OSAGE BEACH, Mo. — For cities hoping to spur economic development, Tax Increment Financing, or TIF, has become a valued tool. 

In Osage Beach, Prewitt’s Point and Dierbergs are two TIF districts that have expanded the city’s tax base. In the development stages is the Arrowhead Centre project, a proposed $385 million, 226-acre development that promises shopping, restaurants, senior housing and assisted living on the grounds of the former Dogwood Hills Golf Resort. 

The stated 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. 

As long as the project is successful, the bonds that paid for construction are paid back with a portion of the taxes the TIF district generates. Local taxing districts – such as school districts and libraries – receive a portion of the revenue, as does the city for infrastructure such as roads and utilities. The city also benefits from the jobs and “trickle-out” economic benefits the development brings. 

Everyone’s happy. 

But what happens when the developer’s plans for a TIF project don’t pan out? 

The Osage Beach Board of Aldermen on Thursday held a public hearing on the progress of one such project, Marina View. 

In December 2007, the Osage Beach Board of Aldermen approved TIF for Chateau Lake of the Ozarks in the Marina View district. The developer, John Q. Hammons Hotel & Resorts, planned a $100 million, 15-story luxury hotel on the Grand Glaize Arm of the Lake. 

But the day after the Board of Aldermen approved the plan, Four Seasons Marina Rentals’ sued the city over the TIF, halting the project before it ever got off the ground. After more than two years of legal wrangling, the city prevailed in court. 

Chateau Lake of the Ozarks was then legally able to proceed as planned. 

But the delays and legal costs to the developer had set the project back, and before the development could proceed, the company’s owner Hammons died. As a result, the Marina View TIF project today is a vacant lot. 

Thursday’s public hearing – required by the state’s TIF law to report to the public a development’s progress – was short. No one appeared at the hearing, and there was little to report. 

“As (Hammons) was the driving force for that hotel and property, his death put things on hold,” said City Attorney Ed Rucker at Thursday’s meeting. 

He said City Administrator Jeana Woods has contacted the Hammons Company to discuss the project. 

“Hopefully, they will be making a visit down here soon to see what their intentions are to proceed,” Rucker said. 

Woods said that ideally, the company still has plans for the site it owns just off the east side of the Grand Glaize Bridge. 

“I’m hoping to get some good news that they have new plans, or some kind of a plan for that site,” she said. “They still are the owners, and we do believe that’s a very prime piece of property. I fully expect it to be developed by somebody, and I’m excited to reach out and have those conversations.”

Woods said that although the Marina View TIF Project is an example of what can happen to derail ambitious development plans, Osage Beach TIF agreements are drafted to put all the financial risk on the developer. 

She said the developer is responsible for all the planning, development and construction costs.

“We even get reimbursement for our administration costs,” she said, 

“In the case of the Hammons project, there were a lot of variables that took place that were out of our control,” Woods added. “Hence the development never got to proceed to the point where we were breaking ground. But the city did not spend any money to work on that plan. We’re not out a penny.”

0
0
0
0
0

(0 Ratings)