Broken Arrow City Council
Meeting of: 01/16/2024
Title:
title
Consideration, discussion and possible approval of Ordinance No. 3816 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 Sunset at Broken Arrow 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. 5, City of Broken Arrow; 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 3816 that is before for discussion and possible adoption is to form TIF #5 between the city and Sunset at Broken Arrow. Details of the agreement and actions taken thus far are below:
Develop a destination entertainment experience that will draw regional and out-of-state traffic to Broken Arrow
• 12,500 seat outdoor performance and events venue (Notes Live, Inc.)
• Located on property immediately north of Broken Arrow Events Park
• Projected opening by December 2025
• Projected Capital Investment in excess of $71.5 million
• Projected $85.5 million annual retail sales (ticketing, concessions, merchandise)
• 459 construction jobs ($39.9M payroll, $141M economic impact)
• 240 permanent direct jobs and 393 indirect jobs ($18.3M annual payroll, $211.2M annual economic impact)
• Opportunities for significant Additional Development within The Economic Development Department is coordinating with the Parkes Development Group towards the establishment of a sales tax TIF district in order to provide a sales tax sharing back to a proposed development. The proposed development is located approximately one-quarter mile north of East Kenosha Street (East 71st Street South), and west of County Line Road (North 23rd Street). Details of the project are outlined as follows. Additional information is provided in the attached documents.
Estimated $258.15 million aggregate projected Sales Tax Revenues (State, County, and City)
• TIF Revenues: $97.20 million allocated to TIF Project Costs ($90.96 million City Sales Tax, $6.24 million County Sales Tax)
• $7.05 million allocated to the City of Broken Arrow (3.55% City Sales Tax)
• $29.65 million allocated to Wagoner County (1.3% County Sales Tax) • $124.25 million allocated to State of Oklahoma (4.5% State Sales Tax)
• Estimated $4.31 million aggregate projected Hotel Tax TIF Revenues
• $4.31 million allocated to TIF Project Costs (4.0% City Hotel Tax)
• Estimated $23.63 million aggregate projected Fee by Agreement TIF Revenues
• Based on 1.0% taxable sales surcharge levied by Amphitheater Project operator
• Certain Sales and Hotel Tax TIF Revenues may qualify for Leverage Act incentive payments from State of Oklahoma sales tax net benefit
• All incentive payments allocated to TIF Project Costs (potential up to $124.33 million)
• Total Projected TIF Revenues: $125.15 million (estimate; not including Leverage Act payments) • Estimated $23.67 million aggregate projected Ad Valorem tax revenues
• No ad valorem taxes allocated to TIF Project Costs
• $14.96 million allocated to Broken Arrow Public School
The TIF Review Committee recommended approval of the TIF on December 7, 2023 (Resolution 1555). Wagoner County approved resolution 2024-002 in support of the TIF District and the Planning Commission approved the TIF on December 14, 2023. Tonight was the second public hearing, the first being January 2 at 6:30 during regular City Council meeting.
Cost: TBD
Funding Source: TIF Revenues and possible other funding
Requested By: Cynthia S, Arnold, Finance Director
Approved By: City Manager Office
Attachments: Ordinance 3816 Sunset at Broken Arrow, Resolution 1555, Wagoner County Resolution 2024-002
Recommendation:
recommend
Adopt Ordinance No. 3816 and approve the emergency clause.
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