Last edited 3:47 p.m., April 25, 2018
Editor’s note: Branson resident Michael Hynes examined the tax increment financing proposal for Branson Adventures and attended the public discussion with city officials. Here’s a summary of his analysis after last night’s 5-1 vote to deny the development application.
The 365-page tax increment financing application, which cost over $300,000 to produce, may have been impressive to the consultants who created it, but it appears to have been overkill and beyond what the average person could digest.
I am sure it was to developer David Cushman’s dismay that the report was used as fodder by all who opposed the TIF for his Branson Adventures proposal. The report contained about 100 pages of complex financial data, most of which was in print too small to read.
“Was the data correct?”
“Was it too optimistic?”
“Was it too pessimistic?”
Those were questions asked but never answered by the city. Depending on who was addressing the Branson Board of Aldermen, everyone seemed able to quote from the report and use it to oppose the formation of the TIF.
Why stop the TIF?
There were many reasons given why Branson does not need the proposed TIF. They could be narrowed down to two:
1. “I don’t want my tax money given to someone, so they can start a new business and get rich.” The statements that Cushman was asking for “the taxpayer’s money” and “city of Branson funds” to build his project were never disputed. Someone from the city should have addressed this claim.
2. The strong belief held by the objectors was that the business activities planned within the TIF would cannibalize income from existing businesses.
Taxpayer fact and fiction
As claimed by the objectors of the new TIF in Branson, this TIF is just helping the rich get richer. The phrases “using taxpayers’ money” or “city funds” to help Cushman has become the cry of the opposition to the TIF.
I was surprised the TIF application and approval process was allowed to turn into a public relations nightmare for Cushman.
Back in 1952, when the TIF concept was first created in California, the public did not know much about it or how it worked. The use of a TIF quickly spread across America, with Missouri being a leader in TIF formation. However, over the years, the use of a TIF to help fund development of blighted areas has led to much abuse.
For Branson Adventures, the city had spent almost a year and paid about $10,000 for experts to study the TIF proposal. The conclusion was that the TIF would be good for the citizens and businesses in Branson. The special TIF study committee appointed by the city also recommended that the TIF project be allowed to progress.
It was obvious that the average person did not understand how “the use of taxes raised within the TIF” really works. The TIF allows a governing body, which is set up to manage it, to establish and collect “sales or use taxes” from the people who do business only within the TIF.
Factually, the TIF would never receive any “tax money” or “funds from the city of Branson.” This fact was never addressed by any city staff or the aldermen.
Concerns of cannibalizing sales
On cannibalizing tourists and local customers from existing Branson businesses, the strongest objections came from motel and hotel owners. There may be roughly 155 motels and hotels in Branson.
The lodging facilities to be built in the TIF are for high-end customers willing to pay up to $300 per night. It does not seem logical that tourists, who are now paying an average of $50 per night, would be cannibalized by the hotel planned to be built in the TIF.
The TIF consultants estimate that as many as 600,000 new tourists would come to Branson as a result to the activities planned within the TIF and new marketing dollars being spent by the TIF. Would not many of these new tourists prefer lower cost hotel/motel rooms? Is the potential loss of business by existing hotels/motels in Branson the correct or legal grounds to stop the TIF?
The impact the TIF might have on existing Branson restaurants, the zip lines and other attractions also was voiced. Like opposition to many economic expansion projects, “Not in my back yard” thinking prevailed at the two public hearings.
Emotional, rather than business logic, seems to have prevailed.
Michael Hynes can be reached at firstname.lastname@example.org.
Search sponsored by:
Nixa-based Decorating Den Interiors finishes year in top 5 sales out of 300 franchisees.
“Don’t be afraid to move things around, shuffle things a little bit, change a little bit of the focus to find your sweet spot,” says David San Paolo, co-owner of Redneck Nutz. San Paolo says …
Amy Blansit, Founder of Solely Jolie Púr Pallette, says you need to hire people whose strengths compliment your own. Whether you’re looking for someone with people skills or an analytical mindset, …
Photoshop Mix lets you upgrade your photo game by adding layers to your pics to create memes or other interesting images. In each episode of our monthly series, App-titude, David Brazeal will take a …
Always make career decisions after careful consideration. Brad Thomas, President of Silver Dollar City Attractions, says you need to hit the pause button and make a calm evaluation of your life and …
“I feel that any time someone feels their safety is threatened, they should be calling 911,” says Eric Schroeder, acting Corporal with the Springfield Police Department. Schroeder says if …
Chris and Jessica Ollis didn’t just wake up one day and decide to start a commercial kombucha brewery. The co-owners of Spring Branch Kombucha faced a number of challenges on their journey to …
There are several methods you can use to evaluate the culture of diversity and inclusion in your company says Susan Stith, Vice President of Diversity, Inclusion and Corporate Giving for Express …
Will the General Data Protection Regulation affect you if you're doing business in the European Union? Glenn Pace, Senior Instructor of Management and Information Technology at Missouri State …
“When we talk about open book management, all we’re doing is teaching people about money and specifically in business,” says Steve Baker, Vice President at The Great Game of Business. Baker …
Whether you need a convenient service for your monthly medications, a caregiver to aid you with a parent, or help in setting up in-home hospice care, you can customize a plan to suit your needs. …