Broken Arrow Economic Development Authority
Meeting of: 06/02/2025
Title:
title
Consideration, discussion and possible approval of and authorization to execute an Economic Development Agreement between CSI Aerospace Inc, the Broken Arrow Economic Development Authority, and City of Broken Arrow
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Background:
A declared goal of the City of Broken Arrow is to encourage, facilitate and promote economic growth within and near the city by attracting and expanding both new and existing industry and commercial business. In 2023, Broken Arrow voters approved a 25-year renewal of the city’s franchise with Public Service Company of Oklahoma (PSO). As part of the franchise agreement, PSO collects a 2% franchise fee and a newly established 1% economic development fee, to be used as a fund for essential services and future prosperity. Upon passing the 1% economic development franchise fee, City Council adopted a formal Incentive Policy to support economic growth opportunities throughout the City.
Through the formal Incentive Policy procedure, CSI Aerospace submitted an incentive application to assist in the expansion of their Broken Arrow facility. The land in which they currently own is not large enough to accommodate their expansion needs. The company took interest in relocating to Arrow Forge, owned by BAEDA.
As part of this Economic Development Agreement, CSI will create approximately 50 new full -time jobs over a 5 year period. The current 108 employees will relocate to the new space in Arrow Forge. The Company plans to invest a minimum of $5,500,000 as a capital contribution to allow for the expansion of approximately 40-50,000 sq feet of the manufacturing facility. This anticipated project has a total economic output of approximately $26.5 million.
In addition to BAEDA granting 10 acres of Arrow Forge for this expansion, BAEDA will incentivize new full time jobs as outlined in the City Incentive Policy as follows:
(a) The Authority shall pay to the Company the sum of $1,000.00 per job having total compensation of $50,000.00;
(b) The Authority shall pay the Company the sum of $2,000.00 per job having total compensation over 100% of the average Tulsa County wage;
(c) The Authority shall pay the Company the sum of $3,000.00 per job having total compensation over 110% of the average Tulsa County wage;
(d) The Authority shall pay the Company the sum of $4,000.00 per job having total compensation of 125% of the average Tulsa County wage;
(e) The Authority shall pay the Company the sum of $5,000.00 per job having total compensation over 125% of the average Tulsa County Wage.
The Authority will also reimburse the Company for permitting fees not to exceed $28,316.50.
On May 28, 2025, the Broken Arrow Economic Development Corporation voted to recommend the Economic Development Agreement to the City and Authority.
Cost: Not to exceed $1,378,316.00
Funding Source: Broken Arrow Economic Development Authority
Requested By: Jennifer Rush, Economic Development Director
Approved By: City Manager’s Office
Attachments: Economic Development Agreement
Recommendation:
recommend
Approve and authorize the execution of the Economic Development Agreement.
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