Osage Beach Aldermen unanimously approved the second and final reading of a Tax Increment Financing (TIF) redevelopment agreement with TSG Osage Beach, LLC for the Osage Beach Commons commercial development.

Osage Beach Aldermen unanimously approved the second and final reading of a Tax Increment Financing (TIF) redevelopment agreement with TSG Osage Beach, LLC for the Osage Beach Commons commercial development.

The agreements allows for the redevelopment of approximately 24 total acres, which currently contains the soon-to-be closing Golden Door motel, the closed Jake’s Steak and Fish resturant and two abandoned residential structures along with 10 acres of vacant land off of Osage Beach Parkway. The developer is The Staenberg Group of St. Louis.

Prior to the second reading of the agreement on Thursday night, the Board had approved the TIF plan on June 29 having received a unanimous recommendation for approval by the Osage Beach TIF Commission on May 11, 2017.

According to Osage Beach staff documents, the agreement provides a TIF incentive to the developer to assist in constructing an approximately $30.5 million dollar project by providing $4.55 million in TIF reimbursement funds, about 14.9-percent of the total project costs. 

One half (50-percent) of the new real estate and sales tax generated by the development will be passed through to the taxing districts.

The “Pay as You Go” plan requires the developer construct at least 100,000 square feet of development in order to receive a Certificate of Substantial Completion, which will be begin the reimbursement process from the city. An ordinance establishing a Community Improvement District (CID) for the project was also previously approved by the Board.

Background Information:

While no specific retail or commercial entities for the 131,000-square foot proposal 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 mall-type 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.
The TIF is estimated to generate $4.5 for the project, while the CID 1-cent sales tax would generate approximately $2 million.


The developer will be reimbursed only as TIF revenues are collected during the life of the TIF plan, estimated by developers as quickly as 12 years or as long as the authorized life of the TIF, which is 23 years. The project will be “pay-as-you-go” meaning the city will not use general revenue funds because the developer will provide funds up front to cover administration costs.

The developer will be paid over time as TIF revenues are generated by the project. Half of the proceeds would be made available on a monthly basis and half would be paid on an annual basis after property taxes are paid each year.


TIF funds would be used for land acquisition, off-site and one-site development costs for a total of $5.52 million. Private funding totaling $20.76 million will cover building construction costs, soft costs, project fees and tenant interior finish costs.

A Community Improvement District (CID) would be formed to collect up to an additional 1 percent in sales tax to cover on-site development costs and soft costs totaling $4.12 million. City officials and developers reiterated the project would be privately financed and the city would have no financial obligations from either its general fund or through the issuance of revenue bonds.