Broken Arrow Economic Development Authority
Meeting of: 07-31-2023
Title:
title
Approval of and authorization to execute third Amendment to the Economic Development Agreement by and among OakTrust Development LLC, Steve Easley, the Broken Arrow Economic Development Authority and the City of Broken Arrow
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Background:
On June 29, 2021 the Broken Arrow Economic Development Authority (BAEDA) and City of Broken Arrow entered into an Economic Development Agreement with OakTrust Development, LLC to promote economic development within a Tax Increment District along the east side of South Aspen Avenue.
Under the Agreement, the Developer committed to the construction of a 60,000 square foot Reasor’s Grocery Store and construction of a 168 unit multi-family apartment complex by June 30, 2023. Also, the development of over 200,000 square feet of new retail and commercial space by June 30, 2024. In addition, the Authority committed to the construction of several Project Site Improvements, including a traffic signal at Norfolk. The Authority committed to paying up to $5,530,000.00 in total for the Project Site Improvements, with specific cost caps for each project.
The First Amendment to the Economic Development Agreement addressed the public storage conveyance system.
The Second Amendment to the Economic Development Agreement addressed public water and wastewater systems and expansion to include stormwater systems.
The Third Amendment to the Economic Development Agreement became necessary due to the Developer needing additional time to meet the expectations of the Agreement. The Developer’s inability to meet established timelines can be attributed to a variety of reasons, including the unexpected sale of Reasor’s to Brookshire Brothers and the needed time to complete the transaction, unforeseen cell tower property rights issues, and the necessity to modify stormwater detention facility from the original plan of fee in lieu of detention to on-site detention to ensure no adverse affects associated with downstream property owners.
The Third Amendment to the Economic Development Agreement provides the following adjustments to the original Economic Development Agreement:
1. Item 4.2 (C) The Developer shall, at its sole cost, develop, construct or cause to be constructed within the Project Site, a total of an additional 200,000 square feet of commercial and retail space. Due to the addition of a stormwater detention pond on the original Project Site, the Developer has requested the Authority expand the Project Site to include acreage owned by the Developer immediately to the north of the Project Site. The expansion to the north is included in the overall TIF District. This will increase the size of the Project site by 8.9920 acres.
2. Section 4.3 A Extends the date for completion of the construction of the Reasor’s Grocery Store to June 30, 2024
3. Section 4.3 B Extends the time to develop, construct or cause to be constructed a 168 unit multi-family apartment complex to April 30, 2025.
4. Section 4.3 C Extends the date when the Developer shall develop, construct or cause to constructed a total of an additional 200,000 square feet of commercial and retail space to December 31, 2024.
5. Section 4.3 E, Confirms the Developer has paid the required sum of $1,000,000 to BAEDA on June 30, 2023.
All other terms of the June 29, 2021 Agreement remain in full force and effect without modification or change except for the additional items added to the Amendment and as outlined above.
Cost: N/A
Funding Source: N/A
Requested By: Norman Stephens, Assistant City Manager - Administration
Approved By: City Manager’s Office, Legal Department
Attachments: Third Amendment to the Economic Development Agreement by and
among Oaktrust Development, LLC and Broken Arrow Economic Development Authority and City of Broken Arrow, Oklahoma
Exhibit of 8.9920 acres added to the Project Site
Recommendation:
recommend
Approve and authorize execution of third Amendment to the Economic Development Agreement by and among Oaktrust Development, LLC and Broken Arrow Economic Development Authority and City of Broken Arrow, Oklahoma
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