LEGISLATIVE RESEARCH CENTER
File #: 24-216    Name:
Type: General Business Status: Agenda Ready
File created: 1/31/2024 In control: Broken Arrow City Council
On agenda: 2/6/2024 Final action:
Title: Consideration, discussion, and possible approval of and authorization to execute First Amendment to Economic Development Agreement by and among Sunset at Broken Arrow, LLC, and the Broken Arrow Economic Development Authority and the City of Broken Arrow
Attachments: 1. First Amendment to Economic Development Agreement - 01.31.pdf

Broken Arrow City Council

Meeting of: 02-06-24

 

Title:

title

Consideration, discussion, and possible approval of and authorization to execute First Amendment to Economic Development Agreement by and among Sunset at Broken Arrow, LLC, and the Broken Arrow Economic Development Authority and the City of Broken Arrow

End

 

Background:

The Broken Arrow Economic Development Authority, City of Broken Arrow and Sunset at Broken Arrow, LLC entered into certain Economic Agreement on October 3, 2023. The terms and conditions of the Agreement require that the parties to the Agreement take certain actions no later than January 31, 2024. Pursuant to Section 2.1 of the Agreement, the parties agree that an extension of certain deadlines set forth in the Agreement is necessary.

The obligations of the Authority, the City, and the Developer to proceed with their respective obligations are subject to the satisfaction or waiver of the following conditions precedent set forth in this Section 2.1.  As of the date of this First Amendment, items A, B, C and D below have been completed.  Items E and F below shall be completed no later than February 21, 2024, or such later date as may be mutually agreed upon by the parties hereto.  Item E in regards to a parking lease agreement with Northeastern State University is under review by the Broken Arrow Economic Development on February 6, 2024. Pertaining to item F, engineers for Rural Water District #4 have confirmed that the District has capability to provide for domestic water based on flow rates delivered to the City by Sunset of Broken Arrow. However, those flow rates do not include fire suppression of which those rates will be determined by the Fire Marshal upon deliverance of a site plan from Sunset of Broken Arrow. The City and Authority requests an extension allow for adequate review by the regulatory parties upon the receipt of a site plan.

Section 2.1 Obligations:

A.                     Authority or City shall execute a Purchase Sale Agreement for acquisition of the Project Site and proceed with due diligence to closing.

B.                     City shall approve its TIF Ordinance and create an Increment District with respect to the Project.  The City has heretofore adopted its Amended Resolution No. 1548 dated October 3, 2023 (the “TIF Intent Resolution”), which signifies the City’s formal intent to consider the creation of a tax increment financing district pursuant to the Local Development Act, establishes a statutory review committee, directs the preparation of a project plan, and directs the conduct of public hearings and making of recommendations as required by the Local Development Act.  It is understood and agreed by the parties hereto that the TIF Intent Resolution by itself does not legally obligate the City to adopt a TIF Ordinance or establish an Increment District.

C.                     The City, at the City’s sole cost and expense, shall undertake a rezoning and/or other planned land use to ensure necessary and appropriate zoning is in place on the Project Site to accommodate the Project Site Improvements contemplated in Article III below.

D.                     The City shall consider and review a planned unit development or similar planned land use document (the “PUD”), prepared by the Developer for the portion of the Project Site to where the Sunset Amphitheater is to be located, and will review and consider any necessary and appropriate zoning changes to accommodate the Sunset Amphitheater and the development of the Project Site.  The Developer shall prepare (with the assistance of the Authority and the City) the PUD and shall file said document with the City for consideration.  The Developer shall provide necessary detail relative to the Project, including but not limited to the proposed site plan and appropriate traffic, sound, lighting, environmental, and other applicable studies. 

E.                     Authority or City shall execute a lease or other use agreement with Northeastern State University - Broken Arrow campus, for the use of 1,000 parking spaces in connection with events held at the Sunset Amphitheater.  Such agreement shall provide for reasonable accommodations so as not to interfere with normal campus activities, and shall allow for the assignment of use of said parking to the Developer or its assigned operators, and shall include language necessary to ensure an appropriate amount of notice prior to termination by Northeastern State University - Broken Arrow to ensure that the 1,000 parking spaces shall be available for use in connection with the Project at all times required for operation of the Sunset Amphitheater without interruption.

F.                     The City shall obtain confirmation that the local water service provider (Rural Water, Sewer, Gas and Solid Waste Management District No. 4, Wagoner County, Oklahoma, and referred to herein as “Wagoner Co. RWD #4”) has the capability to provide for all domestic water use in operation of the Sunset Amphitheater including both daily and event-related water use and fire suppression. In the event that Wagoner Co. RWD #4 cannot or will not serve the Project, the City, a the City’s cost, will take all necessary steps including but not limited to construction of additional infrastructure to create sufficient water service to the Project.

All other provisions of Section 2.1 shall remain in full force and effect.

 

 

Cost:                                                                None

Funding Source:                     N/A

Requested By:                      Jennifer Rush, Economic Development Manager

Approved By:                      City Manager’s Office

Attachments:                                          First Amendment of Economic Development Agreement
                                   

Recommendation:

recommend

Approve and authorize execution of the First Amendment of the Economic Development Agreement by and among Sunset at Broken Arrow, LLC, and the Broken Arrow Economic Development Authority and the City of Broken Arrow

end