The owners of the Hotel of Terror, a 47-year Springfield landmark, are calling on the City of Springfield to halt its bad-faith efforts that threaten the survival of the historic downtown attraction.
For decades, the Mathis family has operated the Hotel of Terror without incident. But since the City began its Renew Jordan Creek project — and especially after citizens overturned the City’s attempted eminent domain taking — the business has faced a series of actions that appear designed to force its closure.
Despite more than forty years without flooding, the property began suffering water infiltration only after the City altered the creek’s topography.
The City received repeated notice of the damage but failed to act.
The City has tried to acquire the Hotel of Terror property through eminent domain, with
negotiations ongoing since at least 2019. In February 2023, the City Council voted to begin the eminent domain process to seize the property, but that decision was repealed in May of 2023 after citizens petitioned for a referendum, but the City has resumed efforts to acquire the property through eminent domain again.
At the same time, the City has imposed constantly shifting, increasingly burdensome, and often unnecessary regulatory demands, including special-use permit conditions and code requirements that exceed those applied to similar businesses. These requirements have been changed multiple times, often with little explanation.
Most recently, the City has rushed the timeline for relocation discussions, giving the owners compressed deadlines while simultaneously raising new compliance obstacles.
Mr. Mathis’s attorney sent a comprehensive $3.5 million settlement proposal to the City.
Just two days later, the City publicly announced plans to pursue eminent domain.
The proposed ordinance is scheduled for first reading on Monday, November 17, only seven days after receiving the proposal and without any meeting or substantive response from the City.
“Instead of sitting down to discuss our proposal, the City immediately went to the media and announced condemnation proceedings,” said Kristi Fulnecky, attorney for Sterling Mathis. “This is not good faith negotiation required by Missouri law. The combination of shortened timelines and heightened demands has placed the family business in an impossible position.”
“The pattern is clear,” said owner Sterling Mathis. “Instead of working with us in good faith, the City keeps accelerating deadlines and adding new requirements that no other haunted attraction has to meet. After 47 years of contributing to Springfield, we should not be treated this way.”
Through counsel, the Mathis family has submitted a formal settlement proposal that reflects the true cost of repairing City-caused property damage and rebuilding the business at a new location.
The family has made clear that they are willing to cooperate — but not at the expense of their livelihood or their rights.
“The City’s actions show a troubling disregard for fairness,” said attorney Kristi Fulnecky. “Rushed timelines, escalating demands, and failure to address the flooding they caused are not the actions of a government acting in good faith. The Mathis family deserves just compensation and a transparent, honest process.”
The Hotel of Terror remains committed to serving Springfield and calls on City leaders to engage in genuine, good-faith negotiations that respect both Missouri law and nearly five decades of community history.
