HomeMy WebLinkAbout2023 13_Amend TIF Policy Guide for 6 monthsCITY OF OWASSO, OKLAHOMA
RESOLUTION 2023 -13
A RESOLUTION OF THE CITY OF OWASSO, OKLAHOMA, APPROVING AN AMENDMENT TO
THE POLICY GUIDE FOR IMPLEMENTATION OF THE OWASSO REDBUD DISTRICT PROJECT
PLAN AND INCREMENT DISTRICT NO. 1, CITY OF OWASSO
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 "); and
WHEREAS, the purpose of the Project Plan is to help the City achieve its development objectives
by authorizing the appropriate and necessary public support and assistance for the development
and enhancement of the area surrounding Main Street, known as the Redbud District ( "Project
Area "), as a special and unique place within Owasso, a place to live, work, shop, and play; and
WHEREAS, the Project Plan supports the City's efforts to achieve its development objectives,
improve the quality of life for its citizens, stimulate private investment, and enhance the tax base,
thereby making possible investment that would be difficult without the adoption of the Project Plan
and the apportionment of incremental ad valorem and sales tax revenues; and
WHEREAS, the Project Plan authorizes the allocation of incremental revenues to an
apportionment fund to be used to pay authorized Project Costs, including public infrastructure,
facilities, and improvements, and assistance in development financing; and
WHEREAS, in order to provide guidance regarding the allocation of assistance in development
financing authorized by the Project Plan, the City approved Resolution 2017 -01 on April 4, 2017,
adopting the Policy Guide for the implementation of the Project Plan and Increment District No. 1,
and a subsequent amendment to the Policy Guide with Resolution 2021 -20 on June 15, 2021; and
WHEREAS, the Policy Guide details the procedures and requirements for providing assistance in
development financing through three categories of such assistance, including Development
Project Assistance, Small Business Enhancements, and Employment Generation Assistance (all as
defined in the Policy Guide); and
WHEREAS, the Policy Guide explains that financial assistance under the Development Project
Assistance category may be available at varying levels for projects, depending on the amount of
construction costs, based on the date of completion of such projects; and
WHEREAS, the Policy Guide in Section III(A) (5) specifically states the following:
1. For projects completed by June 30, 2023, the maximum amount of assistance in development
financing that a developer may receive is 12% of hard costs of construction of improvements
on such developer's property.
2. For projects completed between July 1, 2023 and June 30, 2025, the maximum amount of
assistance in development financing that a developer may receive is 10% of hard costs of
construction of improvements on such developer's property.
3. For projects completed between July 1, 2025 and June 30, 2029, the amount of assistance in
development financing that a developer may receive is 8% of hard costs of construction of
improvements on such developer's property.
4. For projects completed after June 30, 2029, through the end of the life of Increment District
No. 1, the amount of assistance in development financing that a developer may receive is 6%
of hard costs of construction of improvements on such developer's property.
Resolution 2023 -13
Page 7 of 2
WHEREAS, many developers within the Project Area have experienced project delays due
to material or labor shortages; and
WHEREAS, it is appropriate to extend the dates of completion of construction relevant to
Development Project Assistance in Section III (A)(5) of the Policy Guide to account for these delays
and to promote the continued implementation of the Project Plan and development within the
Project Area.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF OWASSO, THAT:
Section One: Section III (A) (5) of the Policy Guide is hereby amended to read as follows:
For projects completed by December 31, 2023, 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 January 1, 2024 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 maximum 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 maximum amount of assistance in
development financing that the developer may receive is 6% of hard costs of the construction of
improvements on the developer's property. The issuance of a Certificate of Occupancy by the
City shall determine project completion.
Project Completion
December 31,
June 30,
June 30,
End of
2023
2025
2029
Increment District
Percentage of Construction
12%
10%
8%
6%
Costs
Section Two: City staff is further directed to utilize the Policy Guide as hereby amended for the
implementation of the Project Plan and Increment District No. 1.
Section Three: Except as amended by this Resolution, the Policy Guide and the authorizations and
directions made by Resolutions 2017 -01and Resolutions 2021 -10 are ratified and
confirmed.
Section Four: City staff is hereby authorized to take such actions as may be necessary or
appropriate, including making minor amendments and revisions to the Policy Guide,
as amended by this Resolution, applications, and forms for administrative purposes,
to implement this approval and the provisions of the Policy Guide, as amended.
PASSP.A XIDAPPROVED this4(i day of June, 2023
ATTEST: Y 2 orFCC A�
J lann M. Stevens, City Clerf�,�',,��'
aKIANn�Q
APPRO AS TO FORM:
Julie mbardi, City Attorney
Resolution 2023 -13
Page 2 of 2
�d
TO:
FROM:
SUBJECT:
DATE:
APPROVED BY COUNCIL
JUN 2 0 2023
The Honorable Mayor and City Council
Chris Garrett, Assistant City Manager
Resolution 2023 -13, Amendment to Owasso Tax Increment Financing District No.
Policy Guide
June 16, 2023
BACKGROUND:
In April 2017, City Council approved Resolution 2017 -01, approving the Policy Guide for the
implementation of the Owasso Redbud District Project Plan Increment District No. 1 and the
formula for determining the sales tax increments generated from the Increment District.
Negative effects of the Pandemic and the policies and restrictions implemented to manage
spread of the COVID -19 virus prompted City Council to approve Resolution 2021 -10, amending
the Policy Guide to extend the period of time where developers may receive assistance in
development financing of 12% of the hard costs of construction on the developer's property.
The amendment extended the deadline for project completion for the 12% in development
assistance from June 30, 2021 to June 30, 2023.
Currently, there are three development projects underway in the TIF District that are not
expected to be completed by June 30, 2023, and are subject to a reduction in their respective
development assistance. These three projects are:
• 5th Avenue Business Park, LLC (5th Avenue and Owasso Expressway)
• New Age Homes, LLC Residential Quadplex (414 South Birch Street)
• SAHO Properties, LLC Veterinary Wellness Center and Pet Resort (401 West 2nd Avenue)
PROPOSED RESOLUTION:
All of these projects have experienced delays in construction, primarily due to material or labor
shortages, and staff is proposing relief to the investors by means of an extension to the deadline
for 12% assistance. Staff proposes a six -month extension for the 12% development assistance,
changing the deadline for project completion from June 30, 2023 to December 31, 2023.
RECOMMENDATION:
Staff recommends approval of Resolution 2023 -13.
ATTACHMENT:
Resolution 2023 -13
Owasso Redbud District Project Plan Increment District No, 1 Policy Guide