Springfield Buys Hotel of Terror Site for $2 Million
The city will replace a 100-year-old bridge, forcing the 48-year-old local attraction to close its doors permanently.
Updated on Oct. 31, 2026 in Openings & Closings
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The City of Springfield has purchased the Hotel of Terror property from owner Sterling Mathis for $2 million to clear land for a flood control project. This acquisition, which follows years of legal negotiations, forces the closure of the 48-year-old haunted attraction after its final run this weekend.
Why it matters
Local operators face similar risks when municipal infrastructure projects require private land, as the city used its eminent domain authority to resolve a standoff that began in the 1990s. The move highlights the potential for long-term development plans to suddenly terminate established small business operations.
The city is paying $2 million for the site, ending the 48-year operational history of the attraction. The acquisition clears the way for the Renew Jordan Creek project, which aims to replace a 100-year-old bridge.
The players
Sterling Mathis
The owner of the Hotel of Terror who operated the local attraction for 48 years.
City of Springfield
The municipal government overseeing infrastructure projects and land acquisition for flood control.
The details
The city acquired the land through the eminent domain process, forcing a sale after the owner chose to avoid further financial losses from protracted litigation. While the Hotel of Terror will close, the affiliated Dungeons of Doom attraction remains unaffected. The land is being repurposed to facilitate the Renew Jordan Creek flood control project, prioritizing infrastructure modernization over the existing commercial use.
Timeline
Negotiations between the owner and the city began in the 1990s.
The attraction holds its final Friday of operation on October 30, 2026.
The business concludes its final Saturday of operation on October 31, 2026.
Market Landscape
This acquisition follows the pattern of land clearing established by the Renew Jordan Creek flood control project. It marks the latest step in long-standing municipal efforts to prioritize urban flood mitigation over existing private commercial sites.
Operators with long-term holdings in areas marked for municipal redevelopment should review their property’s standing regarding pending infrastructure plans. When faced with eminent domain, owners must decide between challenging the city in court or negotiating a sale to mitigate total financial loss.
The takeaway
The closure serves as a stark reminder that infrastructure goals often override long-standing business operations when eminent domain is applied. Business owners should maintain updated property valuations and consult legal counsel immediately if their location is named in a municipal development plan.
Further reading
For more on local business transitions, visit the Openings & Closings section.
Source note: This article includes information reported by Ky3.
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