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Muskogee authorizes redevelopment authority to issue up to $4.34M in TIF notes to fund retail infrastructure
Summary
The Muskogee Redevelopment Authority and city approved a resolution allowing the authority to issue a taxable Series 2025 tax‑increment revenue note not to exceed $4,340,000, with an initial draw to fund current retail infrastructure work; Bank First will serve as the lender on a negotiated, variable‑rate note.
The Muskogee City Council and the Muskogee Redevelopment Authority approved complementary resolutions July 14 authorizing the authority to issue a tax increment finance (TIF) revenue note, taxable Series 2025, in an aggregate principal amount not to exceed $4,340,000. The note will be sold on a negotiated basis to Bank First (the lead lender in a local bank consortium), with an initial draw of $1,095,000 to pay costs of issuance and to set aside funds needed to make a previously agreed $1.5 million development incentive.
Nathan Ellis of Public Law Finance Group described the financing structure to the council and said, “This creates a drawdown loan. Bank First is the lender... The initial would be 7.25%,” and that the rate will float based on prime. He said the note will mature no later than July 1, 2033, and that the new note will be on parity with an existing 2014 note. Staff and the authority said the structure will allow the city to access remaining authorized TIF project‑plan funds to support the retail development currently under construction.
Tara Shows of city staff explained that approval by the city — which must be by supermajority — lets the redevelopment authority access the full funding authorized by the urban renewal project plan and meet obligations the council approved in June 2024 for infrastructure tied to the new retail development. Council discussion confirmed the first draw will be used to fund infrastructure, including widening Miller Street and other work tied to the retail site.
Council approved the city resolution and the authority resolution by recorded roll calls; the motions passed.
Why it matters: the drawdown note will provide immediate cash to finish infrastructure associated with a new retail project in the city’s TIF district; repayment is secured by tax increment revenues generated in the district and structured to be on parity with previously issued authority debt.
Background: the redevelopment authority issues debt secured by incremental ad valorem and sales tax revenue collected in excess of a baseline established when the TIF district was created. City staff said the TIF captures 75% of new incremental ad valorem and sales tax revenue above the historical baseline to repay project obligations; the remainder flows to taxing entities per the project plan.
Next steps: the authority will draw funds as needed under the approved note indenture and the city will monitor project revenues; future development agreements must be approved by the authority and the city before additional draws are taken.
