Broken Arrow City Council
Meeting of: 09-05-2017
To: Mayor and City Council
From: Office of the City Attorney
Title:
title
Consideration, discussion, and possible approval of and authorization to execute a Third Amendment to Economic Development Agreement by and among the Broken Arrow Economic Development Authority, the City of Broken Arrow, Oklahoma, and Stoney Creek Hospitality Corporation
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Background:
In May of 2004, the citizens of Broken Arrow approved a General Obligation Bond Issue. One project in that General Obligation Bond Issue was the acquisition, construction, equipping and furnishing of a Conference Center. In 2014, Broken Arrow voters approved re-purposing the bonds to provide for acquisition of land only for the hotel and conference center. In January of 2015, following issuance of the bonds, the City acquired 14.97 acres long the Broken Arrow Expressway.
On November 4, 2014, the Authority approved a Resolution which approved an Economic Development Agreement between the Authority, the City of Broken Arrow, and Stoney Creek Hospitality Corporation. The Agreement provided for the City's acquisition of the land for lease to Stoney Creek and the Authority's payment of the sum of $5,550,000.00 in economic development incentives. It was contemplated that the incentives would primarily consist of payments for design work on the land, site work, and infrastructural improvements. Payment of the incentives is subject to the City's approval of Stoney Creek's engineers and other consultants, as well as compliance with the Oklahoma Public Competitive Bidding Act. It is a pay-for-performance Agreement, which contemplates reimbursement following approval of the City's project manager. Specifically, items to be included in the development incentives include payment for testing and inspection, architecture and engineering design, grading, construction of public water, sanitary sewer, and...
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