City of Mason City fires check-cashing developer, takes ownership of Southbridge Mall

MASON CITY – The never-ending saga of what to do with Southbridge Mall, a never-built hotel, and a skywalk to nowhere took a new turn this morning when Mason City’s city hall announced they fired a developer and took ownership of the beleaguered shopping venue.

According to a statement from Mason City leadership in city hall:

The City of Mason City has terminated its relationship with MCCH, LLC and SBMC, LLC and will seek a new developer for a downtown hotel. The city will also take ownership of Southbridge Mall effective immediately, Mayor Bill Schickel said Monday.

This is being done after the current hotel developer (David Rachie) and mall owner failed to make agreed upon financial commitments by a May 11, 2024, deadline.

“With this clean break, we are confident that we will be able to secure a new developer and mall owner,” Schickel said. The city was prohibited from seeking a new developer while under contract with the previous developer. That agreement has now expired.

“Moving forward with a new developer and mall owner is now a top priority,” City Administrator Aaron Burnett said. “The city remains confident the project vision is viable, meets a regional need, and can be achieved with a new developer and a fresh start.”

This transition allows for a clean ending of the city’s relationship with the developer and protects mall businesses from possible business interruptions, Burnett said. Mason City already owns and operates the Mason City Parks and Recreation Department Offices and Mason City Arena portions of Southbridge Mall in the former J.C. Penney’s space.

The Mason City Arena and Principal Pavilion on the plaza are the first two-thirds of the city’s River City Renaissance plan which has already spurred millions of dollars of new investment in the downtown area. The hotel and convention center is the final piece of the plan.