A proposal to redevelop the Osage Beach Outlet Mall will face its first major hurdle when the OB Tax Increment Financing (TIF) Commission holds a public hearing at 6 p.m. Monday at City Hall.

The commission will solicit input from the public and from developers who hope to resurrect the mall which has seen steady decline in recent years. Applicant Osage Beach Marketplace, LLC, which has roots in the Lake area, is asking the city to approve a TIF project for the Osage Beach Outlet Mall Development. The TIF Commission eventually will consider a resolution to move the project to the board of aldermen for its consideration.

TIF proposal

The proposed project consists of about 60 acres. Project developers propose to tear down and/or remodel the blighted buildings and redevelop the site into a remodeled and newly constructed mixed‐use development. The redevelopment will occur through remodeling of a portion of the existing improvements, demolition of a portion of the existing improvements, and construction of new uses such as retail, restaurants, hotel, entertainment, multi‐family residential, and other uses.

The total cost is projected to be approximately $186 million plus financing costs. The plan proposes that $64.4 million in net reimbursable project costs be reimbursed from TIF revenue generated by the redevelopment project areas, city hotel sales tax rebates, county hotel tax rebates, Transportation Development District (TDD) revenue, Community Improvement District (CID) Revenue, and other sources. The remaining amounts will be financed through a combination of developer private capital and third-party private capital.

The TIF would be a pay-as-you-go project with the city's costs being reimbursed by the developer. The upfront costs have already been covered by a deposit by the developer.

The applicant has a signed purchase agreement for some of he parcels with closing currently required on or before June 15 between Premium Outlet Partners, LP, and Osage Beach Marketplace Partners, LLC. The other parcels of land are not under control of the applicant however the applicant is negotiating to acquire property owned by the Missouri Department of Transportation that is located south of the main 49.3-acre parcel. The additional parcels include two hotels located adjacent to the Outlet Mall and a multi‐tenant office building anchored by a bank located in between the two main entrances to the mall.

Other points of interest

The property is currently zoned for C1, which allows for all uses currently being concerned for the redevelopment.

Certain existing commercial buildings will be demolished as part of implementing the proposed redevelopment plan. Existing tenants in those commercial buildings may relocate to newly constructed portions of the project or to portions of the project that are not demolished.

As currently proposed the project has a projected return on investment of ‐1.22 percent without Tax Increment Financing and 11.60 percent with Tax Increment Financing and the other public sources of revenue being requested in conjunction with Tax Increment Financing, supporting the conclusion that redevelopment would not occur without Tax Increment Financing.

The applicant is experienced in the development of projects of this nature and has utilized its internal expertise and analysis to determine each component of the proposed project is feasible. Legacy Development has nearly 30 years’ experience in the management and development of shopping centers and mixed‐use developments and has studied the dramatic changes in the shopping mall business during the last 10 years through diligent efforts on other properties managed and developed by their team and through industry knowledge. The Foster’s bring extensive understanding of the Osage Beach market with over 50 years’ experience as property developers in the area.

The general economic and quality of life benefits of the proposed project are:

1. To eliminate the blighting factors and to eliminate and prevent the recurrence thereof for the betterment of the proposed Redevelopment Area and the community at large;

2. To enhance the tax base of the City and the other taxing districts, and encourage private investment in the surrounding area;

3. To increase employment opportunities;

4. To stimulate construction and development, protect existing tax revenues and generate

new tax revenues, including, but not limited to, real estate tax revenues, sales tax revenues, personal property tax revenues, and utility tax revenues, all of which would not occur without TIF assistance;

5. To improve infrastructure to allow for this development;

6. To revitalize and increase the economic viability of this region of the City by preventing

the decline of the area and strengthening the area as a retail and entertainment

destination;

7. To increase the economic viability of this region of the City by establishing a unique

project with a mix of uses and attracting visitors from outside the City; and

8. To implement the goals identified in the City's Tax Increment Financing Policy.

Osage Beach Market Place, LLC, is a newly formed entity which is a joint venture of entities controlled by the principals of Legacy Development and the Foster Family of Osage Beach. The parties will use their collective strengths, experience and financial wherewithal to execute and operate the project.

About the developers

Legacy Development

Since 1995, Dan Lowe and the team at Legacy Development has, through various predecessor and existing entities, participated in more than 45 projects with over 20 million square feet of commercial space across 14 states and the U.S. Virgin Islands.

In 1995, Dan Lowe and other members created RED Development with the goal of developing high quality shopping centers. In 2012, as RED Development shifted focus primarily to the acquisition and management of core properties, Lowe created RED Legacy, which continued the type of retail development upon which RED Development was founded. In 2015, Lowe branched out beyond the RED Development/RED Legacy brand and established Legacy Development.

Foster Family

The Fosters are a multigenerational family of Camden County having homesteaded in the 1820s. Both Dan and Chris are graduates of Camdenton High School and went on to higher education at Washington University in St. Louis and the University of Southern California, respectively.

Dan's father, Buford, who saw the construction of the dam and witnessed the filling of the Lake, ran the Nighthawk restaurant in Camdenton and Lake Park Marina which was one the first major attractions to the Lake of the Ozarks. Buford was always promoting Lake of the Ozarks, even when he formed the Lake of the Ozarks Tadpoles, a group of young square dancers who frequently opened the nationally television program The Ozark Jubilee. He listed Lake of the Ozarks instead of himself as the Tadpole's originator to help publicize our area. Buford was also instrumental in the Lake as we see it today. In the 1970s, Buford and Charlie Page, went to Washington DC to successfully lobby the US Congress to grant local permission from FERC to allow Union Electric (now Ameren) to work with the US Corps of Engineers cooperatively in order to maintain a consistent Lake level. This vastly simplified dock ownership at the Lake, and is one of the unique features our community has to offer that attracts people to the Lake of the Ozarks.

Growing up on the Lake, Dan worked under Buford at the Nighthawk and Lake Park. After college he became a dentist and enlisted in the army. After his discharge, he chose to return to his home at the Lake of the Ozarks to settle. As a local dentist, Dr. Dan got into real estate development with spec homes and rental properties, eventually entering larger scale developments with the numerous condominium projects throughout the Lake. Partnering with Bill and Jeff Tillman, they built over 1,000 units and have been considered the largest condominium developer in the state of Missouri. While continuing to work in dentistry and real estate, Dan was elected to the Osage Beach Board of Aldermen in 1988. Dan also served on the Public Safety Commission and the Planning and Zoning Commission which helped to lay much of the infrastructure we see today. Additionally, he was part of the team that helped lay out the business highway 54 and the highway 54 expressway in the City of Osage Beach.

His wife Nickie has also been involved in the community and business. She was elected to the Camdenton School Board and went on to serve 9 years, 3 of them as President She spearheaded the lighting of the old Grand Glaize Bridge in the 1980s which was the first major holiday display in the City of Osage Beach.

Christopher Foster splits his time between the Lake and Santa Monica, Calif., where he has had the distinct honor of serving as the chair of the Santa Monica Pier Corporation. Chris has also created projects locally with the project of note, Rock Island Village. Located in Eldon, Rock Island is a 70 bed assisted living community that was financially supported by the community through the use of a Chapter 353 property tax exemption. He is also the Chair of the University of Missouri Extension Council in Camden County which assists the community through programs focused on mental health, agriculture, and economic development.

The Fosters helped culminate or participate in numerous organizations such as the Marine Dealers Association, Lake of the Ozarks Association which became TCLA, Missouri Department of Health State Board etc. Their experience has helped them come up with creative solutions to work with communities that host tourists to destinations and events that are appealing from the local to the global level.

 

The Lake Sun