The Sunrise Beach TIF Commission hearing on a proposed amendment to the terms of the Sunrise Beach Market Center tax increment financing (TIF) plan has been rescheduled for 6 p.m. Wednesday, Dec. 11 at Sunrise Beach Fire Protection District Headquarters, 30 Porter Mill Spring Rd.
The hearing was originally scheduled for Nov. 6, but the Village of Sunrise Beach sought to continue the meeting after three out of its six representatives on the 11-member community board indicated they would not be able to make the hearing.
The developers of Sunrise Beach Market Center - Supermarket Developers, Inc. — are seeking to extend the TIF due to cost overruns in the excavation budget for the site.
Under state statute, a TIF district allows a portion of future taxes generated by a designated development to pay for certain project costs. In this case, the TIF is funding site development and professional fees.
The project was originally estimated at $15.64 million with the TIF to be concluded in 2030 - a period of 17 years. The proposed extension would lengthen the TIF to 18-20 years.
By state statue, RSMo Section 99.845, the legal limitation of any TIF is 23 years.
Sunrise Beach Market Center is the home of Woods Supermarket which opened in May.
While that portion of the TIF area has been sold to another developer, according to Corbin, Supermarket Developers, Inc. is still working on developing out the rest of the original 13-acre site.
The initial plans included a convenience store or fast food restaurant, a retail strip center and another commercial out-lot away from the grocery store anchor.
In addition to the time frame, a large grant received by Sunrise Beach for its upcoming sewer project is affecting the TIF.
The development is within this phase of the sewer system.
The last minute surprise grant allowed Sunrise Beach to significantly lower its proposed rates, but sewer impact costs of the retail center had been figured into the overall development deal.
According to Village Planner Roger Corbin, the sewer costs will be taken out of the TIF plan due to the grant.
The proposed TIF extension is not the first attempt to cover the underestimated cost of shaping tough Ozark ground at the site since the project got underway last year.
In June, the level of a Community Improvement District sales tax on the property that is tied to the TIF was raised from a 0.75 cent rate to a 1-cent rate.
The CID board of directors approved the bump to help cover higher than anticipated expenses from site excavation.
The rate increase was originally estimated to equal roughly $256,000 over the life of the TIF as it is currently scheduled.
Page 2 of 2 - Corbin, a member of the CID board but not the TIF commission, said he had hoped that the CID tax rate increase would prevent the need for a change in the TIF plan. With the rest of the site not developing as quickly hoped for, it now appears that an extension is needed, he said.
A TIF captures property tax and sales tax revenue to help offset specific challenges to development — site excavation and professional fees in the case of Sunrise Beach Market Center — to make a project feasible.
The base tax income at the time of implementation is not be affected by a TIF. It is only additional revenue from the improvement — the increment above the base — that is committed.
In the Sunrise Beach Market Center TIF plan, all of the property tax above the increment was committed to the project except for the Camdenton R-III School District which is receiving half of the increment. The village does not have a property tax, but other taxing entities such as Sunrise Beach Fire Protection District and Lake West Ambulance are forgoing any additional property tax revenue for the duration of the TIF.
Half of the current sales tax collected at the store as well as the sales tax from the CID overlay are also being collected for the TIF.
At the conclusion of the TIF, the full amount of taxes will be collected for the various political subdivisions and the CID and its additional tax will be dissolved.