Loading...
HomeMy WebLinkAbout2014.01.09_OEDA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY TYPE OF MEETING: Regular DATE: January 9, 2014 TIME: 10:00 a.m. PLACE: Owasso City Hall, Lower Level Conference Room 111 N. Main Owasso, Oklahoma Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 5:00 PM on Tuesday, January 7, 2014. Chelsea M.E. Levo, Economic Development Director AGENDA 1. Call to Order Dr. Spriggs, Chairman 2. Consideration and appropriate action relating to a request for Trustee approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of minutes of the December 12, 2013 regular meeting Attachment B. Approval of claims Attachment C. Acceptance of the monthly financial reports Attachment 3. Consideration and appropriate action relating to items removed from the Consent Agenda 4. Consideration and appropriate action relating to a project for Precision Aerospace, Inc. and certain of its affiliates and determining the official intent of the authority to issue its Industrial Development Revenue Bonds in a principal amount not to exceed $2,000,000 to finance the costs of such project; and containing other provisions thereto. Ms. Levo Attachment OEDA January 9, 2014 Page 2 5. Report from OEDA Director Ms. Levo Attachment • Monthly Building Report • Public Works Project Status Report • Business Development Report • Monthly Sales Tax Report 6. Report from OEDA Manager Mr. Lehr 7. Report from OEDA Trustees 8. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 9. Adjournment MEETING OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF MEETING Thursday, December 12, 2013 The Owasso Economic Development Authority met in regular session on Thursday, December 12, 2013 in the Lower Level Conference Room at City Hall per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 PM on Tuesday, December 10, 2013. ITEM 1: CALL TO ORDER & ROLL CALL Dr. Spriggs called the meeting to order at 10:00 AM. PRESENT Bryan Spriggs, Chairman Dirk Thomas, Vice chairman Gary Akin, Secretary David Charney, Trustee Jeri Moberly, Trustee Dee Sokolosky, Trustee Frank Enzbrenner, Trustee A quorum was declared present. ABSENT ITEM 2: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE OEDA CONSENT AGENDA A. Approval of minutes of the November 14, 2013 Regular Meeting B. Approval of claims C. Acceptance of the monthly financial report Ms. Moberly moved to approve the consent agenda, seconded by Mr. Enzbrenner. AYE: Spriggs, Sokolosky, Enzbrenner, Moberly, Akin, Thomas, Charney NAY: None Motion carried 7 -0. ITEM 3: CONSIDERATION AND APPROPRIATE ACTION RELATING TO ITEMS REMOVED FROM THE CONSENT AGENDA No action required ITEM 4: Discussion regarding a proiect for Precision Aerospace, Inc. and certain of its affiliates requesting of the Authority to issue its industrial development revenue bonds to finance costs of such proiect Warren Lehr introduced Allan Brooks with the Public Finance Law Group, PLLC. Mr. Brooks introduced a request made by Precision Aerospace, Incorporated to obtain financing utilizing industrial development revenue bonds through the OEDA and discussion as held. It was further explained that the item would be presented to the City Council at their January meeting. The OEDA may be asked to consider an Inducement Resolution during their January meeting. December 12, 2013 ITEM 5: REPORT FROM OEDA MANAGER Mr. Lehr introduced Bronce Stephenson who presented the Monthly Building Report for November; Roger Stevens presented the Public Works project status update; and Sherry Bishop provided a sales tax report. ITEM 6: REPORT FROM OEDA TRUSTEES No Report ITEM 7: NEW BUSINESS None ITEM 8: ADJOURNMENT Mr. Thomas moved to adjourn the meeting, seconded by Ms. Moberly. AYE: Moberly, Sokolosky, Thomas, Spriggs, Akin, Enzbrenner, Charney NAY: None Motion carried 7 -0. At 1 1:15 AM, the meeting adjourned. Juliann M. Stevens, Minute Clerk -2- A Tire City 'Wit out Limits. TO: THE HONORABLE CHAIRMAN AND TRUSTEES OWASSO ECONOMIC DEVELOPMENT AUTHORITY FROM: CHELSEA M.E. LEVO ECONOMIC DEVELOPMENT DIRECTOR SUBJECT: CLAIMS, OEDA DATE: January 9, 2014 No Claims for December 2013. Owasso Economic Development Authority Statement of Revenues, Expenses and Changes in Fund Net Assets For the Month Ending December 31, 2013 MTD Operating Revenues $0.00 Operating Expenses: Materials & supplies 0.00 Services & other charges 0.00 Capital outlay 0.00 Total Operating Expenses 0.00 Operating Income (Loss) 0.00 Non - Operating Revenues (Expenses): Investment income 0.70 Promissory note revenue 0.00 RAN debt service & other costs 0.00 Total non - operating revenues (expenses) 0.70 Net income (loss) before contributions and transfers 0.70 Transfer to general fund 0.00 Change in net assets 0.70 Total net assets - beginning Total net assets - ending YTD Budget $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 4.11 0.00 0.00 4.11 4.11 0.00 4.11 9,054.51 $9,058.62 0.00 5,000.00 0.00 5,000.00 (5,000.00) 0.00 0.00 0.00 0.00 (5,000.00) 0.00 (5,000.00) 9,054.51 $4,054.51 A Tire City `Wit out Limits. TO: The Honorable Chair and Trustees Owasso Economic Development Authority FROM: Chelsea M.E. Levo Economic Development Director SUBJECT: Precision Aerospace, Inc. Industrial Development Revenue Bonds DATE: January 9, 2014 PURPOSE: This item presents information and a request regarding the possible issuance of Industrial Development Revenue Bonds by the Owasso Economic Development Authority (OEDA) toward the strategic growth of Precision Aerospace, Incorporated, a long -time Owasso business. BACKGROUND: OWASSO INDUSTRIAL DEVELOPMENT The Owasso Industrial Authority (OIT) was established as a public trust in November 1980 and was terminated in November 1991. During the eleven years of the trust's existence, it served as a conduit for financing Industrial Revenue Bonds for several projects in Owasso including: BWC Production, Inc., October 1981 o $680,000 Mingo Manufacturing, March 1982 o $187,000 Woods Manufacturing, January 1984 o $800,000 The Owasso Industrial Authority was terminated with no outstanding obligations or active projects in which the trust was involved. A comparative analysis of the trust documents of the OEDA and the OIT, validated the theory that the OEDA was authorized to undertake any project that would be allowed by the OIT indenture. The Declaration of Trust for the OEDA states the "purposes of this Trust, for and on behalf of the Beneficiary as hereinafter described" in Article III, Section F: (f) To provide funds for the costs of financing, acquiring, constructing, installing, equipping, repairing, remodeling, improving, extending, enlarging, maintaining, operating, administering and disposing of or otherwise dealing with any of the aforesaid physical properties and facilities, and for administering the trust for any or all of the aforesaid trust purposes, and for all other charges, costs and expenses incidental thereto; and in so doing to incur indebtedness, either unsecured or secured by any part or parts of the Trust Estate and /or revenues thereof; This section allows the OEDA to serve the current financing request. In 1993, the OPWA deeded land to the OEDA for use as an incentive for bringing the Max Buchanan Company to Owasso. Later in 1994, the Max Buchanan Company exchanged the lease /purchase agreement with Precision Components Company, known today as Precision Aerospace, Inc. PRECISION AEROSPACE, INC. Precision Machine was established by Tommy Caudill in 1964 under the name Precision Machine & Manufacturing Company. With a $500 investment raised through the sale of his home, Mr. Caudill rented warehouse space in Tulsa, Oklahoma. He purchased a used machine and moonlighted to produce Precision's first parts. In 1969, Mr. Caudill moved his business from Tulsa to his hometown of Grove to help bring industry to the local rural economy. In 1994, Precision Components Company was established when Textron Lycoming awarded the company a sole- source contract to supply cylinder assemblies for its reciprocating aircraft engines. In 2007, the company reorganized and adopted the name Precision Aerospace, Inc. ( "Precision ") in order to more accurately reflect its business focus and customer base. Precision is still a family owned and operated business employing second and third generation family members. Today, Precision employs approximately 188 team members at its locations in Grove and Owasso, Oklahoma, with 51 being located at the Owasso facility. Precision is planning to purchase two (2) pieces of equipment for its Owasso facility. The equipment is identified as a Mazak Variaxis 630T, which is essentially a lathe metal machining tool. Although additional employees are a potential possibility, the new equipment will allow Precision to diversify its product base and increase revenues while creating a higher skill set with the company's existing employee base. Precision desires to work with its current building and is engaging, a lean consultant to assist in utilization of current space while planning for growth. Precisions sales have remained relatively flat since 1994 because the company has not, until recently, strategically tried to grow the business. The contemplated equipment purchases represent the first step in the company's strategic plan to enable long term growth of the Owasso facility. FINANCING REQUEST: Precision is working with GE Capital to obtain financing for the referenced equipment through the issuance of industrial development revenue bonds in a principal amount not to exceed $2,000,000 (the "Bonds "). The Bonds will be purchased by GE for their own account and not with a view towards resale. The Bonds will be secured by Precision assets and a promise to pay that will be passed through the Owasso Economic Development Authority (OEDA) as a conduit issuer. This is a limited and special obligation of the Authority secured by only those assets pledged by Precision. There will be no general pledge or lien on OEDA or City of Owasso assets or revenues. Section 144(a) of the Internal Revenue Code of 1986, as amended (the "Code ") provides for the issuance of qualified small issue private activity bonds. Prior to 1986 Code, these bonds were generally referred to as industrial development bonds. Section 144(a) provides for debt to be issued to finance "manufacturing facilities," with interest on the debt being excludable from gross income for federal income tax purposes. The purpose of Section 144(a) is to encourage economic growth through the expansion of manufacturing facilities. Because of the favorable tax treatment, GE is willing to purchase the Bonds at an interest rate lower than conventional financing. The Bonds will have a seven year term and will be fully amortizing. The tax - exempt rate will be approximately 215 basis points less than conventional taxable debt. Based upon today's interest rate environment, the interest rate would be approximately 3.80 % per annum. The OEDA discussed this financing request in their regular meeting on December 12, 2013. Allan Brooks from the Public Finance Law Group, PLLC presented information to the Trustees for discussion. The OEDA is being asked to pass an "Inducement Resolution." The Resolution indicates that the Authority plans to issue the Bonds at a future date. ACTION REQUESTED: The Precision Companies are requesting approval of the issuance of Industrial Development Revenue Bonds in a principal amount not to exceed $2 million in order to finance the cost of manufacturing fixtures, equipment, and machinery to be utilized for precision machining of parts to be used in the aircraft, aerospace, and petroleum industries in their Owasso facility. The OEDA is being asked to consider and take appropriate action on an Inducement Resolution. This Resolution acknowledges the intent to issue bonds at a later date, allowing Precision to pre - order the equipment and preserve its ability to issue the debt on a tax - exempt basis. Prior to the actual issuance of the Bonds, both the OEDA and the City Council would be required to approve the issuance of the Bonds by a three fourths (3/4) vote of each body. This would be a limited and special obligation of the Authority secured only by those assets pledged by Precision. There would be no general pledge or lien on Authority or City of Owasso assets or revenues. In order to gauge the interest of both bodies in proceeding, an item has been placed on the January 7, 2014 City Council agenda seeking: Review of the OEDA Resolution related to the issuance of the Bonds by the Authority for the benefit of the Precision Companies Acknowledgement that both the Authority and the City Council will be required to give final approval prior to the issuance of the Bonds Declare the official intent of the City to approve action to be taken by the Authority to finance the costs of the equipment out of the proceeds of the Bonds of the Authority in a principal amount not to exceed $2,000,000 RECOMMENDATION: Staff recommends OEDA approval of Resolution No. 2014 -01 acknowledging the intent to issue bonds at a later date, allowing Precision to pre -order equipment and preserve its ability to issue the debt on a tax - exempt basis. ATTACHMENT: Resolution No. 2014 OWASSO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2014 -01 RESOLUTION OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY (THE "AUTHORITY ") APPROVING A PROJECT FOR PRECISION AEROSPACE, INC. AND CERTAIN OF ITS AFFILIATES AND DETERMINING THE OFFICIAL INTENT OF THE AUTHORITY TO ISSUE ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $2,000,000 TO FINANCE THE COSTS OF SUCH PROJECT; AND CONTAINING OTHER PROVISIONS THERETO. WHEREAS, The Owasso Economic Development Authority (the "Authority ") is a public trust created for the use and benefit of the City of Owasso, Oklahoma under the provisions of Title 60, Oklahoma Statutes, Section 176 et seq., as amended, and the Oklahoma Trust Act; and WHEREAS, Precision Machine & Manufacturing Company, L.L.C., an Oklahoma limited liability company, Precision Leasing Company, LLC, an Oklahoma limited liability company, Precision Aerospace, Inc., an Oklahoma corporation, and Precision Components Company, L.L.C., an Oklahoma limited liability company and certain of their affiliates (individually, a "Precision Company" and, collectively, "Precision Companies "), have requested that the Authority (i) approve a project for Precision Companies to be located in the City of Owasso, Oklahoma and consisting of manufacturing fixtures, equipment, and machinery (the "Project ") to be utilized for precision machining of parts to be used in the aircraft, aerospace and petroleum industries, (ii) issue its industrial development revenue bonds in a principal amount not to exceed $2,000,000 (the "Bonds ") to provide funds to (a) pay the costs of the Project, (b) pay the costs of issuance associated with the Project, and (c) lend to one or more Precision Companies for the purpose of financing the costs of the Project; and WHEREAS, the Authority desires to finance the costs of purchasing, constructing and equipping the Project by the issuance of the Bonds, said Bonds to be payable solely out of payments, revenues and receipts derived by the Authority from one or more Precision Companies pursuant to a loan agreement evidencing the Authority's loan of the proceeds of said Bonds to one or more Precision Companies; and WHEREAS, the Authority and Precision Companies desire that the purchase, construction and equipping of the Project commence as soon as practicable; NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY, AS FOLLOWS: Section 1. Findings and Determinations. The Authority has found and determined, and does hereby find and determine, that in order to increase the economy, welfare and prosperity of he citizens of the City of Owasso, Oklahoma, and to induce the expansion of Precision Companies' activities in Owasso, it is appropriate for the Authority to issue the Bonds to provide funds for the Project and for paying the costs and expenses associated with the issuance of the Bonds. Section 2. Approval of Project and Declaration of Official Intent. The Trustees of the Authority hereby approve the Project and determine and declare the official intent of the Authority to finance the costs of the Project out of the proceeds of the Bonds of the Authority in a principal amount not to exceed $2,000,000. This Resolution shall constitute the Authority's official binding commitment, subject to the terms hereof, to issue the Bonds in amounts prescribed by Precision Companies up to $2,000,000 and to loan the proceeds thereof to one or more Precision Companies to purchase, construct and equip the Project, including reimbursing one or more Precision Companies for, and /or retiring indebtedness of one or more Precision Companies incurred in connection with, the payment of the costs of the Project, and to pay all expenses and costs of the Authority in connection with the issuance of the Bonds. Section 3. Terms and Provisions. Subject to the conditions of this Resolution, the Authority will (i) enter into a trust indenture with a bank or trust company, as corporate trustee, pursuant to which the Authority will issue the Bonds to pay the costs of financing the Project, including repayment to Precision Companies of advances made by them in connection with the Project, with such maturities, interest rates, redemption terms, security provisions and other terms and provisions as may be determined by subsequent resolution of the Authority; (ii) enter into a loan agreement with one or more Precision Companies which will provide for a loan of the proceeds from the sale of the Bonds to such Precision Companies to enable such Precision Companies to purchase, construct and equip the Project, such loan to be evidenced by a promissory note pursuant to which such Precision Companies will make payments sufficient to pay the principal of and interest on the Bonds as the same become due and payable; and (iii) to effect the foregoing, adopt such resolutions and authorize the execution and delivery of such security agreements and other instruments and the taking of such action as may be necessary or advisable for the authorization and issuance of the Bonds by the Authority and take or cause to be taken such other action as may be required to implement the aforesaid. Section 4. Conditions to Issuance. The issuance of the Bonds and the execution and delivery of any documents related to financing the Project are subject to (i) approval by the Trustees of the Authority; (ii) approval by the City Council of the City of Owasso, Oklahoma, as Beneficiary of the Authority, (iii) approval by the managers, members or board of directors, as the case may be, of the applicable Precision Companies; (iv) receipt by the Authority of an allocation from the Oklahoma Bond Advisor, as described in Section 9 hereof; (v) obtaining by Precision Companies of any necessary governmental licenses, permits and approvals; and (vi) agreement by the Authority, one or more Precision Companies and GE Capital upon (a) mutually acceptable terms for the Bonds and for the sale and delivery thereof and (b) mutually acceptable terms and conditions of any documents related to the issuance of the Bonds and the Project. Section 5. Reimbursement of Expenditures. Precision Companies have made certain expenditures in connection with the purchase, construction and equipping of the Project, and expects to make additional similar expenditures after the date of this resolution and before the issuance of the Bonds, and the Authority desires and intends to reimburse Precision Companies, solely from the proceeds of the Bonds, for such expenditures made not earlier than 60 days before the date of this Resolution. Precision Companies are only entitled to reimbursement of such expenditures if and to the extent Bonds are issued by the Authority. Section 6. Authorization to Proceed. Precision Companies are hereby authorized to proceed with the purchase, construction and equipping of the Project, including the necessary planning and engineering for the Project and entering of contracts and purchase orders in connection therewith, and to advance such funds as may be necessary to accomplish such purposes, and, to the extent permitted by law, the Authority shall reimburse Precision Companies for all expenditures paid or incurred therefor out of the proceeds of the Bonds. Section 7. Sale of the Bonds. The Authority shall sell the Bonds, but only on a firm underwriting or purchase basis, to GE Capital, and the Authority shall approve, at such price as Precision Companies and the Authority shall approve, such Bonds to be issued upon receipt of an unqualified approving opinion by recognized Bond Counsel, in form and substance agreeable to the Authority, Precision Companies and GE Capital. The sale of the Bonds shall be the responsibility of Precision Companies. Section B. Public Hearing and Approval. The Chairman of the Authority is hereby authorized to conduct a public hearing with respect to the issuance of the Bonds to finance the Project and to cause notice of such hearing to be published in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended. The obligation of the Authority to proceed with the final issuance of the Bonds shall be subject to receipt of public approval for such issuance as required under said Section 147(f). Section 9. Application for Private Activity Bond Allocation. The Chairman of the Authority is hereby authorized to file an Application for Private Activity Bond Allocation with the State of Oklahoma Bond Advisor in accordance with Title 62, Oklahoma Statutes, Section 695.21 etseq. (the "Private Activity Bond Allocation Act "). Section 10. Indemnity. By accepting the terms of this Resolution and proceeding with the Project, Precision Companies will be considered to have agreed (i) to indemnify and hold the Authority harmless against liability with respect to any destruction of or damages to property or any injury to or death of any person or persons occurring in connection with the Project (other than liability for any loss or damages that may result from wanton misconduct or from intentional wrongful acts of the Authority), and (ii) to pay the regular fees and charges of the Authority for its services in connection with financing the Project as well as all of its expenses in connection therewith. Section 11. Limited Liability. Any provision hereof to the contrary notwithstanding, nothing herein contained shall be construed to impose a charge against the general credit of the Authority or to impose any pecuniary liability upon the Authority except with respect to the proper application of the proceeds to be derived by the Authority from the sale of the Bonds and of the revenues and receipts to be derived by the Authority from any financing, leasing or sale of the Project. Nothing herein shall be deemed to restrict the Authority or the State of Oklahoma or any agency or any political subdivision thereof in determining the order or priority of the issuance of bonds by the Authority or to require the Authority to give the Bonds priority as to issuance or as to the time of issuance over any other bonds previously or subsequently approved by the Authority for issue. Section 12. Further Authority. Counsel to the Authority and Bond Counsel, together with the officers and employees of the Authority, are hereby authorized to work with Precision Companies and GE Capital, their respective counsel and others, to prepare for submission to and final action by the Authority all documents necessary to effect the authorization, issuance and sale of the Bonds and other actions contemplated hereunder in connection with the financing of the Project. Section 13. Benefit of Resolution. This Resolution shall inure to the benefit of the Authority and Precision Companies and their respective successors and assigns. Section 14. Effective Date. This Resolution shall take effect and be in full force immediately after its adoption by the Trustees of The Owasso Economic Development Authority. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] ADOPTED BY THE TRUSTEES OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY THIS 9T" DAY OF JANUARY, 2014. THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY (Seal) ATTEST: Secretary Chairman Month 2004 2005 2006 2007 2008 2009 2010 20111 2012 2013 1 January 30 31 22 13 25 15 17 18 19 15 2 February 50 52 41 14 19 23 29 17 15 26 3 March 75 65 60, 25 35 30 46 14 27 27 4 April 47 63 52 30 31 36 31 19 26 26 5 May 31 43 36 60 23 27 30 20 23 19 6 June 53 42 29 27 21 34 23 19 24 19 7 July 34 27 12 23 24 28 17 20 15 27 8 August 36 45 28 27 18 28 19 12 15 18 9 September 64 35 12 17 40 20 11 12 12 28 10 October 42 30 25 31 15 36 13 10 21 15 11 November 31 32 13 26 10 13 1 8 11 7 12 December 35 53 16 8 6 13 9 10 16 11 Totals 526 518 336 301 267 3113 246 179 224 238 `ATD 528 518 336 301 267 303 246 179 224 238 TOTAL NEW CONSTRUCTION DOLLARS FOR EACH YEAR 45,000,000 30,000,000 III�I #i�rt CITY OF OWASSO RESIDENTIAL LOT INVENTORY STATUS December 31, 2013 SUBDIVISION # OF LOTS # DEVELOPED # AVAILABLE Burberry Place (6109) 89 86 3 Camelot Estates (4107) 139 84 55 Carrington Pointe 1 (1111) 171 118 53 Champions East (05/08) 66 6 60 Champions West (5108) 45 9 36 Country Estates III (3/99) 61 58 3 Country Estates Vi (11103) 37 36 1 Crescent Ridge (02108) 101 93 8 Fairways V (8199) 71 63 8 Fairways VI (12100) 42 41 1 Falls at Garrett Creek (12105) 85 84 1 Falls at Garrett Creek Amended (12105) 24 23 1 Honey Creek (4102) 202 198 4 Keys Landing (3108) 131 106 25 Lake Valley IV (5110) 114 112 2 Lake Valley V (9130) 78 24 54 Lakes at Bailey Ranch (10107) 235 226 9 Maple Glen (12108) 98 95 3 Maple Glen I1 (11 /11) 93 86 7 Maple Glen 111 (5113) 43 26 17 Nottingham Estates IV (8101) 20 17 3 Nottingham Estates V (3101) 44 43 1 Nottingham Hill (6109) 58 12 46 Preston Lakes (12100) 272 243 29 Preston Lakes III (10104) 147 144 3 Remington Park II (11/04) 84 82 2 Sawgrass Park II (04/05) 96 94 2 The Summit at Southern Links (6197) 31 26 5 Watercolours (12102) 40 31 9 TOTALS 2717 2266 451 Watercolours (12/02) The Summit at Southern Links (6197) Sawgrass Park 11 (04105) Remington Park II (11/04) Preston Lakes 111 (10104) Preston Lakes (12100) !Nottingham Hill (6109) Nottingham Estates V (3101) Nottingham Estates IV (8101) Maple Glen 111 (5113) Maple Glen 11 (1111) Maple Glen (12108) Lakes at Bailey Ranch (10107) Lake Valley V (9130) Lake Valley IV (5110) Keys Landing (3108) Honey Creek (4102) Falls at Garrett Creek Amended (12105) Falls at Garrett Creek (12105) Fairways Vt (12100) Fairways V (8199) Crescent Ridge (02108) Country Estates VI (11103) Country Estates Ill (3199) Champions West (5108) Champions l=ast (05108) Carrington Pointe 1 (1 /11) Camelot Estates (4107) Burberry Place (6109) CITY OF OWASSO 0 50 100 150 200 250 300 ®Lots Developed DTotai Lots COMMERCIAL NEW CONSTRUCTION MONTH END REPORT DECEMBER 2013 Month 2003 2004 20105 2006 2007 2008 2009 2010 2011 2012 2013 1 January 0 1 2 9 4 4 1 1 3 1 1 2 February 1 5 5 0 3 2 0 1 1 1 1 3 March 1 2 1 14 2 0 1 3 0 0 0 4 April 1 3 4 1 0 4 1 1 1 0 1 5 May 1 1 3 2 1 1 2 1 2 1 0 6 June 2 4 3 4 1 1 2 0 0 2 1 7 July 0 0 0 0 0 1 0 0 0 0 1 8 August 3 3 1 7 3 1 0 0 2 2 0 9 September 2 1 2 1 28 3 0 0 0 0 0 10 October 0 0 1 3 4 1 0 0 1 0 4 11 November 1 3 0 1 1 1 2 2 1 0 1 12 December 0 0 1 1 1 1 0 1 0 0 1 Tofa-Is 12 23 23 43 48 20 9 10 11 7 11 YTD 12 23 23 43 48 20 9 10 11 7 11 DECEMBER YEAR-TO-DATE COUNT 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 - 2009 _ ..... ...... _j DECEMBER 12,830,700 --"R - - -- -- DECEMBER YEAR-TO-DATE DOLLARS LU, UkAj, U'VO 10,000,000 - I 1 1111 0 2010 ri-O-T A-11— 12,830,700 -----4-5--,6-7-0--,--3-4-7 2011 6,018,116 17,296,000 ----2-01-3 9,375,440 2010 45,6 70,347 2011 1 6 , 018, 1 1 6 2012 17,296 ,00 0 L- 2013 LU, UkAj, U'VO 10,000,000 - I 1 1111 0 2010 ri-O-T A-11— 12,830,700 -----4-5--,6-7-0--,--3-4-7 2011 6,018,116 17,296,000 ----2-01-3 9,375,440 OCCUPANCY PERMITS NAME ADDRESS APPLICATION OPENING COMPLETE 9455 N Owasso Exp 2/6/2013 5/6/2013 DATE DATE 9455 N Owasso Exp #K 4/8/2013 Yes Serenity Nails 9500 N 129 E Ave #114 2/4/2013 DECEMBER 2013 Simple Adornments 11230 N Garnett Rd #A 4/15/2013 4/27/2013 Yes Blackheart 13 NOVEMBER 2013 1/14/2013 2111/2013 Yes Select Physical Therapy 12912 E 86 St N OCTOBER 2013 2/13/2013 Yes JANUARY 2013 Justice & Brothers 9018 N 121 E Ave #500 8/19/2013 10/2/2013 Yes Mum's'N Bum's 104 W Broadway, Suite 4 10/1/2013 10/10/2013 Yes Needful Things 12701 E 86 PI N 10/1/2013 10/15/2013 Yes Sam's Club 12905 E 96 St N 9/7/2012 10/24/2013 Yes Sixkillers Gaming House 7703 N Owasso Exp #109 10/31/2013 10/31/2013 Yes SEPTEMBER 2013 Yes Senior Suites 10098 N 123 E Ave 6/14/2012 Yes AUGUST 2013 Arrival Salon 12330 E 86 St N 7/10/2013 8/12/2013 Yes Ledford Properties 425 E 22 St N 3/2/2013 8/1/2013 Yes IGH Properties 14601 E 88 PI N 7/5/2013 8/29/2013 Yes Tulsa Technology Center 10800 N 140 E Ave 11/22/2010 8/1/2013 Yes Sears 9002 N 121 E Ave #600 6/6/2013 8/23/2013 Yes Halloween City 8751 N 117 E Ave 8/9/2013 8/28/2013 Yes JULY 2013 Dance Studio 403 W 2nd St #107 5/21/2013 7/17/2013 Yes LaTorta Chilanga 11501 N Garnett Rd 7/512013 7/30/2013 Yes JUNE 2013 Vaping Kicks Ash 11215 N Garnett Rd #D 6/26/2013 7/8/2013 Yes Dollar Tree 12309 E 96 St N 4/16/2013 6/12/2013 Yes The Children's Place 9002 N 121 E Ave #400 2/4/2013 6/12/2013 Yes MAY 2013 APRIL 2013 Los Cabos 9455 N Owasso Exp 2/6/2013 5/6/2013 Yes Tyann Development 9455 N Owasso Exp #K 4/8/2013 Yes Serenity Nails 9500 N 129 E Ave #114 2/4/2013 Yes Simple Adornments 11230 N Garnett Rd #A 4/15/2013 4/27/2013 Yes MARCH 2013 FEBRUARY 2013 Aspen Dental 9025 N 121 E Ave #300 10/1/2012 211/2013 Yes Denali Vapor 12802 E 86 St N 2/1/2013 2/18/2013 Yes Marcos Pizza 14499 E 86 St N #200 11/4/2012 2/16/2013 Yes Blackheart 13 8751 N 117 E Ave #K 1/14/2013 2111/2013 Yes Select Physical Therapy 12912 E 86 St N 11/6/2012 2/13/2013 Yes JANUARY 2013 Planet Subs 9045 N 121 E Ave #500 12 -Dec 1/4/2013 Yes The Flying Pig 202 E 1 St Dec -12 1/4/2013 Yes Total Care Car Maintenance 404E E 2nd St Dec -12 1/4/2013 Yes Christian Bro's Auto 9530 N Garnett Rd Aug -09 1/1/2013 Yes Select Physical Therapy 12910 E 86 St N Dec -13 1/10/2013 Yes PERMITS APPLIED FOR IN DECEMBER 2013 ADDRESS BUILDER ADD /ZONE VALUE A.S.F. PERMIT# DATE 12702 E 86 St N Claude Neon Signs CS /ECCCA $ 25,533 120 13- 1201 -S 12/10/2013 9103 N 96 E Ave Executive Homes LBR /RS3 $ 166,045 3,019 13- 1202 -X 12/11/2013 7613 E 83 St S Executive Homes CARPI /RS3 $ 146,740 2,668 13- 1203 -X 12/11/2013 7608 E 83 St S Executive Homes CARPI /RS3 $ 143,440 2,608 13- 1204 -X 12/11/2013 12102 E 70 St N Executive Homes KL /RS3 $ 143,440 21608 13- 1205 -X 12/11/2013 12006 E 69 St N Executive Homes KL /RS3 $ 155,320 2,824 13- 1206 -X 12/11/2013 14510 E 111 PI N Simmons Homes LVV /RS3 $ 123,805 2,251 13- 1207 -X 12/11/2013 14620 E 111 PI N Simmons Homes LVV /RS3 $ 99,000 11800 13- 1208 -X 12/11/2013 7605 E 82 PI N Kolt Systems CARPI /RS3 $ 159,500 2,900 13- 1209 -X 12/11/2013 7703 N Owasso Exp #109 Oil Capital Neon OCC /CS $ 4,600 33 13- 1210 -S 12/11/2013 401 W 2 Ave Penta AT /IL $ 162,590 1,247 13- 1211 -C 12/11/2013 9802 E 90 Ct N American Heartland FWV /RS3 $ 136,565 2,483 13- 1212 -X 12/13/2013 8706 N 121 E Ave Servpro North Tulsa TLII /RS3 $ 40,000 2,000 13- 1213 -X 12/30/2013 12401 E 86 St N Acura Neon LBC /OL $ 22,000 90 13- 1214 -S 12/30/2013 425 E 22 St Larry Voss HTG /OL $ 2,000 24 13- 1215 -S 12/30/2013 9408 N 132 E Ave Balser Pools WL /RS2 $ 38,000 589 13- 1216 -P 12/30/2013 14614 E 111 PI N Simmons Homes LVV /RS3 $ 105,710 1,922 13- 1217 -X 12/30/2013 10915 N 120 E Ave Simmons Homes MGIII /RS3 $ 100,815 1,833 13- 1218 -X 12/30/2013 11 Single Family $ 1,480,380 26,916 SgFt 1 Residential Remodel $ 40,000 2,000 SgFt 1 New Commercial $ 162,590 1,247 SgFt 4 Signs $ 54,133 267 SgFt 1 Pool $ 38,000 589 SgFt 18 Total Building Permits $ 1,775,103 31,019 SgFt C-�fy of Owas 111 N. Ma.irwSf. Owv45o -, OK 74055 PROJECT STATUS REPORT City of Owasso Public Works Department January 3, 2014 • E. 106b Street North and Garnett Road Intersection Improvement Project - Funding for the construction of this project is a result of a "matching grant "; 80% ODOT funding and 20% City funding. - ODOT awarded construction contract to Paragon Contractors in the amount of $1,952,952. - A Public Meeting was held on June 27, 2013, with representatives from PSA Dewberry, ODOT and Paragon to review the intersection improvements and provide a preview of the construction schedule. Construction began on July 8, 2013. - Relocation of City of Owasso and Rural Water District water lines was completed in October 2013. - Aggregate base is in place for the temporary lanes, however weather has delayed the installation of asphalt. The Contractor will proceed once adequate temperatures allow for asphalt to be prepared and installed. - As a result of the utility conflicts and weather delays, anticipated completion is now early April 2014. • E. 76th Street North Widenina (from U.S. Hwvl 69 to N. 129th East Avenue - In October 2010, the City received notice that INCOG selected the project to receive federal funding in the amount of $2,090,000 for engineering, right -of -way and utility relocation costs. A 20% required match will be funded through the City of Owasso's Capital Improvement Fund. - In October 2011, the City received notice that INCOG selected the project to receive federal funding in the amount of $3,470,000 for construction and administration costs. A 20% required match will be funded through the City of Owasso's Capital Improvement Fund. - In February 2012, ODOT officials informed City staff of funds available in the Federal Surface Transportation Fund for the planning phase of E. 76th Street North Widening Project. - In March, INCOG presented this project to its members for consideration to receive funding in 2012 for the engineering design. Project was approved by the Technical Advisory, Transportation Policy Committee, and INCOG Board of Directors - Engineering agreement for Poe & Associates, Inc. of Tulsa, Oklahoma and funding agreement was approved at the May 7, 2013, Council Meeting. - Engineering design is underway. Staff reviewed a preliminary layout of street and bike lanes. Staff provided comments and Poe & Associates. In addition, the consultant is working on the bridge design along with environmental study which is being conducted by ODOT. The engineering design is scheduled to be complete by late spring 2014. - Poe and Associates has initiated the NEPA (environmental) portion of the project by sending out letters to the property owners and defining the project scope with ODOT. In addition, the engineering consultant has initiated meetings with utilities companies to define needs for relocation. - In early February 2014, City staff and Poe & Associates will conduct a public meeting. The purpose of this meeting will be to present to the citizens a conceptual layout of the street improvements and receive feedback from the residents. • Ranch Creek Sanitary Sewer Improvements - May 2012, City Council awarded an engineering agreement in the amount of $175,000 to Kellogg Engineering Incorporated . - As part of an OWRB requirement, a Public Hearing over the environmental document was held June 13, 2013. Kellogg Engineering presented the engineering drafts of the proposed interceptor alignment for review by meeting attendees. - In September 2013, Kellogg Engineering completed the engineering design. - In October 2013, ODEQ approved engineering design and plans. - On December 3, 2013, OPWA Trustees awarded a bid to Rosetta Construction, LLC, in the amount of $2,864,543. - Staff anticipates construction to begin in January 2014 with final completion scheduled to occur by December. - Utility easement negotiations are underway. Currently, 3 of the 5 parcels have been obtained. • Garnett Widening (from E. 961 Street North to E. 106th Street North) - In November 2012, Council approved an engineering agreement with Dewberry in the amount of $345,600. - A Public Meeting for the Garnett Widening project was held June 27, 2013 with City staff and representatives from PSA Dewberry to receive citizen comments regarding the design. In October 2013, INCOG presented this project to its members for consideration to receive federal funding in FY 2017 for the construction phase. Project was approved by the Technical Advisory and Transportation Policy Committees. - On November 12, 2013, the INCOG Board of Directors approved federal funds to be allocated to this specific project in the year 2017 or sooner, if funding is available. The City of Owasso will receive $3.2 million in federal funds. - The Conceptual Design is complete with final design scheduled for completion in spring 2014. - Dewberry has initiated the NEPA (environmental) portion of the project by sending out letters to the property owners and defining project scope with ODOT. • Original Town Sewer Line Improvements - Sanitary sewer project is funded in the Wastewater Collection Operating Budget. As a result of inverse slope, several sections of the gravity sewer line are in need of replacement. The estimated cost for such improvements is $200,000. - The Permit to Construct has been received from ODEQ. The bid advertisement occurred the week of December 9th and the bid opening will occur on January 9th. - Construction is scheduled to commence in February 2014 with completion in August 2014. • Hale Acres offsite Sanitary Sewer Line Improvements - Sanitary sewer project is funded in the Wastewater Collection Operating Budget. As a result of inadequate slope, the offsite Hale Acres gravity sewer line is need of replacement. The estimated cost for such improvements is $270,000. - The Permit to Construct has been received from ODEQ. The bid advertisement occurred the week of December 9th and the bid opening will occur on January 9th. - Construction is scheduled to commence in February 2014 with completion in August 2014. • CDBG Sidewalk Project - On June 18, 2013, City Council awarded a bid to MAC Construction in the amount of $141,420. - Work began August 14, 2013 All concrete work within the contract has been completed. Additional funds remained in the amount of $28,000 and the contractor was asked to complete additional sidewalk work within the CDBG area with the remaining funds. - Contractor has completed sidewalk work on E 11th St. Currently, the contractor is focusing on the last section of sidewalk replacement along Main Street from E 8th St and E 12th St. The Contractor anticipates having this work complete within the next 10 -14 days. • FY 2013 -2014 Street Rehabilitation Pro__ rc� am - In August 2013, City Council approved the project priority list. - Funding in the amount of $1 million is included in the FY 2013 -2014 Capital Improvements Fund for this project. - 80% of the crack sealing portion of this project is complete. The Contractor will finish remaining areas, as weather permits. - The bid advertisement for the base, curb, and gutter work occurred the week of November 25th with a bid opening on January 3, 2014. - Construction is scheduled to commence in February 2014 with completion in June 2014. A Tire City `Wit out Limits. TO: THE HONORABLE CHAIR AND TRUSTEES OWASSO ECONOMIC DEVELOPMENT AUTHORITY FROM: CHELSEA M.E. LEVO DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: DIRECTOR'S REPORT DATE: January 9, 2014 RETAIL & SERVICE DEVELOPMENT UPDATE • Raising Cain's Chicken Fingers is under construction on the Sam's Development site. • Discount Tires construction continues on their site at 1 l 6t" and HWY 169. HEALTH CARE UPDATE • Two separate developers are looking in Owasso for medical- anchored development sites. Details are not available at this time. Staff will continue to meet with the developers this month. CORPORATE UPDATE • Discussions will begin soon regarding the distribution of incentive funds to Macy's. A contract will be drafted and brought before the Trustees for review at the February meeting.