Audit: Branson Landing district revenues sub-par

Revenues generated at the Branson Landing outdoor shopping center on Lake Taneycomo are insufficient to meet debt payments under its Transportation Development District schedule, State Auditor Tom Schweich said this week.

The audit of the Branson Landing TDD, which was released May 21 and awarded a “good” rating, said no debt payments were missed because the city of Branson dipped into other city taxes and revenues to cover the Branson Landing TDD debt.

The $425 million Branson Landing was constructed on a TDD formed in 2005, and the city owns the land within the district and serves as administrator of the TDD. Businesses operating within the district, including two Hilton hotels, restaurants and retailers, collect an extra 1 percent TDD sales tax to help fund $42.6 million in debt service during the 30-year life of the TDD.

According to the audit, TDD sales tax receipts in 2011 totaled $1.18 million, half of which went toward debt service and half toward tax increment financing. The Branson Landing TDD also operates within a TIF district.

“Revenues generated by the Branson Landing TDD through 2011 have not been adequate to meet financial obligations allocated to the district,” the audit said. “However, the debt payments are the responsibility of the city of Branson, which used TIF, tourism sales tax, transportation sales tax, and other city revenues to fund the balance of the debt payments due.”

The auditor’s rating indicates the Branson Landing TDD is managed well, and there are no significant deficiencies in internal controls, legal provisions or management practices. The audit said there were no independent audits of the district performed during the last two years.