Branson Discussion of Economic Policy Continued

Discussion about changing Branson's economic policy continued during a special Branson Board of Aldermen meeting on Feb. 29.

City Attorney Joe Lauber went over recommended economic policy priorities. The first one states that all applicants wanting incentives from the local government need to demonstrate that "but for the use of incentives, the project would not be feasible."

Lauber said developers won't do projects without receiving pay, but all projects must come in with the expectation of analysis. If it's determined the project is doable with financial incentives, it ought not come under consideration.

Alderman Clay Cooper spoke via Zoom. He asked if that means the city of Branson would look at a developer's financial record to determine if incentives are needed. Lauber confirmed his understanding.

Screenshot taken on YouTube.

If projects do receive an incentive, it will have a limit. The limit is decided based on what exactly will make the project possible. Lauber explained that this means that a developer looking to do a project for "12 to 18%" they shouldn't receive incentive to do it for a "25% return."

Branson Mayor Larry Milton expressed concern. Leaning on his commercial broker background, Milton expressed an issue he has with telling developers "based on this pro forma”, we will or won't do certain things."

Lauber asked Milton how a commercial banker would respond to wanting to incentivize a project based on such a pro forma. Later, Lauber covered the issue of time.

So, incentives, according to the suggestion, will last for the "amount of time necessary to make the project feasible." In addition, Lauber suggested that project's receive approval for incentives on a "case-by-base basis."

He explained that this will guard officials from feeling like if they approve one thing for one party they must do so for everyone. The city attorney said that "all projects require due diligence."

That further ensures that those requesting incentive have a trustworthy record. He provided the caveat for parties that have proprietary information.

Screenshot taken on YouTube.

Aldermen are allowed to favor some projects over others. Lauber described it as "a good policy." He pointed to a responsibility applicants would have under this policy.

Applicants need to find their own legal representative. The next point Lauber talked about is one that protects Branson citizens.

"All projects are required to have a preliminary funding agreement, which covers the the city's costs for consideration of the project," he said. He continued by stating that it means "it is not fair for the citizens of Branson to pay for you guys to look into whether someone's dream is really a nightmare."

Another policy point is that all incentives that are received "are subject to annual appropriation" from Branson's aldermen. This means the city would consider further approval while looking at Branson's budget.

Finally, Lauber said that according to this policy, Branson would need to have reports and/or audits to verify that incentive funds are used properly.