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Branson TIF commissioners receive statutory training; Cody Fenton, Greg Baker elected chair and vice chair
Summary
At a training session, municipal counsel walked Branson's Tax Increment Financing (TIF) Commission through the TIF Act, timelines, revenue mechanics and the commission's role; commissioners elected Cody Fenton chair and Greg Baker vice chair by voice votes.
The Branson Tax Increment Financing Commission spent its meeting on a statutory overview of tax increment financing and elected Cody Fenton chair and Greg Baker vice chair.
Lindsay Kolish, an attorney with Laubra Municipal Law serving as special economic development counsel to the city of Branson, told the commission that "it is literally financing that is done by the increment of taxes," and outlined how TIF captures increases in property and sales taxes to reimburse developers for redevelopment costs.
Kolish emphasized statutory timing and mechanics: a TIF plan must be approved by the Board of Aldermen, redevelopment project areas must be activated within 10 years of plan approval, and each activated project area may collect incremental revenue for 23 years. She also described that property tax payments in lieu of taxes (PILOTs) are captured 100% to the special allocation fund and that 50% of the incremental economic-activity taxes (typically sales tax) are diverted to that fund.
Joe Lauber, also representing the city as special counsel for economic development, addressed financing choices and risks. "By law, you have to use them all," he said, referring to PILOTs and economic-activity taxes; he warned that credit-enhanced revenue bonds are rare now and carry high risk for a city's credit if the project fails to generate sufficient revenue.
Kolish and Lauber reviewed the commission's process role: the applicant files a TIF plan, staff and the city's consultants prepare packet materials and a staff report, the commission holds a public hearing after at least 45 days' notice, and the commission makes a recommendation to the Board of Aldermen on six statutory findings (including blight/conservation/economic-development designation and the statutory "but for" finding). Kolish instructed commissioners to avoid ex parte communications with applicants so that the public hearing record contains the evidence the commission should base its recommendation on.
The presenters described typical eligible redevelopment costs (land acquisition, demolition, infrastructure, professional fees, relocation where necessary) and common contract elements the city places in a development or TIF contract, such as project schedules, itemized reimbursable costs, insurance and indemnity language. Kolish also noted that the city often requires a funding agreement early in the process so the developer bears the cost of staff and consultant review.
Commissioners asked about local experience and precedent. Lauber said Branson had used TIF on projects including the Landing and the aquarium, and described negotiations the city uses to reduce incentive levels when feasible. He recounted past statewide cases to explain why city-backed, credit-enhanced bonds are now uncommon.
Votes at a glance ———————— - Cody Fenton elected chair (nomination and voice vote; outcome: approved). - Greg Baker elected vice chair (nomination and voice vote; outcome: approved). - Motion to adjourn (moved and seconded; voice vote: approved).
The session included questions from representatives of taxing jurisdictions about their duties on the commission and how to coordinate input with their appointing bodies. Lauber and Kolish advised commissioners to consult their appointing bodies (for example, school boards or county commissioners) ahead of the TIF public hearing if those bodies want to provide policy guidance.
Kolish closed by describing related tools and interactions: community improvement districts (SIDs) can add a local sales-tax increment that may be captured by TIF (50% of the SID increment), and TIF contracts can coordinate other economic-development incentives. She urged commissioners to review staff materials and the full TIF packet in advance of any public hearing so the single public meeting for a plan can be conducted with a complete record.
Less-critical items and procedural notes: commissioners conducted introductions, the chair and vice chair nominations were confirmed by voice vote, and the commission adjourned after the training and questions.
