Mason City City Council Regular Meeting - October 18, 2022

The Mason City City Council held its regular meeting on Tuesday, October 18, 2022, at 1:00 PM. All council members were present. The meeting included a citizenship proclamation, approval of the consent agenda with several items pulled for separate discussion, and a public hearing on a downtown housing project. Key discussions centered on the Destination Iowa grant for trail and recreation improvements, new golf cart storage, a skywalk change order, and a business restructuring to enable opportunity zone funding for the mall redevelopment.

Consent Calendar

• Approved en bloc: appointment of Charlie West to the cemetery board; hiring of Brandon Peddelty as a police officer; resolution accepting work and payment for the 2122 sanitary sewer repair (nearly $500,000); resolution accepting work for the water reclamation facility biofilter improvement (about $150,000); easement for a stone pillar with a public hearing set for November 1, 2022; snow removal contract with Right Way Lawn Services ($45 for first half-hour, 24-hour compliance rule); and a Class C beer permit and Class B wine permit for Dollar General at 1710 South Federal.

Public Comments & Testimony

• No public comments were made. No written comments were received.

Discussion Items

• Item 7 – Resolution Declaring Intent to Issue Debt for Destination Iowa Grant: City Administrator Aaron Burnett reported that the city received a $4.5 million Destination Iowa state grant for a project totaling over $11 million. Components include a bike park modeled after the Arkansas rail yard, a pedestrian bridge over the Winnebago River near Murphy Park, closure of Birch Road for a trail, paving of trail segments, development of the High Line Trail, and a river walk. The resolution allows the city to spend funds before bond issuance and reimburse later. Councilman Adams noted the project is funded by local option sales tax, private fundraising, and grants. The high line trail portion from 19th Street SE to 7th NE will be hard-surfaced. The council approved the resolution unanimously (7-0).
• Item 13 – New Golf Cart Storage at Highland Park: Brian, the golf course manager, explained that the current shed was built by volunteers and is unsafe and outdated. The city plans to double the rentable fleet to 20 carts to meet demand. The $160,000 project is in the capital improvement budget, funded by local option sales tax, with a public hearing on November 15, 2022. The council approved the resolution unanimously (7-0).
• Item 14 – Change Order with Hinkle Construction for Skywalk Protection: A $14,000 change order was approved to protect the River City Renaissance Skywalk during construction of the adjacent hotel. Finance director Brent noted that $2,841 of the cost is for a false wall due to the skywalk being built before the hotel, but the skywalk improves constructibility. Developer David Ronci later offered to cover the $2,841 cost. The council approved the change order unanimously (7-0).
• Item 15 – Business Restructuring for SBMC LLC: David Ronci, principal of SBMC, presented a restructuring to move ownership of the mall property into a qualified opportunity zone fund to attract investors. This restructuring is necessary to raise capital for transforming the mall into a family entertainment center. Ronci provided updates: the hotel project has an approved USDA loan guarantee but is awaiting allocation; a bridge loan and equity will fund initial construction, with groundbreaking expected by year-end. Mall work includes asbestos remediation, electrical upgrades, and facade redesign. Councilman Simmons confirmed that city incentives are earmarked solely for this project. The council approved the restructuring unanimously (7-0).

Public Hearing – Fox Trot Properties Apartments

• Myrtle Nelson, Executive Director of NIACOG, reported on the project at 1315 South Federal Avenue, which will create four apartment units above Simply Nourished. Construction is 35% complete, with $546,467 expended (including $249,999 in federal funds). Remaining work includes doors, masonry, windows, flooring, solar panels, etc. Bids exceeded estimates by $700,000; the city provided a Burrells grant to fill part of the gap. The beneficiary requirement was changed: originally four low- to moderate-income units, now one unit may be rented at market rate to offset costs. Estimated completion is November 30, 2022, but could be delayed by supply chain issues. No public comment was received. No council action was required; the hearing was informational.

Key Outcomes

• Votes: All separate action items (7, 13, 14, 15) were approved unanimously (7-0). The consent agenda was also approved unanimously with the noted exceptions.
• Recognition: The council acknowledged the passing of former councilman Leonard Foster, who served from 2002 to 2005. A memorial service is scheduled for Friday, October 21, 2022, at Holy Family Catholic Church.
• Next Steps: The city will proceed with design and financing for the Destination Iowa grant projects; award a contract for golf cart storage; implement the skywalk change order; and move forward with the mall redevelopment and hotel construction.