A Mason City citizen discussed the proposed downtown Renaissance Project with a spokesperson at the Iowa Economic Development Authority and wanted to pass on what he learned:
Visited today with Aliana Santizo at Iowa Economic Development Authority, a staff person for this Iowa Reinvestment Act Mason City is involved in.
Had an excellent visit.
Some of what she told me:
There is NO big grant check to a City for the sum awarded by the Board. The city DOES NOT receive a check for $7 million or $10 million or whatever amount the board might “approve” for the city.
Rather, the law allows the state 5% sales tax on new motel/hotel room sales to be sent on a quarterly basis to the City for up to a maximum of twenty years toward reaching the sum awarded. In addition, they send 4% of the 6%
regular store sales tax. But this State tax support is only on NEW facilities built WITHIN the 25 acre Urban Renewal District. No help from sales tax on existing businesses In that district.
Get this. If after 20 years your tax take from the new businesses fails to reach the sum awarded – tough luck. City ends up short. Has to make it up from
other local tax INCLUDING the property tax levy.
If these state sales tax revenues from the new places in the 25 acre District reach the approved sum before the time limit, 20 years, the support
ends at that point. No windfalls to the City.
So just how much of this did you know?
Just how much does the average Mason City resident know? I’m guessing very little, as the city and their stooges hide and manipulate the facts into fictitious talking points, many of them content to outright ignore these realities.
So at this point the only new business that MAY get built in this downtown
Urban Renewal District is this 106 room hotel. Do you believe that one little hotel in this market will produce room sales sums with the above % tax rates sufficient to ring up $9.5 million to the City to use toward paying down
their $26.5 million of General Obligation Bond debt plus millions
additional for the interest on this $26.5 million?
Dream on.
Which should show the RISK that MC taxpayers will face for this River City Renaissance Plan to end up needing other City tax dollars left and right potentially including a property tax levy during or all of the 20 years of debt service on this $26.5M plus interest.
Still want to fund a $12.5M ice arena and give it away plus this little Pavilion to this NY bottom feeder who has all of $1.5M of his money in this failing Southbridge Mall?
A Concerned Citizen
Mason City, Iowa
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I am going to make some phone calls. This information sounds valid and I a sure the author couldn’t dream this kind of crazy stuff up. What is written sounds about right for the bunch of amateurs we have running city hall. The fact of the matter is the Mayor and Mason City City Council don’t have the moxey to manage a project of this nature. Bill Schickel wants to be our Mayor and he surly has no business sense at all. The entire project is a disaster waiting to happen.
Black Kettles,
I can totally understand why the author would want to remain anonymous. Remember how vicious our Civic Leaders were to Councilman Alex Kuhn. They will do the same thing to you or anybody else that gets in their way.
If you go against this project they will hold it against you forever.
Sounds like worth county twist the truth and take your money supervisors.
I love how many of you claim to hate fake news, yet take an unsigned letter to the editor as truth on high. I’m not even saying the writer is wrong, just that it’s hilarious when Matt publishes anonymous letters and the lemmings around here walk right off a cliff with whatever they say.
What does Loni Dirksen and friends have to say about this? Just really who is going to pays for this? Rebuild the hockey rink and add a building to house bigger events at the fair grounds.
This is not smoke and mirrors, it’s not a house of cards, it’s a catastrophic train wreck! To the “ concerned citizen” who offered the above explanation….”May God Bless You!”
If you were watching last nights council meeting….it all came tumbling out. There is no assernable financing that is assured….no valid agreement in place and if I heard correctly Gateway get a monthly stipend of either $130,000.00 a month or $30,000.00 a month. Then John Skipper cleared up a lot of it.
The real shocker of the evening was when Hicky started to ask questions….that was a rare event. Normally he has been a locked in “ Yes” vote during his entire tenure….now he comes awake? Did the drugs wear off? This project is a criminal act, what is taking place here in public no less is unfallable.
I have been saying all along that the city establishment can not be trusted. They have screwed the taxpayers for years with schemes like this and are trying to do it again.
I have been saying all along that the city establishment can not be trusted. They have screwed the taxpayers for years with schemes like this and are trying to do it again.
DUMB! Exactly how dumb our so called leaders are.
Really you will still say yes to all of this?
I have spoke with people and with straight faces they say it will be so good for us and we are totally for it. DUMB!
They think as some type of business owner in town it will benefit….not going to happen.
I now FOR SURE know the 2 percent in this town are truly absolutely dumb, ignorant, all the words that stack up to don’t have a clue.We all can now say we knew all along……
I think GREEDY can be applied to most of that 2%
it is certainly right. the city doesn’t get a check from the state for millions it gets tax abatements. so where does the city get the money to build with until the rebates trickle in?? the tax payer. see if the elected officals will sign a agreement that no tax dollars will be used and it will never cost the taxpayers a single dime. bet you cant find one official that will do that. VOTE N O