Welcome to the firstSchrimpf-Gum Team monthly newsletter and market update!
The Federal Energy Regulatory Commission (FERC) provided certainty for citizens at Lake of the Ozarks in Missouri by setting the record straight that FERC has not required shoreline homes and structures with valid deeds, permits and easements to be removed. The Lake of the Ozarks reservoir is part of the Osage Hydroelectric Project, licensed to Ameren UE.
“I am confident that today’s decision will bring clarity to residents along the shoreline of the Lake of the Ozarks,” FERC Chairman Jon Wellinghoff said. “I expect Ameren to move quickly to comply with the Commission order. This will resolve all outstanding issues associated with its shoreline management plan and bring this matter to a swift and satisfactory resolution.”
FERC’s prior order on this case, issued July 26, 2011, was misinterpreted to mean that the Commission would order all privately owned structures built within the boundaries of the Osage project to be removed. Ameren is responsible for managing the shoreline, which includes ensuring that structures within the project boundary around the Lake of the Ozarks are built with the proper authorizations.
The Order States:
Whatever property rights that owners have in lands within the boundaries of the Osage Project, whether conferred by deed, lease, easement or other conveyance, have not been and will not be altered by FERC’s actions today. Nothing in this order affects any previously issued valid permit authorizing a non-project use of project lands or waters.
For structures without valid deeds, permits or easements, Ameren must determine whether they interfere with the Osage project. If they do, Ameren must take some action, such as redrawing the boundaries of the project, so those structures no longer are sitting on project lands. This would put them outside of the project boundaries and therefore outside of FERC jurisdiction.
If any structure does interfere with the operation of the Osage project, Ameren and the structure owner must find a solution that satisfies both sides. Ameren itself has stated that after the project boundary is revised, it expects the majority of structures will no longer be considered nonconforming.
FERC established these requirements in the context of directing Ameren to change its shoreline management plan for the Osage project. Ameren must file with the Commission its plan to modify the project boundary by June 1, 2012.
We hope that you find this information timely and informative. Our goal is to keep you updated on the real estate market at Lake of the Ozarks so you know the best times to buy or sell and also to keep you informed on what events are happening here at the Lake.
We always love to hear from you so if you have any ideas on something you’d like to see included in this monthly newsletter, please let us know!
You can view the complete statistics on the Residential Real Estate Market here at Lake of the Ozarks compiled by your Lake Market Experts – The Schrimpf-Gum Team. You will see the 2011 unit sales for waterfront homes is up over both 2009 and 2010. What seems to be driving this increase at a time when the economy is going through so much turmoil? Look down at the median sales price for waterfront homes and you’ll notice that some months are up and some months are down. The big drop in February to $175,000 was due to the terrible snowstorms endured. The rest of the year seems to be up some over 2010.
After 25+ years of selling real estate at the Lake, this is the oddest market I’ve ever seen. But it does appear that with interest rates at 50+ year lows, buyers are starting to pick off the low hanging fruit. They’re buying outstanding properties at sale prices and getting them financed at around 4%. The buyers are being toughened by negotiating; furthermore, if you look at the chart for the waterfront residential list to sale ratio you’ll see that it is typically around 90 to 93%, or in the markets of the past we typically withhold 96 to 97% list of sale ratios.
There Is Good News in the Market for Sellers – the absorption rate for waterfront homes have declined dramatically from last year. The reason for this is that inventories are down 30 to 40% from last year. What this means for the seller is that there are fewer properties to choose from and eventually this will cause an upward pressure on prices...BUT we aren’t there yet!