Broken Arrow City Council
Meeting of: 5-01-2018
Title:
title
Consideration, discussion, and possible approval of and authorization to execute a First Amendment to Economic Development Agreement by and among the City of Broken Arrow and Alfa Laval, Inc.
End
Background:
At the August 1, 2017 Broken Arrow City Council approved an Economic Development Agreement by and between The City of Broken Arrow, Oklahoma and Alfa Laval, Inc. In the Agreement, the City was obligated, at its sole cost, to design and construct or cause to be designed and constructed an industrial access road in conformity with the State Competitive Contracting Requirements. The total amount committed by the City towards the Industrial Access Road was $500,000.00. On November 16, 2016, during negotiations between the City, Alfa Laval and the State of Oklahoma, then Secretary of Transportation Gary Ridley, stated the State of Oklahoma would cover the remaining cost for the construction of the Industrial Access Road. On June 16, 2017, Mike Patterson was appointed the new Secretary of Transportation for the State of Oklahoma. On December 15, 2017, Secretary of Transportation, Mike Paterson, met with City Staff to discuss the funding deficit related to the construction of the Industrial Access Road. Secretary Patterson committed to contributing $800,000 toward the construction of the Access Road during Phase I of Alfa Laval’s expansion, but would not commit the remaining funds necessary to complete the project until Alfa Laval began construction of Phase II of their expansion. During the meeting, it was agreed, City Staff would determine the distance the road could be designed and constructed, utilizing the funding provided by the City and the State, and would prepare an Amendment to Economic Development Agreement.
On March 27, 2018, City of Broken Arrow Engineering and Construction opened bids for the construction of the East Nashville Street. Utilizing the $500,000 committed by the City of Broken Arrow and the $800,000 committed by the State of Oklahoma, it was determined the City could construct an access road that is 1,472 feet east of the centerline of Lynn Lane, ending approximately 375 ft. east of the Alfa Laval’s east most driveway. This modification will allow Alfa Laval to successfully complete their Phase I improvements.
During negotiations between the City and Alfa Laval, the City Manager agreed to recommend waiving up to $25,000 in development fees incurred by Alfa Laval during Phase I. The waiving of development fees was not included in the initial Economic Development Agreement.
Cost: As set forth in the Economic Development Agreement
Funding Source: Sales Tax Capital Improvement
Requested By: Norman Stephens, Assistant to the City Manager/Economic Development
Approved By: Michael L. Spurgeon, City Manager
Attachments: First Amendment to Economic Development Agreement
Exhibit 1
Recommendation:
recommend
Approve First Amendment to Economic Development Agreement and authorize its execution.
end