Commissioner: Developments good for county
October 12, 2006
Branson Daily News
By Cliff Sain
Taney County’s top elected official said that two large developments in Branson are benefiting the county.
At a Branson board of aldermen meeting this week, Taney County Presiding Commissioner Chuck Pennel said he had met recently with Branson Administrator Terry Dody and Finance Director Deanna Schlegel regarding a method of financing large developments.
The method, known as tax increment financing — or TIF — allows a city to use a portion of taxes collected within a development to help pay off bonds used to fund particular aspects of the development. The city has used TIFs to help in developing Branson Landing, which opened in May and features approximately 100 shops and restaurants, and Branson Hills Plaza, which opened in April and features a Target, T.J. Maxx and Home Depot, and which might feature a Wal-Mart and Sam’s Club in the future.
Pennel said that, after the meeting, in which the city shared its tax figures, he was happy to see that the county appeared to be benefiting from the two TIFs.
“The numbers look good and we are very pleased,” he said. “I hope they continue out for a long time.”
County officials have expressed skepticism of TIFs in the past because a significant portion of the county’s sales tax dollars go to help the developer, instead of going into county coffers to help fund items such as roads and sewers. The Taney County Commission has even threatened to sue the city over what commissioners term “TIF abuse.” City officials have countered that, because the developments would have never happened without the TIFs, the county actually comes out ahead.
Pennel indicated that the county seems to be coming out ahead — so far.
“It looks like we’re going to come out ahead,” he said. “Whether that plays out year after year, only history will tell us.”
In a TIF district, the taxing agents, such as the city and county, continue to collect the same amount of sales taxes each year that had been collected before the district was established. That year is called the “base” year. Each year after that, for up to 23 years, the city and county also get to keep half of any additional above the base-year amount, while the other half goes to help fund the development.
Schlegel said that, through July’s sales tax numbers, the county’s numbers were up 15 percent from last year since the two TIF developments opened, and that’s not counting a new eighth-cent judicial facilities tax that went into effect April 1. She also said that, if one does not count the TIF funds that are going back into the development, the county is still up by 12 percent.
“The way I see it, they are about five years ahead of where they would have been,” Schlegel said.
The city has another request for a TIF from a developer wishing to build a theme park in western Branson. However, that request is still in the early stages.
Copyright © 2006 The Branson Daily News.
By Cliff Sain
Taney County’s top elected official said that two large developments in Branson are benefiting the county.
At a Branson board of aldermen meeting this week, Taney County Presiding Commissioner Chuck Pennel said he had met recently with Branson Administrator Terry Dody and Finance Director Deanna Schlegel regarding a method of financing large developments.
The method, known as tax increment financing — or TIF — allows a city to use a portion of taxes collected within a development to help pay off bonds used to fund particular aspects of the development. The city has used TIFs to help in developing Branson Landing, which opened in May and features approximately 100 shops and restaurants, and Branson Hills Plaza, which opened in April and features a Target, T.J. Maxx and Home Depot, and which might feature a Wal-Mart and Sam’s Club in the future.
Pennel said that, after the meeting, in which the city shared its tax figures, he was happy to see that the county appeared to be benefiting from the two TIFs.
“The numbers look good and we are very pleased,” he said. “I hope they continue out for a long time.”
County officials have expressed skepticism of TIFs in the past because a significant portion of the county’s sales tax dollars go to help the developer, instead of going into county coffers to help fund items such as roads and sewers. The Taney County Commission has even threatened to sue the city over what commissioners term “TIF abuse.” City officials have countered that, because the developments would have never happened without the TIFs, the county actually comes out ahead.
Pennel indicated that the county seems to be coming out ahead — so far.
“It looks like we’re going to come out ahead,” he said. “Whether that plays out year after year, only history will tell us.”
In a TIF district, the taxing agents, such as the city and county, continue to collect the same amount of sales taxes each year that had been collected before the district was established. That year is called the “base” year. Each year after that, for up to 23 years, the city and county also get to keep half of any additional above the base-year amount, while the other half goes to help fund the development.
Schlegel said that, through July’s sales tax numbers, the county’s numbers were up 15 percent from last year since the two TIF developments opened, and that’s not counting a new eighth-cent judicial facilities tax that went into effect April 1. She also said that, if one does not count the TIF funds that are going back into the development, the county is still up by 12 percent.
“The way I see it, they are about five years ahead of where they would have been,” Schlegel said.
The city has another request for a TIF from a developer wishing to build a theme park in western Branson. However, that request is still in the early stages.
Copyright © 2006 The Branson Daily News.
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