St. Louis developer, The Staenberg Group, indicated that demolition would continue into December with grading and the addition of thousands of cubic feet of dirt added to the location.
Demolition and excavation crews have begun work on the 13.7-acre retail development project, knocking down the former Jake’s Steak and Fish Restaurant while surrounding land is cleared.
The former Golden Door Motel appears to be next as the $30.5-million dollar project enters a new phase. St. Louis developer, The Staenberg Group, indicated that demolition would continue into December with grading and the addition of thousands of cubic feet of dirt added to the location.
A recently added amendment for $50,000 to repave Jayhawk Road, located on the southwest side of the former motel, brought the total amount of reimbursable project cost Tax Increment Financing (TIF) funds to $4.6 million or 14.9 percent of the total cost.
The Osage Beach Board of Aldermen approved the TIF development agreement in September after receiving a unanimous recommendation for approval by the Osage Beach TIF Commission on May 11, 2017. 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.
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. 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.