The agreement also continues a unique provision, according to Bushek, designed to provide a measure of protection for the city's revenues that will be received from the project. In four years, and continuing for 10 years, if actual sales tax revenues realized by the city from the project are not at least 75 percent of the revenues as projected by the TIF plan, the city will have the authority to withhold the actual difference between the projections and the actual sales up to a maximum of $30,000.

The marquee at The Golden Door quietly signals the end of an era for the iconic motel as an auction is announced for Saturday, Sept. 30.

The Golden Door and its neighbor, the now-closed Jake's Steak, will be the location of Osage Beach Commons, a retail endeavor by developer TSG (The Staenberg Group) out of St. Louis.

Geniece Tyler, who along with her husband Dave have owned the motel for some 35 years, said the sale of the property was completed on Aug. 30. They were open through Labor Day Sept. 4. Tyler said they are answering the phones and will be on property until the auction and are now preparing their new home in Osage Beach. 

Bryant Auction of Osage Beach will be handling the auction.

And to closely coincide with that announcement was a decision by the Osage Beach Board of Aldermen last week to approve first reading of a Tax Increment Financing (TIF) agreement between the city and TSG, signaling the most recent phase of a multi-month process that led to approval of the TIF project. The agreement outlines the specifics of the redevelopment plan. Second and final reading will be held at the regular Sept. 21 meeting.

David Bushek of Gilmore & Bell, PC, the city's counsel for the TIF project, told aldermen that after "extensive negotiations" with the developer an agreement was recently finalized that allows redevelopment of 14 acres of land that includes the motel, the restaurant and two abandoned single family homes.

The agreement provides a TIF incentive to the developer to build an approximately $30.4 million retail project. As a performance standard to motivate completion of the project, the developer must build at least 100,000 square feet of development to receive a Certificate of Substantial Completion. No reimbursement of costs will take place until the city has approved the certificate.

The agreement also continues a unique provision, according to Bushek, designed to provide a measure of protection for the city's revenues that will be received from the project. In four years, and continuing for 10 years, if actual sales tax revenues realized by the city from the project are not at least 75 percent of the revenues as projected by the TIF plan, the city will have the authority to withhold the actual difference between the projections and the actual sales up to a maximum of $30,000.

Since this is a pay-as-you-go project, Bushek said the city is not planning to issue debt to fund the reimbursable costs. The developer is at risk if the revenue from the project fails to pay off the reimbursable costs before the end of the plan.

The agreement also includes a public participation/profit limit feature that mandates a maximum rate of return for the developer of 12 percent. If that return exceeds 12 percent, the principal amount of TIF reimbursement will be reduced so that the developer's return is a maximum of 12 percent over the life of the TIF plan.

The agreement also includes a provision that if the assessed value of the project declines the developer is still responsible for the TIF payments as outlined in the plan. Also, the developer cannot sell or transfer more than 50 percent of its ownership without the city's consent.

The proposed $30.4 million 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.

If all goes according to plan, construction should start this year and would be completed in 2019.