Wal-Mart developer deal satisfies merchants group

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Wal-Mart Supercenter developer Tom Walker got what he wanted from the city of Ozark, but so did Ozark officials. |ret||ret||tab|

After four public hearings and an organized public protest, Ozark City Council approved a developer's agreement that reimburses Walker $1.2 million for public infrastructure improvements in the 80-acre development, but only if Ozark sales tax revenue increase by 3 percent. The payments to the developer are half of the new sales tax revenue generated by the development until the infrastructure costs are paid, said Collin Quigley, Ozark city manager.|ret||ret||tab|

If city sales tax revenue does not increase 3 percent each year, "he is not eligible for any reimbursement," Quigley said.|ret||ret||tab|

Walker plans to begin construction at the southeast corner of U.S. Highway 65 and Christian County Highway F in June. The Supercenter is planned to open in spring 2004.|ret||ret||tab|

In 2002 Ozark reported sales tax revenues of $1.95 million, Quigley said. Based on the agreement, citywide sales tax revenue must total at least $2.07 million in the Supercenter's first year of operation to qualify Walker for reimbursements. That is roughly an additional $60,000 per year.|ret||ret||tab|

The sales tax revenue guarantee pleases Hometown Merchants Association officials and members who raised questions to Ozark officials about the original development proposal.|ret||ret||tab|

"It was a positive thing. The city saved the tax base," said HMA spokesperson Donna Kennedy. |ret||ret||tab|

Kennedy and other HMA officials conducted a study to determine the sales tax impact Wal-Mart Supercenters have on towns. Of the 10 Missouri towns sampled, two experienced an increase in years following a Supercenter opening, Kennedy said.|ret||ret||tab|

"Most (cities) indicated a leveling off. Before (Wal-Mart Supercenter) came in there was a steady rise on average. And then after they came in there was a pretty good jump and then it levels off," she said.|ret||ret||tab|

The data shows the percentage of taxable sales increased following the Supercenter openings, compared to the same amount of time before they opened. The two cities that saw increases were Jackson and Moberly, while Carthage, Joplin, Kennett, Lebanon, Osage Beach, Warrensburg and West Plains did not. Neosho's taxable sales were flat.|ret||ret||tab|

Ozark officials sought input from HMA, which represents 25 small businesses in Ozark, before reaching its decision.|ret||ret||tab|

"It was properly discussed and negotiated. The agreement that was approved is one that contains language and information that Hometown Merchants Association were asking for," Quigley said, which was basing it on city-wide sales tax revenues not just an increase from the existing Wal-Mart and a water and sewer connection fee for new businesses there. |ret||ret||tab|

While HMA submitted the study to Ozark officials, Quigley said it did not weigh heavily in council's decision. He questions basing the study on a city's taxable sales rather than sales tax revenues.|ret||ret||tab|

HMA is looking to study other cities in the state as well, Kennedy said.|ret||ret||tab|

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