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HomeMy WebLinkAbout2017 02_Sales Tax Increments TIF _2017.04.04CITY OF OWASSO RESOLUTION 2017 -02 A RESOLUTION OF THE CITY OF OWASSO, OKLAHOMA, DETERMINING THE SALES TAX BASE OF INCREMENT DISTRICT NO. 1, CITY OF OWASSO, AND THE FORMULA FOR DETERMINING THE SALES TAX INCREMENTS GENERATED FROM THE INCREMENT DISTRICT WHEREAS, the City of Owasso, Oklahoma ( "City "), pursuant to the Oklahoma Local Development Act, 62 O.S. §850, et seq. ( "Act "), adopted Ordinance 1093, effective December 20, 2016, approving the Owasso Redbud District Project Plan ( "Project Plan ") and establishing Increment District No. 1, City of Owasso, a sales tax and ad valorem increment district ( "Increment District ") as of that same date; and WHEREAS, Section 853(9) of the Act provides that a portion of sales taxes, other local taxes or local fees collected each year, reasonably determined by a formula approved by the governing body to be generated by the project, may be apportioned for specific project costs or as a specific revenue source for other public entities in the area in which the project costs take place; and WHEREAS, the Constitution of the State of Oklahoma, Article 10, Section 6C, which the Act implements, provides that a direction of apportionment may be prospective and may continue for one or more years, and apportioned tax increments may be pledged beyond the current fiscal year for the repayment of indebtedness of public entities; and WHEREAS, the Project Plan and Ordinance 1093 provide that the increment of tax revenues generated from the Increment District shall be apportioned to pay project costs under Section VIII of the Project Plan, and that the sales fax increment generated from within the Increment District shall be determined by a formula to be approved by resolution of the City Council in accordance with the Act; and WHEREAS, the proposed formula for determining the sales tax increment generated from within the Increment District is reasonable, appropriate, desirable, and should be approved. THAT: NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF OWASSO, Section One: Pursuant to the Act and Ordinance 1093, the sales tax increment generated from within the Increment District shall be determined by the formula set forth below, which is hereby approved by the City Council. Section Two: The sales tax increment is two percent (2%) of the gross proceeds or gross receipts derived from the commercial retail transactions from new businesses in the Increment District that are taxable under the sales tax code of Oklahoma (including any and all amendments thereto and revisions thereof). Section Three: The sales tax base for the Increment District is $0.00. Section Four: Pursuant to Section 6C of Article X of the Constitution of the State of Oklahoma and the Act, the direction of apportionment shall continue beyond the current fiscal year for the period of the Increment District, as determined by law. Section Five: In determining the sales tax generated by the Increment District, the City shall employ reasonable and consistent accounting procedures in order to reflect, as accurately and fairly as possible, sales tax revenues attributable to the activities within the Increment District. PASSED AND APPROVED this 41h day of April, 2017. (SEAL) Sherry City iY G��Y OF 6' Z � OFFICIAL S. AL APPROVED AS TO FORM: (J&�, Lew � Jul' Lombardi, City Attorney 2 L dell Dunn, Mayor nTity Wit out Lim irs. TO: The Honorable Mayor and City Council City of Owasso FROM: Bronce L. Stephenson, MPA Director of Community Development AApRO OFD By c0 Ai-it /,/ lu // VAC /� SUBJECT: Owasso Redbud District and Increment District No. 1 Policy Guide and Sales Tax Base DATE: March 31, 2017 BACKGROUND: On December 20, the City Council voted 5-0 to create a Tax Increment Financing (TIF) District in the downtown Owasso Redbud District area. Staff held a brief discussion and brought the draft Policy Guide for discussion at the February 14, 2017, work session. Staff is now bringing forward a finalized draft of the Policy Guide document for Council consideration. At the February 14 work session, Council had questions about the possibility of adding a category of Assistance in Development Financing that would provide funding for remodel projects less than the $200,000 proposed threshold required to receive assistance. Staff advised that a lesser amount would prevent the goals of the Downtown Overlay and TIF to be realized. Staff requested Center for Economic Development Law (CEDL) to listen to the worksession discussion and provide their professional opinion on the questions that were raised by Council. The response form Emily Pomeroy of CEDL is attached for Council review. The TIF district and the Downtown District Overlay Plan envision significant changes that would transform the area. Large and significant projects are necessary if that transformation of the Redbud District is to be realized. Smaller maintenance projects would improve the short-term appearance, only to risk that in twenty years the area is again a deteriorating. As Emily Pomeroy noted, the Project Plan seeks to incent 'only those large- scale, highly- desired projects making a significant positive impact on the District consistent with the vision of the Downtown Overlay District Plan." Additionally, as determined in the adoption of the Project Plan for Increment District No. 1, a portion of City Sales Tax collected within the District is to be collected and dedicated to the TIF Fund. Discussions among City staff and CEDL determined that collecting Sales Tax only from new businesses that are established in the Redbud District after December 20, 2016 would be the preferred method. Only the portions of sales tax not dedicated to Capital Improvements, Vision Recapture or the 55 /100ths for Police, Fire and Streets would be collected. DISCUSSION: After the establishment of Tax Increment District No. 1, the next step is to adopt a Policy Guide that directs how the Assistance in Development Financing will be allocated to investors within the TIF area. A staff team has worked with the CEDL over the last few months to ensure that the Draft Policy Guide addressed concerns and suggestions from the City Council, Owasso Economic Development Authority, Planning Commission, TIF Review Committee and stakeholders. The staff team includes Assistant City Manager, Sherry Bishop; City Attorney, Julie Lombardi; Economic Development Director, Chelsea Levo; Finance Director, Linda Jones; Deputy City Clerk, Julie Stevens; and Community Development Director, Bronce Stephenson. PROPOSED POLICY GUIDE: The Policy Guide states: "The Increment District allows the City to support public and private projects using incremental growth in property and sales taxes. The Project Plan authorizes the allocation of incremental revenues to a special fund to be used to pay authorized Project Costs, including public infrastructure, facilities, and improvements, and assistance in development financing. "This Policy Guide outlines the goals and objectives of the Project Plan and Increment District, and describes generally how assistance in development financing may be provided by allocation of tax increment revenues to assist development projects and small businesses. Nothing contained in this Policy Guide binds or obligates the City or the Owasso Public Works Authority (OPWA). Compliance with the Policy Guide is expected. However, should the provisions of a development agreement or contract approved by the City Council or the OPWA deviate from the provisions of the Policy Guide, the development agreement or contract will control." The attached Policy Guide draft has the following highlights: • The application process, review team and requirements for qualifying for TIF are established. • Assistance in Development Financing A developer may receive a percentage of hard costs of the construction of improvements on the developer's property. The percentage available is based on the project completion date as shown in the table below. Project June 30, 2021 June 30, 2025 June 30, 2029 End of Completion Increment District Percentage of 12% 10% 8% 6% Construction Costs Small Business Enhancements. Beginning July 1, 2019, a retail, restaurant, or personal service small business may be eligible for reimbursement to enhance the exterior of the structure in which the business is located, provide streetscape improvements, enhance signage or access, or otherwise improve the appearance of the exterior of the business. A Small Business Enhancement is a 50% match of the cost of the approved improvements. The reimbursement will not exceed $1,500.00. • Employment Generation Assistance. Light industrial businesses may be eligible for assistance in support of the creation or expansion of jobs. Assistance would be available to provide start -up or incubator space to new and expanding businesses to promote small- business - friendly opportunities for innovation and collaboration. The amount of assistance would be determined based upon several factors, including but not limited to, number of jobs created, need for public assistance, overall private investment, and impacts upon the community. The Policy Guide includes a glossary of terms, maps of the project area, a copy of the Downtown Overlay District standards and draft application formats. i ,31.i�Pr The Council discussed the Policy Guide at the February 14, 2017, and March 14, 2017, work sessions. PROPOSED SALES TAX BASE DEFINITION: The attached Resolution 2017 -02 defines the Sales Tax Base for the collections within the TIF District. Only the sales tax from new businesses opening after December 20, 2016, (date of TIF approval) will be apportioned to the TIF. The sales tax dedicated to Capital Projects, Police, Fire, Streets and Vision Recapture will continue to be dedicated to those funds. The remaining two cents of unrestricted sales tax from new businesses will be directed to the TIF fund. RECOMMENDATION ON POLICY GUIDE: Staff recommends approval of Resolution 2017 -01, approving the Policy Guide for implementation of the Owasso Redbud District Project Plan and Increment District No. 1. RECOMMENDATION ON SALES TAX BASE: Staff recommends approval of Resolution 2017 -02, determining the Sales Tax Base for the Owasso Redbud District and Increment District No. 1 and the formula for determining the sales tax increments generated from the Increment District. ATTACHMENTS: Owasso Redbud District and Increment District No. 1 Policy Guide Resolution 2017 -01, Approving the Policy Guide Resolution 2017 -02, Determining the Sales Tax Base Memo from Emily Pomeroy of CEDL Adopted TIF Project Plan Approved , 2017 POLICY GUIDE For the Implementation of the OWASSO REDBUD DISTRICT PROJECT PLAN INCREMENT DISTRICT NO. 1, CITY OF OWASSO PREPARED BY: THE CITY Of OWASSO, OKLAHOMA 01SY OF OWASgq �Pv i i j O ' OF THE SRP`/ POLICY GUIDE I. Introduction The City of Owasso, Oklahoma ( "City "), consistent with the Oklahoma Local Development Act, 62 O.S. §850, et seq., on December 20, 2016, through the adoption of Ordinance 1093, approved the Owasso Redbud District Project Plan ( "Project Plan ") and established Increment District No. 1, City of Owasso ( "Increment District "). The goal of the Project Plan is to develop the area surrounding Main Street, known as the Redbud District, achieve the City's development objectives, improve the quality of life for its citizens, stimulate; private investment, and enhance the tax base. The Increment District allows the City to support public and private projects using incremental growth in property and sales taxes. The Project, Plan authorizes the allocation of incremental revenues to a special fund to be used to pay authorized Project Costs, including public infrastructure, facilities, and improvements, and assistance in development financing. The Project Plan defines the boundaries of th Increment District is the area where increment collected. The Project Area is the area where Project Area and Increment District are;coexter This Policy Guide outlines the goals and`ot describes generally how assistance in de, tax increment revenues to assist develo projects. Nothing contained in this Policy Works Authority (OPWA). Should the approved by the City Council or the OPW development agreement or contract will t Area and the Increment District. The ues generated by new development are icremental revenues can be spent. The are depicted in Exhibit A. the Project Plan and Increment District, and financing may be provided by allocation of ects, small businesses, and job generation Is or obligates the City or the Owasso Public of a development agreement or contract rom the provisions of the Policy Guide, the The goal of the Project Plan is to encourage development of the City's original downtown, now known as the Redbud District, into a special and unique place within the City; a place for residents and visitors to live, work, shop, and play. The Increment District will support public and private projects. The City's objectives include: • Achieve the development goals and objectives for the Redbud District contained in the Downtown Master Plan, the Downtown Overlay District Plan, and the GrOwasso 2030 Land Use Master Plan. • To preserve and enhance the tax base and make possible investment, development, and economic growth that would otherwise be difficult without the project and the apportionment of incremental ad valorem and sales tax revenues. • To support the creation of attractive, high - quality, and viable mixed -use developments to draw residents and visitors. 1 1�7:7•l�lt:?yi�iiri • Where appropriate, to support the development, improvement, and /or expansion of light industry to increase employment. • To encourage existing property and business owners in the Redbud District to invest, and to attract new investment and business to the Project Area. • To provide start -up and incubators pace to new and expanding businesses and to promote small- business - friendly opportunities for innovation and collaboration in the Project Area. • To stimulate and promote the Redbud District as a walkable, vibrant destination. • To provide a public benefit through improvements to allow for development All ad valorem and sales tax increment gene reimburse the City or other public entities for Facilities, and Improvements, (2) provide Development Project Assistance, Small Rusin Assistance, and (3) pay Implementation and At utilizing incremental revenues for public in' aspects of private developments that ':pro, enhancement of the public space, building fac of walkability and access throughout the Proje III. Assistance in public infrastructure and r in the a in the Increment District is available to (1) ditures made towards Public Infrastructure, ance in ;development financing through hancements, and Employment Generation tration. The City has a strong preference for cture and ,improvements, including those public benefit through the creation or r street front presence, and encouragement There are three eligible categories of assistance in development financing: (A) Development Project Assistance, (B) Small Business Enhancements, and (C) Employment Generation Assistance. 'Assistance in development financing is not available for the development of single - family homes or for entities seeking assistance related to a property that is exempt from paying property taxes. 0 1. Development Project Assistance may be available to a developer proposing to develop on vacant property within the Increment District or significantly renovate or rehabilitate an existing structure on property within the Increment District. To be considered for Development Project Assistance, such investment must be in an amount of more than $200,000.00 based upon the hard costs of the construction of the improvements. The developer must own the property that it is seeking to develop or renovate. To be eligible for Development Project Assistance, projects must follow design and density standards as adopted by the City in the Downtown Overlay District Plan, attached as Exhibit B. 2 2. A developer seeking Development Project Assistance must submit an application to an Application Review Committee, made up of representatives of the following: the City Manager's Office, the Finance Department, the Economic Development Department, the City Attorney's Office, and the Community Development Department. The form of application is included here as Exhibit C. The Application Review Committee will review the application for compatibility with the Project Plan and the Downtown Overlay District Plan, evaluate the qualifications of the applicant, including financial capacity and experience, and recommend appropriate performance parameters and requirements. 3. Upon recommendation by the Ap development is eligible to receive Development between the applicant and the OPWA will be K agreement will obligate the developer to make meet certain density and design criteria consist Overlay District Plan. The development agreemei to pay the assistance in development financing ; ation +Review Committee that the proposed eject Assistance, a development agreement ented to the applicant. The development valorem payments on the property and to with this Policy Guide and the Downtown subject to availability. Upon review and discussion agreement, the development agreement will be pr( Upon approval by the OPWA of the developmen financing will be provided as detailed in the deve provided there is no default under the development the incremental revenues available >Iine upon which they will be paid, ing the terms of the development o,the OPWA for its consideration. meet, assistance in development t agreement and described here, 4. For projects receiving Development Project Assistance with construction costs over $4,000,000, the developer may be required to enter into a covenant imposing a minimum ad valorem payment or payment in lieu of taxes for the life of the Increment District. The minimum ad valorem payment will be based on the hard costs of the construction of improvements. The covenant shall run with the land and shall provide that, should the amount billed by the County Assessor be less than the agreed upon minimum ad valorem payment, such additional amount may be billed by the OPWA. 5. For projects completed by June 30, 2021, the maximum amount of assistance in development financing that the developer may receive is 12% of hard costs of the construction of improvements on the developer's property. For projects completed between July 1, 2021 and June 30, 2025, the maximum amount of assistance in development financing that the developer may receive is 10% of hard costs of the construction of improvements on the developer's property. For projects completed between July 1, 2025 and June 30, 2029, the amount of assistance in development financing that the developer may receive is 8% of hard costs of the construction of improvements on the developer's property. For projects completed after June 30, 2029 through the end of the life of the Increment District, the amount of assistance in development financing that the developer may receive is 6% of hard costs of the construction of 3 DRAFT 3 -22 -17 improvements on the developer's property. The issuance of a Certificate of Occupancy by the City shall determine project completion. Project June 30, 2021 June 30, 2025 June 30, 2029 End of Completion Increment District Percentage of 12% 10% 8% 6% Construction Costs 6. The hard costs of the construction of i determined and verified by the Application Review Corr Development Project Assistance. The receipt of Developn upon the developer's payment of taxes on its property am the property. The amount available for Development Pro. >vements on a project will be ee prior to the payment of any Project Assistance is conditioned m an increase in taxable value of assistance for a project is limited based on the amount of incremental revenues generated by the project. Development Project Assistance will not be available until the project is completed and incremental revenues generated by the project are received. There is no guarantee of the availability and timing of funds for Development Project Assistance. @3 1. Beginning July 1, 2019, Small Business Enhancements may be available to any retail, restaurant, or personal service small business within the Increment District proposing to enhance the exterior! of the structure in which the business is located, provide streetscape improvements, enhance signage or access, or otherwise improve the appearance of the exterior of the business. To be eligible for Small Business Enhancements, projects must follow design and density standards as adopted by the City in the Downtown Overlay District Plan, attached as Exhibit B. 2. A Small Business Enhancement may be provided to assist in improvements and appearances of the physical exterior or exterior elements of the property where the business is located. Examples of such improvements include, but are not limited to, new or upgraded exterior signage, newexterior paint, art installation, landscape improvements, window orawning improvements, accessibility improvements, streetscape improvements, sidewalk improvements, parking additions or improvements, the installation of an outdoor seating or gathering space, or other visual improvements to the property. A Small Business Enhancement is a 50% match of the cost of the approved improvements. The applicant will be reimbursed by the OPWA at the completion of the approved improvements for 50% of the actual amount expended on the approved improvements. The amount of the reimbursement will not exceed $1500.00. Documentation of all reimbursable expenses related to the improvements and physical confirmation of improvements must be provided before reimbursement occurs. 4 DRAFT 3 -22 -17 3. A business seeking a Small Business Enhancement must submit an application to an Application Review Committee, made up of representatives of the following: the City Manager's Office, the Finance Department, the Economic Development Department, the City Attorney's Office, and the Community Development Department. The form of application is included here as Exhibit D. The Application Review Committee will review the application for compatibility with the Project Plan and the Downtown Overlay District Plan, evaluate the proposed enhancements, and recommend appropriate performance parameters and requirements. 4. Upon recommendation by the Application Review Committee that the proposed improvement is eligible to receive a Small Business Enhancement, a business enhancement agreement between the applicant and OPWA will be presented to the applicant. The business enhancement agreement will provide for assistance in development financing as authorized by the Project Plan. Upon review and discussions regarding the terms of the business enhancement agreement, the business enhancement agreement will be provided to the OPWA for its consideration. Upon approval by the OPWA of the business enhancement agreement, assistance in development financing will be provided as detailed in the business enhancement agreement and as described here. C. 1. Employment Generation Assi: in support of the creation or expansion of available to provide start-up or incubators small- business- friendiv opportunities for inr including but not limited to, number of jobs investment, and impacts upon the communil y be available to light industrial businesses iployment Generation Assistance may be ?w and expanding businesses to promote nd collaboration in the Project Area. The e determined based upon several factors, need for public assistance, overall private 2. A business seeking Employment Generation Assistance must submit an application to an Application Review Committee, made up of representatives of the following: the City Manager's Office, the Finance Department, the Economic Development Department, the City Attorney's Office, and the Community Development Department. The form of application is included here as Exhibit E. The Application Review Committee will review the application for compatibility with the Project Plan, evaluate the proposed job generation opportunities and impacts on the community, and recommend the amount of assistance in development financing to be provided, as well as appropriate performance parameters and requirements. 3. Upon recommendation by the Application Review Committee that the proposed project is eligible to receive Employment Generation Assistance, an agreement between the applicant and the OPWA will be presented to the applicant. The agreement will provide for 5 DRAFT 3 -22 -17 assistance in development financing as authorized by the Project Plan. Upon review and discussions regarding the terms of the agreement, the agreement will be provided to the OPWA for its consideration. Upon approval by the OPWA of the agreement, assistance in development financing will be provided as detailed in the agreement and as described here. Employment Generation Assistance will not be available until the agreed upon performance terms in the agreement have been reached. There is no guarantee of the availability and timing of funds for Employment Generation Assistance. IV. Glossary of Terms Terms used throughout this Policy Guide are further defined as follows: Assistance in Development Financing — Public fu approved agreement with OPWA to assist in a pn provided only for projects that are determined, i meet the City's approved development goals and from time to time in the City's plans and policies, public benefit in return for the public, investment. material, labor, and developer's fees and financing, and legal fE improvements a Aher soft costs, !s, and other pre- Increment District — The area fro Plan, the Increment District and t Increment — The ad valorem inc generated by the base assessed County Assessor in accordance wi attributable to increases in the v increment is a portion of the Cit determined by a formula to be ar with the Oklahoma Local Develop ids provided to a developer pursuant to an ject. Assistance in Development Financing is i the City's and /or OPWA's discretion: (1) to objectives for the Project Area, as expressed nd (2) to provide adequate consideration and —The actual and direct construction costs of the I with a development. Such costs exclude but not limited to architectural, engineering, expenses. is generated. For purposes of the Project the same. nent is the :ad' valorem revenue in excess of the revenue lue of the Increment District (as determined by the Tulsa he Oklahoma Local Development Act), i.e., the new revenue e of property within the Increment District. The sales tax sales taxes generated within the Increment District, to be wed by resolution of the Owasso City Council in accordance nt Act. Light Industrial Business — A business that manufactures products for end users. Products may include, but are not limited to, shoes, clothing, furniture, electronics, lights, hardware, and household items. Oklahoma Local Development Act —The law passed by the Oklahoma Legislature to implement Section 6C of Article X of the Oklahoma Constitution, which empowers the governing bodies of cities, towns, and counties to apportion tax increments to help finance the public costs of economic development. 62 O.S. §850, et seq. 6 DRAFT 3.22 -17 Owasso Redbud District Proiect Plan —The document approved by the City Council of the City of Owasso on December 20, 2016, by the adoption of Ordinance 1093, that established Increment District No. 1, City of Owasso, pursuant to and consistent with the Oklahoma Local Development Act. Proiect Area —The area within which project activities occur. For purposes of the Project Plan, the Project Area and the Increment District are the same. Small Business — A business that is independently owned and operated by an individual from or entity incorporated in Oklahoma that has fewer than 20 employees (full -or part -time) at the time of the submission of an application seeking a Small Business Enhancement. Start -up or Incubator Space — A below- market rate office available for lease to help create and grow new businesses. Such space may provide common support and services among many businesses in an effort to reduce overhead and operational costs. 7 DRAFT 3 -22 -17 Map of Project Area and Increment District Downtown Overlay District Plan SECTION 860.5 DOWNTOWN OVERLAY DISTRICT 860.5.1 GENERAL DESCRIPTION It is the purpose and intent of the Downtown Overlay District to provide enhanced standards to protect and enhance the unique characteristics of the Main Street, 76th St and downtown areas. Overlay Districts may also be used to protect or facilitate a particular design theme established through specific architectural styles or periods, or to protect or facilitate site plan conventions such as setbacks that are both minimums and maximums. 860.5.2. PURPOSE • Encourage sustainable development that will become a long term asset to Owasso. • Promote economic growth and redevelopment of the downtown Owasso area. • Encourage residential development as part of commercial development and to replace blighted properties on the fringe of the downtown area with new and higher- density residential. • Encourage the development of office space through standalone and mixed -use development. Office space is encouraged at a higher- density and multi -story structures. • Giving special attention to landscaping, buffering, signage, lighting and building setbacks in those districts identified as needing special attention. • Giving special attention to the existing architectural style or to the style that is planned, so as to create an easily identifiable area in those areas identified as architecturally significant. • Promote the history of Owasso. • Encourage quality, attractive and unique architecture. • Implement the Downtown Development District as described in the 2030 GrOwasso Land Use Master Plan and 2001 Downtown Master Plan. • Create a vibrant arts and entertainment district. • Create an area where development can be accomplished at a higher- density than allowed in any other commercial and residential areas of Owasso. • Attract new businesses and retain small businesses in the downtown area. • Revitalize Main Street and create a true Main Street environment. • Establish regulations that protect the investment of existing and new businesses from unattractive, non - compatible uses. • Ensure the area is visually pleasing, sustainable, and developed in a coordinated fashion. • Ensure a high quality of development that will ultimately generate an economically enhanced and pedestrian friendly area for Owasso. • Follow the principals of the Quality of Life Initiative and the GrOwasso 2030 Land Use Master Plan. • Encourage locally -owned and Made In Oklahoma businesses 860.5.3 DOWNTOWN OVERLAY DESIGNATED A. BOUNDARY MAP The boundaries of the attached map (figure 1) depicts the proposed Downtown Overlay Area. All properties within the depicted boundaries are subject to the rules and regulations within this chapter and the Owasso Zoning Code B. MAP AMENDMENTS No change in the boundary of the Downtown Overlay District shall be authorized, except by the City Council pursuant to the procedures outlined in Chapter 13, Amendments. 2 Downtown Overlay District Boundaries I Y E qJ YI_ 1EFJ E 1¢I 41 i�� Oil e ■■ ■ I IBM oil ■- _f 'C ' F i y` 3r 71111 AYS IIr__ i E I'll A.. '1�1 M1 Figure 1 V =376 ft Downtown Overlay Map 860.5.4 PERMITTED USES The base zoning districts of properties fully or partially within the designated overlay district shall not be affected except as noted in this chapter. Alt applicable regulations for use, yard, area, lot dimensions, utility placement, and landscaping shall be those specified for each district, including planned unit development (PUD) stipulations. A. USE RESTRICTIONS 1. In AG districts, only existing agricultural uses shalt be permitted to continue and be subject to all applicable standards and regulations in Section 300- 330. No Specific Use Permits shall be issued for any land zoned AG and no new AG uses or businesses shall be allowed. 2. In each zoning district, all uses respective to that district shall be permitted by right or with the issuance of a Specific Use Permit, except for those listed below in Section 860.5.4 (A)4. 3. Allowed Uses. Any by right use or those issued with a Specific Use Permit (SUP) shall be permitted within the Downtown Overlay, unless otherwise restricted in this section. All uses shall be defined by the most recent version of the NAILS (North American Industry Classification System) book. 4. Encouraged Uses: • Retail Uses • Cafes it Sidewalk cafes • Restaurants (preferred locally or Oklahoma -owned restaurants) • Pub /Bar Ex Grill /Wine Bar • Personal Services (salon, barber shop, florist, health store, etc) • Mixed Use (ground floor retail with offices or residential above) • Office space • Coffee shop • Boutiques • Art gallery • Small theatre or music -venue • Book store • Antique store • Farmers Market • Arts fx Crafts Studios • Yoga /Fitness Studio • Small corner store with basic goods • Bakery /Artisan Foods • Entertainment Venues 5. The following By -Right and Specific Use Permit uses shall be prohibited in the Downtown Overlay District. • Industrial Uses except in the IH and IM Zoning District • Any new agricultural uses or businesses Agricultural implement sates Aircraft sates Animal and Poultry Raising Appliance store and repair Arena Auctioneer Auto Rental Auto Sales Auto wash Bait Shop Bindery Boat and Recreational Vehicle sates Bottled Gas Sates Cabinet Maker Camper Sales Casino /Gaming Center Cemetery Cesspool Cleaning Chick hatchery Concrete Construction Service Construction equipment sales Convenience Store Disinfecting Services Drag strip Drive -in theatre Exterminating services Fairgrounds Fence construction company Fuel oil sates Gas Service Station Gas Station Go -kart track Golf Driving range Halfway house Janitorial service Juvenile Delinquency Center Kennel (as primary use) Landfill Lumber yard Mini - storage warehouses (as a primary use) Monument sales Motor vehicle repair and tire shops Motorcycle Sates Oil Welt Drilling and Cleaning Establishment Outdoor Kennels (not a part of veterinary or grooming business) Outdoor Recreation including amusement parks Outdoor storage of any kind as the principal use 5 • Plastic material sales • Portable building sates • Portable storage • Power Plant • Pre - Release Center • Race tracks (animal or vehicle) • Sexually- oriented businesses • Shooting range (outdoor) • Taxidermist • Truck rentals • Truck stop • Vending sales and service • Woodworking shop • Wrecker Yards B. NON - CONFORMING USES Non - conforming properties and /or uses, which existed as of the date these regulations became effective, shall be allowed to continue in the same manner after the effective date of these regulations. However, such non - conforming properties and /or uses shall be subject to these regulations if feasible when: 1. A property owner requests any zoning change; 2. The principle use on the property is discontinued for a period of six (6) calendar months; 3. The property is destroyed or significantly altered (60% or greater); 4. Enlargements or improvements are made to the structures on the property that increase the gross square footage by 25% C. EXISTING USES 1. SINGLE FAMILY RESIDENTIAL - The Downtown Overlay shall not affect existing single family residential uses. Said uses may continue to exist in perpetuity until such time as they are redeveloped or rezoned for another use. 2. PREVIOUSLY APPROVED PROJECTS OR DEVELOPMENT - Any project or development that has approved development plans or had plans submitted and under review prior to the effective date of this section shalt not be required to comply with these regulations. Previous approvals remain valid unless the approval date lapses or changes are made to previous approvals. This shalt refer to site plans, building plans, Planned Unit Developments or Specific Use Permits submitted prior to the effective date of this section. Said project shall still be required to comply with the zoning regulations in effect at that time. An approved plat shall not constitute approval of a project. The Administrator shall determine if a project meets these criteria. 860.5.5 LANDSCAPE REQUIRMENTS Development and or redevelopment shall comply with Chapter 20 of the Owasso Zoning Code whenever possible. Smatter and unique developments shall provide a landscape plan that shalt be approved by the Administrator. 860.5.6 GENERAL REQUIREMENTS A. All development shalt follow City of Owasso procedures and requirements described in Section 2, General Provision, except as noted in this Section. B. Architectural details and /or drawings shall be submitted to the Community Development Department at the time of site plan submittal. Architectural plans shalt depict architectural details outlined in this Section and consist of: Preliminary renderings or drawings of building elevations plus typical cross sections to clearly define the character of the project and to ensure these provisions are met; and 2. Clearly described exterior building materials to indicate compliance with this Section. The Administrator shalt review the proposed building materials for compliance.. 860.5.7 BUILDING AND SITE DESIGN STANDARDS A. BUILDING ENTRANCE Primary building entrances shall be clearly defined, and shalt be recessed or framed by a sheltering element such as an awning, arcade, overhang, or portico (in order to provide weather protection for pedestrians). Public entrances flush with the building wail with no cover are discouraged. Awnings are encouraged. Awning Standards • Awnings for a building fa4ade shalt be of compatible color, took, shape and height. • Canvas or acrylic materials are encouraged. Aluminum, wood, or plastic awnings are prohibited. • The store name may be painted on the awning (subject to review and approval of the administrator). • Awning hardware shalt not be visible. • Awnings shall provide vertical clearance of no less than 8 feet above sidewalks. • Awnings are not allowed to overhang over vehicular traffic ways. B. OFF STREET PARKING Off street parking areas are encouraged to be located to the side or rear of buildings or in the interior of a block whenever possible. Properties along Main Street shalt be required to have the building located along the front property line. Loading areas shall be located behind the main building and screened in accordance with Chapter 20. Alt parking lots, drives, aisles and other elements shall comply with Chapter 9 of the Owasso Zoning Code. C. BUILDING SETBACK It is the intent of this chapter to enhance and preserve the character of the overlay by promoting parking area placement to the rear of tots or along the sides of buildings and bring visually pleasing building architecture to the street, therefore building setbacks along public street frontage may be eliminated with a zero (0) foot setback when possible. Provisions for public sidewalks shall always be made. Public spaces for dining and display are encouraged between the building frontages and the public sidewalk, as long as a six (6) foot clear path of travel is maintained at all times. Side setbacks shall not be required, so long as buildings meet all building codes and fire rating standards. D. OUTDOOR SPACE Outdoor seating areas, fountains, plazas, courtyards and other elements are encouraged to create a unique, interesting and walkable downtown area. E. SIDEWALKS All buildings, parking areas, public spaces, amenity features, and adjoining developments of similar use, shall be linked with sidewalks. Sidewalks shall be provided along public streets that provide access to the development. Sidewalks shalt be constructed in accordance with the standards for sidewalks are required as set forth in City of Owasso Engineering Standards. EXTERIOR MATERIALS Exterior building materials shall include brick, glass, split -faced concrete block, stone, stucco, synthetic stucco, or cement -board or wood siding. Metal may be used only as accent material, and cumulatively may not exceed ten (10) percent of the area of any individual exterior watt along any public street. Pre - fabricated or engineered metal buildings are not allowed, though metal can be used as a construction material if covered with one of the allowed materials. These provisions shall not apply to roofs. G. ROOF PITCH Flat roofs and roofs with a pitch of less than 3:12 require a parapet wall. Roofs and screening shalt comply with the regulations set forth in Chapter 20 of the Owasso Zoning Code. Eaves a minimum of one (1) foot from the building face shalt profile a pitched roof. Roofing for pitched roofs greater than 6:12 shalt be wood, tile, slate, architectural asphalt shingles, or low - reflectivity metal (flat or matte finish). No roof shalt cause water to drain or flow directly onto any public way or sidewalk. Rainwater shall be collected and piped into storm drain systems or cisterns. Bio- swales, rain gardens or. other LID technics are highly encouraged. H. ELECTRICAL AND SERVICES EQUIPMENT HVAC and similar types of incidental machinery or equipment shall be screened from view in accordance with Chapter 20. Utility meters, aboveground tanks, satellite dishes and antennas shalt also be screened from view. Watt- mounted mechanical equipment that extends six inches (6 ") or less from the outer building wall shalt be designed to blend in with the color and architectural design of the subject building. Unless a waiver is authorized by the City Council, all electrical and telephone lines and wires including, but not limited to, street lighting, shall be placed underground. Feeder and other major transmission lines may remain overhead. ALL utility installation shall conform to the City's adopted Technical Standards and Specifications. All utility service lines shall be located underground when feasible. This shall not apply to existing uses or single- family homes. WALL ARTICULATION Facades shall have a recognizable "base" consisting of (but not limited to): walls, (edges, sills, integrally textured materials (such as stone or other masonry), integrally colored and patterned materials, or planters. Facades shalt also have a recognizable "top" consisting of (but not limited to): cornice treatments with integrally textured materials (other than colored "stripes" or "bands "), sloping roofs (with overhangs and brackets), or stepped parapets. All sides of a building and any accessory structure shalt utilize materials and design characteristics consistent with those of the front facade. In order to prevent large flat expanses of featureless exterior watts, structures having single walls exceeding twenty five feet (25') in length shall incorporate one or more of the following features at Least every twenty five feet (25') in length 1. Changes in color, graphical patterning, changes in texture, or changes in material 2. Projections, recesses, and reveals, expressing structural bays or other aspects of the architecture with a minimum change of plane of twelve inches (12 ") 3. Windows and fenestration 4. Gable projections 5. Horizontal /vertical breaks 6. Other similar techniques M. SIGNAGE Signs shall be permitted in accordance with Chapter 18 of the Owasso Zoning Code, with the following exceptions: 1. Pole signs in this district are not allowed. 2. Signs are encouraged to be attached to buildings and located on the face of buildings. All signs not attached to buildings should be of monument form and constructed of materials that complement the main building(s). 3. All signs not attached to buildings shalt be set in a landscaped bed. 4. Maximum height for signage not attached to a building shall be six (6) feet. 5. Full video message boards and signs are prohibited within the Downtown Overlay District. 6. Larger and multi- tenant developments shalt be allowed to use the Unified Sign Permit process and are encouraged to do so. 7. Signage overhanging the public sidewalk shalt be allowed where building faces are adjacent to property lines. Signs shall be at least eight (8) feet above the sidewalk and shall require a sign permit. (see figure below). 8. All signs not attached to buildings should be of monument form and constructed of materials that complement the main building(s). 10 N. BUILDING ORIENTATION All primary buildings on lots or tracts with frontage on streets within the District, especially Main Street and E 76th St N. are encouraged to be oriented towards the street. If any such building is on a lot or tract with a second frontage, it shall have equally detailed and prominent facades, constructed of equally high quality materials, facing both the primary street and the secondary street. At[ buildings are encouraged to be oriented towards the front of the tot, with parking tots towards the rear or alongside buildings. O. COMMERICIAL DRIVE THROUGH LANES Drive -thru facilities are discouraged in the district, if drive -thru facilities are constructed as a part of the principal use, they shall be architecturally integrated with the main building. P. SCREEENING OF REFUSE COLLECTION AND LOADING AREAS Refuse collection areas shall be screened in accordance with Chapter 20. In order to reduce the visual and acoustic impacts of these functions on adjacent properties and public streets, non - enclosed service, storage, and off - street loading areas shalt be screened with opaque sight - obscuring walls and /or fences of between six feet (6') and eight feet (8') in height made of durable materials. Screening materials shall be the same as, or of equal quality to, the materials used for the primary building and landscaping. Q. MIXED USE DEVELOPMENTS Buildings in the District are encouraged to contain ground floor retail or restaurant spaces. Multi -story buildings are encouraged, with a mix of uses (office, retail /commercial, residential). 11 Residential uses above commercial spaces are encouraged and shalt be allowed by -right in this district, subject to meeting adopted fire and building code requirements. R. SIDEWALK UTILIZATION Sidewalk cafes and room for sidewalk retail sales outside of businesses is encouraged. A minimum of six (6) feet of public travel path shalt be maintained at all times and sidewalk business shalt not impede this travel area at any time. Businesses shalt be required to carry insurance for sidewalk space that holds the City of Owasso harmless and submit site plans for outside activity for approval by the City. S. PARKING 1. Parking shalt be designed in accordance with the Zoning Code. 2. The Administrator may waive or alter parking requirements on unique Lots on a case -by -case basis. 3. Multi- family developments shalt provide at least one parking space per unit and are encouraged to meet current parking standards. The Community Development Administrator shalt determine parking requirements. 4. Public parking is encouraged with any new developments and can be counted towards parking requirements (except residential parking minimums). Developers shall work with the City to review and design public parking arrangements. 5. If on street parking is present or permitted on adjacent streets, said parking spaces may be considered to meet or augment parking requirements. An inventory of such spaces shalt be made and reviewed against the parking needs of other businesses in the vicinity. T. MULTI - FAMILY DEVELOPMENT Individual multi- family developments in excess of six (6) units shalt proceed through the rezoning and PUD process in accordance with the Zoning Code. For multi - family developments of six (6) units or less, the project shall only be required to rezone to the appropriate multi - family district (unless already zoned commercial) and proceed through administrative site plan review. All additional standards shall be met. U. RESIDENTIAL DEVELOPMENT Residential redevelopment is encouraged, with mixed -use, multi - famity, townhome, triplex and duplex development. 1 and 2- family residential development shall be allowed on any residentially -zoned lot. Development of up to 6 dwelling units shalt be allowed by -right on any commercially zoned lot. V. STORMWATER DETENTION Detention shall only be required on new development that increases the impervious area. All detention requirements shalt be determined by the Owasso Public Works Department. These requirements shall not be applicable to residential dwellings up to 6- units. 12 W. FLOOR AREA RATIO (FAR) There shall be no Floor Area Ratio (FAR) requirements in the district. X. AMENITIES 1. Smaller multi - family developments shall not be required to meet the amenity requirements established in the PUD Chapter of the Zoning Code. Amenities should be placed internally when possible in larger multi - family developments (workout room, rec room, pool area, etc.), unless said amenities are made available to the public. 2. Commercial developments are encouraged to provide public amenities whenever possible (benches, fountains, play areas, plaza areas, etc.) Y. EXCESS RIGHT -OF -WAY (ROW) When development occurs along public rights -of -way that have excess ROW (ex. Non - arterials with 70' ROW width), closing of the public ROW shalt be encouraged where possible. An alternative is to provide public parking stalls in these areas. Closing of right -of -way shall be subject to approval of the Owasso Public Works Department Z. ADMINISTRATIVE REVIEW Unless cited within this chapter or another section of the Owasso Zoning Code, review of these guidelines shall be performed at the Administrative level. The Administrator and /or his designee may approve variations to the regulations set forth in this chapter or alternate treatments, so long as the intent of the ordinance is met. 13 WfURTM Development Project Assistance Application OWASSO REDBUD DISTRICT PROJECT PLAN INCREMENT DISTRICT NO. 1 ASSISTANCE IN DEVELOPMENT FINANCING DEVELOPMENT PROJECT ASSISTANCE APPLICATION The Application must be fully completed before submission to the Community Development Department of the City of Owasso at 200 S. Main Street, Owasso, Oklahoma 74055. The omission of requested information may result in delays. The information requested is necessary to conduct a thorough financial and economic analysis of the proposed project. Please include any supplemental information, as may be necessary for purposes of analysis. 1. Applicant /Owner information Name of Applicant: Title: Address: Contact Information Address: Phone Number(s): Emaii(s): Name of Business: Type of Business (LLC, LP, etc.): Contact Information for Key Project Participants: IL Project Site Information Address of Project Site: Attach Map(s) of Project Site Legal Description of Project: 1 DRAFT 2 -7 -17 Square Footage and Dimensions of Project Site: Existing Zoning of Project Site: Description of Existing Improvements: 111. Project Information Name of Project: Description of Project: Market and Financial Feasibility of Project: Public Improvements Necessary for Project: Project Costs Construction Costs: Architectural and Engineering Fees: Other Professional Fees: Developer Fee: TOTAL: IV. Financial Information Proposed Sources of Funds Permanent Financing: Equity: Public Funds: 2 DRAFT 2 -7 -17 Other: Attach the following documents: Balance Sheet, dated December 31 of past year and current year -to -date Income Statement, past calendar year and current year -to -date Cash Flow Statement, past calendar year and current year -to -date Project Development Pro Forma Tenant Occupancy Schedule Letters of Intent and /or Contracts Applicant hereby certifies that all information, including all documents and materials submitted with this Application, are true to his /her best knowledge and belief and are submitted for the purpose of consideration of assistance in development financing, consistent with and pursuant to the Owasso Redbud District Project Plan and the Policy Guide. Applicant: Name (Print) Signature Date DRAFT 2 -7 -17 EXHIBIT D Small Business Enhancement Application OWASSO REDBUD DISTRICT PROJECT PLAN INCREMENT DISTRICT NO 1 ASSISTANCE IN DEVELOPMENT FINANCING SMALL BUSINESS ENHANCEMENT APPLICATION The Application must be fully completed before submission to the Community Development Department of the City of Owasso at 200 S. Main Street, Owasso, Oklahoma 74055. The omission of requested information may result in delays. Please include any supplemental information, as may be necessary for purposes of analysis. Business Name: Address: Contact Person /Owner: Phone Number: Email: What are the proposed improvements to the property? What dollar amount are you requesting? What is the proposed total cost of the improvements? (Please provide any quotes for materials, supplies, labor as an attachment to this application.) What is the source(s) of funds that is available to complete the improvements and match the amount you are requesting? 1 DRAFT 2 -7 -17 What impact would the proposed improvements have on your business? (increased customer traffic, increased sales, visibility, ability to add a new product or service, etc.) Why do you believe the proposed improvements are a worthy endeavor for your business? Is this property owned by someone other than the applicant? If yes, please attach letter from property owner agreeing to allow requested improvements to occur. Please attach any additional information (pictures, schematics, documentation, quotes, accompanying information, etc.) with the application. Applicant hereby certifies that all information, including all documents and materials submitted with this Application, are true to his /her best knowledge and belief and are submitted for the purpose of consideration of assistance in development financing, consistent with and pursuant to the Owasso Redbud District Project Plan and the Policy Guide. Applicant: Name (Print) Signature Date DRAFT 2 -7 -17 II Oil :3111r: Employment Generation Assistance Application OWASSO REDBUD DISTRICT PROJECT PLAN INCREMENT DISTRICT NO 1 ASSISTANCE IN DEVELOPMENT FINANCING EMPLOYMENT GENERATION ASSISTANCE APPLICATION The Application must be fully completed before submission to the Community Development Department of the City of Owasso at 200 S. Main Street, Owasso, Oklahoma 74055. The omission of requested information may result in delays. Please include any supplemental information, as may be necessary for purposes of analysis. Applicant Information Business Name: Type of Business (LLC, LP, etc.): Address: Contact Person /Owner: Phone Number: Email: II. Project Information Name of Project /Business: Description of Project /Business: Market and Financial Feasibility of Project /Business: Public Improvements Necessary for Project /Business: Projected Number of New Jobs: DRAFT 2 -7 -17 Description of New Jobs: Description of the Need for Public Assistance: Impact of Project on Existing Business: Impact of Project /Business on Community: Please attach any additional information (pictures, schematics, documentation, accompanying information, etc.) with the application. Applicant hereby certifies that all information, including all documents and materials submitted with this Application, are true to his /her best knowledge and belief and are submitted for the purpose of consideration of assistance in development financing, consistent with and pursuant to the Owasso Redbud District Project Plan and the Policy Guide. Applicant: Name (Print) Signature Date DRAFT 2 -7 -17 S CENTER FOR ECONOMIC DEVELOPMENT LAW MEMORANDUM To: Warren Lehr, City Manager, City of Owasso From: Emily K. Pomeroy Date: March 2, 2017 Janic; Dan Bald,, ,, Celli_ V. 73aa.heior Emit} K. Pomeroy Lisa M. 13•arden Jeff Sahiu Re: Policy Guide Assistance in Development Financing Provisions 301 N... rh Ha, q, Suiw 14) Oklahoma "it Oklahoma 7002& 4 1 FQi 2;'.:6C6 4D) 21 ,Ol PiJ_S[111 L'i ,,% conL"'Co!n The purpose of this memorandum is to discuss the application of assistance in development financing, as summarized in the proposed Policy Guide, specifically in relation to investments made by property owners or developers in the amount of less than $200,000.00. Background The Policy Guide, currently being reviewed by City staff and City Council, is a proposed working document to assist in the implementation of the Owasso Redbud District Project Plan ( "Project Plan ") and Increment District No. 1, City of Owasso ( "Increment District "), adopted by City Council on December 20, 2016, by Ordinance 1093. The Policy Guide is meant to provide a statement of the method of calculating and means of providing assistance in development financing, as authorized by the Project Plan. However, there are certainly instances where it may be appropriate and desirable to deviate from the Policy Guide. Indeed, the Policy Guide itself states that should the provisions of a development agreement or contract approved by the City or the Owasso Public Works Authority deviate from the provisions of the Policy Gide, the development agreement or contract will control. The Concern The Policy Guide provides for and defines three categories of assistance in development financing: Development Project Assistance, Small Business Enhancements, and Employment Generation Assistance. Project Development Assistance may be provided to property owner developers making an investment in the amount of more than $200,000.00. Small Business Enhancements, in a maximum amount of $1,500.00, may be provided to businesses who make $3,000 or more in improvements to or near the exterior of the building in which they are located. In its February 14, 2017, City Council Study Session, there was discussion among the City Council and staff about the fact that the Policy Guide does not specifically provide for assistance to property owners that make improvements to their properties, but do not meet the threshold $200,000.00 amount. The concern is that the $1,500.00 Small Business Enhancement will be insufficient in these instances. In other words, the posed question is why Warren Lehr March 2, 2017 Page 2 not provide a higher level (more than $1,500.00) of assistance in development financing to those making investments of more than $3,000, but less than $200,000.00. The short answer is that, based on our experience with other area -wide development efforts, the Increment District will not be successful if the increment generated is spent assisting projects that do not make a large and significant impact on the area. The goal of the Project Plan is to assist the most impactful developments that, by their existence, will create the market necessary for development to occur on its own in the Redbud District. The Development Project Assistance and the Small Business Enhancements are two separate and distinct categories. The Development Project Assistance is the real driver of development success. The Small Business Enhancements are good, albeit modest, signals of support for businesses in the Redbud District. The Project and the Public Assistance The impetus for the Project Plan was the Downtown Overlay District Plan. By its language, the Downtown Overlay District Plan specifically encourages and promotes higher density and mixed uses. It lays out the vision for the downtown: urban building orientation, zero lot line setbacks, and uses that include a mix of retail, office, residential, multi - family developments, and enhancement of the public space. That vision is intentionally bold and a significant change from most of the development that currently exists downtown. The Project Plan seeks to provide public assistance to projects that meet the bold vision of the Downtown District Overlay Plan. While it is difficult to determine what will be the most meaningful projects, setting a threshold amount is a way to try to assure that overall investment will be significant, not only in the amount of new property taxes generated, but in impact on the Redbud District and the community as a whole. That is why the $200,000.00 (based on estimated costs to construct a marketable duplex) benchmark investment amount is important. While lower levels of private investment may produce increases in ad valorem, there are a number of goals in the Project Plan that are more than simply increases in ad valorem. They include density, form, design, and creating a sense of destination. The type and scale of development that the Project Plan intends to stimulate will require significant private investment. A face lift or simple renovation to an existing building is not the bold and significant development that the Project Plan or the Downtown Overlay District Plan envisions. Further, smaller investments will not increase property values to a level that the projected increment generation and overall potential of the Increment District can be realized. In analyzing development potential, sites likely to see large -scale and significant development were used to calculate the taxable assessed value increases and estimate increment potential. Of course, not every property in the Increment District will experience a large renovation or demolition with new construction. Smaller investments will occur, and that will be good for the Increment District overall. However, not every investment made, particularly those that do not meet or exceed the City's development goals for the Redbud District as stated in the Downtown Overlay District Plan and the Project Plan, should be incentivized. That approach is unlikely to produce sufficient increment to fund the Project Costs authorized by the Project Warren Lehr March 2, 2017 Page 3 Plan. If generated increment is used to provide assistance in development financing to projects with lower levels of private investment, opportunities for larger projects with higher amounts of private investment and thus higher amounts of increment generated and community impact will be unavailable. To fully realize the development potential and increment generation projected in the Project Plan, assistance in development financing needs to be provided to only those large - scale, highly- desired projects making a significant positive impact on the Redbud District consistent with the vision of the Downtown Overlay District Plan. For each project, development agreements will state the terms of the available public financial assistance and will ensure that the Owasso Public Works Authority has input and approval on the quality, type, and scale of development that the City wants to encourage. The agreements will contractually obligate property owners to push prospective developments in terms of design, street front presence, and density. Incentivizing development that does not make the Redbud District the walkable, pedestrian- friendly, unique place that the City desires greatly decreases the potential benefits of tax increment financing. The Project Plan and the Policy Guide are set up to maximize the potential of the Increment District and incentivize large - scale, significant projects. Conclusion The Policy Guide is meant to provide implementation and administrative guidance. As mentioned above, there may be instances when it is appropriate and desirable to deviate from the Policy Guide. It may be that there is a project of less than $200,000.00 investment, but that provides an important improvement to the Redbud District, that the City finds appropriate and desirable to assist. This is the City's choice, and it is not prohibited by the Policy Guide. However, in our view, those instances should be the exception and not the rule. The Policy Guide should encourage the highest and best use of property within the Increment District. We are happy to have the opportunity to address this issue and are excited that the City is exploring all possible ways to implement the Project Plan and develop the Redbud District. If we can address additional questions, please do not hesitate to contact us. Adopted December 20, 2016 OWASSO REDBUD DISTRICT PROJECT PLAN INCREMENT DISTRICT NO. 1, CITY OF OWASSO PREPARED BY: THE CITY OF OWASSO, OKLAHOMA 0111 OF OWA 0,��9 \N0 OF: F THE WITH THE ASSISTANCE OF: CENTER FOR ECONOMIC DEVELOPMENT LAW 301 North Harvey, Suite 100 Oklahoma City, Oklahoma 73102 (405) 232 -4606 econlaw @econlaw.com OWASSO REDBLID DISTRICT PROJECT PLAN I. INTRODUCTION The Owasso Redbud District Project Plan is a project plan as defined under the Oklahoma Local Development Act, 62 O.S. §850, et seq., and is referred to here as the "Project Plan." The project is being undertaken by the City of Owasso, Oklahoma ( "City ") to develop the area surrounding Main Street, known as the Redbud District, achieve the City's development objectives, improve the quality of life for its citizens, stimulate private investment, and enhance the tax base. At the heart of this project is the creation of the Redbud District as a special and unique place within Owasso, a place to live, work, shop, and play. Beginning with the Downtown Master Plan in 2001, the City has prioritized the revival of its Main Street and surrounding area. Since that time, through several planning documents, including approval of the Downtown Overlay District promoting smart development in the area, and robust branding, the Redbud District is ripe for its transformation. The City, through this Project Plan, is continuing its effort to revive its downtown and make the Redbud District a destination area for residents and visitors. The effort to create such a place requires public assistance to stimulate private development. This Project Plan is a critical element in fostering public - private partnerships to create the type of development that the City seeks but can achieve only by means of the financing tools available under the Oklahoma Local Development Act, including tax increment financing. An increment district provides funding for public sector costs to stimulate private development and provide improvements to and beautification of the area to create the dense, high - quality development that the City contemplates. The project will be financed from a combination of public and private sources, including apportionment of ad valorem and sales tax increments from Increment District No. 1, City of Owasso. 11. BOUNDARIES OF PROJECT AREA AND INCREMENT DISTRICT The Project Area is the area in which project activities will take place and is generally located within the following boundaries: beginning at the western terminus of North Carlsbad Street, east along West 3rd Street to the east side of North Atlanta Street, north one lot, then east one lot, then north to West 4th Street, then east along West 4th Street to North Main Street, south to one lot north of West 3rd Street, then east along West 3rd Street to one lot before Cedar Street, south to East 2nd Street, then east along East 2nd Street to the west Owasso Expressway service road, then south along Owasso Expressway to East 71st Street, west generally along East 71st Street to South Main Street, north to West 5th Avenue, west to North Mingo Road, north along Mingo Road to West 2nd Avenue (E 76th St N), east along West 2nd Avenue to the western side of the Owasso Sertoma Center, north to the railroad tracks, then across the railroad tracks back to North Carlsbad Street and West 3rd Street. The Increment District is designated Increment District No. 1, City of Owasso, and is the area from which the increment is generated. Increment District No. 1 is the same area as the Project Area. The Project Area and Increment District No. 1 boundaries are depicted on Exhibit A. The Project Area and Increment District No. 1 boundaries are described on Exhibit B. 1 III. ELIGIBILITY OF PROJECT AREA Most of the Project Area is an enterprise area, as defined by the Oklahoma Local Development Act. It lies within an enterprise zone, designated by the Oklahoma Department of Commerce to be a disadvantaged portion of the City of Owasso. All of the Project Area is a reinvestment area, as defined by the Oklahoma Local Development Act. Public improvements are required to reverse economic stagnation or decline, to serve as a catalyst for expanding employment, to attract investment, and to preserve and enhance the tax base. Investment, development, and economic growth in the area are difficult, but possible if the provisions of the Oklahoma Local Development Act are used. The Project Area is unproductive, undeveloped, underdeveloped, or blighted within the meaning of Article 10, §6C of the Oklahoma Constitution, and suffers from conditions inhibiting development. IV. OBJECTIVES The principal objectives of the project and Increment District No. 1 are: A. To achieve development goals and objectives for the Redbud District contained in the Downtown Master Plan, the Downtown Overlay District Plan, and the GrOwasso 2030 Land Use Master Plan. B. To preserve and enhance the tax base and make possible investment, development, and economic growth that would otherwise be difficult without the project and the apportionment of incremental ad valorem and sales tax revenues. C. To support the creation of attractive, high - quality, and viable mixed -use developments to draw residents and visitors. D. Where appropriate, to support the development, improvement, and /or expansion of light industry to increase employment. E. To encourage existing property and business owners in the Redbud District to invest and to attract new investment and business to the Project Area. F. To provide start-up and incubator space to new and expanding businesses and to promote small- business - friendly opportunities for innovation and collaboration in the Project Area. G. To stimulate and promote the Redbud District as a walkable, vibrant destination. H. To provide a public benefit through the construction of public infrastructure and improvements to allow for the development of the area. V. STATEMENT OF PRINCIPAL ACTIONS Implementation actions for the project, including all necessary, appropriate and supportive steps, will consist principally of the following: 2 A. Project planning, design and approval. B. Public infrastructure improvements. C. Development of mixed -use projects, as well as retail, restaurant, residential, and office projects. D. Enhancement of existing businesses and encouragement of new businesses. E. Creation of start-up and incubator spaces for new and expanding businesses. VI. ESTABLISHMENT OF INCREMENT DISTRICT NO. 1, CITY OF OWASSO A. This Project Plan creates Increment District No. 1, City of Owasso, an ad valorem and sales tax increment district. B. The sales tax increment is a portion of the City's sales taxes generated within Increment District No. 1, to be determined by a formula to be approved by resolution of the Owasso City Council in accordance with the Oklahoma Local Development Act. C. The ad valorem increment is the ad valorem revenue in excess of the revenue generated by the base assessed value of Increment District No. 1 (as determined by the Tulsa County Assessor in accordance with the Oklahoma Local Development Act), i.e., the new revenue attributable to increases in the value of property within Increment District No. 1. D. The ad valorem and sales tax increment may be used to pay Project Costs authorized by Section VIII of this Project Plan for a period not to exceed twenty -five (25) fiscal years from the effective date of Increment District No. 1, as provided by law, or the period required for payment of the Project Costs authorized by Section VIII, whichever is less. During the period of apportionment, the tax apportionment fund (1) shall be available to pay Project Costs under Section VIII, (2) shall constitute special funds of the City, or, at the direction of the City, the Owasso Public Works Authority, a public trust, or another public entity designated by the City, and (3) shall not be subject to annual appropriation as a part of the general fund of the City. VII. PROJECT AND INCREMENT DISTRICT AUTHORIZATIONS A. The City is designated and authorized as the principal public entity to carry out and administer the provisions of this Project Plan and to exercise all powers necessary or appropriate thereto as provided in the Oklahoma Local Development Act, 62 O.S. §854. B. The Owasso Public Works Authority (OPWA), or another public entity designated by the City pursuant to Section VI, is authorized and designated to carry out implementation actions for the project, including all necessary, appropriate, and supportive steps pursuant to development agreements with private developers. Such public entity is also authorized and designated to carry out those provisions of the project related to issuance of bonds or notes as provided in Sections 854(8) and 863 of the Oklahoma Local Development Act, subject to approval of the governing body of the City of any W specific notes or bonds. OPWA is authorized to assist in carrying out this Project Plan and to exercise all powers necessary or appropriate thereto pursuant to Section 854 of the Oklahoma Local Development Act, except for approval of this Project Plan and those powers enumerated in paragraphs 1, 2, 3, 4, 7, 13 and 16 of Section 854. As a public entity designated by the City, OPWA or another public entity designated by the City is authorized to: (1) issue tax apportionment bonds or notes, or both; (2) pledge revenues from current and future fiscal years to repayment; (3) incur Project Costs pursuant to Section Vlll of this Project Plan; (4) provide funds to or reimburse the City for the payment of Project Costs and other costs incurred in support of the implementation of the project; and (5) incur the cost of issuance of bonds for payment of such costs and to accumulate appropriate reserves, if any, in connection with them. Project Costs shall mean (a) the public costs authorized to be paid pursuant to Section VIII of this Project Plan, and (b) costs necessary or appropriate to implement this Project Plan other than costs authorized by Section VIII, which may be authorized without amendment to this Project Plan. C. The City Manager, Warren Lehr, or his successor in office shall be the person in charge of implementation of the Project Plan in accordance with the provisions, authorizations, and respective delegations of responsibilities contained in this Project Plan. Vlll. BUDGET OF ESTIMATED PROJECT COSTS TO BE FINANCED BY TAXES APPORTIONED FROM INCREMENT DISTRICT NO. 1, CITY OF OWASSO A. The Project Costs will be financed by the apportionment of ad valorem and sales tax increments from Increment District No. 1. The Project Costs categories are: Assistance in Development Financing $ 13,800,000.00 Public Infrastructure, Facilities, and Improvements $ 3,000,000.00 Implementation and Administration $ 200,000.00 TOTAL Project Costs $ 17,000,000.00 Plus any financing costs, costs of issuance, necessary or appropriate reserves, and interest on repayment of Project Costs, B. Additional costs necessary or appropriate to implement this Project Plan that are to be financed by other than apportioned tax increments may be approved by the City at any time. The provisions of this Section VIII are not a limitation on Project Costs to be financed by other than apportioned tax increments. C. Assistance in Development Financing will be provided only for projects that are determined, in the City's and /or OPWA's discretion: (1) to meet the City's approved development goals and objectives for the Project Area, as expressed from time to time in the City's plans and policies, and (2) to provide adequate consideration and public benefit in return for the public investment. 4 IX. FINANCING PLAN AND REVENUE SOURCES A. Financing Plan. Some public improvements, in anticipation of private investment, will be funded by the City from sources other than apportioned tax increments, which may be reimbursed once increment is generated by the development within Increment District No. 1. Private developers within the Project Area may be required to construct the necessary improvements for specific projects at their initial expense. The financing of private developments will be provided by private equity and private financing. Most Project Costs incurred in connection with the implementation of the Project Plan will be financed on a pay -as- you -go basis. B. Financing Authorizations. Without assistance, development of this type and on this scale within the Project Area would not occur. The implementation of the Project Plan shall be financed in accordance with financial authorizations, authorized from time to time by the City. C. Financing Revenue Sources. The revenue sources expected to finance Project Costs authorized by Section VIII are the incremental ad valorem and sales tax revenues attributable to investment and development within Increment District No. 1. D. Financial Reports and Audits. The development activities undertaken by the City, pursuant to this Project Plan, shall be accounted for and reported by the appropriate and necessary annual fiscal year audits and reports. E. Other Necessary and Supporting Costs. OPWA or another public entity designated by the City pursuant to Section VI, is authorized to issue bonds and notes and to apply for and obtain grants from other sources for costs incurred or to be incurred in connection with the project and the construction of improvements therein in addition to Project Costs to be financed pursuant to Section VIII. X. PRIVATE AND PUBLIC INVESTMENTS EXPECTED FOR THE PROJECT A. Private and Public Investments Expected from the project and Increment District No. 1. The total private investment in the Project Area if fully realized is estimated to exceed $100,000,000.00. Private investment in Increment District No. 1 is expected to consist of new mixed -use developments, expansion of existing businesses, creation of new businesses, development of new retail, restaurant, residential, and office projects, and light industrial development (where appropriate). Public investment will include public infrastructure improvements and assistance in development financing to support private investment and enhance new and existing businesses. 01 B. Public Revenue Estimated to Accrue from the Project and Increment District No. 1. The estimated incremental increases in tax revenue, which will serve as the revenue source for financing the Project Costs authorized by Section VIII, is the public revenue directly attributable to the project described herein. Both the City and the State will experience increases in tax revenues that are not a part of Increment District No. 1. Ad valorem taxing entities will experience additional revenues from increasing values within the surrounding area but outside of Increment District No. 1. Incremental sales tax revenues are estimated to range between $35,000 and $75,000 annually. Incremental ad valorem revenues are estimated to range between $280,000 and $1,350,000 annually. Total incremental revenues estimated to be generated over the 25 -year lifespan of Increment District No. 1 range between $18,000,000 and $25,000,000. The developments anticipated by the project will not result in a measurable increase in demand for services by or in costs to the affected taxing entities. The economic benefits of the project for the affected taxing jurisdictions indicate positive financial impacts for the entire community. The aggregate impacts from implementation of the Project Plan are positive and include the achievement of the objectives set forth in Section IV. XI. LAND USE Existing uses and conditions of real property in Increment District No. 1 are shown on the attached Exhibit C. A map showing the proposed improvements to and proposed uses of the real property in Increment District No. 1 is attached Exhibit D. Implementation of the Project Plan requires no changes to the GrOwasso 2030 Land Use Master Plan or zoning. The Project Plan complies with the objectives and priorities of the GrOwasso 2030 Land Use Master Plan. 11 El t• 4-P^ i W N N c� O m c--1 z° U N D N i U C a� L Q 41 U N O i d -j'liolf imp t To. ZCI NMI IM iI�i1M�i �t MM Niel" ST d iiilli�E �'��' Exhibit B Project Area and Increment District No. 1 Boundaries Legal Description Section A Beginning at the southeast corner of Lot 6, Block 1 of the Owasso Industrial Park, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence west along said south lot line a distance of 57 feet, thence north along said lot line a distance of 283 feet, Thence west along south lot of said lot a distance of 490 feet, Thence north along said lot line a distance of 24 feet, Thence west along said lot line a distance of 41 feet, Thence north along said lot line a distance of 240.2 feet to the northwest corner of said Lot 6, Thence to a point 17.45 feet north and 50.26 feet west of northwest corner of said Lot 6, Thence west a distance of 393.5 feet to a point 149.63 feet south of the southwest corner of Lot 1, Block 1 of Owasso Industrial Parks Phase IV, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence north a distance of 332.1 feet to the Northwest corner of said Lot 1, Block 1, Thence east a distance of 87.7 feet to a point on the north lot line of said Lot 1, Block 1, Thence north a distance of 255 feet to a point 165 feet south and 310 feet east of the southwest corner of Lot 5, Block 1 of Ivadel, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence west a distance of 310 feet to a point 165 feet south of said Lot 5, Block 1, Thence north a distance of 495 feet to the northwest corner of Lot 1, Block 1, of Ivadel, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence west a distance of 457.07 feet to the southwest corner of Lot 4, Block 34, Owasso Original Town, a subdivision in the City of Owasso, Tulsa County, Oklahoma, also a point on the east right -of -way line of the Southern Kansas Oklahoma Railroad right -of -way, Thence north along said railroad right -of way a distance of 994.2 feet, Thence continuing north along said railroad right -of -way a distance of 385.2 feet, Thence north a distance of 55 feet along the quarter section line to a point on the east right -of -way of said railroad, thence northwest along said railroad right -of -way a distance of 95.2 feet, Thence west a distance of 35.7 feet along said railroad right -of -way, Thence northwest along said railroad right -of -way a distance of 331.4 feet, Thence east a distance of 141.8 feet to a point on the east right -of -way of said railroad, also a point on the south right -of -way of West Broadway Street, Thence northwest along said railroad right -of -way a distance of 1213.8 feet to the to the northwest corner of Lot 11, Block 8, of Greenlees, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence east along said north line of said subdivision a distance of 202.94 feet to the southwest corner of Lot 10, Block 5, of Starlane, a subdivision in the City of Owasso, Tulsa county, Oklahoma, Thence north along the west line of said Lot 10 a distance of 125 feet to the northwest corner of said Lot 10, also a point on the south right -of -way of West Third Street North, a street in the City of Owasso, Thence east along said right -of -way a distance of 885.1 feet to the northwest corner of Lot 4, Block 6, Owasso Original Town, a subdivision in the City of 01 Owasso, Tulsa County, Oklahoma, Thence north along the east right -of -way of North Atlanta Street West a distance of 138.1 feet to the northwest corner of Lot 2, Block 3 of the said subdivision, Thence east a distance of 162.1 feet to the southeast corner of Lot 16, Block 2, of Crestview Estates, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence north a distance of 150 feet to a point on the east line of Lot 14, Block 2 of said subdivision, Thence east 5 feet to a point on the east line of Lot 14, Block 2 of said subdivision, Thence north 340.4 feet to the northeast corner of Lot 9, Block 2 of said subdivision, Thence east 18.73 feet to the southeast corner of Lot 1, Block 2 of said subdivision, Thence north along the east line of said Lot 1 a distance of 139.07 feet to the northeast corner of said lot, also a point on the south right -of -way line of West Fourth Street North, a street in the City of Owasso, Thence east along said south right -of -way line a distance of 121.2 to a point on the west right -of -way line of North Main Street, a street in the City of Owasso, Thence south along said west right -of -way line a distance of 305 feet, Thence east a distance of 75 feet to a point on the east right -of -way line of North Main Street, a street in the City of Owasso, Thence south along the said east right - of -way line a distance of 5 feet, Thence west 75 feet to a point on the west right -of -way of said street, Thence south along the said west right -of -way a distance of 95 feet, Thence east along said west right -of -way a distance of 5 feet, Thence south along said west right -of -way a distance of 80.38 feet, Thence east a distance of 70 feet to a point on the said east right -of -way line, Thence south along said east right -of -way a distance of 150 feet, also a point on the north line of Lot 2, Block 2, of Owasso Original Town, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence east a distance 653.2 feet to the northeast corner of Lot 1, Block 1 of said subdivision, Thence south a distance of 453.85 feet to the southwest corner of Lot 13, Block 6, of Wilawood, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence east a distance of 1,190.2 feet to the southeast corner of Lot 15, Block 5 of said subdivision, also a point on the west right -of -way of the Mingo Valley Expressway, Thence south along said right - of -way a distance of 210 feet to northeast corner of Lot 1, Block 1, Forrest Drive Industrial Park, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence south along east line of said Lot 1 a distance of 75.5 feet, Thence southwest a distance of 604.82 feet to the southeast corner of Lot 6, Block 1, of Forrest Drive Industrial Park, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence west along the south line of said Lot 6, a distance of 47.58 feet, Thence south along the right -of -way of Mingo Valley Expressway a distance of 161.4 feet, thence southwest along said right -of -way a distance of 235.4 feet, thence southwest along said right -of -way a distance 159.1 feet, Thence west along said right -of -way a distance of 208.3 feet, Thence south along said right -of -way a distance of 113.2 feet, Thence west 247.8 feet along said right -of -way to the southwest corner of Safeway, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence south 110.56 feet to the northeast corner of Lot 1, Block 1, Dogwood Center, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence south along said lot east line a distance of 37.5 feet, Thence east a distance of 257 feet to the 2 northeast corner of Lot 1, Block 2, Owasso Business Park, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence south along the east line of said lot a distance of 125 feet, Thence east along the north line of said lot a distance of 200 feet to the northeast corner of said Lot 1, Thence southwest a distance of 247.06 feet to the southeast corner of said Lot 1, Thence continuing southwest a distance of 42.94 feet to a point on the east line of Lot 4, Block 2, of said subdivision, Thence southwest a distance of 303.51 feet to the southeast corner of Lot 5, Block 2 of said subdivision, Thence east a distance of 163.68 feet to the southwest corner of Lot 2, Block 3, of said subdivision, Thence northeast a distance of 246.55 feet to a point on the west line of Lot 1, Block 3, of said subdivision, Thence north a distance of 250.56 feet to the northwest corner of said Lot 1, Thence southeast a distance of 35.49 feet to the northeast corner of said Lot 1, Thence southeast a distance of 455.7 feet to the southeast corner of Lot 2, Block 3 of said subdivision, also a point on the west right -of -way line of Mingo Valley Expressway, Thence southeast along the west right -of -way of Mingo Valley Expressway a distance of 93.2 feet, Thence southeast along the west right -of -way of Mingo Valley Expressway a distance of 225.1 feet, Thence south along west right -of -way of Mingo Valley Expressway a distance of 796.9 feet to a point on the south right -of -way line of Fifth Avenue, a street in the City of Owasso, Thence south along the west right -of -way of Mingo Valley Expressway a distance of 786.60 feet, Thence west a distance of 586.68 feet to the southeast corner of Lot 6, Block 1, Owasso Industrial Park, a subdivision in the City of Owasso, Tulsa County, Oklahoma, the Point of Beginning, containing 207 acres, more or less. And Section B Beginning at the northwest corner of Lot 1, Block 1, Atchison Topeka & Santa Fe, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence southeast along said lot line a distance of 974.78 feet, Thence continuing southeast along the Southern Kansas Oklahoma railroad right -of -way a distance 619.4 feet to a point on the north right -of -way of East 76th Street North, a street in the City of Owasso, Thence continuing southeast along the said railroad right -of -way a distance of 88.7 feet to a point on the south right -of -way of East 76th Street North, Thence continuing southeast along the said railroad right -of -way a distance of 510.6 feet, thence east along said railroad right -of -way a distance of 19.6 feet to the east line of the N/2 NW /4 of Section 31, T -21 -N, R -13 -E, Thence south a distance of 785.3 feet to the SE corner of said N/2 NW /4, Thence west along the south line of said N/2 NW /4 a distance of 2,633.6 feet to a point on the east right -of -way of North Mingo Road, a street in Tulsa County, Thence north along said east right -of -way of North Mingo Road a distance of 1261.4 feet to a point on the south right - of -way of East 76th Street North, Thence east along said south right -of -way line a distance of 1318.1 feet, Thence north along said south right -of -way line a distance of 10.00 feet, Thence 3 east along said south right -of -way line a distance of 215.0 feet, Thence north a distance of 300 feet, Thence east a distance of 148 feet to a point on the west line of Lot 1, Block 1, Atchison Topeka & Santa Fe, a subdivision in the City of Owasso, Tulsa County, Oklahoma, Thence north along the west line of said Lot 1 a distance of 1150.6 feet to the northwest corner of Lot 1, Block 1, Atchison Topeka & Santa Fe, the Point of Beginning, containing 94 acres, more or less. 4 L IL Cor) C 0 '-p _0 c 0 u X Lu Al OLD I I 7,i7nt W, j a E rc 97; 4, E 00 U0 ut .MOM R Al OLD I I 7,i7nt W, a E rc E E E 75 C U0 ut .MOM R OM LU Exhibit D Proposed Improvements and Uses