Council starts review of tax-incentive district, appoints council chair to lead review committee

The Muskogee City Council on Feb. 10 adopted a resolution to begin the formal review process for a tax-incentive district and named a city council member to serve as the city’s representative and chair of the review committee.

The resolution (No. 30 24) directs staff to prepare a project plan under the Local Development Act and to form a review committee made up of representatives from affected taxing jurisdictions, the planning commission and the city. The committee will evaluate eligibility, fiscal impacts and make recommendations that will return to the council for final action.

The resolution matters because a tax-incentive district can provide ad valorem tax abatements on private development if the affected taxing jurisdictions agree. Nate Ellis of the Public Finance Law Group told the council the district process differs from tax-increment financing in that it contemplates abatement of tax payments rather than capture of incremental revenue and requires participation by other taxing entities.

Council members asked for clarity on committee membership and transparency. Council members and staff explained the committee will include representatives appointed by the county, school district, library system, Indian Capital Technology Center, the county health department and other taxing jurisdictions; the council will appoint a representative who will submit seven names for consideration as at-large members, and the balance of the committee will choose three of those as at-large representatives.

Several council members and members of the public said they had already received community inquiries about the project and wanted more timely information. Councilor Melody Cranford and others urged that council members be kept informed — in some cases by signing nondisclosure agreements if necessary — so they can respond to constituents.

After discussion the council adopted the initiating resolution and then, on a subsequent agenda item, appointed Mayor Patrick Kale as the council’s representative and chair of the review committee. Council members noted that even if the council chair serves, other council members may attend review-committee meetings as observers and that final approval of any incentive package would require the consent of the affected taxing jurisdictions.

The council’s action establishes the administrative process to evaluate a proposed project plan; it does not obligate the city to grant tax abatements or create a district. The review committee and planning commission will hold public hearings and return recommendations to the council before any district would be adopted.

The city clerk and city staff said they will circulate committee material to council members and will provide the requested clarifications about membership and timelines at future meetings.