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The Stone County Commission took the first steps today towards approving an estimated 5 million dollar TIF (Tax Increment Financing) financed bond to improve road infrastructure to and from Silver Dollar City and streamline access to Indian Point. Silver Dollar City contends the project will substantially alleviate traffic congestion to both the Branson West park and Indian Point. Herschend Family Entertainment Corporation contends redevelopment of access roads to Silver Dollar City will increase property values, encourage growth and create both temporary and permanent jobs in Stone County.
If approved fifty percent of Silver Dollar City sales tax increases above 2006 numbers will be used to pay back the bonds. The proposed development plan in its current form represents the highest percentage of revenue and the longest term allowed through TIF legislation.. Silver Dollar City has offered to purchase the bonds they claim would be unattractive on the open market due to low anticipated returns.
The proposed road improvements would create dedicated access to both Silver Dollar City and Indian point. Roadway improvements would start at the intersection of HWY 76 and Indian Point road extending 4600 ft. south. The road as it currently exists would become a Silver Dollar City access road and eastern land currently owned by Silver Dollar City would be exchanged to provide dedicated access to Indian Point. A fork in the road would route Indian Point commuters on the new road built to the east of the current Silver Dollar City parking lots. Cars leaving Silver Dollar City would be routed through an underpass and merge into the widened exit passage to HWY 76.
Tuesday’s Stone County Commissioners meeting included individuals representing Silver Dollar City and emergency service providers. Herschend Family Entertainment Corporation (HFEC) was represented by legal counsel from Springfield law firm Husch & Eppenberger LLC,Bill Hart, Director of Publicity Lisa Rau, Manager Brad Thomas and Project Manager Bill DeAtley. Three representatives from the Southern Stone County Fire Protection District Kevin McKay, Charlie Neubert and John Clark were present as were Cindy Morris from the Table Rock Chamber of Commerce and Pat Blevins from Stone County Emergency services.
County Commissioners failed to approve creation of a TIF commission, which was the purpose of the meeting, citing legal review as a technicality delaying the vote to approve the creation of a TIF commission though commissioners gave verbal assurances that an ordinance would be passed on Tue Feb 27 at 9 A.M. to approve creation of a 9 person TIF Commission which is the first step in the process for creating a TIF district. Commissioners placed a formal request through the newspaper today asking members of the community interested in serving on the commission to respond. There are no specific requirements or qualifications for members wishing to serve on the commission, however; 6 will be appointed by Stone County Commissioners, 2 from the school board and 1 representing other local interests in accordance with state law. Stone County Presiding Commissioner George Cutbirth says the commission will be appointed within thirty days.

What are the steps necessary to enact the TIF project?
After the TIF commission is created a redevelopment plan must be submitted and conform to certain requirements. The plan must cohere to certain legal requirements including:
1. A finding that the proposed redevelopment is an “economic development area”
2. The redevelopment plan is found to conform to the community’s comprehensive plan
3. Has Estimated Dates of Completion and retirement of TIF obligations
4. Cost benefit analysis showing economic impact and financial feasibility
Following agreement that the redevelopment plan meets the requirements listed above the TIF Act a public notice must be posted and a hearing must occur. Public notice must be posted forty-five days in advance and must include a time and place the hearing will occur with instructions and where the redevelopment plan can be reviewed prior to public hearing. The TIF commission must consider all protests, objections comments and evidence concerning the impact of the project. Anyone who wants to address the issue must be given the opportunity to be heard at the scheduled meeting. The TIF commission must make a recommendation within ninety days of the meeting and often make a recommendation to approve or disapprove the project at the public meeting.
Proceeding TIF Commission recommendations the TIF must be approved through Stone County ordinance after which contractual obligations can be established.
Missouri’s TIF Act was created for the purpose of maintaining or stimulating growth in areas of Missouri that wouldn’t naturally occur. As a result the legislation has requirements that define an “economic development area.” Funding must come from elevation in taxes from the area developed not the general municipal funds. Economic development areas must not unfairly compete in the local economy and serve the public interest because it will discourage business from moving to another state, increase employment in the county or preserve the tax base.

How would TIF approval affect School Funding?
The current proposal involves utilizing incremental increases in sales tax Property taxes, the main source of school funding isn’t included under the current plan. Silver Dollar City said they wouldn’t support allocation of property taxes to repay the bond. Silver Dollar City Manager Brad Thomas stated financial impact on the Reed Springs School District was a major concern and that he didn’t believe Reeds Spring school district was receiving adequate funding as the district stands today. Thomas was also quick to remind me of founder Pete Herschends role as president of Missouri’s Board of Education and the companies contributions dedicated to helping the lives of children.

How much money above and beyond the initial 5 million dollars will the project cost?
The five million dollars is only an estimation of project costs and the actual number may vary. Information detailing incremental costs from accrued bond interest wasn’t released or known by parties involved. Thomas suggested the bonds being issued weren’t particularly attractive on the open market which is why HCED offered to invest in the bonds. Thomas did mention that the bonds were transferable and could be sold for a profit in the event market conditions changed.

Who and how are sales tax used to repay the bonds calculated?
Silver Dollar City is the only entity in the proposed TIF district. Half of all sales taxes Silver Dollar City raises above 2006 levels will be used to repay bonds. Presiding commissioner George Cutbirth mentioned Silver Dollar City generates slightly over 20% of Stone County’s sales tax revenue. 2006 taxable sales projections were estimated at $70,440,000. If the estimation is correct half of any sales taxes generated over $1,056,600 will go to bond payment.

Who will pay for maintenance of roads on Silver Dollar City property?
In conjunction with the project Silver Dollar City is extending parking capacity around the access road which will allow patrons quicker access to park gates. Silver Dollar City will take over maintenance costs of roads on their property. The Indian Point access and lanes Silver Dollar city exit lanes to Hwy 76 will be maintained through county funds.
TIF’s have become something of a dirty word among residents in neighboring Taney County. Taxes dedicated by vote

What will Silver Dollar City do if the TIF isn’t approved?
Silver Dollar City believes traffic issues are a barrier to the company’s economic growth. Management has verbalized the barrier is so they may cease future development of the park and invest in other areas where facilitation of growth can increase the company’s bottom line.
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George Cutbirth, Stone County Presiding Commission has received input from people expressing opposition to the TIF, but, believes the process is comprehensive and TIF’s are good if used correctly.