribution center…Do you go to Mason City and ask for incentives where your name will get dragged through the mud by a bunch of bitter senior citizens during city council meetings and you’ll be slandered by a tabloid rag that fronts itself as a ‘news’ source? Or do you go to Austin where you’ll get the same incentives without the circus style council meetings and fake ‘news’ organization?
This is NOT was what was voted for. Give up on this lame project now or alow the public a new vote since it has gone all over the place and NOT what was on the ballot…Bait and Switch!
What is materially different with this project from when the vote occurred?!?!
The developer, for one. That’s enough reason for most of us right there.
This developer offered the same project with terms which were a clear betterment to the city. This required no vote because material changes to the project were not made to the project and the city clearly acted in line with the best interests of the tax payers.
When the city changed developers after the vote, they were simply following the legal process required of them. they selected the lowest bidder (ie best deal for the taxpayers) which is what was legally required.
Be done with that moron and the whole ridiculous project.
Note: Forrest City just completed their indoor auditorium and Clear Lake has plans to build a convention center…so draw to Mason City could be dampered.Again this is about MC Hockey, might want to read the cities agreement with them, it will prove my point.
Figure skating, too. The rich think their little darlings are too good for the fairgrounds arena.
GIVE IT UP. This was from the start, a wagon before the horse agreement. No hotel has ever been secured, it was a ploy to move forward when your truly moving backwards. The numbers on this plan never worked and left the city out-to-dry when it didn’t. This was all about MC Hockey from day one and the downtown retail push to kiss their dollar spending butts(Moremans/Spic-Span). What is never discussed is the still lack of taxes owed, the terrible roof and septic conditions of the mall and the constant change from it’s original plan and the fact that concerts rider demands will not allow concerts to be held there. This at least deserves a re-vote and should have been on the docket for Nov 6. THIS IS A COUNCIL DEAD HORSE
TOTALLY AGREE!
The city council and all of it’s crony friends in the chamber, etc….
are all USERS AND LOSERS!!!!!!! Got your eyes closed if you can’t see what’s happened in the last 5-10 years in M.C.
NIP IT!!!
right in the butt……..
Our city council needs to clean up this mess and stop having the tax payers pay for it. I want to know how smaller communities can thrive, while our poor city is wasting away. Maybe if the city would offer tax incentives for new businesses to come into our city to help our economy grown would be a start. I am all for a new arena but it clearly does not need to go in the center of downtown. Any ideals for our city has to be better than what our city council have came up with. Sending out a SOS!!
Our city already does offer all sorts of tax incentives (and other incentives) for new businesses. The problem is our workforce demographics are not aligned with growth industries (we’re old and uneducated) and our city council meeting behavior has developed a reputation for its circus style antics.
It would be foolhardy to build a multi purpose arena anywhere except a city center for the very same reason your grocer puts the milk in the back of their store (inelastic demand and revenue maximization).
Just a sign of the times – what did you think would happen when the internet came about – same as post office on letters – get a grip on it liberal – your days are numbered !
What are you talking about?
Schickle and his stooges should resign in shame over this fiasco. What are they going to do now that Clear Lake is going to build a New Hotel and Convention Center. They are organized and will get it done.
Most of the people who made this mess are already gone. That’s why this is happening now.
Maybe out of office, but still in town. No one really ever sees these people. Like ghosts. But Robin got out of them what she wanted.
PS Did Eric ever get a job or does he still play “stay at home dad” like his step daddy Skipper claimed?
Still butt hurt that Robin Anderson rejected your pathetic advances, eh little Mattie.
Get over it, loser.
You got your ass kicked in the council elections and even by the most stupid person to ever sit on the city council, Janet Solberg.
You are so sorry that a dumbass like Janet Solberg beat you..you are that pitiable little Mattie.
Wow there you go again with butt and Robin talk – man you need help.
So says the wannabe loser who is so cheap he won’t buy a subscription but doesn’t mind sponging off the people who do. Just another loser trying to bring down someone who started his own business, owns his own office and is expanding all the time. What a cheap ass troll he is.
If another vote was taken tomorrow, I will bet you that it would be 76% vote against spending the money, but then choudur has already spent the money and the city got what for it?? Nothing. should say rather then the city the taxpayers went into it looking like this o and are comning out of it like O
A little late there little Mattie since the Globe Gazette coverd this yesterday.
But then you have always been behind them since they fired you.
It’s not to late for us that don’t get the globe.
Most people in this town don’t get the GLOB and don’t want it.
Aw look there, the cheap ass troll who is to cheap to purchase a subscription, but doesn’t mind mooching off the rest of us is back. He has to be a lying liberal looking for free stuff.
Even KIMT carried this story last night, along with a radio station. Once again and always NIT is not the news leader in this community.
And, you must be having dreams about Matt as all you ever do is talk about him. What happened? Did he turn you down and turn you away?