Broken Arrow City Council
Meeting of: 05/07/2024
Title:
title
Consideration, discussion, and possible approval of and authorization to execute Fourth 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
End
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 effects associated with downstream property owners.
The Fourth Amendment to the Economic Development Agreement became necessary due to the Developer needing additional time to meet the expectations of the Agreement.
Although construction of the Reasor’s should be completed within compliance of the Third Amendment, it is anticipated the store will not open to the public until November 2024.
The Developer anticipates construction on the inline retail beginning in the 3rd quarter of 2024 and will continue to build (in 2 phases) through the fourth quarter of 2025. This will cover roughly 28,000 SF of inline shop space. The Developer reports construction will continue to the north of Aspen Ridge which will include approximately eight (8) national brand franchises.
The Developer advises the apartment project is now under a new partnership that will facilitate the construction of the original plan and will begin construction in the first quarter of 2025 and be completed in the third quarter of 2026.
The Fourth Amendment to the Economic Development Agreement provides the following adjustments to the original Economic Development Agreement:
1. Section 4.3 A Extends the date for completion of the construction of the Reasor’s Grocery Store to November 1, 2024.
2. Section 4.3 B Extends the time to develop, construct or cause to be constructed a 168-unit multi-family apartment complex to November 1, 2026.
3. Section 4.3 C Extends the date when the Developer shall develop, construct or cause to be constructed a total of an additional 200,000 square feet of commercial and retail space to December 31, 2025.
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
Attachments: Fourth Amendment to the Economic Development Agreement
Recommendation:
recommend
Approve and authorize execution of the Fourth Amendment to the Economic Development Agreement by and among Oaktrust Development, LLC and Broken Arrow Economic Development Authority and City of Broken Arrow, Oklahoma.
end