The future of the proposed $360 million Lakeport Village development now rests with the Osage Beach Board of Aldermen.
The Tax Increment Financing (TIF) Commission voted 7-4 Monday night after a public hearing to adopt a resolution recommending the TIF project to the board of aldermen. The resolution also approves the redevelopment project as presented.
Voting in favor of the resolution were TIF Commissioners Paul Gerardi, Tyler Becker, Fred Catcott, Dave Crane, Tim Gardner, Bob Van Hook and Geniece Tyler. Voting against were Ike Skelton, James Gohagan, Jacob Neusche and Gail Griswold. Skelton and Gohagan are Camden County commissioners and Neusche and Griswold are members of the Camdenton School District Board of Education.
The public hearing included testimony from the applicant, Tegethoff Development; comments by Mark Spykerman, the city’s TIF consultant from Gilmore & Bell; input from David White, the city’s financial advisor from Columbia Capital; and several comments from residents and visitors.
The vote did not come without dissent. Areas of concern included:
•If the land just off Highway 54 and Jeffries Road was truly blighted
•How the project would proceed if developers don’t acquire land occupied by the Lakewood Condos timeshare.
•How the project would benefit the Camdenton School District
•How the project and anticipated 600,000 visitors a year would impact Jeffries Road and its intersection with Highway 54
•How the project would impact residents of Jeffries Road
•Adequate housing for the estimated 300 employees
Skelton, Camden County presiding commissioner, was the most adamant in questioning the designation of the property as blighted. He explained his vote:
“Philosophically, I am opposed to TIFs, but in the last few years have softened my stance generally. As for last night, I had a couple of problems with the project.
“First, blighting a bare piece of property as was done in the Menards/Kohl’s TIF is one thing, but to blight a piece of bare land with premium lake frontage for me is a step too far. Also, I believe the time share property was an issue that should have been resolved before the TIF was requested….or at least have some positive steps. Also, I believe the entire project is a step too far with a CID, TDD, TIF and Super TIF — just too much.
“However, the biggest issue I had was the blight designation of premium lakefront property. I don’t believe that has been done in this area and although one TIF commission is not beholden to another, I did not want to be a part of a precedent setting move toward that.”
A blight study was conducted by PGAV Planners on behalf of the developer as part of the TIF application process.
PGAV found that the redevelopment area, on the whole, is a blighted area, a conservation area, or an economic development area and has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of tax increment financing.
According to Missouri’s TIF Act, 100 percent of a redevelopment area’s properties must exhibit one or more factors that contribute to the definition of a blighted area.
Factors must include the predominance of unsanitary or unsafe conditions; deterioration of site improvements; or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, constitutes an economic and a menace to the public health, safety, morals or welfare in its present condition and use.
Several people spoke during the public hearing, offering a mixed review of the project. Concerns were parking, future of Lakewood Condominiums, the financial impact on teaching students and more.
A synopsis of public comments includes:
•A resident of Jeffries Road was concerned about traffic and how a parking garage with some 1,000 parking spaces can be accommodated by the two-lane Jeffries Road. This individual favors year-round entertainment for families and noted that a TIF was successful at Prewitt’s Point. “I’m happy to say I’m in favor of this,” she said, noting her concerns with traffic.
•Another offered: “As I look at this project, I like it. I think the Lake needs something like this, but Jeffries Road is a sleepy road. I’m all for progress but it’s gotta be managed progress and the right thing. I’m sure you’ve all heard the line from the song, ‘They paved paradise to put up a parking lot.’ I don’t know. I’m just asking you to consider the residents. I like the project but there are other places where it fits more nicely.”
Estimated Development Project Costs
Entertainment and Restaurants -- $99,950,000
Parking -- $35,000,000
Outdoor Attractions & Related Uses -- $42,000,000
Hotel -- $180,000,000
Tegethoff provided comparisons of tax benefits for the major taxing entities if the TIF project is not approved and if the project is approved.
He explained that the total amount of property tax being collected on the 60-plus acres of land is currently $875,000, or about $38,000 a year. That amount is shared between the various taxing bodies based on tax levies. No personal property taxes nor any sales taxes are currently generated within the TIF district.
If the TIF incentive package is approved and the project is built, here’s what Tegethoff estimates the project will benefit the taxing bodies over the next 23 years — the length of the TIF redevelopment plan:
•There will be $24 million in real estate taxes generated.
•There will be $14 million in personal property taxes generated to all the taxing districts.
•There will be $83 million in sales tax generated.
“That’s $5.25 million a year on average over 23 years versus $38,000 a year,” he explained. “That is money that goes directly to the taxing districts, not for TIF reimbursement for infrastructure.”
Tegethoff also offered specific tax benefits for four major taxing bodies — Camdenton School District, Osage Beach Fire Protection District and City of Osage Beach and Camden County.
•Between real estate taxes and personal property taxes, the Camdenton School District is scheduled to receive $683,000 paid out over 23 years as the property exists today undeveloped. If the Oasis at Lakeport is built, the school district would receive $24 million over the next 23 years. That would be more than $1 million a year compared to $680,000 total for the next 23 years.
•The OBFPD, as the property exists today undeveloped, is scheduled to receive a total of $170,000 over the next 23 years. If this project built, the Fire Department will, between real estate taxes and sales taxes, $23 million over 23 years compared to $170,000 total.
•The City of Osage Beach currently earns nothing from sales tax on this project as it exists today. If the TIF project is completed as projected, the city would receive $42.6 million over 23 years.
•Camden County is expected to receive real estate taxes and sales taxes of $25,000 over 23 years as the property sits today. If the project is completed, the county will receive $41 million over 23 years. Of that total, more than $40 million would come from sales tax collections. The county would only receive $360,000 from the real estate taxes.
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