Broken Arrow City Council
Meeting of: 07-07-2015
To: Mayor and City Council
From: Office of the City Manager
Title:
title
Consideration, possible approval of and authorization to execute an Economic Development Agreement with RDS Properties II, LLC, for the purposes of providing economic development incentives for installation of a sprinkler system on property located at 207 South Main Street, Broken Arrow, Oklahoma
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Background:
On June 14, 2015, Mr. Roy D. Sturgeon purchased the property located at 207 South Main Street in Broken Arrow Oklahoma. The property is currently owned by RDS Properties LLC, a company that Mr. Sturgeon owns. Mr. Sturgeon estimates he has invested $400,000.00 to purchase and restore the building. Mr. Sturgeon currently owns six buildings in the Rose District and all of the buildings are leased.
In November of 2013, the building at 207 South Main Street was leased to South Hampton LLC. It is currently operating as Stogies, a cocktail and cigar bar. Representatives of South Hampton LLC signed the lease under the assumption the domestic water line in the alley located east of Main Street was of sufficient size to use for a fire suppression system. Mr. Sturgeon invested an additional $45,000.00 to build a staircase and bathroom on the second floor of the building, and to separate the electric and natural gas serviced from the first and second floor to allow for an event space on the second floor. After moving into the first floor of the building, it was determined the City-owned 4-inch water line could not produce sufficient pressure to properly feed a fire suppression system. South Hampton LLC has been paying rent on the 2nd floor of the building for over a year and is unable to use the upstairs as an event space.
In 2015, the City of Broken Arrow replaced the 4-inch water line with an 8-inch water line which will provide sufficient water pressure and gallons per minute to meet the pressure and fire flow requir...
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