OSAGE BEACH – The Osage Beach Board of Aldermen on Thursday gave approval to three measures that pave the way for a $30.4 million, almost 14-acre retail shopping development off Osage Beach Parkway across from the Premium Outlet Mall.
Osage Beach Commons is a proposal by Michael Staenberg of St. Louis, doing business as TSG Osage Beach LLC. The project calls for a modern shopping center at the site of the Golden Door Motel and the vacant Jake’s Steak and Fish. It includes four buildings with a combined 131,000 square feet of space and 672 parking spaces.
The first action item the board approved was a resolution to send the proposal to the city’s TIF Commission, which reviews any project that involves TIF, or tax increment financing. The purpose of TIF is to develop blighted areas or spur economic growth by providing tax incentives to developers. As a new development begins to generate tax revenue, a portion of those taxes are directed to repay the project’s costs.
“This is the first step in the process,” said City Attorney Ed Rucker before the vote on the TIF Commission resolution. “There’s no guarantee we’ll get to the last step. Our recommendation is that the Board of Aldermen refer this to the TIF Commission for a public hearing and analysis.”
That hearing will be at 6 p.m. on May 11 in the Board of Alderman chambers at City Hall.
The board also gave initial approval to a funding agreement with the project’s developer and authorized the city to hire David Bushek, a lawyer with Gilmore & Bell, to help the city with the TIF plan.
“This is the legal equivalent of brain surgery, and he’s our brain surgeon,” Rucker said.
As part of the funding agreement, TSG Osage Beach will pay the city’s costs for Bushek’s legal representation.
In its proposal, TSG said the estimated equalized assessed valuation of property in the development area in 2016 was $615,380. The developer estimated the EAV after redevelopment would be almost $5 million. Of the total costs of the project, $20.2 million will be financed by Simmons Bank. The developer would pay about $5 million of the costs, and about $5.2 million would be financed through tenants.
If approved, the proposal also calls for the creation of a Community Improvement District on the site, which would levy a 1-cent sales tax. If the project succeeds as planned, the total TIF reimbursement to the developer will be capped at $4.5 million. Osage Beach sets up TIF payments on a “pay-as-you-go” basis, meaning that the tax breaks from TIF won’t be paid until the development begins to generate tax revenue.
Osage Beach City Planner Cary Patterson said there already are several tenants expressing interest in the development. He couldn’t reveal any of the potential tenants until the project is much further along.
He said the proposal could possibly be ready for groundbreaking yet this summer and have tenants in place next year.
“I think it’s going to move pretty fast, based on the location,” Patterson said. “It’s the best spot out there right now.”
