Broken Arrow City Council
Meeting of 08-06-2019
Title:
title
Consideration, discussion and possible adoption of Ordinance No. 3597, an ordinance 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 Creek 51 Business Park 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. 2, 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:
On May 21, 2019, the City Council adopted Resolution No. 1224, declaring its intent to consider the creation of a tax increment district, directing the preparation of a project plan, and establishing a TIF review committee. On June 26, 2019, the City made public its “Creek 51 Business Park Economic Development Project Plan”, which would establish Increment District No. 2, City of Broken Area for the purpose of incentivizing the creation of a light industrial business park development immediately west of the State Highway 51/Creek Turnpike interchange. The development group (Creek 51 Business Park LLC) proposes to invest or cause to be invested in excess of $73.1 million to construct an estimated 812,700 square feet of business and industrial space for lease and/or sale to interested business concerns. The creation of the Increment District will direct that City capture 100% of the new ad valorem taxes generated from the development for a period of approximately 11 years (ending on December 31, 2030). 50% of the TIF revenue will be paid to the developer (as collected) as an Investment Incentive, subject to a maximum Investment Incentive of $5 million. Up to $355,000 will be retained by the City as reimbursement for expenditure of City funds for certain Traffic Improvements and Organizational Costs of creating the TIF, to be paid annually in the amount up to $60,000 per year. The balance of funds will be distributed to the affected taxing jurisdictions: Broken Arrow Schools, Tulsa Technology Center, Wagoner County, and Wagoner County Health Department. The total projected TIF revenues for the term of the Increment District are approximately $8.61 million, allocated $4.3 million as the Investment Incentive, $355,000 to the City for reimbursement of costs of Traffic Improvements and Organizational Costs, and $3.95 million to the taxing jurisdictions. The existing property taxes (currently $191 per year) are not captured by the Increment District. Upon expiration of the TIF, 100% of the ad valorem taxes will accrue to the taxing jurisdictions.
The creation of an Increment District requires completion of certain procedural steps prior to consideration of a TIF Ordinance. On July 16, 2019, the City Council held the first of two required public hearings. On July 23, 2019, the 9 member TIF Review Committee voted 8-0 (1 abstention) in favor of recommending establishment of the Increment District as proposed. On July 25, 2019, the City Planning Commission voted 3-0 (1 recusal, 1 vacancy) in favor of recommending establishment of the Increment District as proposed. On August 6, 2019, the City Council will hold the second required public hearing. Notice of the public hearings were published on June 26, 2019 and July 10, 2019 in the Tulsa World and the Wagoner County American-Tribune. Attached are executed copies of the Resolution of the Review Committee, the Resolution of the Planning Commission, the Public Draft of the Project Plan dated June 26, 2019, and a red-lined mark-up of the proposed Final Project Plan showing certain minor corrections identified during the review process.
Cost: No Cost
Funding Source: No Source
Requested By: Trevor Dennis, City Attorney
Approved By: City Manager’s Office
Attachments: TIF Ordinance No. 3597
June 26 Public Draft of Project Plan
Red-line of proposed Final Project Plan
Review Committee Resolution
Planning Commission Resolution
Recommendation:
recommend
Adopt Ordinance No. 3597 and authorize its execution.
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