MASON CITY — The City Council in Mason City last night postponed a public hearing about a proposed development agreement for the downtown hotel that’s part of the River City Renaissance Project.
The agreement was proposed to be with ES 2024 Mason City Hotel Associates LLC, which is part of Kinseth Hospitality Companies. The agreement would have obligated 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 $15 million investment by the investor would have had a completion date of December 31st of next year.
Mayor Bill Schickel did not give any explanation to why the public hearing was postponed when the council approved the agenda last night.
As part of the development agreement, 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 would 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.
This and other topics of city business will be discussed with Mayor Schickel on the “Ask the Mayor” podcast which will be published later today on our news website northiowanow.com
