Voters will decide in August whether or not the City of Springfield can use eminent domain to obtain the Hotel of Terror building on N. Main St. The City needs to tear down the building to replace the adjacent Main St. Bridge, which is in poor condition.
"The Hotel of Terror building sits immediately adjacent to the bridge and creek channel," said Mayor Jeff Schrag in a statement that he read before the vote. "This location is where the replacement bridge and supporting structure must be built. Engineering analysis state the building was constructed directly next to the bridge leaving insufficient space to safely construct the foundations and expand the channel needed for modern replacement."
Council members Monday night unanimously agreed to the election and unanimously turned down a repeal of the eminent domain ordinance approved in December.
Specifically, Springfield voters will be asked Aug. 4 whether to repeal Special Ordinance 28232, originally approved by City Council on Dec. 15, 2025, which authorized the use of eminent domain to acquire the property at 334 N. Main St. for a public infrastructure project.
The City of Springfield had offered the Hotel of Terror owner Sterling Mathis $2 million for his property. Mathis’ latest counteroffer, in November 2025, was $3.5 million, which led the City to pursue eminent domain.
Councilman Brandon Jenson said, while the Hotel of Terror’s cultural significance to the community should be factored into a fair purchase price, he believes Mathis is asking too much. That offer, according to Jenson, included expanding Mathis’s other haunted house attraction, Dungeons of Doom by 11% and creating tenant space, which he said isn’t fair to citizens.
"While I can certainly understand a business owner wanting to make additional improvements to their property in tandem with relocating another business to that site," he said, "I struggle to understand why it should be the responsibility of taxpayers to pay for that cost."
Jenson said the City’s offer was a fair one. Mayor Schrag said negotiations are ongoing, and he still hopes an agreement can be reached before an election is held on August 4.
