Sink Or Swim: Osage Beach Outlet Mall's Redevelopment Must Have City Support, Buyers Say

OSAGE BEACH, Mo. — A critical funding plan to redevelop the Osage Beach Outlet Mall will go before the city's Board of Aldermen on Thursday. Developers say the success of the project hinges on city leaders' willingness to get behind it.

The mall, owned by Simon Property Group, went under contract in the fall of 2021: local developers with Horizon Development partnered with Kansas City-based Legacy Development to dream big about the future of what was historically the Lake's single largest retail engine. The mall's centrality to the on-land retail scene at the Lake has dwindled over the past decade, with a decline both in retailers and shoppers. Horizon and Legacy say they have plans for a "world-class destination." But the deal won't happen if they can't get financing.

That's where the City of Osage Beach comes in.

The developers have asked the city for a Tax Increment Financing (TIF) agreement. And while every TIF agreement is different, the main aspects of this one involve the property tax and the city using its bonding ability to bond the project, according to Chris Foster of Horizon Development.

The details of that funding plan will be the subject of discussion on Thursday evening, March 3, as the city Board of Aldermen convenes for their regular meeting. The aldermen plan to conduct a first and second reading of a bill approving the consideration of that funding plan.

Foster says he's been encouraged by the project's reception among city aldermen. "They're all for it," he said. "They're like, 'What can we do to help you?'"

But he emphasized the urgency of the project, and the need to act quickly, so their new vision for the mall can bring clarity to the retailers that remain, and those who may be waiting to see what the future holds.

Mark Beeler, the real estate agent facilitating the mall's purchase, said he believes the fate of the mall's redevelopment will be a bellwether for future major developments at the Lake. He acknowledged the difficulty of getting major corporations to bring big money to the Lake. "They feel like it’s a 90-day season," he said. "That’s why it’s so important that local developers are engaged here and that cities embrace the projects that they want to do."

Mayor John Olivarri said he's eager to see what's next for the mall. "I’m always looking for something that is more family-oriented," he said. "We need more of that down at the Lake… and that place has the opportunity to do that."

Olivarri says there’s a lot of agreement between the city and the developers as to the kind of project they’d like to see: family-oriented, with plenty of places to gather, a modern reinvented space. He said that would be a huge "win-win" for the developers and the Lake community.