MASON CITY — The City Council in Mason City tonight will hold a public hearing on a proposed development agreement for the downtown hotel that’s part of the River City Renaissance Project.
The agreement would be with ES 2024 Mason City Hotel Associates LLC, which is part of Kinseth Hospitality Companies. The agreement would obligate 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. For making the investment of the hotel, the city would provide an economic development loan of $1 million, which would 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 with the maximum rebate over the ten-year period of $1.9 million.
The council meets at 7 o’clock tonight in the Mason City Room of the Public Library
