Trust approves amendment separating Villa Teresa residential and hotel incentives under TIF 2

The Oklahoma City Economic Development Trust on Sept. 23 approved Amendment No. 2 to the Villa Teresa Hotel and residential redevelopment project agreement (TIF 2). Staff explained the amendment separates the residential and hotel components after delays on the hotel portion of the project.

Under the original TIF 2 package, incentives were structured across both the hotel and residential components with combined spending requirements. Staff said the residential portion is complete and generating increment; those residential proceeds have been escrowed. The amendment would allow the parties to separate the hotel from the original combined agreement while preserving the requirement that the hotel reach at least 50% completion before any residential-generated incentives are released to the developer.

Staff reported the original incentive amounts were roughly $450,000 for the hotel portion and about $527,000 for the residential portion (staff provided these amounts as approximate). The trust member presenting the item noted the hotel project was approved in January 2021 and that COVID-era delays contributed to its later timetable. Staff said they are exploring whether the hotel piece might be eligible for incentives from another TIF district (Classen corridor TIF) in the future, but any future assistance would require separate review and approval by the trust and council.

A motion was made and the trust approved Amendment No. 2. Staff said no immediate change occurs to the total incentive amount available to the residential piece; release of any escrowed funds remains conditioned on the hotel meeting the 50% completion benchmark or future approvals if the hotel seeks separate incentive support.