MASON CITY — City officials say that financing has been secured for the hotel that’s a key component of the Mason City downtown redevelopment project.
Mason City Director of Development Services Steven Van Steenhuyse in a letter to state officials says that the hotel plan developed by G8 Development of San Diego California has been received by an investment group that includes: the firm Thomas USAF of Atlanta Georgia, an investor in USDA-backed loans with a track record of financing hotel projects; Lantern Capital Advisors of Atlanta, a development consultant; and Byline Bank of Indianapolis.
Van Steenhuyse says the firms have experience with G8, and that all three investors visited Mason City at the end of April to view the hotel site and meet with city officials.
A letter from Michael Callas, the vice president of Byline Bank, states that they are underwriting the project, and have executed a letter of intent with the lender for a $10 million loan to be guaranteed 70-percent by the USDA’s Business and Industry loan program. Callas says he expects to execute a commitment letter and move to closing the financing by June 30th.
The hotel is a key component of the project, needing a private investment. The River City Renaissance project includes the construction of a hotel in the southeastern part of the main Southbridge Mall parking lot, the renovation of Music Man Square into a convention center complex, a skywalk connecting the hotel to Music Man Square, a new ice arena and multi-purpose center in Southbridge Mall where the old JC Penney location is, as well as a performing arts pavilion on the north side of Southbridge Mall