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HomeMy WebLinkAbout1997.11.13_OEDA Agenda PUBLIC NOTICE OF THE MEETING OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY TYPE OF MEETING: DATE: TIME: PLACE: Regular November 13, 1997 10:00 a.m. Owasso City Hall Lower Level Conference Room 207 S Cedar, Owasso, Oklahoma Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 9:00 a. m. on Monday, November 10, 1997. Marc Boutwell, Cit Clerk AGENDA 1. Call to Order 2. Roll Call 3. Request Approval of the Minutes of October 9, 1997 Regular Meeting. Mr Enzbrenner Attachment #3 OWASSO ECONOMIC DEVELOPMENT AUTHORITY NOVEMBER 13, 1997 PAGE 2 4. Request Approval of Claims. Mr Enzbrenner Attachment #4 5. Presentation of Financial Report. Ms Bishop Attachment #5 6. Discussion of Need to Expand the Owasso Enterprise Zone. Mr Ray Attachment #6 The staff will recommend Trustee approval of OEDA Resolution #97-04. 7. Report from OEDA Manager Mr Ray 8. Unfinished Business OWASSO ECONOMIC DEVELOPMENT AUTHORITY NOVEMBER 13, 1997 PAGE 3 New Business 10. Adjournment ITEM 1: CALL TO ORDER Chairperson Frank Enzbrenner called the meeting to order at 10:05 AM and declared a quorum present. ITEM 2: ROLL CALL ITEM 3: REQUEST APPROVAL OF MINIJTES OF SEPTEMBER 11, 1997 REGULAR MEETING AND OCTOBER 6. 1997 SPECIAL MEETING. Motion was made by Mr. Anderson and seconded by Ms. Lawrence, to approve the minutes of the September 11, 1997 regular meeting and October 6, 1997 special meeting. A vote on the motion was recorded as follows: Enzbrenner - Yes Akin - Yes Smith - Yes Anderson - Yes Wilken - Yes Lawrence - Yes The motion carried 6 -0. ITEM 4: REQUEST APPROVAL OF CLAIMS Mr. Anderson moved to approve the claims report, contingent upon the amount to be paid to Brown Construction to be verified by the City Treasurer. Motion was seconded by Ms. Lawrence. A vote on the motion was recorded as follows: Enzbrenner - Yes Akin - Yes Smith - Yes Anderson - Yes OWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF REGULAR MEETING October 9, 1997 PRESENT ABSENT STAFF PRESENT Frank Enzbrenner Rodney Ray Gary Akin Sherry Bishop Brian Smith Robert Carr Alan Anderson Marsha Hensley Mark Wilken Tom Kimball (in at 10:08 AM) Brenda Lawrence ITEM 1: CALL TO ORDER Chairperson Frank Enzbrenner called the meeting to order at 10:05 AM and declared a quorum present. ITEM 2: ROLL CALL ITEM 3: REQUEST APPROVAL OF MINIJTES OF SEPTEMBER 11, 1997 REGULAR MEETING AND OCTOBER 6. 1997 SPECIAL MEETING. Motion was made by Mr. Anderson and seconded by Ms. Lawrence, to approve the minutes of the September 11, 1997 regular meeting and October 6, 1997 special meeting. A vote on the motion was recorded as follows: Enzbrenner - Yes Akin - Yes Smith - Yes Anderson - Yes Wilken - Yes Lawrence - Yes The motion carried 6 -0. ITEM 4: REQUEST APPROVAL OF CLAIMS Mr. Anderson moved to approve the claims report, contingent upon the amount to be paid to Brown Construction to be verified by the City Treasurer. Motion was seconded by Ms. Lawrence. A vote on the motion was recorded as follows: Enzbrenner - Yes Akin - Yes Smith - Yes Anderson - Yes OWASSO ECONOMIC DEVELOPMENT AUTHORITY October 9, 1997 Page No. 2 Wilken - Recuse Kimball - Yes Lawrence - Yes The motion carried 6 -0. ITEM 5: PRESENTATION OF FINANCIAL REPORT Report was given by Ms. Bishop. ITEM 6: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR A REDUCTION IN THE RETAINAGE FROM BROWN CONSTRUCTION COMPANY FOR CONTRACTED WORK COMPLETED AT THE ONG WORK CENTER PROJECT. Mr. Ray reported that Brown Construction met with Mr. Tobias and ONG representatives regarding a request to further reduce the retention from 5 % to 2.5 %. After a short discussion, Mr. Anderson moved to approve the reduction in retention for Brown Construction to 2.5 seconded by Mr. Smith. A vote on the motion was recorded as follows: Enzbrenner - Yes Akin - Yes Smith - Yes Anderson - Yes Wilken - Recuse Kimball - Yes Lawrence - Yes The motion carried 6 -0. ITEM 7: REPORT FROM OEDA MANAGER Mr. Ray reviewed the OEDA Monthly Report Memorandum with the Authority, regarding several economic development projects and prospects. There was a lengthy discussion on the reconfiguration of Highway 20. ITEM S: UNFINISHED BUSINESS None OWASSO ECONOMIC DEVELOPMENT AUTHORITY October 9, 1997 Page No. 3 ITEM 9: NEW BUSINESS None ITEM 10: ADJOURNMENT Mr. Anderson moved to adjourn, seconded by Mr. Enzbrenner. A vote on the motion was recorded as follows: Enzbrenner- Yes Akin - Yes Smith - Yes Anderson - Yes Wilken - Yes Kimball - Yes Lawrence - Yes Motion carried 7 -0 and the meeting was adjourned at 11:15 AM. Frank Enzbrenner, Chairperson Date Approved City of Owasso Owasso Economic Development Authority Schedule of Revenues and Expenses For the Month Ending October 31, 1997 Operating income: Contributions Sale of property Other Operating expenses: Materials & supplies Services & other charges Capital outlay Total revenues Total expenses Operating income (loss) Non - operating income (expenses): Proceeds of construction loan ONG Work Center Project Total non - operating income (expenses) Net income (loss) Fund balance" 07/01/97 Fund balance" 10/31/97 MTD 84.71 36,163.84 (36,163.84) 0.00 84.71 "Note: For the purposes of this report, "Fund balance" includes only current assets and current liabilities. YTD $0.00 0.00 293.92 293.92 0.00 625.00 0.00 625.00 (331.08) 200,531.64 (200,531.64) 0.00 (331.08) $38,273.53 $37,942.45 TO: THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY CITY OF OWASSO FROM: ROBERT M. TOBIAS, JR. DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: EXPANSION OF OWASSO ENTERPRISE ZONE DATE: November 13, 1997 BACKGROUND: Since early September, staff has been working with representatives of Omni Entertainment and the Owasso Chamber of Commerce to explore the availability and applicability of incentives to facilitate the attraction of this commercial development to the city of Owasso. As this development encompasses a $3.4 million investment, creates up to 75 new jobs and provides a number of services previously unavailable in Owasso, staff has been working closely with the Oklahoma Department of Commerce and other state and regional entities on this project. In general, the city of Owasso and the OEDA offer few incentives, other than those provided through the Oklahoma Department of Commerce and some local financing mechanisms, which previously have focused on industrial development opportunities. One of the few available local incentives is the Owasso Enterprise Zone (EZ) program. This state and local economic incentive program was adopted in October 1994 by the Owasso City Council. An overview of the Enterprise Zone program and a map noting the existing zone, as well as the area proposed for inclusion is attached. Correspondence from Mr. Jeff Wallace at the Oklahoma Department of Commerce is also included, which reflects the course of action necessary by the city to include the proposed area into the Enterprise Zone. An income survey is being conducted in the targeted corridor to comply with the state guidelines of the program and staff is confident that the criteria outlined by the Oklahoma Department of Commerce will be readily met. Upon preliminary approval by the state, staff will submit to the OEDA and Owasso City Council for their consideration. The goal of this incentive is to encourage permanent job creation and capital investment in economically distressed areas of the state, such as the area encompassed by the Owasso EZ. The primary benefit of this incentive program to a qualified business is the extension of tax abatement from 5 to 6 years. Other benefits outlined by this incentive program focus on low interest public finance programs which would require the OEDA to have a funding or lending EXPANSION OF OWASSO ENTERPRISE ZONE NOVEMBER 13, 1997 PAGE 2 OF 2 base. Additionally, federal lending programs may consider decreasing the amount of equity required for companies locating in these economically distressed areas. The site which has recently been acquired by Omni Entertainment is adjacent to the existing EZ. The expansion of the EZ to include this site accomplishes several economic objectives: 1. Entices a $3.4 million investment into the EZ which will serve to create over 75 jobs within this corridor over the next two years; 2. Provides the impetus for additional infrastructure development in this corridor; 3. Complements and enhances our concept for the redevelopment of the downtown corridor; 4. Provides the impetus to consider the creation of a tax increment financing district and other targeted incentives in this corridor to support ongoing redevelopment of this economically distressed area of the city. For your information, other discussions have been conducted with a number of community leaders interested in pursuing the creation of a Main Street Program. Participants of the Vision Owasso program have also expressed that the redevelopment of the downtown corridor should be a community priority. The area targeted for the Main Street Redevelopment Program also resides in the Enterprise Zone. OEDA Board Members Brian Smith and Alan Anderson have both initiated contact with staff in support of this community redevelopment project. A private developer has also expressed interest in identifying properties and buildings which are available for sale for a 20,000 square foot commercial development. Staff is also exploring potential funding mechanisms to support this redevelopment effort focused on this critical economic sector of the city. ATTACHMENTS: 1. Overview of Enterprise Zone Program 2. Map of Existing Enterprise Zone and Area Proposed for Inclusion 3. Oklahoma Department of Commerce correspondence Business Incentives and Tax Information Guide only for employees whose wages were at least $35,000. The credit allowed is $500 per employee, up to fifty employees. This is not available to participants in the Quality Jobs Program. INCUBATOR SITE TENANT INCOME TAX EXEMPTION (74 O.S. §5071 -5079) An incubator site is a facility in which small businesses may rent space and in which management provides business development services, such as financial consulting assistance and marketing assistance. The income of a sponsor of such a facility is exempt from Oklahoma income taxes on income earned from rental fees or other income derived from services provided to the tenants or for providing funding for an incubator site. This exemption is for seven years from the date of the tenant's occupancy within an incubator. The tenant is exempt from income tax liability for income earned as a result of such occupancy for two years from the occupancy date in an incubator site. INSURANCE PREMIUM TAX CREDIT (36 O.S. § 625.1) Insurance companies which locate or expand regional home offices in Oklahoma and maintain an employee level above 200 are eligible for special tax credits against Section 624 of the Insurance Code. Annual credits range from 15% to 50% based on numbers of full -time, year -round employees. This credit is not available to participants in the Quality Jobs Program. GAS USAGE TAX CREDIT FOR MANUFACTURING (680. S. §2357(C)) Operators of manufacturing establishments in Oklahoma are allowed a credit against the tax proportioned to the amount of gas used or consumed in Oklahoma in manufacturing operations at a rate of 3 mills per 1,000 cubic feet of gas during each taxable year (not applying to the first 25,000 MCF). TRAINING` CUSTOMIZED INDUSTRIAL TRAINING This program meets the needs of qualified firms, at no cost to the employer, and is pro- vided by the Oklahoma Department of Voca- tional and Technical Education. The training includes job - specific technical training, assist- ance with assessment of potential employees, organizational design, strategic planning, training in team skills, quality processes and management skills. Training can take place at your site or at one of 49 training sites located across the state. Oklahoma's Training for Industry Program (TIP) is the nations best. CUSTOMIZED ASSISTANCE IN EMPLOYEE SCREENING AND REFERRAL The Oklahoma Employment Security Commission provides customized assistance in the screening and referral of qualified job applicants, at no cost to your business. Local and statewide labor searches are also available. JOB TRAINING PARTNERSHIP ACT (JTPA) The federal Job Training Partnership Act UTPA) provides 50% of on-the-job training costs and 100% of the classroom training for qualified low- income individuals. The public/ private sector effort is operated through the Oklahoma Employment Security Commission and local private industry councils. ENTERPRISE ZONES (620.5. §690.1 efseq.) The state has designated Enterprise Zones which can be either depressed counties or inner cities. These zones provide extra incentives for business. Double the Investment/ New Jobs tax credit is allowed and low - interest loans may be made available through the enterprise district loan fund. Local communities may exempt local taxes for 6 years (instead of 5) for qualifying businesses (62 O.S. § 860). Small Linked Deposit Loans may be for longer terms. (62 O.S. §§ 88.1A et seq) The enterprise district management authorities created in each enterprise district are Business incentives and Tax Information Guide empowered to establish venture capital loan programs and to solicit proposals from enterprises seeking to establish or expand facilities in the zones. By statute, funds for these programs would come from the issuance of general obligation bonds by the district involved. These loans can be for up to 100% of the estimated cost of the building and equipment. NOTE: For updates and specific zone information contact the Oklahoma Department of Commerce. ` a Ada (3 zones Pontotoc) Haskell (3 zones Muskogee) Altus (2 wneslackson) Idabel (McCunzin) MUNICIPAL ENTERPRISE ZONES 1 Atoka(AmW COUNTY DE=mmw ENTERPRisE ZONE) Addington Deer Creek Hydro Quinlan Alva Delaware Jefferson _ Renfrow Arnett Dill City Knowles Reydon Avard Fargo fathom Ringling Beaver Forgan ttvetne Rocky Bessie Fort Supply Lenapah Roosevelt Boswell Fort Towson torte Wolf Russian Buffalo, Foss Longdale Ryan Bums Flat Frederick Loveland Sentinel Canton Freedom Manchester Sharon Canute Gage Manitou Shattuck Capron Gate May Snyder Chattanooga Geary Medford Soper Cheyenne Gotebo Mootrland South Clinton Gould Mountain Strong City Coffeyville Grandfield Puk Sugden Colony Greenfield Mvim m Terral Cooperton Hammon Mutual Tipton Cordell Hastings Nash Wakia Com Hitchcock New Alluwe Warm Cornish Hobart 1,16waa Watonga Dacoma Hollis Okeene Waunika Davidson Hugo Pond Creek Waynoka Woodward a Ada (3 zones Pontotoc) Haskell (3 zones Muskogee) Altus (2 wneslackson) Idabel (McCunzin) Alva (Woods) Lawton (3 zones Comanche) Ardmore C3 zones Gaped Madill (3 zones Marshall) Atoka(AmW - McAlester (Pitaburg) Bartlesville (2 zones Miarni(Ottawa) Washirwoul _ Newlddr(Kay) Billings.CNo) OkWminat City (3 zones Blackwell (Kay) Oklahoma) Gatocsa (ttogers) Owasso (ru %) Clinton (Custer) Sand Springs (Tulsa) Davis ( Muray) Shawnee (2 zones Durtain(Rephens) Ponawatomie) Dui (Bryan) Sulphur (Murray) Enid (2 woes Garfield) Tonkam (3 zones Kay) FmAerick(i'dlman) Tulsa (4 zones Tulsa) Guthrie (Logan) Faidand(Ottawa) Guymon (Texas) I=(wasbha) ENTERPRISE ZONES (ENTIRE CITY is ENTERPRISE ZONE) Anadarko (Caddo) Nowata(NaveaW CamienWlaVa) Otanulgee(Okmulpm) Chemtah04cintosfo Paulsvilky(Garviro Cheyetue(Ro Mills) Pawhusla(Osaw) ddclasba(Grady) Poteau(i<Pkm) Coalgate(Gm1) Rushsprings(Gady) Cushing(Payne) Sallisaw(Sequoyah) Cyril (Caddo) Seninel(washia) Davis (Murray) Stigler (Haskell) Dnimright(Crek) Stillwater (Payne) Erick (Caddo) Stilwell (Adair) Eufaula(Mchnosho Stroud(lincrW Faidand(Ottawa) Tetaunsch I=(wasbha) (Patawatomie) HeaverierQeFbne) Terkort(Paweee) Holdenwlk(Hugies) Tishomingoaohnuoro Lone,Woi((amy) Waynoka(Woods) Mangum (Greer) Welch(Craig) Mannsvile Qohnuon) wewoka (Seminole) Miami(Clraxa) Wdburton(iadrner) Yale (Payne) off _ _ 'FRAM I(fAURO cayman 4VJ- 01J —J1 V.J October 24,1997 Mr. Robert M. Tobias City of Owasso PO Box 180 Owasso, OK 74055 Re: Enterprise Zone Dear Mr. Tobias, LCI 1 Vr 1. V1`II`IGRIsC tEO E PRESCEr fOOME DIAEU06 r" GL Hama ftassAIM0 SEtAEARY RF COMMAEE For the Oklahoma Department of Commerce to qualify the additional area you are requesting for an Enterprise Zone ($Z), we will need verification that there are eight (8) low income housing units in the following area. Starting from the corner of Highwy 75 and Bitch then north three blocks along Birch to le St., then west one block along I St. to Main, then north one block along Main to 2 °4 St, then east one black along r St. to Birch, then north one block along Birch to 3t4 St., then east one block along 3 St. to Cedar, then south one half block along Cedar to the next street south, then east along that street two blocks to the last street before the frontage road, then north to 4th street, the east on 4th St. to the frontage road, then south along the frontage road to Highway 75, then west back to the comer of Birch and Highway 75. The census geography for this area is Census Tract 58.01 blocks 102A, 103, and 150. The area that will need to be surveyed will be the area inside the above boundanes. It should include the area on the inside only, not both sides of the boundary streets. Any housing unit with less than a 1997 household income of $24,000 is considered to be low income. Please contact me if you have any questions. Jeff Wallace Oklahoma State Data Center Or AMM OVARYNNT ak CaE> MM 900M0rtRSMaA W1P. O. aa,2em- ow" c*.. owhoma nlzs -0980 usA. Rkpbm . (1051 of, 052 *r 1(607) TRY-ORU • AX (105) Alb-5199 MEMORANDUM TO: THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY CITY OF OWASSO FROM: ROBERT M. TOBIAS, JR. DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: OEDA MONTHLY REPORT DATE: November 13, 1997 ECONOMIC DEVELOPMENT PROJECTS: 1. Vision Owasso program is entering its final session. An average of 40 participants have attended each meeting. The attendees have also represented a broad cross section of the community, as well as major land owners. The goal of this planning initiative is to produce a community vision and to provide a framework for the development a strategic economic community development plan. 2. Direct involvement and coordination of a number of transportation- related projects have encompassed a significant amount of time and effort. The major projects include efforts associated with the alignment of State Highway 20, the widening of 76th Street North, the provision of transit services to Owasso and the ongoing reassessment and potential redesignation of roadways which should be included in the regional transportation plan. 3. Based upon input from several OEDA and Owasso Chamber of Commerce board members, we are expanding the Enterprise Zone to include the proposed site for Omni Entertainment. The expansion of the zone is being coordinated with the Oklahoma Department of Commerce and will be submitted to the OEDA and the Owasso City Council for the adoption and approval of a resolution. 4. The recent approval of the capital improvements bond issue, has reinvigorated discussion on the need to redevelop the downtown corridor. Several members of the OEDA and Owasso Chamber of Commerce board, as well as a number of participants of Vision Owasso have also indicated their strong support for this redevelopment initiative. Staff is evaluating the requirements for a state- sponsored Main Street Program. ECONOMIC DEVELOPMENT DIRECTOR'S REPORT NOVEMBER 13, 1997 PAGE 2 OF 2 ECONOMIC DEVELOPMENT PROSPECTS: 1. Precision Components - Continuing coordination of a number of technical assistance services for PCI. Staff is continuing to explore the application of the ODOC Quality Building Program and will provide an orientation of this state building initiative at the December monthly meeting. 2. National Steak & Poultry - Continuing coordination of CDBG grants and other issues which will facilitate their expansion. 3. Warehouse /distribution company - Company continues to conduct market assessment. This project represents up to a 150,000 square foot warehouse that would create up to 30 new jobs and add $3.5 million to the tax base. 4. Omni Entertainment officials have requested the city expand the Enterprise Zone to encompass their proposed site. Staff plans to recommend the expansion of the Enterprise Zone and upon authorization from the Oklahoma Department of Commerce, will request an OEDA resolution endorsing the expansion of the Enterprise Zone which will then be provided to the Owasso City Council for their consideration. 5. Healthcare project - News release related to Hillcrest Healthcare announcement of their plans to construct a medical complex in Owasso is attached. This $14 million project, which encompasses a $12 million hospital complex and a $2 million medical office building, will provide significant new development opportunities for Owasso. Economic development activities throughout the region continue to reflect a strong, expanding and diversified economic base. However, the OEDA needs to explore a number of new economic development initiatives in order to effectively facilitate both commercial and industrial development opportunities. Examples of these initiatives include the collaboration and cooperation to explore the creation of a Main Street Program, the financial assessment of the potential economic impact of creating a Tax Increment Financing District encompassing the entire Enterprise Zone and finally, the exploration of sources of funding to support the growing needs of the economic development program. FROM : HILLCREST MKTG /OUTR PHONE NO. : Nov. 05 1997 05:49PM P2 For Immediate Release Contact: Melissa Bogle November 5, 1997 9181579 -7974 HILLCREST . HEALTHCARE ANNOUNCES FIRST HOSPITAL IN FAST GROWING OWASSO Tulsa, November 5, 1997 — Owasso, one of Tulsa County's fastest growing cities, is getting its first hospital, a 35 bed facility to be built by Hillcrest HealthCare and scheduled to be completed in late summer of 1999. Located at the comer of 96h Street North and Highway 169, the new facility will be the only hospital in north Tulsa County. Plans for the hospital are in their final stages, and .fomral approval from 'Tdlcrost's Board of Trustees is expected soon. The hospital will be a state -of -the -art Primary level acute care ,facility offering extensive outpatient services and appropriate inpatient capabilities. Its design will accommodate current and future healthcare needs and technology. "Providing the people of Owasso with their own hospital underscores 1-1illcrest,s commitment to service which is leading us to create the most comprehensive and responsive network of healthcare services, programs and facilities serving eastern Oklahoma," said Donald A. L orack, Jr., President and Chief Executive Officer of Hillerest HealthCare. He pointed out that Hillerest already has a presence in Owasso through the Utica Park Clinic Owasso which is part of Hillcrest Medical Group. "Having our own hospital is yet another indication that Owasso has arrived, and the hospital will further enhance our economic and social attractiveness,' said Owasso's city manager, Rodney Ray. The City of Owasso has grown 92 Percent in the past 10 years, and voters there recently approved an expansion in the number of civic improvement projects funded by the local sales tax. Hillcrest programs and services can be found in 17 communities covering northeastern Oklahoma. In addition to the construction of the new hospital in Owasso and SouthCrest Hospital, Hillcrest this year alone assumed management responsibility for Eastern Oklahoma Medical Center in Poteau, Cleveland Area Hospital, and Henryetta Medical Center. In 1997, the over 4,000 people who work at Hillcrest facilities and 882 physicians on Hillerest's medical staff expect to serve 24,200 inpatients and approximately 862,000 outpatient and physician office visits.