Developers plunk down $2B in Lake Ozark projects

The traditionally resort-oriented area about 130 miles northeast of Branson’s lake destination is preparing for more than $2 billion in retail, commercial and residential development via at least seven projects by private developers and public-private partnerships.

The largest of the projects is Horseshoe Bend, an $857 million, 470-acre development boasting nearly 3 million square feet of commercial space and 2,200 residential units. Other key projects are a $240 million retail center by the developers of Prewitt Point in Lake Ozark; Silver Star Development’s $300 million entertainment/retail complex near Bagnell Dam; the $150 million Brisco retail development; a $200 million upscale condominium project; and a $300 million residential addition to Osage National Golf Resort.

Even Springfield developers are noticing – hotelier John Q. Hammons is preparing to begin construction on the $100 million Chateau on Lake of the Ozarks in Osage Beach. And developer Bill Jester’s Resource Development Inc. has two residential developments under way in Lake Ozark – Pinnacle Point and The Villas at Thornsberry Cove – worth about $31 million.

The linchpin

Horseshoe Bend’s massive development is just south of Bagnell Dam, and more than half of the commercial space is dedicated to retail use.

Also included in the development is a two-mile, divided four-lane highway extension to the existing Horseshoe Bend Parkway.

Bill Kuhlow, partner with Lake Ozark-based Horseshoe Bend Development Group, said the first phase of the development’s retail space, The Shoppes at Horseshoe Bend, is slated to open in summer 2009.

Once the 96 acres of retail space begins generating revenue, Kuhlow said tax increment financing and transportation development districts in place for the development will provide funding to build the parkway extension and remaining infrastructure improvements.

“With the sales tax revenue, the Horseshoe Bend Parkway extension, as well as the other infrastructure, can be extended to the other project areas within the district,” Kuhlow said. “It’s kind of like a mushroom cloud moving out.”

Not alone

Joining Horeshoe Bend Development in Lake Ozark is Eldon-based RIS Inc.’s 220-acre, $240 million retail center. The currently unnamed project is spearheaded by Gary Prewitt, whose Prewitt Enterprises developed Lake Ozark’s Prewitt Point shopping center featuring Lowe’s, Target and Marshall’s.

Despite the large amount of retail space being developed in the area, Andy Prewitt of RIS Inc. said the retail space should be leased well before the property is ready for tenants. The project is slated to begin construction in June and should take about a year.

Meanwhile, Silver Star Development is planning a $300 million entertainment and retail complex next to Horseshoe Bend that could kick off a revitalization of the adjacent Bagnell Dam Boulevard. The $150 million Brisco retail development will front the Horseshoe Bend Parkway extension. And Vista Lontana is a planned upscale condominium project with a $200 million price tag, according to Lake Ozark City Administrator Charlie Clark.

Add in the $300 million residential development by Osage National Golf Resort, which is about 10 percent complete, and the city’s development slate easily tops the $2 billion mark – and Clark thinks there is more to come.

“Lake Ozark really hasn’t participated in development much, and most people are just finding Lake Ozark,” Clark said. “The city is poised.”

Clark added that the Horseshoe Bend project itself – especially the expanded parkway – is creating more interest, noting that he routinely receives inquiries from developers in Kansas City, St. Louis, Chicago and New York. “The area has definitely raised its head on the radar screen.”

The growth goes beyond Lake Ozark’s boundaries. Aside from Hammons’ Chateau development in Osage Beach, Oak Ridge Landing Development Co. is planning a 135-acre, $133 million retail project in Camdenton. Camdenton Assistant City Administrator Steven Craig said the developers are negotiating with tenants for the 764,000-square-foot development.

Spurring growth

One reason for the sudden interest in the Lake of the Ozarks area is a significant investment in transportation infrastructure.

Missouri Department of Transportation is in the midst of constructing the $158 million four-lane U.S. Highway 54 Expressway in Camden and Miller counties.

“The project entails building a four-lane divided expressway through Osage Beach and Lake Ozark,” said MoDOT area engineer Bob Lynch, noting that the 8.5-mile road would run parallel to the existing five-lane highway.

Lynch said the three-year project is designed to alleviate an increasingly crowded Highway 54 corridor, which is expected to draw 65,000 vehicles per day by 2028.

Developer Kuhlow said the highway is a major reason for the boom.

“The transportation system that MoDOT is putting in here is a regional project,” Kuhlow said. “It covers the entire lake area region – Morgan, Miller, Camden and Benton counties.”

In Camdenton, Craig said the upgrade of State Highway 5 – a $140 million, eight-mile project that will make the road a four-lane expressway – already is bringing benefits. A 19,000-square-foot retail center is already under construction at the intersection of highways 5 and 54 and should be complete this summer.

“Anytime you improve access, there will be a lot of retail and commercial growth,” Craig said, noting that an influx of retirees to the lake area also is creating demand for new developments.

Lake Ozark administrator Clark said that the towns’ willingness to help find funding mechanisms for private development projects also makes the area more attractive. He pointed out that nearly all the projects planned or under construction in the area incorporate some combination of tax increment financing, transportation development district or community improvement district funding.

The Prewitt development, for example, is slated to receive an estimated $62 million in tax increment financing from a TIF district the city approved in 2007. Horseshoe Bend stands to receive incentives from the Horseshoe Bend Transportation Development District, while Hammons’ Chateau project – slated to open in 2010 – is expected to receive $6.5 million in TIF and CID monies.

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