OSAGE BEACH, Mo. -- Heated arguments, opinions and choice words filled City Hall as developers, aldermen and the president of the school board squared off about tax breaks to build a $63 million, 268-unit apartment complex in Osage Beach.

City Hall was packed for the bout before the last major vote to move forward 'The Preserve at Sycamore Creek.' The audience voiced opinions against it and in favor of the housing expansion, tax breaks impacting the school district, and safety on Nichols Road in Osage Beach. 

On the table for official vote: Approving the development plan, a Chapter 353 tax abatement, allowing 20 years of preferential treatment on property tax, and designating an area within the old Sycamore Golf Course as blighted. 

The plans for 'The Preserve At Sycamore Creek' promise 268 apartments built by Tegethoff Development and Thomas Construction at an estimated cost of $63 million, according to plans presented to the city.

Plans include one-, two- and three-bedroom rental apartments developers estimate at $900, $1,400 and $2,000 per month.

According to a tax impact statement prepared by Husch Blackwell LLP, the annual tax revenues on the property in 20 years without any development would be $2,421.59; but the projected annual tax revenues on the property in 20 years if this apartment complex is developed would be $415,964.81.

The developer estimates the value of the 20-year tax abatement plan to be worth approximately $2.5 million to the developers.

Gail Griswold, president of the Camdenton School Board, took to the podium to address the tax abatement's impact on the school district. Approximately 70% of the property tax revenues currently collected — and thus to be partially abated — go to the Camdenton R-III School District.

“Just because this is a mechanism that’s legal, it doesn’t make it right," Griswold said. "I think you’re taking the largest tax away from the school. We have a lot of debt to pay back and a lot of work to do. You’re impacting the staff, you’re impacting our kids.”

The developer addressed the board as well, verbally agreeing with Griswold about the school district's expense of $13,000 per year to educate a student, but pointing out that with the current property tax rate, most single-family homes don’t cover their tax burden either.

“The argument that we’re putting a financial burden on the school is flawed in the sense that every home in Camden County that has a student -- one student in it, who’s living in a home that’s not worth $2 million -- is putting a burden on the school... it’s just not how schools are funded or how municipal finance works,” Tegethoff said.

The developer estimates a maximum of 25 students would live in the complex. In Tegethoff's developments of this size in Lee Summit, Chesterfield and Maryland Heights, none had more than 14 children and no more than seven school-aged, he said.

Griswold rebutted that those developments are in metro areas and are not representative of Lake of the Ozarks.

“Please understand economics, you’re comparing a metro area with a lot of competition and housing and income," Griswold said. "But everyone is going to flock to this and we’re going to have more than 25 students. And if we don’t, then I’ll eat my words. But you need to be prepared for that impact.”

Previous to the meeting, stakeholders and interested parties had taken to social media, as has become the norm. 

Tegethoff recognized, “There had been a lot of emotions surrounding this project on social media, on the radio and in the papers.”

Griswold responded: “I’d just like to talk about the developer talking about emotions and social media. When you’re talking about taking money away from kids, you could say that’s emotional. I think it’s gaslighting to say that the people up here are emotional and tax abatements aren’t a big deal... you’re taking money from kids. You guys are all promoting taking money away from kids.”

Another community resident in attendance, Julie Thomas, spoke about a potential precedent being set for other developers to request Chapter 353 for future developments. 

“If we start this trend of bringing developers in and saying we’ll give you a five-year tax abatement, then we're going to get people that say 'why them and not me?'” Thomas said. “Be very careful about the doors you open. Because you can’t shut Pandora’s Box on this.”

Big Thunder Marine General Manager Jeremy Anderson spoke in support of more housing for the area.

“Our company, as we’ve grown from a 25-person company in 2016 to now over 100 employees, we’re having a hard time bringing people to the Lake because they don’t have an affordable place to live," Anderson said. "We’ve lost five employees that we tried recruiting from outside of the Lake area because they simply can’t find a place to live. This is the only development that I’ve seen that’s come even close to addressing the significant shortage of affordable housing in the Lake area, and I just wanted to speak on behalf of my employees that we appreciate this very much.”

Dissenters questioned Nichols Road's capacity to handle the increased traffic the apartment complex could bring. Speakers noted the road's narrowness and condition, voicing concerns about traffic from both construction and volume once the project is complete.

Aldermen Phyllis Marose and Tyler Becker made special mention of this issue since Nichols Road is in their district.

Becker directly asked if Tegethoff would commit to cost share between the city and developers, if the road was deemed unsafe. Tegethoff answered that they would commit to paying for a road safety survey and said they were “very interested” in being part of a cost share.

“I’m very passionate about Nichols Road, it’s obviously my ward, I’ve lived there for more than 20 years,” Marose said. “Alderman Becker and I are both very passionate and concerned about residents using it, knowing there’ll be a lot more traffic there... but we need more apartment complexes without a doubt.” 

Before the vote, Alderman Richard Ross spoke about the comments made by the school board president against the tax abatement.

“I have to say I’m disappointed with the school system," Ross said. "To come up here and tell us that we’re taking money from kids and not even offer, anywhere in this process, any other option that they could discuss... I find it less than professional and doesn’t meet the standard that those people were elected to do."

Ross’s statement was briefly interrupted by applause from the audience before he continued...

“I went to a meeting once where a very smart man said, ‘if you’re going to come in and complain, don’t complain without suggestions otherwise, it’s just bitchin’ and I don’t have time for that.' And to be quite honest, I think that’s what we just saw,” Ross said.

The board voted unanimously to pass Bill 22-71 and Bill 22-74, which granted the Chapter 353 tax abatement, designated the area of land in Sycamore Creek blighted, and approved the development plan.


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