The answer to the question, “When does $140, 732 actually equal ($87, 268) and 50 percent of $100 equal zero is, “When reality is applied to the Branson Landing TIF.” This issue came up in the excellently moderated political debate on KOMC, 100.1 FM between the candidates for Alderman in Ward 3, Jack Purvis and Chris Bohinc. For the record, this is not an endorsement of either candidate; it is a discussion of what was said regarding the Branson Landing TIF during that debate.
For those who will say, “But you only quote Purvis and not Bohinc, the Ole Seagull will simply say, “In terms of the topic of this column, you are absolutely right.” During the debate Bohinc readily admitted that she was just beginning to learn about TIFs and said nothing that would materially contribute to this column. Purvis, on the other hand not only proclaimed his experience and specifically mentioned the hundreds of hours he has spent studying the Branson Landing, but made the very statements about TIFs that are the basis of this column.
When the moderator asked a question about Branson’s current use of Tax Increment Financing (TIF) in Branson, Purvis expressed his opinion about a recent educational session on TIFs presented by the Branson School District (District) at the Branson High School. He said, “We recently had an expert, that came to town and went out to the high school. He was here to try to enlighten us on TIFs.” Purvis went on to say, “He talked all around the subject” and “the whole discussion was in relationship to the schools.”
During the debate while discussing the presentation, Purvis said, “When I asked how much income is generated in the Branson TIF District the expert did not know. I’m no expert but the information is a matter of public record from the Taney County Collectors office. The school revenues at the Landing development, before the TIF to the school was $56, 630.” He went on to point out, “After the Branson Landing development the revenue to the school was $140,732, up 242 percent.”
And what a picture book story it would be if the reality of the situation ended there, but it doesn’t. Purvis also said that Branson Landing created 1500 new jobs. As a general rule, jobs attract people who generally have families. Is it unreasonable to believe that some of those families are going to have children that require an education? Currently, in the District, it requires about $5,700 in local funding each year for each child to provide that education.
If we assume that only 40 new children came into the Branson schools as the result of Branson Landing that would cost the District $228,000 per year. According to Purvis, the District would get $140,732 for a shortfall of $87, 268 per year. Over a period of ten years that would be a shortfall of $872,680. Where does the additional money to make up the shortfall caused by the TIF development come from? The real estate taxes paid by the owners of the residential and commercial property not covered by the Branson Landing, or some other, TIF.
When it comes to the sales tax aspect of the Branson Landing TIF, Purvis said that only 50 percent of the sales tax revenues goes to pay off the TIF and that “The rest of the 50 percent goes back to the city of Branson.” Well, that’s sure the way the state statute envisioned it and the way it works at Branson Hills and a lot of other TIFs, but it’s not the way it works with the Branson Landing TIF. According to information received from the city of Branson, 100 percent of the city-imposed sales taxes collected at Branson Landing are assigned to pay back the TIF bonds.
Some might ask, “Hey wait a minute, does that mean that the city is getting nothing in sales tax revenues from Branson Landing for the tens of millions it has invested in Branson Landing?” Surely they mean it as a rhetorical question, don’t they?
