New 138-Unit Apartment Complex Could Be Coming To Downtown Camdenton, As City Weighs Incentives

CAMDENTON, Mo. — A new 138-unit apartment complex could be built near the Camdenton Square, and next week the city board will hear a presentation on the project.

The complex is proposed to be constructed on a 5.8-acre property currently owned by the city, located at the end of Cedar and Poplar Street in Camdenton. The developer is seeking tax abatement for the project, and the Camdenton Board of Aldermen will hear a presentation at their Tuesday, September 19 board meeting.

Gillmore and Bell are the city financial advisors on this project. They will explain to the aldermen how a tax abatement works and answer any questions they might have. The meeting is open to the public. A tax abatement is an incentive for developers to build; the aldermen could vote on the abatement in the same meeting.

The city had previously issued a request for qualifications for development on the 5.8-acre property. One Springfield builder responded requesting the tax abatement to build apartments, a swimming pool, and a club house.

According to Camdenton City Administrator Jeff Hooker, the city is considering a 50 percent tax abatement for a period of ten years, for the project. Hooker said, by contrast, other cities have issued 100 percent tax abatements for 20 to 30 years. He also pointed out local entities who receive tax dollars wouldn't see any decrease from the abatement in this situation, because they don't get any from it now.

“This is a city owned property so entities (schools, county, ambulance, library etc.) receive zero real estate tax dollars from it now,” Hooker said. “If it is sold to the developer, and the abatement is approved, the entities would receive 50 percent of the real estate taxes on the property for 10 years. After 10 years they would receive 100 percent.”

Estimated tax revenues for the school district would be $50,000 per year with the 50% abatement once the complex is fully developed. Once the abatement ends, the city estimates the district would receive $100,000 per year from taxes on the property.

“We legally could enact the tax abatement without input from the entities, but that is not fair,” Hooker added. “We went to them to get their approval before moving forward.”

He noted, “For the school it is a good investment. It is hard to recruit teachers because we have no housing. The apartments would provide housing for young professionals and college graduates.”

Hooker says there is no financial risk to the city. If the aldermen approve the tax abatement the city would proceed with the real estate transfer in October, and construction could begin as early as November 2023.