New Lake Of The Ozarks Hotel Details Revealed: 126-Room Hyatt Planned In Backwater Jacks' Cove

LAKE OF THE OZARKS, Mo. — A developer is looking to build a 126-room hotel under the Unscripted by Hyatt flag in Backwater Jacks' cove.

The developer is Colorado-based Pedersen Development Company. The hotel, built on a 3.3-acre plot, would be called "The Cove Hotel." Unscripted by Hyatt is a line of upscale, independent, boutique hotels.

Andy Prewitt, whose family owns and operates Backwater Jacks and the nearby LEVEL5 entertainment venue, confirmed his family is also involved with the hotel development. Prewitt said the rough timeline for construction is a 2027 build with a 2028 opening.

The Osage Beach Board of Aldermen on Thursday evening, Oct. 15 will consider a resolution that would allow city staff to work with the developer on the project.

The developer is not requesting real estate tax abatement, as has been done on some recent developments in the city. However, Pedersen is seeking Chapter 100 Industrial Revenue bonds as part of the funding.

Chapter 100 Industrial bonds are a funding mechanism allowed under Missouri law that allow the city (in this case) to issue bonds that the developer would purchase. The funds from that purchase essentially flow through the city to the development, with the effect of allowing the developer an exemption on sales and use tax for some of the project construction materials.

In the packet provided to the City Board of Aldermen, city staff provided the following explanation: "As part of the Chapter 100 bond transaction, the City and Developer will enter into a lease-leaseback transaction, and the City will issue industrial revenue bonds that are payable solely from lease payments made by the Developer. The City has no obligation to make any payments on the bonds from any other source."

Staff noted the Chapter 100 structure has been used on the Lakeport (Oasis), Preserve at Sycamore Creek, and Anglers Outpost projects.

The tentative timeline in the packet aims for a vote on the Chapter 100 bonds by mid-November.