A local developer claims the City of Lake Ozark owes them more than $200,000, and is threatening to sue the city over it.
In a letter dated Dec. 6, Attorney Greg Williams, representing RIS, Inc., claims the City of Lake Ozark has failed to pay RIS, Inc. more than $200,000 in Tax Increment Financing (TIF) revenues for the Eagles’ Landing development.
A TIF is a cooperation agreement between a private and public entity that allows—in this case—for the collection of an additional sales tax at businesses within the development, the revenues from which are to be remitted to the developer (or their lender) to help offset development costs. According to the letter, which was delivered to City Hall, the city owes $84,700 for the second quarter of 2017 and $139,000 for July through November of 2017.
RIS, Inc. alleges that the city has been holding the $139,000 in escrow, but claims “there is no lawful basis for such an escrow.”
“As the City is well aware, my client has expended millions of dollars in development of the Eagles Landing project, which has greatly benefit (sic) Lake Ozark and its citizens through the provision of additional jobs, market places, and tax revenues,” the letter concludes. RIS, Inc. has given the city 10 days from the date of the letter (Dec. 6) to show the City’s accounting of sums received and payments made.
City Administrator Dave Van Dee declined to comment on the issue, deferring to the City Attorney due to the potentially litigative nature of the matter. City Attorney Chris Rohrer, could not be reached on Tuesday afternoon, but LakeExpo.com will update this story with any comments from the city.
