Broken Arrow City Council
Meeting of: 11-03-2026
Title:
title
Ratification of Economic Development Agreement between Walman Brown Aspen Development, LLC and Broken Arrow Economic Development Authority and City of Broken Arrow
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Background:
In September 2013, The City of Broken Arrow, The Broken Arrow Economic Development Authority (“BAEDA”) and Sig-Broken Arrow, LTD., entered into an Economic Development Agreement for an approximate 100-acre tract of land located adjacent to the Creek Turnpike between South Aspen Avenue and South Elm Place, now known as the Shops at Aspen Creek.
In 2024 the owner of the Shops at Aspen Creek approached City staff with a request for additional incentives, designed to improve the likelihood the development would attract additional retail growth. During these discussions, the decision was made to request the Broken Arrow Economic Development Authority authorize the City Manager to enter into negotiations with the owner of Sig-Broken Arrow, for the purchase of a significant portion of the Shops at Aspen Creek. Through those negotiations, an agreement was made that the Developer would sell 38.26 acres to the City of Broken Arrow for Seven Million dollars ($7,000,000.00). The transaction was completed in June, 2024.
During this period, City staff began negotiating with Mr. Steve Walman, to develop the site. Through the course of those negotiations, Mr. Walman agreed to split the property into three phases in the following manner: Phase 1 will include an estimated $41,000,000 in annual sales and a commitment to build 160,000 sq., ft. of retail commercial space. Mr. Walman estimates Phase 2 will produce annual sales of an additional $25,000,000 and additional commercial retail space of 100,000 sq. ft. The Developer’s Phase 3 estimate is an additional $10,000,000 in sales and additional 20,000 sq. ft. of commercial retail space. The total capital investment in the Project on behalf of the Developer is projected to be approximately $24 million, plus $6 million for the cost of Project Site Infrastructure Improvements.
In an effort to facilitate a Public / Private Partnership, certain incentives are necessary to increase the probability for success of the project. Staff is requesting the following:
1. Phase 1 - Property Sale of approximately 22.75 acres to the Developer for the sum of $10.00.
2. Phase 2 - Property Sale - Upon the developer’s construction of Phase 1, the Authority will sell to the Developer the North 13.21 Acres for the Sum of $2.00 per square foot totaling $1,150,855.20 to be paid on or before twelve months after the substantial completion date of Phase 1.
3. Phase 3 - Property Sale - Upon the developer’s construction of Phase 2, the Authority will sell to the Developer the remaining 2.30 acres for the sum of $6.00 per sq. ft. totaling $601,128.00 to be paid at closing to occur on or before twenty-four months from substantial completion date of Phase 1.
4. The Authority will provide incentives in an amount not to exceed $6,000,000 for reimbursement of Project Infrastructure. All infrastructure paid for by the Authority will be dedicated to the Authority by the Developer once it is completed. The Developer will maintain ownership of the parking lot as constructed and will be solely responsible for its upkeep and maintenance.
The Developer agrees to complete construction of the Project on the following timeline:
1. With 24 months of the commencement of the Project Site Infrastructure, the Developer will have fulfilled its obligations and will have completed approximately 160,000 sq. ft. of commercial retail space within the Project site.
2. Within 24 months of completion of Phase 1 construction, the Developer shall have completed its obligation and completed a minimum of an additional 80,000 sq. ft. of commercial retail space within the Project Site.
3. Within 24 months of completion of Phase 2 construction, the Developer will have completed its obligation and completed at a minimum an additional 20,000 sq. ft. of commercial retail space within the Project Site or two additional restaurant pads.
The Developer will meet all the following commitments, or will be subject to liquidated damages and / or repayment or divesture of any interest in real properties in accordance with the Economic Development Agreement as follows:
1. In consideration of conveyance of the 22.75 acre tract of real property, the Developer agrees to timely complete all construction obligation set for the in Economic Development Agreement. In the event the Developer fails to complete its obligations by the times and dates specified in the Development of Project and Development Timeline and Obligations contained in the Agreement, the Developer shall pay to the Authority a sum calculated based on $2.50 per square foot for the 22.75 acre tract of real property.
2. Failure of the Developer to construct or cause to construct Phase 2 of the project shall require the Developer to pay to the Authority the sum of $1,197,900.00 within 30 days of demand by the Authority.
3. Failure of the Developer to construct or cause to construct Phase 3 of the project shall require the Developer to pay to the Authority the sum of $642,510.00 within 30 days of demand by the Authority.
The Agreement was approved by BAEDA in June, 2024, but inadvertently failed to be presented to the Council for approval.
Cost: Not to exceed $6,000,000 for infrastructure improvements
Funding Source: Broken Arrow Economic Development Authority
Requested By: Travis Stephens, Director of Tourism and Economic Development
Approved By: City Manager’s Office
Attachments: Walman Brown Aspen Development LLC Economic Development Agreement
Recommendation:
recommend
Ratify the Economic Development Agreement between Walman Brown Aspen Development, LLC and Broken Arrow Economic Development Authority and City of Broken Arrow
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