Leaders talk about Branson Landing financing tool - by Matthew Kent BDN

FORSYTH — City officials in Branson say without a Tax Increment Financing District, Branson Landing couldn't have been built. The TIF is an "economic development tool that allows a local municipality to capture the property taxes and a portion of the sales tax to repay bonds that fund public infrastructure of the project," according to Jerry Adams, the city's public information director. Specifically, he said it pays for water, sewer, public landscaping and streets, which includes curbing and guttering. Other than Branson Landing, there are two other TIFs in the city, one at Branson Meadows, and another at Branson Hills. The Landing also includes what's known as a Super TIF, which allows state sales tax to be collected there. The Super TIF was approved by the state legislature before the construction of the Landing, according to Adams. But while the TIFs may be beneficial, Taney County Presiding Commissioner Chuck Pennel admitted his frustration Monday over county taxes going toward the TIFs. The Taney County Commission approved a $131,000 payment to the city of Branson Monday morning. He pointed to a state statute and language that he finds problematic. Specifically, when a county wishes to place a TIF project within the boundaries of a municipality, the county must "obtain the permission of the governing body of the municipality located within the county," according to the statute. At the heart of the issue, according to Pennel, is that the city can collect county revenue without permission. "I don't think it's right. I don't think it's fair," Pennel said. However, he directed his thoughts on the city and said, "I don't have any issues with the city of Branson." "I've brought this issue up ... hoping to get that statute changed," Pennel said Monday afternoon. Pennel said that he believes the county has the same rights as the city and doesn't expect any change in the wording of the statute. "It's just not a good law," he said. The TIF for Branson Meadows was created in the mid-1990s, while the one for the Branson Landing was created in August 2001 and Branson Hills in October 2004. Each are for 23 years, according to Adams, and TIF repayment begins when a project is completed. "The TIF clock began when the Landing opened in June 2006," Adams said. "The Landing could not have been built without TIFs." There are four different sales taxes in Taney County, which Pennel identified as a general county sales tax, a sewer tax and a road and bridge tax — all of which are a half-cent — while the remaining is a one-eighth sales tax that was approved by voters in order to pay for a new courthouse. Sales tax money lost in 2009 through the TIF, according to County Auditor Rick Findley, was $2,217,994. Pennel added that the TIF takes away money through real estate taxes, as well. Three entities in the county are affected, which he identified as the schools, the health board and the disability board. The total amount lost in 2009, according to Pennel, was $2.8 million. "They also take a hit on the TIF," Pennel said, referring to the three entities. Findley said it's an issue for the county. "The TIFs are pretty costly," Findley said. "It's frustrating on our end when we see that much money going out." However, Adams said that "once the TIF is paid off, 100 percent of all taxes will go back to the general revenue of the governing agency.