Broken Arrow City Council
Meeting of: 05-21-2024
Title:
title
Approval of and authorization to submit a letter to Sunset at Broken Arrow LLC committing to additional parking spaces
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Background:
The Broken Arrow Economic Development Authority, City of Broken Arrow and Sunset at Broken Arrow, LLC entered into certain Economic Agreement on October 3, 2023 to bring an Outdoor Amphitheater to the City of Broken Arrow.
The Outdoor Amphitheater proposal by Sunset at Broken Arrow, LLC includes the construction of a venue with seating and attendance capacity of 12,500. The outdoor entertainment venture projects approximately $71.5 million capital investment, supporting approximately 741 jobs during the construction period, and upon completion, providing approximately 86 direct full-time positions with an annual payroll of approximately $3.49 million, and supporting an additional 154 indirect jobs with an annual payroll of approximately $4.01 million. The projected capital investment is expected to generate over $900,000 in new annual ad valorem taxes, benefiting taxing entities including Wagoner County, the Wagoner County Health Department, Broken Arrow Independent School District No. 3 of, Tulsa County (Broken Arrow Public Schools), Tulsa Technology Center Vo-Tech District No. 18, and the City. The Project further contemplates the generation of approximately $85.5 million in annual taxable sales.
Obligations of the Authority and City for the project included parking for the project. Per the Agreement the City shall make available a minimum 3,360 parking spaces for use by the Developer. The City shall cause to be constructed 2,360 parking spaces, to be located within the Project Site, or within the Events Park, said location to be determined at the discretion of the Authority. The City shall lease an additional 1,000 parking spaces from Northeastern State University - Broken Arrow Campus.
Sunset at Broken Arrow selected Live Nation as the operator for the state-of-the-art Sunset Amphitheater planned for Broken Arrow, Oklahoma. Live Nation has requested the availability of onsite or offsite parking to accommodate 4,400 vehicles. The City of Broken Arrow has received a request from Sunset to increase parking spaces to 4,400. This exceeds the previously agreed-upon 3,360 spaces outlined in the Agreement between Sunset at Broken Arrow LLC, the City of Broken Arrow, and the Broken Arrow Economic Development Authority.
In order to meet Live Nation’s request, City Manager Michael Spurgeon has drafted the attached letter to acknowledge the importance of the amphitheater to our community and notify Sunset that the City will diligently explore additional locations for parking expansion, considering both onsite and offsite shuttle parking options.
To ensure transparency and alignment with our budgetary constraints, detailed estimates for the various parking expansion options will be considered and brought forth to City Council for consideration and approval. Upon reaching a mutual agreement, the Economic Development Agreement will be updated to reflect the addition of parking spaces.
Cost: Up to $4,000,000
Funding Source: BAEDA
Requested By: Jennifer Rush, Economic Development Director
Approved By: City Manager’s Office
Attachments: Letter from Michael Spurgeon, City Manager
Recommendation:
recommend
Approve and authorize submission of letter to Sunset at Broken Arrow LLC committing to additional parking spaces
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