At its June 25, 2024, meeting, the Branson Board of Aldermen gave their approval to a Sales Tax Reimbursement Agreement with MMTC Development Group, LLC (Social Birdy) for the development projects known as Social Birdy, at 1250 Branson Hills Parkway, Branson, Missouri 65616. Social Birdy is a golf and entertainment complex offering amenities such as a golf shop, golf simulators, a putting course, pickleball facilities, and food and beverage options. It is well into the final stages of construction and expects a 2024 opening. Its total area is around 39,000 square feet, with 14,873 square feet indoors. According to the staff report, Social Birdy intends to open in 2024.
Under the Agreement, Social Birdy will receive a $335,000 incentive to reimburse it for “Unanticipated Sitework Costs.” According to the staff report, “Unanticipated Sitework Costs are those costs associated with the sitework of the Development Project that were unanticipated and incurred by the Applicant, due to the rocky terrain of the site location. The City required the Applicant to provide proof that the Unanticipated Sitework Costs were incurred and paid for by the Applicant. The City’s financial consultant, Baker Tilly, evaluated the Applicant’s proof of costs and payment and has confirmed that $335,000 in Unanticipated Sitework Costs has been incurred and paid for by the Applicant.
“Under this Agreement, the City would remit 100% of the City’s 1% general sales tax revenues generated by the Development Project to the Applicant for 15 years, or until the total value of the incentive reaches $335,000. In no circumstances will the Applicant receive more than $335,000 under this Agreement. If the Development Project fails to produce the full $335,000 in 15 years, the City is not obligated to pay the difference to the Applicant. The City will retain a 2% Administrative Fee for work performed to fulfill the City’s obligations under this Agreement, including processing the reimbursement and ensuring that State laws and Department of Revenue regulations are followed.”
The Agreement only applies to the City of Branson’s 1% Sales tax. Unlike a TIF, it does not affect the taxes of any other taxing jurisdiction. The City keeps all tax revenues from its 4% Tourism Tax on shows, attractions and lodging, the Public Safety Tax, and all other city taxes.
According to the staff report, The City may, under 70.210 [of the Missouri Revised Statutes], “enter into sales tax reimbursement agreements with private corporations for common services as long as the purposes of the contract are within the scope of powers of the City. Under a sales tax reimbursement agreement, a developer agrees to pay for costs of the development upfront and the City agrees to reimburse the developer for some of the development costs when the development begins to generate tax revenue. To approve this Agreement, the board of aldermen should find: 1) that the use of the tax revenues in this way is a public purpose; and 2) that the Agreement is entered into for a common service to the City of Branson.”
The Staff report recommended approval saying that “The use of sales tax revenues through this incentive will support the City’s economy through providing opportunities for residents to work year-round and provide the City with additional property and tourism tax revenue, which results in further support for the City’s economy and the ability of the City to provide services to its residents and promote the welfare of the community as a whole.” The Board approved the First Reading of the Agreement by a six (6) to Zero (0) vote. Unless someone makes and the Board approves a request to remove this item at the next meeting, the Second Reading and final approval will be included in the Consent Agenda, which the Board will approve as a whole.
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