Broken Arrow City Council
Meeting of: 06-02-2025
Title:
title
Consideration, discussion, and possible approval of and authorization to execute Resolution No. 1662, a Resolution authorizing execution of and accepting a purchase and sales agreement of Real Estate in connection with an economic development agreement; and approval and authorization to execute the purchase and sale agreement and an Economic Development Agreement between CSI Aerospace, City of Broken Arrow and Broken Arrow Economic Development Authority
End
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 the City of Broken Arrow 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.
Staff is in support of the City of Broken Arrow’s efforts and in the interest of securing the Real Property containing 10 AC, more or less, the City of Broken Arrow (COBA) and Broken Arrow Economic Development Authority worked with CSI Aerospace, Inc. to enter into a Purchase and Sales Agreement for the purchase price of $0.00, having a value of approximately $850,000.00.
The City of Broken Arrow deems it appropriate to approve and accept the Contract for the Purchase and Sale of Real Estate, authorize sale of the Real Property, authorize the acceptance of $0 to effect such purchase, and in providing for future development of the Real Property in a manner to be determined in the future, and further that such actions are in the best interests of the City and the health, safety and welfare of the City and residents within and near the City.
Staff recommends that Resolution No. 1662 become effective on June 2, 2025.
Cost: N/A
Funding Source: Not Applicable
Requested By: Jennifer Rush, Economic Development Director
Approved By: City Manager Office
Attachments: Resolution No. 1662
Recommendation:
recommend
Approve Resolution No. 1662 and authorize its execution and approve and authorize execution of a purchase and sale agreement and an Economic Development Agreement between CSI Aerospace, Inc, COBA and BAEDA
end