Grant landed to help renovate original Mason City Elks Club building

MASON CITY — The City Council in Mason City this week approved executing a grant agreement with the Iowa Economic Development Authority for a $100,000 Community Catalyst Building Remediation Grant that would be used to renovate the building located at 122 and 124 North Federal in the downtown area, which is commonly known as the original home of the Mason City Elks Club.

The owner, Foxtrot Properties LLC, intends to renovate the long vacant third floor and the fourth floor mezzanine above it for the eventual use by a commercial business.

Director of Development Services Steven Van Steenhuyse says the city had to have a financial involvement to help obtain the state grant, which the city accomplished through a Building Renovation and Life Safety (BuRLS) grant and a Downtown Revitalization Loan (DoRL) loan.  “One of the requirements of applying for the grant is that the city would be involved in some way financially. We have already approved a BuRLS grant for the building and a DoRL loan for the building. I believe the BuRLS is for $175,000 and the DoRL for $30,000, so that’s what the city’s participation is.”

Van Steenhuyse says the improvements to the building will increase the taxable value to the property.  “This will greatly increase the value of the property. The third floor right now is completely unusable because it’s been vacant for so long, and you also can’t use it because it has only one means of egress, so that’s what the BuRLS grant would cover, putting in that required second stairway to allow to meet the fire code for that upper story. Of course that will make that area leasable, so that greatly improves the value of the property.”

The total estimated cost of the renovation project is over $712,000. The remainder of the project will be financed with loans and owner equity.