Springfield Purchases Hotel of Terror for Bridge Project
The city acquired the historic attraction to clear land for a new flood control initiative and bridge replacement.
Updated on Oct. 31, 2026 in Openings & Closings
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Springfield city officials have finalized a $2 million deal to purchase the Hotel of Terror property from owner Sterling Mathis. The acquisition will allow the city to proceed with the Renew Jordan Creek flood control project and replace a 100-year-old bridge.
Why it matters
The sale ends a lengthy legal dispute over the property and enables long-planned infrastructure improvements in Springfield. By securing the land, the city can modernize a critical bridge while advancing broader environmental flood mitigation goals.
The city paid $2 million to acquire the site that housed the business for 48 years. The project is designed to replace a 100-year-old bridge as part of the Renew Jordan Creek infrastructure plan.
The players
Sterling Mathis
He is the former owner of the Hotel of Terror property who agreed to the city sale to avoid further financial loss from eminent domain.
Springfield City Government
The local municipal authority responsible for the oversight of the Renew Jordan Creek flood control project and local infrastructure.
The details
The city utilized the eminent domain process to acquire the site after decades of negotiations. While the Hotel of Terror will close after its final two nights of operation, the nearby Dungeons of Doom attraction will remain open to the public.
Timeline
Negotiations between the owner and the city began in the 1990s.
The business concludes its final Friday of operation on October 30, 2026.
The final day of business operation is October 31, 2026.
Market Landscape
The city's use of eminent domain for the Renew Jordan Creek project follows the legal framework established by the Fifth Amendment's Takings Clause. This acquisition represents a shift in local land utility, moving the parcel from private commercial use to public infrastructure development.
Local residents will see the closure of a long-standing attraction after October 31, 2026. Drivers should anticipate upcoming construction and traffic changes near the bridge site once the flood control project commences.
The takeaway
The end of this long-running attraction highlights the common tension between local business legacy and necessary municipal infrastructure upgrades. Residents looking to visit one last time have only until October 31 to see the property before operations cease.
Further reading
For more news regarding local commercial shifts, visit the Springfield Openings & Closings section.
Source note: This article includes information reported by Ky3.
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