Board gives financial incentive approval to Butterfly Palace expansion

At its May 13, 2025, meeting, the Branson Board of Aldermen (Board) gave its initial approval to a Development Agreement for the Expansion of the Butterfly Palace (“Agreement”) with R B D Marketing, LLC (Developer), the owner of The Butterfly Palace. The Agreement provides specific economic development incentives to help pay for a planned expansion of the Butterfly Palace, a popular Branson tourist attraction. Absent removal from the Consent Agenda, the Agreement will become final, without further discussion, at the May 27, 2025, Board meeting with the Board’s approval of the Consent Agenda.

This expansion includes making the existing aviary bigger, adding a new third level with rooftop exhibits, building an event center, creating and maintaining new parking areas, and adding new hands-on exhibits and other upgrades. The Developer plans to finish this construction by June 30, 2027.

It’s estimated that the total estimated cost for the expansion is about $11.47 million, of which the Developer is seeking public financial help through City Incentives for roughly $2.11 million. That is about 18.41% of the total cost, and the rest of the funding will come from the Developer’s own money and loans.

The requested incentives are of three main types: using a Community Improvement District (CID), a sales tax revenue reimbursement agreement, and issuing Chapter 100 bonds.

The Agreement reimburses the Developers for up to $1,428,722 for eligible project costs. This reimbursement is on a “pay-as-you-go” system, requiring the Developers to pay for the construction costs first. Then, if a new 1% CID sales tax is approved and collected within the proposed CID boundaries, or if the expansion causes an increase in the City’s regular sales tax collected at The Butterfly Palace, the City will use those specific tax revenues to pay the Developer back for up to 27 years for the CID tax and 23 years for the increased City sales tax.

The City’s reimbursement obligation arises only if the Butterfly Palace generates the specific sales tax revenues in the Agreement. This structure ensures the City is not using its general funds or borrowing money to make these reimbursements.

The third phase of incentives involves Chapter 100 bonds providing approximately $682,616 in additional savings for the Developer. One part is a property tax abatement for 25 years, meaning the company won’t pay property taxes on the increased value of the property created by the expansion; they will still pay taxes based on the value before construction. The other part uses the City’s ability to exempt construction materials from sales tax. These savings help the company fund the project without the City directly spending money or incurring debt.