Broken Arrow Economic Development Authority
Meeting of: 02/03/2026
Title:
title
Consideration, discussion and possible approval of and authorization to execute an Economic Development Agreement between Solar Turbines Incorporated and the Broken Arrow Economic Development Authority
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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, Solar Turbines Incorporated submitted an incentive application to assist in an expansion project at their current Broken Arrow facility. The proposed project includes a 22,000 square foot facility expansion to allow for 6 additional machine tools and 20% production increase over current maximum capacity. The expansion would encompass an extension of the current production space to include slab, walls, roof, and infrastructure, including additional electrical support and compressed air. Additionally, the Project includes an additional 38,000 square foot slab poured on the exterior for additional inventory storage. The expansion plans will require a $15,500,000 capital investment over the next 3 years and will create an additional 29-net new direct, full-time jobs at the facility.
The incentive application was reviewed by the Broken Arrow Economic Development Team, which includes members of City leadership as well as staff and board members from the Broken Arrow Economic Development Corporation. The team reviewed the application to confirm eligibility based on the Economic Development Incentive Policy, and subsequently made a formal incentive recommendation to the City.
Subject to annual appropriations, the incentive includes the following:
1. Reimbursement of $2,000 to $5,000 per new job created up to a maximum of 52 new jobs created by December 31, 2028. Reimbursement amount will depend upon total annualized gross wage. Each job created with an annualized gross wage at or above 100% of the Tulsa County average wage will be reimbursed $2,000 per job, at or above 110% will be reimbursed $3,000 per job, at 125% will be reimbursed $4,000 per job, above 125% will be reimbursed $5,000 per job. Payments for the total jobs incentive shall in no event exceed a total of $260,000.00.
2. Reimbursement of the City of Broken Arrow permit fees in an amount not to exceed $15,000.
3. Reimbursement of capital expenditures (construction and equipment purchases) in an amount not to exceed $320,000.
The total maximum incentive obligation under this Agreement shall not exceed $580,000.
On December 17, 2025 the Broken Arrow Economic Development Corporation voted to recommend this agreement to City Council for final review and approval.
Cost: Not to exceed $580,000
Funding Source: PSO Economic Development Fund
Requested By: Travis Stephens, 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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