Pending new development agreement, construction to start in August on Mason City downtown hotel

MASON CITY — A revised proposed development agreement for the downtown hotel that’s part of the River City Renaissance project will be before the City Council in Mason City in the near future.

The council Tuesday night approved amending the Downtown Reinvestment and Forest Park Urban Renewal Area Plans as they prepare to enter into a development agreement with ES 2024 Mason City Hotel Associates, an LLC connected to Kinseth Hospitality Corporation, to start construction on a downtown hotel later this year.

City Administrator Aaron Burnett says Kinseth wants to have construction start in August, meaning the timeline to get an agreement to the council is a bit squeezed.   “When you count back from today, that’s a tight timeframe. I know it’s crazy to say that, but we’re already into June, so we’re working quickly to get that done. I had calls today with our attorney and their attorney. It’s really been a lot of work to get this finalized, but Kinseth is almost to 100% plans at this point for the hotel, so it is progressing. We will have the development agreement back before the council and get that approved and get underway.”

Burnett says the amendment was required by state code as part of outlining projects in the urban renewal area that use things like Tax Increment Financing.   “Specifically this one allows for the loan guarantee of $2 million, the loan of $2 million, and then the tax rebate agreement. So those incentives are provided for the hotel, and that is what’s spelled out in the amendment.”

A proposed development agreement for the hotel was to be placed before the council back in March but was postponed. That would have obligated Kinseth to build a four-story, 80-room hotel with an indoor pool and connection to Music Man Square via the Delaware Avenue Skywalk.