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HomeMy WebLinkAbout2025 03_Amendment to Policy Guide for Implementation of the Owasso Redbud District Project Plan and Tax Increment District No. 1CITY OF OWASSO RESOLUTION 2025.03 A RESOLUTION OF THE CITY OF OWASSO, OKLAHOMA, APPROVING THE AMENDED 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, as a special and unique place within Owasso, a place to live, work, shop, and play ("Project"); 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 WHEREAS, the Policy Guide was subsequently on June 5, 2021 with the City's approval of Resolution 2021-10, on June 20, 2023 with the City's approval of Resolution 2023-13 and most recently, on January 9, 2024 with the City's approval of Resolution 2024-01; 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 Resolution 2025-03 Page 1 of 3 WHEREAS, the Policy Guide in Section III (A) (5) specifically states the following: 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 2, 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 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 December 31, June 30, June 30, End of Completion 2023 2025 2029 Increment District Percentage of 12% 10% 8% 67. Construction Costs WHEREAS, after a review of the original budget for the Owasso Redbud District Project Plan and current expenditures to date, it is appropriate to consider an amendment to eliminate the reduction in the maximum amount of assistance in development financing for projects completed after June 30, 2025 to promote the continued implementation of the Project Plan and development within the Project Area; and WHEREAS, the City hereby finds that the amendment to the Policy Guide contained in Section One of this Resolution immediately below is appropriate, desirable, should be approved and utilized by City staff for the continued implementation of the Project Plan and Increment District No. 1. 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 after January 1, 2024 through the end of the life of the Increment District, the maximum amount of assistance in development financing that the developer may receive is 70% of hard costs of the construction of improvements on the developer's property. 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 Resolution 2017-01, as amended by Resolution 2021-10, Resolution 2023-13 and Resolution 2024-01, are ratified and confirmed. Resolution 2025-03 Page 2 of 3 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. PASSED AND APPROVED this 15 day of April, 2025. NAWW' G` r`Oens, City Clerk v FIN ,s APP.Rp.VEC AS TO FORM: r J e Lombardi, City Attorney nd II Dunn, Vice Mayor Resolution 2025-03 Page 3 of 3