{{featured_button_text}}
G8 Lawsuit

Mason City filed a counterclaim to a lawsuit from G8 Development that alleges a breach of contract in the development deal for a hotel to be built in the parking lot of Southbridge Mall, seen above. 

Mason City is now set for a lawsuit.

Nearly a year to the day from now on May 11, 2020, the city and its lawyers will be tasked with defending against allegations from G8 Development that Mason City was guilty of breach of contract in a hotel development deal as part of the River City Renaissance Project. 

The decision was made at a scheduling conference on Tuesday where Judge DeDra L. Schroeder was appointed to the case, which will be a trial by jury. 

The lawsuit from representatives of G8 Development and company head Philip Chodur stated, in part, that Mason City's default notice toward the San Diego-based company in September 2018 for not providing full proof of financing to the Iowa Economic Development Authority was invalid because the "request by IEDA was not an obligation of G8 under the Agreement."

The city's counterclaim filing in late March summarily denied that it "materially breached the contract" with G8 Development and also denied that "G8 fully complied with all of its obligations under the Agreement."

In addition, the city disputed the claims that G8 "suffered loss related to Pre-Construction Work" and that "Mason City did not reimburse or pay amounts to G8 to reimburse the company for its costs incurred related to Pre-Construction Work and the monthly fee for pre-construction services."

G8 had previously dropped a lawsuit against Mason City in January 2018 as a condition of entering into its most recent development agreement with the city. 

However that development agreement, the one at the heart of the present lawsuit, began to fall apart in September 2018 after disputes over financing and proof of said financing. 

G8's part in the River City Renaissance, which roughly began in 2013, would have been to build a hotel in the vicinity of Southbridge Mall and work with The Music Man Square on a convention center component. 

Those two pieces would have complimented a performing arts pavilion and an ice arena/multipurpose center.

The city broke ground on the ice arena in February 2019 and it's scheduled for completion by December.

Get local news delivered to your inbox!

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.
0
4
0
0
0

Load comments