The Changing Face of the Lake

Story by CHARIS PATIRES | Photo by GEORGE DENNY

ake of the Ozarks has experienced a few record-setting years. The real estate market is at its peak, the boating industry continues to thrive, and local communities are experiencing growth like never before. Lake area officials say there’s no end in sight.

Several multi-million dollar projects are underway with large retail, hotel and entertainment venues planned for the immediate future. What are developers planning to do in the area? What does that mean for Lake of the Ozarks?

The future looks bright.

GROWTH & DEVELOPMENT

Within the last couple of years, Lake of the Ozarks has seen large-scale development projects pop up in Osage Beach as well as outlying areas.

According to Osage Beach City Administrator Jeana Woods, there is a lot of building activity happening and planned for the coming year.

“New investment into our city is happening rapidly,” Woods said. In 2021 the valuation of construction (residential and commercial new and remodel activity) permitted in the city was nearly $34 million, up over 40 percent from the previous year.

“As you drive up and down Osage Beach Parkway, you will see a lot of growth coming together,” she said.

Currently under construction, Hobby Lobby is the anchor store for the Osage Beach Commons project located near Osage Beach Parkway and Passover Road. The Staenberg Group, a St. Louis-based development company, is heading up that project that will have two out-lots, two anchors and several inline tenant locations available. Hobby Lobby is scheduled to open this summer.

There’s also plenty of activity around the KK intersection where construction of a Macadoodles and ACE Hardware are progressing.

Casinos, hotels, shopping, sports facilities and other developments pave the way for additional growth. Take a look at the projects and what we can expect in 2022.

GEORGE DENNY

The Camdenton Airport recently completed an extensive $17 million runway extension. Since completion, the city has seen an influx of larger planes and jet traffic. A new 5,000-foot runway with matching taxiway will be completed early this spring.

Woods, who also serves as the president of the Lake of the Ozarks Regional Economic Development Council, says that the Lake area and economy still face challenges from the pandemic, although at a lesser degree than seen nationally. Sales tax collection, the city’s main source of revenue, ended in 2021 at nearly 18 percent over 2020 and has been trending upward since 2012.

“This and other indicators reflect our growth which is expected to continue into 2022,” she said. “People want to be at the Lake, and this includes business interests as well as new residents and visitors. This attraction of new residents, visitors, and business is, in my opinion, mainly due to our region’s quality of life is unmatched.” The city’s infrastructure capacity and services, outdoor recreation, sewer and water service, maintained roadways, and public safety have drawn investors to Osage Beach, she said.

“The city strives to provide the best services to support our community’s growth and provide a supportive business environment for those relocating here or expanding a current business,” Woods said.

While most of the growth is visible in Lake Ozark and Osage Beach, Eldon, Camdenton, and even Gravois Mills have experienced unprecedented expansion.

Just like Osage Beach, other Lake area municipalities are reporting hefty increases in sales tax revenue. According to Camdenton City Administrator Jeff Hooker, the city has seen a population growth over the years.

“With the influx of permanent residents and visitors to the west side of the Lake, Camdenton needs additional affordable housing along with more hotel rooms. Currently people are having to stay in hotel rooms 40-60 miles away during busy seasonal time,” he said. “In addition, the city is in need of additional sit-down restaurants.”

Several large projects are underway in Camdenton including a 12,000-square-foot Veterans Outpatient Clinic which will open in April. Kwik Kar Wash and Lube, Shortleaf Brewing Company, Ozark Cookie Company, and Dominos Pizza opened recently. A Culvers Restaurant with a double drive through is under construction with other large-scale projects in discussion with city officials.

All that growth requires improvements to infrastructure. Camdenton has been awarded a grant to resurface Business Route 5, has extensively upgraded an aging water and sewer infrastructure and completed a $17 million runway extension at the airport to accommodate growth.

“We are already seeing the economic impact of a larger airport,” Hooker said. “Our business park at the airport is quickly filling up with new buildings and several inquiries to build which will bring several new jobs in the future.”

Within the city of Lake Ozark, ALDI will begin their construction at Eagles Landing later this year between Casey’s and Menards. Mathany Family Vineyards has begun construction of their winemaking facility located along Bagnell Dam Boulevard.

Site work is being done on the Highway 54 quarry that will eventually be a shovel-ready site, and soon drivers will see site work happening on Route 242 to allow for new projects to move forward.

“The impact these developments can have is profound. Aside from the creation of new tax dollars and jobs created, we are seeing much greater interest in business creation that provides year-round, stable employment opportunities, and the desire to build workforce housing as well,” Harrison Fry, Assistant City Administrator and Community Economic Development Coordinator for the city of Lake Ozark, said. “The folks who are coming into Lake Ozark City Hall with a set of plans ask us questions about how they can be involved in and help improve the community. This is an attitude that doesn’t exist everywhere, and I feel confident we will really see its benefits in the long term.”

SHOPPING & TOURISM

For years locals and visitors have watched as the Osage Beach Outlet Mall has struggled to keep tenants at the once popular shopping destination. At one time more than 100 stores occupied the outdoor mall. Today, many stores have closed down leaving some wondering what will happen to that property.

MEL WOODS/BLUE BOAT PHOTOGRAPHY

The Osage Beach Outlet Mall could be brought back to life if developers can get a $150-$200 million project off the ground.

Local developer Chris Foster is working with the current owner Simon Property Group to bring the property back to life. A non-disclosure agreement limits how many details Foster can release about their plans at this time, but he says the $150-$200 million project that will create more commercial opportunities. This will likely include more restaurants, shopping and entertainment components — like you might see in other tourist-friendly communities including Gatlinburg, Tenn. or Myrtle Beach, S.C. It could also include housing.

The Foster family has contracted with Kansas City-based Legacy Development to help move the project forward. Legacy Development has created more than 50 projects with over 31 million square feet of retail space in 14 states. One of their projects is the Legends Outlets in Kansas City, Kansas.

Foster says that in order to get the project off the ground, many things will need to fall into place including coming up with a partnership with the city of Osage Beach that includes a Tax Increment Financing District (TIF) which is often used by developers to help finance development.

Foster credits the shutdowns in other locations and cities across the country for drawing people to Lake of the Ozarks. While the Lake stayed open for business and tourism thrived, many other places in the U.S. didn’t. With all eyes on Lake of the Ozark, now’s the time to invest in the community, he said.

CASINOS & ENTERTAINMENT

For many years, the thought of building a casino at the Lake seemed like wishful thinking but it looks like it will become a reality in the not-so-distant future.

Two separate casino projects are in the works in Lake Ozark.

Osage River Gaming is hoping to put a riverboat casino on the Osage River, but it will be up to voters to decide if that will happen. Currently State Representative Ron Hicks filed a bill that proposes a constitutional amendment to allow for excursion gambling boats on the Osage River. Currently the law limits casino gambling to within 1,000 feet of the Missouri and Mississippi Rivers.

According to Tim Hand, director of Osage River Gaming and a lead investor, they have been working on getting a casino at the Lake for more than a decade. He is confident that the legislature will approve the proposed amendment, which would go before voters state-wide later this year. If the ballot measure is approved, the bill would grant a single license to be used on the Osage River.

Hand says the $175 million project will be built below Bagnell Dam on land already owned by the development group. There will be 2,500 gaming locations within the casino which will be larger than the casino located in Boonville. It is expected to bring in about $26 million in new tax revenue, with the state receiving more than $21 million and $5 million of that staying locally. There will be an estimated 700 construction jobs created due to the project with another 700 permanent jobs once completed, he said.

“It would by far be the largest tourism industry and make the Lake a lot less seasonal,” Hand said.

In Lake Ozark, another casino project is moving forward with demolition at the site expected to begin soon. An Osage Indian casino is scheduled to be built on property located at the intersection of Highway 54 and Business 54 in Lake Ozark. Osage Casino Central Services in Tulsa, Okla. is heading up the project with plans to build a $60 million hotel complex with casino, restaurants and entertainment center on 28 acres. According to the website 500 Nations, the project is subject to federal approval by the U.S. Department of Interior. The tribe has submitted an application which will take a year or more to process. If approved, the DOI will transfer the casino land into federal trust granting sovereignty so the land and casino gaming rights are exempt from Missouri laws and regulations. A federally-approved Indian gaming casino does not need a license and does not need state approval if similar gaming is already approved in the state, according to the website.

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OSAGE CASINO RESORT - LAKE OF THE OZARKS 10The first phase construction of the Osage Nation casino PHASE 1 - CONCEPTUAL AERIAL RENDERING in Lake Ozark includes construction of a casino, sports bar, restaurant, and meeting space. It also includes a hotel, which will have general hotel rooms, suites, a fitness and exercise facility, a pool and hot tub, and a pool bar.

MEL BROOKS/BLUE BOAT ART

An Osage Indian casino is scheduled to be built on property located at the intersection of Highway 54 and Business 54 in Lake Ozark. Demolition of existing buildings on the land is expected to begin soon.

MISSOURI STATE PARKS

Development of the 144-mile Rock Island Trail will occur in sections over several years. It stretches from Windsor to Beaufort and is estimated to cost $100 million to fully develop.

“When the Osage Nation made their casino announcement at the end of October, it really opened the floodgates for a lot of other development opportunities for Lake Ozark,” Lake Ozark’s Fry said. “While we don’t yet have a great understanding of the project’s true scope, we do know that it will be a driver for employment, continued and increased investment in and around Lake Ozark, and will perhaps lead to a new scope of development opportunity for the region. The same can be true for a number of the other large projects announced around the Lake in the past few months.”

Another new entertainment facility at the Lake area is under construction in Osage Beach. Gary Prewitt, the owner of Backwater Jack’s and Shady Gators waterfront bars, as well as Prewitt’s Point and Eagle’s Landing shopping centers in Osage Beach and Lake Ozark is planning to build an aqua theater. Located next to Backwater Jack’s, The aquatic facility would include a multi-tiered pool/bar, a video board, a small stage for music events, and souvenir shop. Crews are working to get the venue open by mid-July.

Original plans were to construct a 2,000-seat amphitheater but developers decided to change the concept and it will no longer be a large-scale concert venue.

OUTDOOR RECREATION & AGRITOURISM

For about 15 years, a core group of developers and bike enthusiasts has been working with state and local officials to build a 144-mile trail from Beuford to Windsor called the Rock Island Trail.

Mac McNally, president of the Missouri Rock Island Trail Organization, has been spearheading the project with several other individuals. Funding has been the biggest setback but Missouri Governor Mike Parsons has publicly stated his full support and is asking the legislature to set aside $69 million to go toward its construction this year. While that would not pay for the entire project, it would fund two sections that cross into the Lake area.

The 144-mile trail is located along a railroad corridor that was gifted to the Missouri State Parks system. State Parks has been working with landowners and farmers along the trail to make sure that it would not negatively impact their properties.

McNally says the trail would enhance the quality of life for those along the path. It stops along several small Missouri towns including Versailles and Eldon in the Lake area. Two picturesque bridges and several tunnels are located along the trail. It would intersect with the Katy Trail in Windsor. The Katy Trail is the longest developed rail-to-trail in the country and is 240 miles running between Clinton and Machens with 26 trailheads and four restored railroad depots. The Katy Trail is estimated to have had a $18 million economic impact over the course of five years, and it serves as a great model for the Rock Island Trail, McNally said.

I will take some time to build the trail but if funding comes through this year there could be some moment in 2022, he said. The first trailhead will be located in Eldon at the site of the old railroad depot. The depot has undergone a renovation in recent years and is a welcome center. It’s located close to businesses and the downtown area which would benefit from those using the trail as they stop off to eat and shop.

“I think this will not only improve the quality of life of the communities and provide active living opportunities but will also bring in outside dollars when people come here to spend money,” McNally said. “It’s another level of tourism that we can benefit from economically.”

RACING & SPORTING VENUES

In the last couple of years two major sporting venues have been built in the Lake area. Ozarks International Raceway, located near Gravois Mills and Ballparks of the Ozarks, just outside of Camdenton.

In 2021, Ozarks International Raceway opened in Gravois Mills. The 3.87 mile track spread out on 650 acres of land has been met with enthusiasm among the racing community. Located at the junction of Hwy. 135 and State Road J, the worldclass facility is open to all types of cars and motorcycle racing.

Near Macks Creek, Ballparks National completed its first full year of hosting tournaments and events with close to 700 teams from 11 states coming to the area to play at the privately-owned youth baseball and fastpitch softball complex. The ballpark has five all-turf fields designed for youth players but is designed for double the capacity of fields which they plan on expanding in the future.

PREWITT’S ENTERPRISES

Plans to build a small amphitheater next to Backwater Jack’s in Osage Beach have evolved into an aqua theater with multiple levels of pools. It could open this summer.

BALLPARKS NATIONAL

It’s been a busy year for Ballparks National, a privatelyowned youth baseball and fastpitch softball complex located in Macks Creek. Hundreds of tournaments were played last year on the state-of-the-art fields drawing additional visitors to Lake of the Ozarks.

According to Jeff Vernetti, general manager of Ballparks National, in 2021 the teams played close to 1,300 games and booked 5,000 lodging room nights adding millions of dollars of economic impact to the area.

“I think that you can’t go wrong with anything that is both youth and family-driven,” Vernetti said. “Any time people are traveling and spending money on their kids it’s a good thing. Last year showed that even with COVID and challenges with the economy, it doesn’t really matter … people are going to travel and spend money on their children.”

Many families who came for the tournaments ended up turning their trip into a vacation, or coming back later in the year to visit.

With some statistics showing that youth sports is the fastest-growing segment in travel, this multi-billion dollar industry is getting the attention of other developers who want to bring more options to the Lake area.

The Peninsula Development group wants to build a 150,000-square foot event and indoor sports center to host youth sports, and a lodging facility on property off of Route KK, west of Osage Beach. They are working to partner with the largest operator of sports tournaments in the country to bring thousands of people to the Lake during the off-season. This could include basketball and volleyball tournaments, cheerleading and gymnastics competitions and other sports.

Plans are in the initial stages but officials are hopeful that the project goes forward since it will families to the Lake on a year-round basis.

PLANNING FOR THE FUTURE

One of the main drawbacks from all of this growth is where to put the workers. Affordable housing has been a concern officials have been trying to evaluate and solve for several years.

While new home construction is on the rise, the increased cost of material and labor are driving prices up.

The Lake of the Ozarks Regional Economic Development Council launched an initiative last year to provide current economic development, housing and other data to increase retail, commercial and housing recruitment success in the tri-county area. Several municipalities are working with an advisory firm to provide recruit economic and housing development. LOREDC is also working to update a housing study that will provide a current market assessment of the Lake area’s housing conditions.

“Growth now is especially important due to the influx of people moving to the Lake area to accommodate their needs,” Camdenton City Administrator Jeff Hooker said. “City staff are constantly working on bringing new businesses and housing to the city. Our traffic counts, which are not seasonal like other communities, are some of the highest in the Lake area.”

Officials have recognized the importance of taking a proactive approach to move growth forward at Lake of the Ozarks and addressing the needs of the community.

“Today, the city (Lake Ozark) is trying to take a proactive approach to development. What that looks like for us in this stage is trying to create an environment that is easier to do business in than folks expect from local government,” Lake Ozark Assistant City Administrator and Community Economic Development Coordinator Harrison Fry said. “If there are folks in the development equation (lenders, land owners, builders, etc.) who are able to help us move forward to fill gaps in the market and bring the region into its next phase of growth, we would welcome the opportunity to engage with them.”

*Some information provided by Nancy Zoellner/Lake Sun.

PENINSULA DEVELOPMENT

Developers are proposing the construction of a 150,000-square-foot flexible event and indoor sports center to host youth sports, as well as a lodging facility on property off of Route KK, just west of Osage Beach.