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Sapulpa council opens process for TIF to support AXH expansion and approves sewer design contract
Summary
The council authorized staff to begin consideration of a tax increment finance district for the proposed AXH manufacturing campus and approved a $374,100 PEC engineering agreement to extend the Frankoma sanitary sewer to serve the project. The AXH proposal projects about $75 million in phased investment and hundreds of jobs.
The Sapulpa City Council voted July 6 to initiate the statutorily required process to consider forming a Tax Increment Finance (TIF) district to support public infrastructure for a proposed AXH manufacturing campus and separately approved professional engineering services to design a Frankoma sanitary sewer extension.
Council adopted Resolution No. 4893 authorizing staff to prepare a project plan and appoint a review committee to evaluate eligibility and fiscal impacts under the Oklahoma Local Development Act. Hugo Naifeh moved the resolution; David Mortazavi seconded; the roll-call vote was 10–0. The AXH request, attached to the council packet, projects a four‑phase development with about $75 million in investment and estimates that new property tax generation could reach roughly $798,000 per year after the company’s five‑year exemption period ends, with a 20‑year TIF reimbursement period under consideration.
Separately, the council approved an agreement with Professional Engineering Consultants, P.A. (PEC) for $374,100 to provide survey, geotechnical services, sanitary sewer design (approximately 2.7 miles of gravity, force main and lift station), ODEQ permitting, bidding and construction administration for the Frankoma Sanitary Sewer Extension to serve the AXH site at State Highway 97 and 71st Street. David Mortazavi moved the PEC agreement; Jeff Molina seconded; roll call was 10–0.
The AXH project materials included a letter from AXH Project Executive Jason Lopes stating that the company expects to invest in land, facilities and equipment and to create “more than 350 direct jobs” across the four phases, and that the project would require main sewer line extensions and a lift station. Lopes’s letter also said AXH would fund the up‑front cost of sewer extensions with an expected cost‑sharing proposal (AXH responsible for the first $4.0 million, the City up to $900,000, and AXH responsible for remaining eligible costs). The resolution directs a review committee to assess fiscal impacts on overlapping taxing jurisdictions and make a recommendation to council.
Next steps outlined by staff and the resolution include appointing representatives to the review committee, preparing the project plan required by state law, and scheduling public hearings. The PEC sewer design work is intended to advance permitting and construction documents so the city and developer can meet proposed construction timelines.
