Owasso panel approves Dec. 31 extension for Foundry on Third completion after supply-chain delays

The Owasso Economic Development Committee on July 1 approved a second amendment to the Foundry on Third development agreement, extending the project completion deadline from Nov. 1, 2025, to Dec. 31, 2025, after developer representatives reported supply‑chain delays that have slowed some trade work.

City staff told the committee the extension is limited to the completion date and does not change the tax-increment district (TID) valuation snapshot, which is based on an assessed-value “snapshot” taken Jan. 1 each year.

Nick Patterson, identified in the meeting as participating online, said the building is “about 75% complete with the building.” He described the south half of the building as furthest along — with fifth-floor units finished and punch-list work underway on floors one through four — and said the north half remains under interior finish work. Patterson told committee members two material delays held up progress: certain countertops stuck at port amid a tariff‑related pricing dispute and a delay in brick manufacturing for exterior masonry work. “Because of those two material delays, it also delayed some of our trade work from getting in,” he said.

ED Manager Lynch told the committee the developer submitted a written request and that staff view the requested one‑month extension (to year end) as reasonable given the size of the project and the cited supply issues. Lynch said staff included the original September 2022 development agreement, the first amendment from August 2023 and a April 2024 addendum in the meeting packet.

Committee members asked whether the revised deadline would affect the TID payments to the developer. Lynch explained that the development agreement ties TID payments to assessed value and that assessed value is set by the Jan. 1 snapshot; staff said the amendment does not alter the valuation method. When Alder Tierney asked what would happen if the developer missed the new deadline, staff said the developer would be in default under the development agreement if council declined any further extension.

Members also sought and received a staff reading of the agreement’s definition of “project completion.” Lynch and staff pointed to the contract language that treats project completion as issuance of an occupancy certificate by the appropriate government agency — in other words, the building must be in a condition for occupancy and issuance of permits for the completion requirement to be met.

During the discussion Alders expressed mixed views. Alder Kelly said she had spoken with Lynch and that the supply‑chain and tariff issues described in the video and staff update supported her decision to back the amendment. Alder Gisselman said she had opposed the project previously and would continue to vote no. The motion to approve the second amendment was made by Alder Henke, seconded by Alder Kelly, and the chair reported the motion passed with three in favor and two opposed.

Staff said the amended document would be prepared for council consideration in the next steps and that the developer is continuing to market the building’s ground‑floor commercial spaces; Patterson said a fitness operator (Peter Krause Fitness) has been signed and that interest continues from retail prospects.

Details in the packet and the public video shown at the meeting indicated finished units on the south side, views toward Rib Mountain and a rooftop/skywalk connection to the parking ramp. Patterson said common areas and the parking structure are being completed and that crews painted garage surfaces white to increase brightness.

Action on the second amendment will next go to the full council for final approval, per staff. Staff reiterated that, if the developer requests any extension beyond Dec. 31 and council declines that request, the developer would be in default under the existing development agreement.