Committee hears $8 million TIF advance for WPX site and approves activation of airport TIF district for hangar and MRO development

City legal and airport staff briefed the Urban Economic Development Committee on June 11 about two related measures: a resolution asking the council to allow the Tulsa Authority for Economic Opportunity (TAYO) to incur indebtedness in an aggregate principal amount not to exceed $8,000,000 to advance a tax‑increment finance (TIF) obligation tied to a completed WPX property, and an ordinance to amend and activate a Tulsa International Airport project plan by renaming TIF District A to District Number 23.

Bond counsel John Weidman told the committee the planned borrowing would be a limited special obligation payable solely from ad valorem tax revenues generated in TIF District 15, not a city general obligation. ‘‘The only obligation on Tayo or the city of Tulsa is to actually transfer any TIF revenues from the district to the trustee to pay bonds. This is not an obligation to the city,’’ Weidman said, adding the obligation is payable only from the ad valorem (property) tax increment generated by the building.

Weidman and staff said the financing would be marketed to specialized purchasers and that competitive bidding was being waived because that market requires negotiated placement; KeyBank was engaged as the placement agent. Staff described prior similar transactions involving other TIF advances.

Airport staff described the project area the council would activate under the amended plan. Daniel (airport economic development lead) said the activated district covers a substantial portion of aeronautical development land between parallel runways and the crosswind runway, where hangars and maintenance, repair and overhaul (MRO) operations are under development. He cited developers building general aviation hangars (Roger Hardesty and US Aviation) and a Kwik Trip hangar, and said Lufthansa has announced plans to grow in Tulsa and other airline investment interest exists.

Why it matters: activating the airport TIF district and advancing TIF proceeds would enable up‑front funding for incentives and infrastructure tied to existing and planned aeronautical development. Airport staff said new gates and an international terminal expansion are expected to enter service in 2026; the activated district would support hangar and MRO investment that staff say fosters high‑skill jobs.

Committee members pressed staff on timing and activation rules. Staff said the project plan allows activation through 2026 and that three of five project areas in the plan had been previously activated. Councilor questions focused on whether the district had been dormant and what runway‑adjacent parcels remained to be activated.

Next steps: Weidman said the resolution to allow TAYO’s incurrence of debt and the ordinance to ratify and rename the airport project area will appear before the full council next week for consideration; committee members were briefed but did not take a final council vote at the meeting.

Ending: Staff said the activation seeks to align the TIF timing with active development interest and that the measures will be presented to the council for final action.