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Council adopts Hackberry Market TIF plan, sets July 1 start for 25-year district
Summary
The council approved the Hackberry Market sales-tax TIF project plan and a resolution to commence the tax-increment district on July 1 for a 25-year term; the plan anticipates roughly $97 million of capital investment and developer incentives up to $22 million.
The Broken Arrow City Council adopted the Hackberry Market project plan and created Tax Increment District (TID) Number 6 at Tuesday's meeting, and later approved a resolution to commence the district effective July 1 for a 25-year term.
Staff summary: Nate Ellis, economic development staff, described the proposed retail development by Sooner Investment at Aspen and 121st (behind the Warren Theater). The plan envisions about 211,000 square feet of retail with five outparcels, a capital investment in the range of $97,000,000 and projected annual sales in the $116,900,000 range.
TIF terms explained: Ellis said the request is a "sales tax only" TIF that would capture two cents of the city's 3.55% sales tax and contemplates incentives capped at $22,000,000 to the developer for site improvements including water, sewer, street, stormwater and landscaping. Ellis said the plan includes issuing bonds backed by TIF revenue and developer performance guarantees; staff projected the TIF revenues could generate roughly $68,000,000 (presentation values included approximate estimates). Ellis also said non-TIF sales-tax receipts and ad-valorem increases would return to the city and other taxing entities.
Council action: Council voted to adopt ordinance 38 75, which creates the project plan and TIF number 6, and then adopted a resolution authorizing the district to commence July 1 for a 25-year term. Staff said the next steps are negotiating an economic development agreement and financing plan for subsequent council consideration.
What to watch: Staff will return with an economic-development agreement and proposed financing; the adopted plan uses capped incentives and contemplates TIF-backed bonds that will require further council approvals.
