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City attorney lays out proposed TIF ordinance to standardize applications, staff analysis and ad hoc committee review
Summary
City Attorney Catherine Walker walked council through a proposed ordinance creating a roughly six‑month process for Tax Increment Financing (TIF) applications, requiring a detailed application packet, staff economic analysis, an ad hoc stakeholder committee, EDAB review and statutory review — with a preference for pay‑as‑you‑go incentives and an application fee of 1% of project cost (max $10,000).
City Attorney Catherine Walker presented a proposed ordinance to standardize how the city receives and evaluates Tax Increment Financing (TIF) applications, explaining the product of several months of an oversight committee and a desire to give council consistent, comparable information.
Walker described the overall process as “about a six‑month long process,” with steps that begin with a complete application packet submitted to the city manager and proceed through staff analysis, a potential ad hoc stakeholder committee, review by the Economic Development Advisory Board (EDAB) and the statutory review committee, planning commission and city council.
The ordinance would set out application materials that must accompany a petition: a one‑page district summary, legal description and map, an economic feasibility study, assessed‑value information, a proposed project and financing plan, and tax increment projections for the life of the district (up to 25 years). Walker described an application fee sized to cover city evaluation costs: “1% of the proposed project cost up to 10,000,” refundable if the project plan is later adopted.
To ensure thorough analysis, Walker said staff would ask whether the proposed use of TIF is appropriate, whether other incentives are more suitable, what public improvements are needed, and how the proposal would affect other areas and taxing jurisdictions. She acknowledged the recurring critique of the “but‑for” test and said the ordinance aims to require careful, project‑specific analysis (for example, whether development is “difficult but possible” without assistance).
Council members raised several policy uncertainties and conditions they want reflected in the ordinance: whether a TIF should be limited when property owners previously held land and development was possible, how long a district could run, the composition and orientation of any ad hoc stakeholder committee (staff will provide TIF 101 orientation), and how project plans should analyze impacts on schools and other taxing jurisdictions. Council Bett said, “I would really appreciate if we would look closer at that going forward of how will this impact Norman schools.” Walker confirmed that the project plan must analyze impacts to each taxing jurisdiction and added that EDAB review will provide an added review layer.
On incentives, Walker emphasized a preference for pay‑as‑you‑go reimbursement and performance‑based disbursement, noting past agreements included clawbacks and milestone payments. The ordinance provides that requests for assistance over $50,000 must include supporting documentation, and residential assistance applications must address adopted council policies such as affordable housing and walkability.
Councilors debated whether the process should be adopted as an ordinance (binding and durable) or a council policy (easier to amend). Walker explained that an ordinance is codified into the city code, requires formal readings and takes 30 days to go into effect absent an emergency clause; the council planned a follow‑up study session to refine language, clarify school/public‑safety protections and consider a provision that preserves dedicated public safety sales tax revenue from being available to TIF increments.
Next steps: staff will refine the draft language, add clarifications on school impact analysis and dedicated revenue protections, and bring the item back for a study session and potential first reading.
