IEDA approves reinstating $1.25 million in tax credits for Mason City hotel project
DES MOINES — The Iowa Economic Development Authority Board today approved a reinstatement of an award up to $1.25 million through their Redevelopment Tax Credit Program for the hotel project that’s part of the River City Renaissance project.
Last October, the IEDA Board made the award to ES 2024 Mason City Hotel Associates contingent upon submission of a financing commitment letter within 60 days of the board’s approval. The developer did not meet the contingency requirements within the allotted time and the award lapsed, but the board reinstated the award today.
Board member Mark Kittrell says it’s good to see the hotel portion of the project moving forward after challenging times within the hospitality industry. “This a hotel again, and for those who are not in the hotel business or don’t follow it, COVID obviously had a pretty big impact on tourism, and hotel financing was not available for a long time. Any hotel project. We will as a board hear and have heard on multiple occasions how difficult it is to finance these projects. It’s good to see that some of them are moving forward.”
IEDA director Debi Durham told the board that the hotel is the last piece of Mason City’s Iowa Reinvestment District project. “It just goes to show, they are the first Reinvestment District, how difficult this incentive program is for communities to use. They have completed everything else, but they have this ‘Skywalk to Nowhere’. Every time I get up there, they are doing so many great things, but I can’t help myself. Every time I go I say, ‘(City Administrator) Aaron (Burnett), when are we going to fix that skywalk. So before I retire, I need to see something happening, so they are making an effort.”
The Mason City City Council earlier this month approved a development agreement for the hotel with ES 2024 Mason City Hotel Associates, a limited liability corporation connected to Kinseth Hospitality Corporation. Kinseth Hospitality has indicated they plan to start construction on the hotel in mid-August.
