MASON CITY, Iowa – It is official: the Mason City City Council has terminated its agreement with G8 Development, the chosen developer for the River City Renaissance Project.
The council gathered in City Hall Tuesday evening with a couple dozen people in attendance for a short meeting.
With a full crowd on hand, it did not take the city council very long to vote on terminating the agreement, one yes after another.
The unanimous decision comes after the city notified the California-based developer on Sept. 7 – giving them 45 days to prove they could fund the construction of the project.
“The city made a final formal request for that documentation,” said Aaron Burnett, City Administrator. “It still wasn’t provided and that’s when the notice of default was filed. That 45 day cure window on the notice of default is now run and the city has now elected to terminate because that documentation was not provided.”
But the attorney representing the developer says the Purchase, Sale, and Development Agreement does not require the requested documentation to be presented to the city, nor the Iowa Economic Development Authority – demanding for it to be rescinded.
“They have the right to make whatever claims they wish to make,” added Burnett. “It’s unfortunate it comes back to legal documents being swapped back-and-forth rather than just moving forward with the project, but that’s where we’re at right now.”
As for where the city will go from here, Burnett says it is too early to say but seems optimistic about the future.
No other developer has been chosen for the project at this time.