The City of Springfield has reached an agreement with Sterling and Melissa Mathis, the owners of the Hotel of Terror, 334 N. Main St.
Springfield City Manager David Cameron said in his report to City Council Monday night that the agreement is for $2 million. There’s a contingency that the City won’t take possession until January 1, 2027.
"And so those terms that we were able to arrive at was the purchase price of $2 million but also the opportunity for them to have one last year with the Hotel of Terror, so them being able to operate in 2026 for those patrons that have utilized it for years, have memories of that...but also it allows for demolition of that facility that they could secure bricks from the historic, that piece of the property that they believe they could utilize," said Cameron.
The City had tried unsuccessfully for several years to reach an agreement with Mathis to purchase the property. Last December, City Council approved moving forward with eminent domain.
Mathis gathered enough signatures through the referendum process to let voters decide if the City should be able to take the property.
City Council will hold a special meeting on Tuesday, May 26, to dispose of the ordinance calling for a referendum election on the Aug. 4 ballot, the City said in a press release. In order to comply with both state law and Springfield’s City Charter – specifically, the final certification deadline for the August election, which is May 26 – it will be necessary to officially shift the referendum to November while City Council formally approves the real estate contract, repeals the eminent domain ordinance, and cancels the referendum, city officials said. A council bill that accomplishes these objectives will be introduced at the June 8 City Council meeting, with a vote expected at the June 22 meeting.
The Hotel of Terror opened on Main St. in 1978. The City needs to tear down the building to replace an adjacent bridge, part of which is believed to be more than a century old. There are currently weight restrictions on the bridge.
A copy of the contract with the property owners will be available to the public by end of business on Tuesday, May 19, according to the City.
