Broken Arrow City Council
Meeting of: 05/06/2025
Title:
title
Consideration, discussion and possible adoption of an Ordinance No. 3875 of the City of Broken Arrow, Oklahoma (the “City”) approving utilization of apportioned tax revenues authorized by statewide vote adopting Article 10, Section 6C of the Oklahoma Constitution and implemented by the Local Development Act, 62 O.S. §850, et seq.; approving and adopting the Hackberry Market Economic Development Project Plan and expressing intent to carry out the Project Plan; ratifying and confirming the actions, recommendations and findings of the Review Committee and the Planning Commission; creating and establishing Increment District No. 6, City of Broken Arrow and/or deferring the naming and effective date for the creation of the Increment District; designating and adopting the Increment District boundaries and the Project Area boundaries; adopting certain findings; reserving to the City the authority to make minor amendments to the Project Plan; authorizing the City Council of the City to carry out and administer the Project Plan; establishing a Tax Apportionment Fund; authorizing directions for prospective apportionment of tax increments; establishing an allocation of use for tax increments; declaring apportionment funds to be funds of the City and limiting the pledge of apportioned increments to increments actually apportioned by the City; authorizing the City Council of the City, or a public trust designated thereby, to implement the Project Plan utilizing apportioned tax increments to pay or reimburse project costs directly and/or to issue bonds or notes, if feasible and desirable, to pay project costs and to retire said bonds or notes from apportioned tax increments; providing for severability; declaring an emergency; and containing other provisions related thereto
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Background:
Ordinance 3875 that is before for discussion and possible adoption is to form TIF #6 between the city and Hackberry Market LLC of the agreement and actions taken thus far are below:
The Project as represented to the Review Committee contemplates commercial retail development by Hackberry Market, LLC, an affiliate of Sooner Investments DEV CO, LLC (the “Developer”) of up to approximately 30.56 acres generally located on the northeast corner of
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the intersection of S. Aspen Avenue (S. 145th East Avenue) and W. Tucson Street (121st Street), just 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. (Developer projects $1.41 billion in gross taxable sales over 23 years.
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 6:30 pm at the during the regular city council meeting.
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Cost: N/A
Funding Source: N/A
Requested By: Cynthia S, Arnold, Finance Director
Approved By: City Manager Office
Attachments: Ordinance 3875 and Hackberry Mark Project Plan
Recommendation:
recommend
Adopt Ordinance No. 3875 and approve the emergency clause.
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