The Mayor of Osage Beach is addressing concerns being voiced about a proposed agreement with the developer of a 268 unit housing complex called The Preserve at Sycamore Creek.
Mayor Michael Harmison says it’s true that the city would grant the developer Tegethoff Development 100-percent tax abatement – but only for the first five years.
Harmison addressed concerns about the revenue impact on schools in the Camdenton R-3 District…
“Right now for the next five years, based on the property value….the school district will get $1,417. Based on the agreement, after the first 5 years rather than a 100% tax abetment, it becomes 75. What that means for the school in year 6? That $1,417 goes to $82,000. After those 5 years, the taxes to the school goes up to $170,000. After those 5 years, it goes up to $270,000. Using these numbers for the next 20 years, the school system will receive $2, 371,000. If this does not go through, and nothing is developed, those same 20 years represents $34,151 for the school.”
The mayor made his remarks on Friday’s Morning Magazine on KRMS.
A vote on a second reading of the ordinance for the agreement is set for next Thursday’s City Board Meeting.