HomeMy WebLinkAbout2005.08.11_OEDA AgendaPUBLIC NOTICE OF THE MEETING OF THE
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
TYPE OF MEETING:
DATE
TIME
PLACE
Regular
August 11, 2005
10:00 a.m.
Owasso City Hall
Main Conference Room
111 North Main
3ULIE STEVENS
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, August 8, 2005.
i��&
Rickey Hayes, Econ m'c Development Director
AGENDA
1. Call to Order & Roll Call
Mr. Enzbrenner
2. Request Approval of Minutes of the July 13, 2005 Special meeting.
Chairman
Attachment #2
3. Request Approval of Claims.
Chairman
Attachment #3
4. Presentation of Financial Report.
Ms. Bishop
Attachment #4
5. Update from Economic Development Director.
Mr. Hayes
Attachment #5
OEDA
August 11, 2005
Page 2
6. Demonstration of the Geographic Information Systems (GIS).
Mr. White
7. Report from Community Development Director
Mr. Wiles
8. Report from the Public Works Director
Ms. Stagg
9. Report from OEDA Manager.
Mr. Ray
10. Discussion relating to ideas and scope of Owasso Economic Development Activity for
Fiscal Year 2005-2006.
Mr. Ray
Attachment # 10
11. Discussion of issues relating to eminent domain for economic development purposes.
Mr. Ray
Attachment #11
12. New Business.
13. Adjournment.
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
MINUTES OF SPECIAL MEETING
Wednesday, July 13, 2005
The Owasso Economic Development Authority met in special session on Wednesday, July 13,
2005 in the Main Conference Room at Owasso City Hall per the Notice of Public Meeting and
Agenda posted on the City Hall bulletin board at 1:00 p.m. on Thursday, July 7, 2005.
ITEM 1: CALL TO ORDER & ROLL CALL
Chairman Frank Enzbrenner called the meeting to order at 10:02AM.
PRESENT
Frank Enzbrenner, Chair
Dee Sokolosky, Secretary
Steve Cataudella, Treasurer
Gary Akin, Trustee
Tom Kimball, Trustee
David Charney, Trustee
Ray Thomas, Trustee
(arrives at 10:10AM)
A quorum was declared present.
ABSENT
OTHERS
Randy Cowling
STAFF
Ana Stagg, Public Works Director Juliann Stevens, Administrative Assistant
Sherry Bishop, Finance Director Rodney Ray, City Manager
Rickey Hayes, Economic Development Director Eric Wiles, Community Development
ITEM 2: ELECTION OF CHAIRMAN.
A motion to elect Frank Enzbrenner as Chairman was made by Mr. Kimball,
seconded by Mr. Akin.
AYE: Kimball, Akin, Sokolosky, Enzbrenner, Charney, Thomas
NAY: None
ABSTAIN: None
Motion carried 6-0.
ITEM 3: ELECTION OF VICE CHAIRMAN.
A motion to elect Dee Sokolosky as Vice Chairman was made by Mr. Charney,
seconded by Mr. Kimball.
AYE: Sokolosky, Kimball, Akin, Enzbrenner, Charney, Thomas
NAY: None
ABSTAIN: None
Motion carried 6-0.
Owasso Economic Development Authority
June 9, 2005
ITEM 4: ELECTION OF SECRETARY.
A motion to elect Gary Akin as Secretary was made by Mr. Kimball, seconded by Mr.
Thomas.
AYE: Kimball, Akin, Sokolosky, Enzbrenner, Charney, Thomas
NAY: None
ABSTAIN: None
Motion carried 6-0.
ITEM 5: REQUEST APPROVAL OF MINUTES OF THE JUNE 9, 2005 REGULAR
MEETING.
Mr. Kimball moved, seconded by Mr. Akin, to approve the minutes of the May 12,
2005 Regular meeting.
AYE: Kimball, Akin, Enzbrenner, Sokolosky
NAY: None
ABSTAIN: Charney, Thomas
Motion carried 4-0.
ITEM 6: REQUEST APPROVAL OF CLAIMS.
No Claims
AYE: None
NAY: None
ABSTAIN: None
ITEM 7: PRESENTATION OF FINANCIAL REPORT.
After a review of the attached report, no questions were asked of Ms. Bishop.
ITEM R: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST
TRUSTEE APPROVAL OF AN ANNUAL OPERATING BUDGET FOR FISCAL
YEAR 2005-2006.
Chairman Enzbrenner requested this item be heard prior to Item 15 New Business.
Discussions were held regarding the proposed operating budget; Chairman
Enzbrenner suggested the Authority should seek a revenue source. Mr. Thomas
moved, seconded by Mr. Cataudella to approve the Fiscal Year 2005-2006 Annual
Operating Budget.
AYE: Thomas, Cataudella, Kimball, Akin, Sokolosky, Enzbrenner, Charney,
NAY: None
ABSTAIN: None
Motion carried 7-0.
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Owasso Economic Development Authority
June 9, 2005
ITEM 9: UPDATE FROM ECONOMIC DEVELOPMENT DIRECTOR
Mr. Hayes updated on the status of various developments within the area. Mr.
Cataduella arrives at 10:10AM. Mr. Hayes distributed draft copies of the proposed
new marketing material to members of the Authority and asked members to review
and provide suggestions and comments. Mr. Kimball suggested the marketing
material needs to be aggressively communicated with retail management and
operation teams.
ITEM 10: REPORT FROM COMMUNITY DEVELOPMENT DIRECTOR
Mr. Wiles provided an update on the June building permit report, commented on the
residential building within the City, and provided information regarding upcoming
items before the Annexation Committee and Planning Commission.
ITEM 11: REPORT FROM PUBLIC WORKS DIRECTOR
Ms. Stagg gave a brief report on various street development projects, and other Public
Works related items.
ITEM 12: REPORT FROM OEDA MANAGER
Mr. Ray informed members that negotiations between ONG and Hunt Properties
continues, however, as of today's date, there have been no updates provided.
ITEM 13: DISCUSSION RELATING TO IDEAS AND SCOPE OF OWASSO ECONOMIC
DEVELOPMENT ACTIVITY FOR FISCAL YEAR 2005-2006
Members discussed several ideas relating to OEDA activity for Fiscal Year 2005-
2006. Mr. Ray will provide a report at the August meeting outlining the discussions.
ITEM 14: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REOUEST
FOR TRUSTEE APPROVAL OF FUNDS IN SUPPORT OF A BASEBALL
TOURNAMENT HOSTED BY OWASSO BASEBALL BOOSTERS.
Councilor Brent Colgan was unable to attend the OEDA meeting, Mr. Hayes
provided an overview of the memorandum included in the OEDA packet provided by
Councilor Colgan. Discussions were held regarding OEDA's ability to support the
request without a revenue source. Also discussed was the use of the Hotel/Motel Tax.
Chairman Enzbrenner tabled the request for Trustee approval of funds in support of a
baseball tournament hosted by the Owasso Baseball Boosters and requested that the
City Council provide the Authority with clarification of the Hotel/Motel Tax Fund
purpose.
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Owasso Economic Development Authority
ITEM 15: NEW BUSINESS
None
ITEM 12: ADJOURNMENT
Motion made by Mr. Kimball, seconded by Mr. Thomas to adjourn.
At 12:20am, the meeting was adjourned.
June 9, 2005
AYE: Kimball, Thomas, Enzbrenner, Akin, Sokolosky, Cataudella, Charney
NAY: None
ABSTAIN: None
Motion carried 7-0.
Frank Enzbrenner, Chairman
Date Approved
MEMORANDUM
TO: THE HONORABLE CHAIR & TRUSTEES
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: RICKEY HAYES, ECONOMIC DEVELOPMENT DIRECTO
SUBJECT: OEDA CLAIMS FOR JULY 2005
DATE: August 8, 2005
There were no claims for July 2005.
Owasso Economic Development Authority
Statement of Revenues, Expenses and Changes in Fund Net Assets
For the Month Ending July 31, 2005
Operating Revenues
Operating Expenses:
Materials & supplies
Services & other charges
Capital outlay
Total Operating Expenses
Operating Income (Loss)
Non -Operating Revenues (Expenses):
Investment income
Promissory note revenue
RAN debt service & other costs
Total non -operating revenues (expenses)
Net income (loss) before contributions and
transfers
Transfer from general fund
Change in net assets
Total net assets - beginning
Total net assets - ending
MTD
YTD
Budget
$0.00
$0.00
$0.00
0.00
0.00
0.00
0.00
0.00
5,000.00
0.00
0.00
0.00
0.00
5,000.00
0.00
(5,000.00)
0.00
0.00
34.49
34.49
70.00
0.00
0.00
400,000.00
0.00
0.00
(421,250.00)
(21,180.00)
34.49
34.49
34.49
34.49
(26,180.00)
0.00
0.00
0.00
(26,180.00)
34.49
34.49
67,034.76
67,034.76
$40,854.76
$67,069.25
MEMORANDUM
TO: THE HONORABLE CHAIR AND TRUSTEES
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: RICKEY HAYES
DIRECTOR OF ECONOMIC DEVELOPMENT
SUBJECT: DIRECTOR'S REPORT
DATE: August 8, 2005
Progress continues on the commercial sites in the 96th Street retail corridor. Smith Farms
continues construction at a fast pace. Construction on the out parcels and pads continues. Betty
Smith Boulevard is paved. Nearly all curb and gutter work on the interior of the center is
completed, and paving on the main parking areas is near completion. Target and Belk are both
hiring in anticipation of beginning inventory of their facilities. Construction is under way on a
52,000 square ft. retail strip in phase one of Tyann Development's plans for the area on the east
side of US 169 around the Home Depot, and plans have just been released to enlarge the initial
building because of leasing demand. Tyann is also completing the service road from 861h to 96th
Street on the east side of the highway and substantial completion is expected by the end of the
month. This site will eventually be home to about 300,000 feet of retail and restaurants, with
some mixed use units as well. Both the St. John's Medical Complex and Bailey Medical Center
are doing site work for their developments, including water, sanitary sewer, and stormwater
infrastructure.
A new intensity in retail inquiries continues this month. I anticipated some as the opening dates
for Smith Farms neared, but I am excited to say that several national retailers are in and out of
town for site visits and inspections. Several commercial sites have investors inquiring from the
96th Street corridor north to 116th. There are several restaurants, at least 4 hotel / motel groups,
and several more "big box" retail users in the mix.
All of our marketing material is being updated and new pieces aimed at corporate office users are
being developed. I hope to have them in your hands for your review and input very soon.
As always, if I can serve you in any way, please call. Your input and direction are always
important to the success of our efforts.
MEMORANDUM
TO: THE HONARABLE CHAIR AND TRUSTEES OF THE
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: RODNEY J RAY
OEDA MANAGER
SUBJECT: SCOPE OF WORK FISCAL YEAR 2005-2006
DATE: August 8, 2005
BACKGROUND:
As you know, during the July meeting of the Owasso Economic Development Authority,
trustees discussed issues that could be included in the scope of work for the OEDA for
fiscal year 2005-2006. Staff and OEDA trustees shared comments on various topics
related to economic development in the City of Owasso.
For the last three years, the main focus of our energy, time, and resources has been the
recruiting and assisting site location for national retail outlets into the community.
Almost 1.5 million square feet of retail has been developed in the City of Owasso in that
time frame, mostly in the 961h Street corridor along US 169. The need to recruit and
market Owasso to retailers continues but our focus is shifting to a recruitment and
relocation strategy for offices and corporate headquarters operations. Although I believe
that there is still substantial retail growth to be realized in Owasso's future, I feel that the
next substantial area of growth and investment in the City of Owasso will be in
professional office space. The construction and opening of two medical campuses in the
third quarter of 2006 will be used as examples (and anchors) for a well planned and
aggressive campaign to bring quality jobs to Owasso.
The need to create a sustainable and dynamic local economy requires us to be flexible
and redirect our marketing efforts and energy to the creation of quality jobs. The overall
local economy, including both residential development and retail will be fueled by
quality job creation. It is generally agreed that developing the processes necessary to
maintain the City of Owasso's outstanding "quality of life" must be our number one
priority. Over the last twenty years the hard work, vision, and dedication of many
residents has created a solid foundation of growth for the future. The development of
quality residential subdivisions, good planning, outstanding schools, the location of
transportation routes and facilities, dependable water, sewer, and street infrastructure, and
now the addition of national retail and restaurants and two general service community
hospitals has given the City of Owasso a distinct advantage for growth. But that growth
must be sustainable and founded on a strong local economy with dependable jobs that
support the Owasso area.
Last months discussion of projects and issues was informative and an opportunity for the
OEDA to begin to craft a plan to implement the office relocation strategy.
0 Comparison Cities
During last month's discussion a comment was made that essentially proposed the
development of a list of cities with whom we would use for comparison purposes.
The City staff has utilized such a method as one means of developing personnel
policies and other administrative policies. However, the development of such a
"comparison list" could well have an influence on development issues and public
policy regarding economic development. The idea of having consistent
comparison examples is one that should be explored and developed. Knowing
what other cities have done well and not -so -well can save us effort and tax
dollars.
• The problem of "over regulation" of the development community
Concern was voiced regarding the issue of "overregulation" and the
accompanying problems associated with a city that has that reputation. There have
been concerns from citizens and developers regarding this issue. The task at hand
is for development of regulatory policies that insure a quality development
process while still making it simple and relatively easy for developers and
businesses to invest in our community. Eric Wiles and his staff began the
process three years ago of updating the City's sign ordinance. The result was a
new sign code that allowed for businesses to advertise their goods and services
but still gave assurance that Owasso would not be a victim of the "sign pollution"
that many other cities have experienced. The Owasso City Council recently
approved a lighting ordinance developed by a committee of citizens and staff that
addressed concerns of safe and effective lighting and the creation of guidelines
that will provide protection against light pollution while not over burdening
retailers and developers. Earlier this year Public Works staff met with developers,
engineers, and contractors to discuss the revision and publication of the City of
Owasso's Construction Design Criteria. The outcome of those discussions was a
document approved by the City Council that details construction criteria for the
building of all public infrastructure constructed in the City. At this time a
Landscape Ordinance is being crafted by a committee of interested citizens and
staff and will be brought to the City Council and Planning Commission for review
in the near future. Staff is currently working on review of the Planned Unit
Development criteria and is looking at ways to keep PUD development standards
regulated for the benefit of both the development community and our citizens. It
is my belief that with input and direction from the community, staff can develop a
process that will allow the City of Owasso to keep the reputation of being the
most "development friendly" community in the Tulsa metro area while benefiting
from a high quality built community. Ongoing efforts also include a "rewrite" of
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I
the City's "zoning code" (due for completion in May 2006) followed by a new
"subdivision regulation" proposal. The issue of government regulation and
"quality of life" issues will, undoubtedly, be the focus of most discussions relating
to future development and I presume that those discussions will center on "how
much is too much" regulation. An emerging Owasso demographic profile leads
me to believe that there will be a strong effort by knowledgeable and energized
citizens to increase development regulations, perhaps to a point of impacting
investment in our community. It is my belief that the appropriate balance to what
could become an overzealous "reform" effort is to proactively develop and
implement programs such as responsible sign, lighting, and landscape public
policies. Such policy combined with effective regulation of land use and
development can (and has in many communities) result in quality growth that will
incent investment because of the quality image of the community. The OEDA's
role in this process can be an active and ongoing participation in the processes to
ensure that overregulation and unnecessary burdensome regulations are not the
result of those policies.
• Technology
There may be many issues relating to technology, however, the idea of making all
plats available online is one that, if implemented, could have a number of user
applications. Initially such a service could assist potential home buyers and their
realtors, but the long term uses could extend to business properties, planning uses
for HOA's and businesses, as well as eventual use to determine lot availability.
At this point the ability of making plats available (discussed initially about two
years ago) online has its best opportunity as a part of the new GIS system
currently being developed by the City. Eric Wiles and Larry White are currently
working to ensure the new GIS system will be capable, and will include the
availability of plats and other geographic data as a part of the system. There
remains work to be accomplished and the OEDA can play a role in ensuring that
input is given and a user friendly product is developed. To compete in this
economy, we must keep the City on the cutting edge of technological
advancement. Every city department and the future of our entire community is
affected by advancing technology in communications, planning, data storage and
retrieval, education, and health care. Should the City consider "blanketing" our
community with Wi-Fi (wireless) hotspots? Will the incorporation of GIS
(geographic information system) keep us ahead of the technology curve? We
believe that in order to maintain the quality of life our citizens demand we must
incorporate technology quickly and efficiently into our scope of work.
• Developing a "Relocation Team"
The idea of having a "ready to go" relocation team as a part of our strategy to
bring quality jobs to Owasso was mentioned as an important part of our economic
development plan. As our marketing efforts have evolved, Mr. Hayes has begun
work on the development of additional marketing material aimed at corporate
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office relocation. The first step of this process is the preparation of a high quality
and professionally designed recruitment tool articulating the quality of life of our
city and containing other pertinent information needed for the successful
recruitment of corporate office customers. Mr. Hayes is currently researching
corporate site search data, identifying target prospects, and working to develop
relationships with the persons responsible for making decisions to invest human
and financial capital in our city. Along with the revision of the City's marketing
material we are developing an Economic Development Relocation / Advisory
Team. Mr. Hayes is currently creating a mission statement and organizing the first
meeting of this group to outline the purpose, work plan, and overall objectives of
the relocation group. This group would consist of the Economic Development
Director, a member of the OEDA, and representatives from the utilities, the
Owasso School system, Public Works, Community Development, and the
Chamber of Commerce, as well as a representative from the Oklahoma Depart of
Commerce. The purpose of this group would be to plan, develop, and present
information and material for major economic development prospects. This is a
group that responds specifically to individual relocation prospects. The
development and maintenance of this team is vital to the success of our strategic
plan and requires an active OEDA participation.
• Revitalizing the "Downtown" area
The OEDA was the prime "champion" of a viable downtown plan. The
development of specific marketing material and planning aimed at the goal of
creating an investment district in the downtown area is an ongoing and important
project and needs for the OEDA to continue to champion that effort. Discussions
have included theme lighting, construction and development guidelines, taking
the overhead utilities underground, and small pocket parks. There have also been
discussions about the possibility of an art or cultural related outdoor event or
festival in the downtown area. Please note that approximately one million dollars
of Vision 2025 funds are available for downtown development. Specifications are
currently being developed for lighting contracts and relocation of overhead
utilities to underground.
• Early Childhood Development
Preliminary discussions have been held with the Tulsa Community Action group
about the development of a quality early childhood training program. A program
of this type would involve several agencies and lots of cooperation and
collaborative efforts, but is a very important "quality of life" issue. Tulsa leads
the state and nation in early childhood education efforts. Owasso must join the
effort if we are to attract the kind of investors who will look / seek long term
opportunities and communities who invest in their own future. I know there
needs to be significant discussion relating to the City's position on this issue and
it is hoped that the OEDA will be very proactive in leading such a discussion.
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• Small Business Incubator
The OEDA was the impetus for the creation of a small business incubator located
in the "Old Central" complex. The Oklahoma Department of Commerce licensed
the Owasso incubator in September, 2003. The incubator has about 7500 square
feet of space available. Currently one tenant leases 360 square feet and Mr. Hayes
is working with a prospect that is looking to utilize almost all of the remaining
space. Incubator clients are offered below market rates with a contingency that
they will relocate into commercial space in Owasso after 18-24 months. In order
for the incubator to produce results there must be a real effort on the part of the
City to ensure affordability and that the rules of use are applied to all users. The
major issues with the incubator are: 1). lease price, 2). accessibility to upstairs,
3). enforcement of two year use limit (and relocation requirement) and 4). the
recruitment of users. The OEDA is the advisory body for this project and should
have an impact on decisions that govern the facility. There are other user of the
building and a mutual understanding of the roles of various groups is an
imperative. It may be appropriate for the OEDA to conduct a more complete
discussion of the incubator concept, it's applications in our community, and
whether or not expansion is desired.
The Owasso Economic Development Authority is the significant advisory body relating
to economic development issues in the city. What is the best strategy for prioritizing our
planning, budgeting, and scheduling processes to insure that the City of Owasso stays on
course on becoming Oklahoma's premier hometown? I hope these discussions provoke
additional ideas and input.
The development of sound public policy is dependent upon wise counsel and good advice
given elected officials by those who are willing to participate in the process of governing.
The scope of work for the OEDA can include many individual issues or projects, some of
those you listed and may desire to promote. However, there is a need for good counsel in
promoting responsible public policy. As the OEDA determines its course, the issues you
have discussed can be prioritized and included in your counsel and recommendations to
the City Council.
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MEMORANDUM
TO: THE HONORABLE CHAIR & TRUSTEES
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: RICKEY HAYES, ECONOMIC DEVELOPMENT DIRECTOR
SUBJECT: PROPOSED ORDINANCE NO. 822
PROHIBITING USE OF EMINENT DOMAIN FOR ECONOMIC
DEVELOPMENT
DATE: 08/09/05
Attached is a memorandum and proposed City Ordinance No. 822 from Julie Lombardi, City
Attorney, in regards to the prohibition of the use of eminent domain for economic development.
MEMORANDUM
TO: RODNEY RAY, CITY MANAGER
CITY OF OWASSO
FROM: JULIE TROUT LOMBARDI
CITY ATTORNEY
SUBJECT: ORDINANCE NO. 822
PROHIBITNG USE OF EMINENT DOMAIN FOR ECONOMIC
DEVELOPMENT
DATE: AUGUST 9, 2005
BACKGROUND:
On June 23, 2005, the United States Supreme Court rendered a decision in Kelo v, City of New
London, 125 S.Ct. 2655, which upheld a municipality's right to take private property through the
exercise of eminent domain for purposes of economic development. The United State Supreme
Court affirmed in Kelo the right of a municipality to acquire property from one party through
eminent domain, and then to transfer that property to a second party if doing so is in furtherance of
the city's economic development.
The power of eminent domain flows from the 5th Amendment of the United States Constitution,
which allows government to take private property for "public use" and requires payment of "just
compensation." It is well settled within our judicial system that property may only be taken from
an individual by eminent domain if doing so serves a public purpose. Historically, "public
purpose" has been defined by the courts to include the taking of blighted property for purposes of
improvement through urban renewal, the taking of property for public ownership and other takings
which resulted in clear benefit and/or use by the public. However, neither the Supreme Court nor
the federal appellate courts have previously extended the definition of "public use" to include the
taking of property purely for the purpose of economic development. The Supreme Court did so in
Kelo, thereby empowering municipalities to expand their use of eminent domain such that
property may now be taken from one party, upon payment of appropriate compensation, and
transferred to another party for development which is economically advantageous to a city.
The Kelo decision is controversial, and has generated concern among municipal governments,
homeowners, citizens groups and property right advocates. Specifically, the Court's opinion has
given rise to fear among homeowners and business owners that their property may permissibly be
taken by a municipality if doing so will result in economic revitalization for the city
REQUEST:
Responsive to these concerns, Mayor Thoendel requested that staff research this issue and draft an
ordinance specifically prohibiting the taking of private property through eminent domain solely
for purposes of economic development by the City of Owasso. The staff has drafted a proposed
ordinance for your review which prohibits the taking of property solely for purposes of economic
development.
DISCUSSION ISSUES:
It is worthwhile to determine initially how, if at all, Kelo has actually changed the law as it relates
to the taking of property through eminent domain by cities. While this decision for the first time
confirms that cities may take property by eminent domain solely for purposes of economic
development, Kelo did not make new law. In point of fact, the Court's opinion noted that
"promoting economic development is a traditional and long accepted function of government,"
Kelo at 2655. The Court further noted within its opinion that "economic development" fulfills a
public purpose as required by the takings clause within the 5ch Amendment. Given that Kelo is an
affirmation of government's powers to take land for economic development rather than new law,
how should the City of Owasso best respond to the decision? Although the law has not
substantively changed, the public's perception and awareness of this issue has markedly increased
and is significant. Several potential issues relative to the issue are listed below for the Council's
consideration.
• Does sufficient reason exist for the Council to take action at this time? The Supreme
Court's decision is quite recent and the fullness of its effect and ramifications have yet to
be seen. Is this an appropriate time for the Council to consider enaction of a prohibitive
ordinance?
• Following the Kelo decision, the majority of cities will likely show a propensity to
consider ways private property may be utilized through eminent domain for purposes of
economic growth and development. While no legal prohibition obviously exists to
preclude such actions, are there philosophical prohibitions or moral constraints which
prevent the City of Owasso from doing likewise? Historically, cities in Oklahoma have
not instituted condemnation proceedings in great abundance. Assuming this trend is
altered in light of Kelo, does the Council wish to take a preemptive, prohibitive stand on
this issue? Are the City's needs best served by enacting a preclusive ordinance at this
time, or by deferring such action until the full force and effect of Kelo are determined
through the passage of time?
• Kelo expressly reserves to the states the right to enact restrictive legislation imposing
"public use" requirements exceeding those of the federal government. Two Oklahoma
State legislators have formed a Joint Task Force to consider the ramifications of the
Supreme Court's ruling and to discuss what types of legislation the Oklahoma legislature
might enact in response. It is likely, if not guaranteed, that some type of restrictive
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legislation will be proposed in the upcoming legislative session. Does the Council wish to
enact an ordinance prior to passage of legislation by the legislature?
• Nothing within the Kelo decision abrogates the need for the Council to approve each
proposed taking of land. Consequently, the Council has the option of declining to enact a
blanket ordinance and evaluating each proposed taking on a case by case basis instead.
• Adoption of the proposed ordinance would entirely eliminate the Council's power to take
property by eminent domain, with the payment of appropriate compensation, and utilize
the property for economic development. This ordinance would be controlling regardless of
how lucrative or beneficial a proposed project might be for the City of Owasso. Does the
Council wish to place binding restrictions upon itself which would compel the Council to
refuse all proposals of this type? Do potential projects exist in which the City might wish
to exercise eminent domain for purposes of economic development? If a major
manufacturer wished to locate in Owasso and such desire was contingent upon obtaining a
particular parcel of land, would the Council desire to have the autonomy to consider the
proposal on its own merits? Would the Council prefer that the project presumptively be
declined due to an ordinance prohibiting takings of property for economic development?
• This ordinance is narrowly tailored to prohibit takings which are solely for purposes of
economic development. However, the City may increase its exposure to litigation by
adopting this ordinance. Property owners whose property is taken by eminent domain for
any reason may well claim that the taking is in furtherance of economic development and
pursue litigation. Do the benefits of enacting an ordinance prohibiting the taking of
property for economic development outweigh the potential costs of litigation?
The above are issues for consideration and discussion prior to reaching a decision regarding
the desirability and feasibility of the proposed ordinance.
ATTACHMENTS:
Pending Ordinance No. 822
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CITY OF OWASSO, OKLAHOMA
ORDINANCE NUMBER 822
AN ORDINANCE RELATING TO PART TWELVE, PLANNING, ZONING &
DEVELOPMENT, CHAPTER 5, EMINENT DOMAIN REGULATIONS, OF THE CODE
OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SAME BY
PROHIBITING THE TAKING OF PRIVATE PROPERTY BY EMINENT DOMAIN FOR
PURPOSES OF ECONOMIC DEVELOPMENT.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT, TO -WIT:
SECTION ONE (1): Part Twelve, Planning, Zoning & Development, Chapter 5, Eminent
Domain Regulations, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be
enacted by providing and codifying as follows:
SECTION 12-501
PROHIBITING EMINENT DOMAIN FOR ECONOMIC
DEVELOPMENT
A. Notwithstanding any other provision of law, neither this city not any of its subdivisions shall
use eminent domain to take private property, without the consent of the owner, to be used
solely for economic development.
B. Economic Development -The term "economic development" shall be defined as any activity
designed to increase tax revenue, the tax base, employment or the general economic health of
this city, when that activity does not result in:
1.) The transfer of land to public ownership, such as for a road, hospital or government
facility, or the transfer of land to public ownership which will be utilized for public
use;
2.) The transfer of land to a private entity that is a common carrier, such as a railroad or
utility;
3.) The transfer of property to a private entity when eminent domain will remove a
harmful use of the land, such as the removal of a public nuisance, or will remove a
structure that is beyond repair, blighted, or unfit for human habitation or use;
4.) The transfer of abandoned property to public ownership.
SECTION TWO (2): Declaring an Effective Date
The provisions of this ordinance shall become effective thirty (30) days from the date of final
passage as provided by state law.
PASSED by the City Council of the City of Owasso, Oklahoma on the day of
, 2005.
Craig Thoendel, Mayor
ATTEST:
Sherry Bishop, City Clerk
(SEAL)
APPROVED as to form and legality this day of , 2005
Julie Lombardi
City Attorney
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