The city of Osage Beach put its stamp of approval on the community's next Tax Increment Financing project by approving second reading of an ordinance adopting the Osage Beach Commons TIF June 29.
The board also authorized the formation of a Community Improvement District (CID) which authorizes the developer to impose a 1 percent sales tax for 22 years.
Osage Beach Commons is proposed to be a $30.4 million retail development that will be located where the currently operating Golden Door Motel and the vacant Jake's Steak & Fish Restaurant are located, in addition to several acres of vacated land southeast of that area. The area also includes two abandoned single family homes in addition to about 10 acres of vacant or unimproved land. The developer proposes to demolish the existing buildings and develop the area to include about 131,000 square feet of traditional retail and food users with about 672 new surface parking spaces.
The developer has all properties currently under contract.
The Osage Beach TIF Commission approved the plan May 11, and the board of aldermen gave first- and second-round approvals during regular meetings in June.
The project would feature a 131,000-square-foot retail center. While no specific retail or commercial entities have been identified for the area, it would contain a mix of junior anchors, inline retail tenants, fast food and quick serve restaurants. It would not include outlet tenants. According to the developers, the proposed tenant mix for Osage Beach Commons is complementary to the existing retail centers and outlet mall and would bring "new-to-market" tenants to Osage Beach.
Construction should start in the third quarter of this year and with completion by the spring of 2019.
The proposed developer is TSG Osage Beach, LLC, which is a single purpose entity created for this development by Staenberg Group, Inc.
The primary basis for seeking the TIF support is that the proposed area is considered blighted under definitions within the Missouri TIF statutes. The focus for determining blight is on the entire area rather than individual parcels.
The underlying principle of TIF is that tax collections will rise after TIF plan improvements are completed. 
The developers estimate that private financing will provide $25.4 million of the $30.5 million construction cost, with $5 million coming from developer equity.
Current assessed value of the area is $615,380 with projected assessed value of $4,888,000 once the project is completed.
The developer projects that TIF revenue will be $4.5 million and the CID will generate $2 million.

Jet Fuel Truck
Mayor John Olivarri cast his first tie-breaking vote when he voted in favor of purchasing a new jet fuel truck for Lee C. Fine Airport.
Airport Manager Ty Dinsdale requested authorization to spend $171,645 on a non-modular fuel pump truck from Garsite Aviation Refueling Equipment of Kansas City, Kan. The current 1989 truck was purchased used by the city in 2000. After several minutes of discussion about buying new equipment vs. used equipment, and if there truly was a need for a replacement truck, aldermen voted 3-3 on a motion to buy new.
Voting in favor of a new truck were Aldermen Phyllis Marose, Greg Massey and Kevin Rucker. Opposed were Richard Ross, Jeff Bethurem and Tom Walker.
Saying he has the current truck and that it's time the truck be replaced, Mayor Olivarri voted in favor.
The Airport Department had budgeted the item for the current fiscal year with purchase through a lease-purchase process. In a related decision, aldermen authorized the mayor to contract with Central Bank of Lake of the Ozarks to provide lease purchase of the truck.
Three bids were received with Central Bank offering the best terms at 2.39 percent over five years. Other bids were 2.66 percent from U.S. Bank for three years and 2.89 percent over five years.