Branson gives green light to $400M development project

A development project in Branson seeking to bring a mix of commercial, entertainment, residential and retail components to over 130 acres in town is moving forward following the Branson Board of Aldermen’s approval this month of a tax increment financing plan.

At its Sept. 9 meeting, the board voted unanimously to green light the TIF plan and developer’s agreement with Oklahoma-based Philcrest Properties Inc. The project spans roughly 136 acres across 17 parcels of land in the Branson Meadows area around Gretna Road and Town and Country Drive. It totals roughly $400 million, including $300 million for the first and second phases expected to be completed over the next seven years, according to past Springfield Business Journal reporting.

Phase I is expected to include approximately 150 multifamily residential units, a sports entertainment facility, an attraction dubbed Bible Encounter and a roughly 200-room hotel. The second phase comprises an additional 110 apartments, some 31 tourist cabins, two restaurants, a convenience store, a sporting goods store and retail development.

A third phase would include an indoor sports facility. The city entered an agreement in May with Florida-based management consulting firm Sports Facilities Co. as part of next steps toward the potential investment in the facility, according to past SBJ reporting. Alexander Girard, chief of staff for the city of Branson, said the city is working with SFC to explore public-private financing options, programming needs and prospective private partners for the sports complex. Facility cost estimates are $100 million, according to city documents.

Girard said approval of the project further indicates Branson “is open for business.” City officials say it serves as the most significant economic development package for the municipality since the $420 million Branson Landing retail district opened in 2006.

Officials expect construction to begin earlier than previously announced, with Phase I expected to start late this year or early next year, said Grant Wilkins, Philcrest director of real estate, in a Sept. 8 email.

Planned incentives
Prior to the Board of Aldermen’s Sept. 9 vote, the Branson Tax Increment Financing Commission in July recommended approval of the TIF plan. During that July 15 meeting, Lindsey Kolisch, an attorney for Lauber Municipal Law LLC working with the city of Branson, reviewed the incentives sought for the plan. The developer’s cost would be around $124 million with the remaining $176 million coming from third parties, according to officials. The redevelopment project can utilize a TIF for up to 23 years.

Aside from the TIF, which Kolisch said is roughly $73.7 million of the planned incentives, the area also will have a community improvement district and transportation development district, which each allow a 1% sales tax. The amount of the CID and TDD will each be capped at $4.2 million. She said the developer reimbursement cap is either roughly $82.4 million or 27.5% of project costs, whichever is lower.

City Administrator Cathy Stepp said at the TIF Commission meeting that the city doesn’t have to borrow any money for the TIF, adding “the full risk is on the developer.”

City officials say the project utilizes a pay-as-you-go incentive model. This means that tax revenue-based incentives are contingent on the project’s successful development and only may be used to reimburse certified reimbursable project costs.

Project plans
Wilkins said Philcrest Properties has a letter of intent with Mammoth Fieldhouse to build the roughly $38 million sports entertainment facility and is working with Springfield-based O’Reilly Hospitality Management LLC on development of the approximately $22 million hotel. The Bible Encounter attraction, estimated at approximately $40 million, will be around 75,000 square feet and is an indoor immersive religious attraction, Wilkins said. He said Philcrest intends to contribute “significant equity” toward each of the three Phase I projects but won’t be the owner; meanwhile a Philcrest-related entity will develop and own the multifamily workforce housing component.

That multifamily housing component will have a smaller footprint than originally planned based on community feedback following the TIF Commission meeting. Several residents in the area expressed concern to the city about potential traffic and overcrowding. Girard said the second phase of the workforce housing is now behind the Comfort Inn & Suites on a smaller parcel than the original plan, reducing total units to 260 from 300.

City officials say the goal is for 30% of the units to be priced between $750-$1,100 per month.

Indoor sports activity
As for the third phase, Girard said the city is still eyeing a 17-acre parcel owned by Coryell Development Group LLC located in the middle of the development near the Branson/Lakes Area Chamber of Commerce & Convention and Visitors Bureau.

“We currently have a signed option agreement to purchase the property,” he said. “We had an appraisal done on it, and it is $6.6 million, which is competitive.” Girard said the Branson Board of Aldermen has the option for the city to acquire the land within the next six months. In the interim, Girard said the city will continue to work with SFC to explore public-private financing options and partnerships, with the plan to also start engaging the public on programming needs for the sports complex.

As the Sept. 9 Board of Aldermen meeting concluded, Stepp said next steps will make for a lot of work for the city’s planning and development department.

“It’s going to be all hands on deck in making this longtime dream and longtime vision a reality for Branson,” she said.