The City of Branson recently cleared the hurdle of getting the state tax increment financing for the Branson Landing project, but now the city has hit a new road block: land acquisition.
The city will have to acquire approximately 20 properties west of the railroad tracks along Sycamore Street to Long Street in order to build a convention center. Not all of those property owners are willing to sell for HCW Development’s price.
If the city can not obtain all of the needed property during negotiations, it will proceed with the use of eminent domain and condemn the property.
HCW Development’s Rick Huffman said he has already entered into negotiations with the businesses and has made offers to them that most are ready to accept. However, Huffman said three individuals are not willing to accept his offer.
“We are having difficulty with a couple of people,” he said. “It will be your (city council) decision on whether to go ahead with condemnation or not.”
Branson Downtown RV building owner and Taney County Presiding Commissioner Chuck Pennel is one of those people not willing to sell right now. He told the board of aldermen at its Monday, June 9 meeting that he wants a similar price per square foot similar to that of the lakefront property purchased by the city in December 2001.
Huffman maintains that the city paid an average of $15 per square foot for the lakefront properties. He said he wants to pay the same for the Sycamore properties.
Pennel presented the council with figures of what the city paid for the lakefront land divided by the square footage. Pennel took seven businesses and came up with an average price of $45.91 per square foot.
“It’s been a great location,” he said. “I know I run the risk of looking greedy. I’ve heard downtown is the greatest place to do what you are doing. The appraisal value was $5 million more than what you paid for it.”
Pennel said he would sell one lot of his land for $35 a square foot and two other lots at $25 a square foot. Huffman originally offered Pennel $15 per square foot but later increased that amount to $16 per square foot.”I won’t have the opportunity to go back,” Pennel said. “Once I sell it, it is yours.”
Huffman said it is difficult to put the same amount on a business because there are different situations. “We’ve had to take a look at operating businesses such as Meeks,” he said. “They will have to physically move their lumber yard to a different area within our city. That is a different price than, for example, the shopping center where Comet Cleaners is. The owner of that shopping center is not planning on rebuilding. He does not have the value of having an operating business.
The businesses that will have to relocate or shut down include: MFA Tire and Auto, L & J Plumbing Supply, Loyd’s Electric warehouse, Branson Veterinary Hospital, Southwest Teachers Credit Union, Branson Daily Independent, The UPS Store, GNC, Scott Sales Company, Harvest Evangelical Free Church, Comet Cleaners, Legacy Entertainment, Carman’s Martial Arts and Fitness Center, Ozarks Mountain Auto, Meeks and Branson Downtown RV Sales and Service.
The development will also take out several residential homes as well as part of the city’s campground.
Huffman said his goal is to stay under $10 million for all of the land and he is well under that currently.
“Most people down there understand the size and scope of the project,” he said. “Our real estate team has done a great job.”
Alderman David Edie tried to ask Pennel questions about the negotiations with Huffman, but City Administrator Terry Dody urged Edie not to enter into the conversation with Pennel because the city “might be involved in litigation with him.”
Huffman said he is having trouble settling with two other individuals besides Pennel, but did not say who those people are or what businesses they own.
Huffman said he hopes to have the negotiations wrapped up and may be able to present the results as early as the next board meeting, June 23.
Courtesy of Branson Daily Independent