Downtown Advisory Board
Meeting of: 06-09-15
To: Chairman and Board Members
From: City Manager's Office
Title:
title
Consideration and possible recommendation for City Council to approve an economic development agreement between the Broken Arrow Economic Development Authority, the City of Broken Arrow, Oklahoma and Mr. Roy D. Sturgeon doing business as RDS Properties LLC
End
Background:
On June 14, 2005, Mr. Roy D. Sturgeon purchased the property located at 207 South Main Street in Broken Arrow Ok. The property is currently owned by RDS Properties LLC, a company that Mr. Sturgeon owns. Mr. Sturgeon estimates he has invested $400,000.00 to purchase and restore the building. Mr. Sturgeon currently owns six building in the Rose District and all of the buildings are leased.
In November of 2013, the building at 207 South Main Street was leased to South Hampton LLC. It is currently operating as Stogies, a cocktail and cigar bar. Representatives of South Hampton LLC signed the lease under the assumption the domestic water line in the alley located east of Main Street was of sufficient size to use for a fire suppression system. Mr. Sturgeon invested an additional $45,000.00 to build a staircase and bathroom on the second floor of the building, and to separate the electric and natural gas service from the first and second floor to allow for an event space on the second floor. After moving into the first floor of the building, it was determined the City owned 4 inch water line could not produce sufficient pressure to properly feed a fire suppression system. South Hampton LLC has been paying rent on the 2nd floor of the building for over a year and is unable to use the upstairs as an event space.
In 2015 the City of Broken Arrow replaced the 4 inch water line with an 8 inch water line which will provide sufficient water pressure and gallons per minute to meet the pressure and fire flow requirements for this occupancy. Mr. Sturgeon has agreed to pay the cost of connecting to the cities new 8 inch water line and will install 75 lineal feet of new water line to the building, and construction of a shed on the back of the building to house the pump and other items necessary to complete the project.
On April 23, 2015, Mr. Larry R. Pennington, Broker for Allison and Associates Realtors made a presentation to the Broken Arrow Economic Development Board of Directors on behalf of Mr. Sturgeon. During the presentation Mr. Pennington requested economic development assistance for the purposes of installing an above ground wet pipe fire sprinkler system for 207 South Main Street. At the conclusion of the presentation, BAEDC Board Members voted unanimously to recommend to the Downtown Advisory Board and the Broken Arrow City Council to provide up to $25,000.00 in economic development incentives for the purpose of installing a fire sprinkler system in 207 South Main Street.
Cost: $25,000.00 to be paid from the City of Broken Arrow General Fund
Prepared By: Norman Stephens, Assistant to the City Manager / Economic
Development Coordinator
Reviewed By: Development Services Department
Finance Department
Legal Department
Approved By: Norman Stephens, Assistant to the City Manager / Economic
Development Coordinator
Attachments: Information letter from Allison and Associates
Bid Proposal from Superior Fire Protection
Contract Agreement between RDS Properties II LLC and Superior
Fire Protection
Recommendation: Request Broken Arrow City Council approve an economic development agreement between the Broken Arrow Economic Development Authority, City of Broken Arrow, Oklahoma and Mr. Roy D. Sturgeon in the amount of $25,000.00