Broken Arrow Downtown Advisory Board
Meeting of: 09-12-2017
To: Chairperson and Board Members
From: Office of the City Manager
Title:
title
Presentation and discussion concerning a certain Economic Development Agreement by and among the Broken Arrow Economic Development authority, the City of Broken Arrow, Oklahoma, and Milestone Capital, L.L.C.
End
Background:
On February 12, 2016, the City purchased 1.864 acres located at 305 North Main Street in the amount of $600,000.00 plus attorney's fees and related cost. Due to the dilapidated condition of the structures and appurtenances located on the Real Property, the City entered into a construction contract with ARK Wrecking Company of Oklahoma, Inc. for demolition in the amount of $87, 140.00, said demolition being completed in 2016. It was initially contemplated the City would either use the property for its own purposes or declare it surplus and transfer it to the Broken Arrow Economic Development Authority for the sale in the amount of the City's investment (approximately $701,151.40), and as part of a comprehensive economic development activity.
In order to assist the City Council and the Trustees of the Authority with evaluation of all potential options, the Broken Arrow Economic Development Corporation ("BAEDC") issued two different Requests for Proposals (RFP'S) for development of the property. Responses to the first RFP were received and evaluated in 2016. After due consideration, investors negotiating with the BAEDC and the City advised that they could not advance development of the property without significantly decreasing the size and scope of the proposed development. Following this development, the BAEDC issued a second RFP with the recognition that a long term lease of the land or additional incentives would be necessary to maximize the size, scope and quality of any development.
In February of 2017, Cowen Construction ("Cowen") ...
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