Mason City council to set public hearing date for hotel development agreement
MASON CITY — The City Council in Mason City tonight will consider a resolution setting the date for a public hearing on a proposed development agreement for the downtown hotel that’s part of the River City Renaissance Project.
Director of Development Services Steven Van Steenhuyse says staff has negotiated an agreement with Mason City Hotel Associates LLC, which is part of Kinseth Hospitality Companies. The agreement obligates the developer to purchase the hotel site from the city for $50,000 to build a four-story, 80-room hotel with an indoor pool and connection to Music Man Square via the Delaware Avenue Skywalk.
The developer pledges to invest at least $15 million in the project and complete it by December 31st of next year. In return, the city will provide an economic development loan of $1 million, which will be repaid over ten years at 3.25% interest.
In addition, the city will provide an economic development grant of $1.75 million within 30 days after the hotel receives a certificate of occupancy. The city will also make an annual tax increment financing payment to the developer for ten years. For years one through seven, the payment will be 100% of the incremental taxes generated by the project, and for years eight through ten, the payment will be 50% of the generated investment. The maximum rebate over the ten-year period is $1.9 million.
The public hearing will be scheduled for the council’s March 18th meeting.
The council meets tonight at 7 o’clock in the Mason City Room of the Public Library.
