Broken Arrow City Council
Meeting of: 06-01-2026
Title:
title
Consideration, discussion, and possible approval and authorization to execute PSO Franchise Fee for Economic Development Request for Infrastructure Funds to Extend a Public Sanitary Sewer Line to BAMA-owned Property to Support Future Economic Development
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 businesses. 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 1% economic development fee, to be used as a fund for essential services and future prosperity.
Recently, the Broken Arrow Municipal Authority (BAMA) submitted a PSO Economic Development Fee Request for Infrastructure to extend a public sanitary sewer branch line to the property on the northeast corner of 9th Street and New Orleans. On June 5, 2017, the governing body approved the acquisition of said property with the expressed intent to construct an elevated water storage tank on the property and potentially subdivide the overall parcel into smaller tracks for commercial development on the hard corner of the intersection. On July 3, 2017, the governing body approved Resolution No. 1031 authoring the execution of a Contract for the Sale of Real Property in the amount of $700,000 to acquire the 11.34-acre track of land.
On October 15, 2024, BAMA awarded the construction of a new 2.5 million gallon (MG) elevated water storage tank on said property to Landmark Structures in the amount of $10,722,844. As of the date of this action item, the construction of the tank is complete, and it is expected to be operational this summer.
In anticipation of the completion of the tank, the governing body approved a comprehensive plan change on July 14, 2025, for the site to be able to be zoned for Level 4. Subsequently, the property was rezoned to Commercial General (CG), and a Planned Unit Development (PUD) for the site was approved by Council on November 4, 2025.
On October 7, 2025, BAMA contracted for engineering services to design the sanitary sewer extension to said property. These Contract Documents are complete, and the associated easements are nearly secured. BAMA expects to start construction of the new sanitary sewer extension to the property this summer and complete the construction effort before the end of the year.
This extension will improve utility access to currently underutilized land on the northeast corner of the quadrant and allow for sanitary sewer access to all four corners. The timing of this effort coincides well with the completion of the Venu Amphitheater at Broken Arrow anticipated for the Fall of 2026.
Staff recommends approval of the expenditure of the PSO Franchise Fee for Economic Development using the Capital Improvements for Infrastructure Funds in the amount provided below.
Cost: $742,600.00
Funding Source: Fund 351 PSO Franchise Fee Infrastructure
Requested By: Travis Stephens, Tourism and Economic Development Director
Approved By: City Manager’s Office
Attachments: PSO Economic Development Fee - Request for Funds Application
Recommendation:
recommend
Approve and authorize execution of PSO Franchise Fee for Economic Development Request for Capital Improvements for Infrastructure Funds to Extend a Public Sanitary Sewer Line to BAMA-owned Property to Support Future Economic Development
end