Broken Arrow City Council
Meeting of: 05/06/2025
Title:
title
Conduct a public hearing regarding the proposed creation of Increment District No. 6, City of Broken Arrow and the Hackberry Market Economic Development Project Plan
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Background:
The Economic Development Department is coordinating with Hackberry Market LLC , an affiliate of Sooner Investments Dev CO LLC to develop up to approximately 30.56 acres generally located on the northeast corner of the intersection of S. Aspen Avenue and . Tucson jut south of the Creek Turnpike. The Developer proposes to invest or cause to be invested in excess of $97.67 million to construct an estimated 211,580 square-feet of retail and service industry space, plus five (5) outparcels comprising 6.19 acres (expected to be developed into approximately 22,000 square feet of additional retail and food service space), over the next two years (the “Hackberry Market Project”). The proposed Project Costs (as described in the Project Plan) contemplate providing assistance in development financing in the amount of $22,000,000 to offset the significant costs necessary to correct current conditions at the planned Project site, including specifically the significant infrastructure and utility improvements necessary to support the development project. The Increment District will capture a two percent (2.0%) sales and use tax (representing approximately 56.34% of the incremental sales and use tax revenue based on a total of 3.55% sales and use tax levied by the City as of the date of the Project Plan), over the approximately twenty-five (25) year term of the Increment District, as the TIF Revenues utilized to pay debt service on contemplated TIF Bonds to be issued on behalf of the City. Based on the preliminary development projections assuming full buildout of the Hackberry Market Project, it is anticipated that approximately $120.5 million in sales and use tax TIF Revenues will be generated during the term of the Increment District, with approximately $67.89 million available for the payment of Project Costs, and the balance of approximately $52.61 million apportioned to the City. Additional amounts will be financed by the apportionment of tax increments from the Increment District including the Organizational Costs and the Debt Service Costs, all related to Project Costs in excess of the amounts specifically identified as the costs of the TIF Projects. The Organizational Costs associated with the initial creation and implementation of the Increment District are preliminarily estimated to be approximately $100,000, and the ongoing Organizational Costs are estimated to be $10,000 per year for the Increment District. The Debt Service Costs associated with the Project Costs are preliminarily estimated to be approximately $29,700,000. The estimated combined total of all Project Costs is $52,050,000. Any excess TIF Revenues will be returned to the city.
The TIF Review Committee recommended approval of the TIF on April 6, 2025 (Resolution 1647). The Planning Commission approved the TIF on April 24,2025. (Resolution 1641) The first public hearing was o April 24, 2025 and the 2nd Public Hearing is scheduled for Tuesday May 6, 2025 at 6:30pm at the during the regular city council meeting.
Cost: N/A
Funding Source: N/A
Requested By: Cynthia S. Arnold, Finance Director
Approved By: City Manager’s Office
Attachments: Hackberry Market LLC
Recommendation:
recommend
Conduct a public hearing regarding the proposed creation of Increment District No. 6, City of Broken Arrow and the Hackberry Market Economic Development Project Plan
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oved By: Michael W. Skates