It may not appear much has been done at the Osage Beach Commons retail development, but according to city officials, the project remains on schedule in the developers’ timeline.

It may not appear much has been done at the Osage Beach Commons retail development, but according to city officials, the project remains on schedule in the developers’ timeline.

The 13.7-acre property where the former Golden Door Motel and Jake’s Steak and Fish Restaurant once stood is scheduled for excavation and infrastructure ground work for the first year to 18 months, according to Osage Beach City Administrator Jeana Woods.

While it does not appear much has been going on at the site so far this spring, as temperatures rise the city does expect to start seeing more infrastructure go in.

Former buildings on-site were demolished over the winter after the Staenberg Group of St. Louis reached a tax increment financing agreement with the City of Osage Beach for the approximately $31 million re-development earlier in 2017. A Community Improvement District was also authorized to collect a 1 percent sales tax at the site for 22 years.

A 131,000 square-feet of traditional retail and food commerce sites is planned with 672 new surface parking spaces to accommodate customers.

The Osage Beach TIF Commission approved the plan in May 2017, and the board of aldermen gave first- and second-round approvals during regular meetings in June 2017.

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.

The project is scheduled to be completed by Spring 2019.

With the old businesses and buildings on the property, the assessed value of the area was $615,380 with projected assessed value of $4,888,000 once the project is completed. 

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

The developers estimated that private financing will provide $25.4 million of the $30.5 million construction cost, with $5 million coming from developer equity. 

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 “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.

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.