HomeMy WebLinkAbout2007.05.10_OEDA AgendaPUBLIC NOTICE OF THE MEETING OF THE
OWASSO ECONOMIC DEVELOPMENT ^ T TTunRTTY
TYPE OF MEETING:
Regular OEDA FILE
DATE:
May 10, 2007
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 Cle ar post d n the City Hall bulletin board
at 5:00 p.m. on Monday, May 7, 2007.
Rickey Hayes, conomic Development Director
AGENDA
1. Call to Order
Mr. Sokolosky, 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 April 12, 2007 Special Meeting.
Attachment # 2 -A
B. Approval of Claims.
Attachment # 2 -B
3. Presentation of Financial Report.
Ms. Bishop
Attachment #3
4. Update from Economic Development Director.
Mr. Hayes
Attachment #4
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
MINUTES OF REGULAR MEETING
Thursday, April 12, 2007
The Owasso Economic Development Authority met in regular session on Thursday, April 12,
2007 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 5:00 p.m. on Tuesday, April 10, 2007.
ITEM 1: CALL TO ORDER & ROLL CALL
Vice Chairman Ray Thomas called the meeting to order at 10:01AM.
PRESENT
Ray Thomas, Vice Chairman
Frank Enzbrenner, Trustee
David Charney, Trustee
Steve Cataudella, Trustee
Tom Kimball, Trustee (arrives at 10:45am)
A quorum was declared present.
ABSENT
Dee Sokolosky, Chairman
Gary Akin, Secretary
STAFF
Rodney Ray, City Manager
Ana Stagg, Public Works
Eric Wiles, Community Development
OTHERS
Randy Cowling
Sherry Bishop, Finance Director
Rickey Hayes, Economic Development
Julie Stevens, Recording Clerk
ITEM 2: CONSIDERATION AND APPROPRIATE ACTION REALTING TO A REQUEST
FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA.
A. Approval of minutes of the March 15, 2007 Regular Meeting
B. Approval of claims —no claims
Mr. Cataudella moved, seconded by Mr. Enzbrenner, to approve the consent agenda.
AYE: Enzbrenner, Cataudella, Thomas, Charney
NAY: None
ABSTAIN: None
Motion carried 4 -0.
ITEM 3: PRESENTATION OF FINANCIAL REPORT.
A financial report was included in the agenda packet, no questions were asked of Ms.
Bishop.
Owasso Economic Development Authority
April 12, 2007
ITEM 4: UPDATE FROM ECONOMIC DEVELOPMENT DIRECTOR
Mr. Hayes reviewed the attached report. Discussion was held regarding current
development of commercial sites. Mr. Hayes reported that the ICSC Conference will
take place in May and meetings are being scheduled with various development and
site selection companies.
ITEM 5: REPORT FROM COMMUNITY DEVELOPMENT DIRECTOR
Mr. Wiles provided an update on the March building permit report and provided
information regarding items appearing before the Planning Commission in April
2007.
ITEM 6: REPORT FROM PUBLIC WORKS DIRECTOR
Ms. Stagg gave a project status report on various capital improvement projects and
other Public Works related items.
ITEM 7: REPORT FROM OEDA MANAGER
Mr. Ray gave a brief update regarding the retail shopping media campaign for
upcoming special shopping events (ex. Back to School). Mr. Wiles provided a review
of the discussions held at the Capital Improvements Committee meeting. Also, Mr.
Ray commented on the special home building project being completed by Simmons
Homes. Tom Kimball arrives at 10.45am.
ITEM 8: DISCUSSION AND POSSIBLE ACTIN RELATING TO ISSUES REGARDING
THE SALE, LEASE, OR OTHER FORMS THAT COULD POTENTIALLY BE
UTILIZED IN A DIVESTITURE OF THE OKLAHOMA NATURAL GAS SITE
LOCATED AT 12250 E. 96TH STREET NORTH.
Mr. Ray advised of current developments regarding the relocation of the Owasso
ONG office. Discussion was held regarding the current agreement between the
OEDA and ONG and staff intends to place an item on the may 10, 2007 agenda for
further discussion. No action was taken on this item.
ITEM 9: NEW BUSINESS
None
ITEM 10: ADJOURNMENT
Motion made by Mr. Chamey, seconded by Mr. Cataudella to adjourn.
At 11:13am, the meeting was adjourned.
AYE: Enzbren.ner, .Kimball, Chamey, Cataudella, Thomas
NAY: None
ABSTAIN: None
Motion carried 5 -0.
Ray Thomas, Vice Chairman
-2-
Owasso Economic Development Authority
Statement of Revenues, Expenses and Changes in Fund Net Assets
For the Month Ending April 30, 2007
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
4,000.00
0.00
0.00
0.00
0.00
0.00
4,000.00
0.00
0.00
(4,000.00)
13.76
177.61
300.00
0.00
300,000.00
400,000.00
0.00
(305,447.95)
(416,254.00)
(5,270.34)
13.76
(15,954.00)
13.76
(5,270.34)
(19,954.00)
0.00
0.00
0.00
13.76
(5,270.34)
(19,954.00)
44,149.46
44,149.46
$38,879.12
$24,195.46
MEMORANDUM
TO: THE HONORABLE CHAIR & TRUSTEES
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: RICKEY HAYES, ECONOMIC DEVELOPMENT DIRECTOR
SUBJECT: OEDA CLAIMS FOR APRIL 2007
DATE: Mav S. 2007
MEMORANDUM
TO: THE HONORABLE CHAIR AND TRUSTEES
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: RICKEY HAYES
DIRECTOR OF ECONOMIC DEVELOPMENT
SUBJECT: DIRECTOR'S REPORT
DATE: May 7, 2007
Candlewood Inn Suites is under construction on a four story hotel west of Lowes and just north
of the Tulsa Teachers Credit Union on East 96th Street North. The Staubach Company is
partnering in the Candlewood deal and is looking into potential expansion for some mixed use
development in the area around the hotel. A Marriot Towne Center and Hampton Inn will be
built simultaneously with the Marriot on the Tyann site just west of Home Depot and the
Hampton Inn on the Smith Farms site west of Lone Star Steakhouse and south of Hobby Lobby.
Preliminary dirt work has begun on the Hampton Inn site. Both the Marriot and the Hampton
units are also four stories and should start construction in a couple of weeks. The city will benefit
from over 300 new rooms and the spin off restaurant and retail that will accompany the hotel
construction. Staff learned this week that land was under contract for a new hotel deal in the
area around St. John Hospital.
Several new restaurants opened recently in the City of Owasso. Steak 2 Go, Cici's Pizza, Arriz'
Pizza, and Lone Star Steakhouse. Steak and Shake and Popeye's Chicken will be open in a
couple of weeks.
Staff is working with multiple groups of developers for significant retail and mixed use projects
on several sites in the City. Staff has been in pre- development meetings with developers and
engineers, and several national retailers are showing interest in available sites in the 96th Street
corridor and in the 116th Street area as well. Development is continuing in the Tyann Center with
several retailers under contract for pad sites in the area just west of Home Depot. Many retailers
are preparing for the ICSC convention in May. Staff will represent the City of Owasso at the
convention and over a dozen meetings are already scheduled for the event.
Staff is compiling data for several potential corporate office sites and initial cost analysis is being
done on each site. This information is being compiled to provide data to site selection consultants
in preliminary information packets. Meetings are being scheduled with leading site consulting
firms in the corporate relocation market, and since many of the firms will be represented at the
ICSC event, staff will make opportunity to meet with the firms during the convention. Creating
quality jobs is staff's primary focus. In the months to come staff will concentrate on keeping the
City of Owasso at the forefront of information being provided to corporate site consultants
looking for potential sites in the Tulsa metro area.
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: OWASSO ECONOMIC DEVELOPMENT AUTHORITY
FROM: JULIE TROUT LOMBARDI
OEDA ATTORNEY
SUBJECT: RESOLUTION TO DISCLAIM RIGHTS UNDER COMMERCIAL LEASE
AGREEMENT WITH ONEOK, INC. AND AUTHORIZE OEDA
MANAGER TO EXECUTE NECESSARY DOCUMENTS
DATE: May 10, 2007
BACKGROUND
On October 29, 1996, the Owasso Economic Development Authority ( "OEDA ") executed a
Commercial Lease Agreement with Oneok, Inc. ( "Oneok ") which governed the rental and
potential purchase by Oneok of a building constructed by the OEDA for use as an Oklahoma
Natural Gas ( "ONG ") maintenance facility. Specifically, the OEDA, as owner of the property
and landlord to Oneok, secured a construction loan to build the required facility, and the
Commercial Lease Agreement provided that Oneok. would repay as rent the principal amount of
the loan as well as all interest over a fifteen (15) year period. The Agreement also granted to
Oneok an exclusive right and option to purchase the premises, and required that the OEDA
deliver to Oneok a Special Warranty Deed to the premises in the event Oneok elected to exercise
this option. In conjunction with that provision, Section 22.7 of the Agreement, set forth in full
below, stated that if Oneok purchased the subject property under this option and subsequently
conveyed the property to another party, other than an affiliate, within one (1) year following
delivery of the Special Warranty Deed, Oneok would be obligated to pay to the OEDA fifty
percent (50 %) of the amount received from the conveyance which exceeded the amount of the
original loan:
22.7 Sale Within One Year. If at any time within a one (1) year period after delivery
of the Special Warranty Deed for the Premises, the Tenant conveys the Premises
(except to an Affiliate), then in such event, the Tenant shall be obligated to pay
over unto the Landlord, fifty percent (50 %) of the amount received by Tenant
over the original principal amount of the Loan.
Hunt Properties seeks to purchase the subject property and develop it as a retail site. However,
the Commercial Lease Agreement must be terminated and ONG must be moved to an alternate
site as a precursor to such purchase and development. Accordingly, Hunt Properties and ONG
propose to 1) convey the subject tract to Hunt Properties, and, 2) require ONG to satisfy the
outstanding balance of the loan. Additionally, Hunt Properties will construct a new facility for
ONG in the Cherokee Industrial Park. Various methods by which these objectives may be
accomplished are currently being discussed and negotiated by counsel for Hunt Properties,
Oneok and the OEDA. It is anticipated that draft documents of several interrelated agreements
will be generated and circulated by counsel in the very near future.
1
All potential agreements which may be executed by Hunt Properties, Oneok and the OEDA, or
any combination thereof, presuppose that Hunt Properties will ultimately obtain clear title in fee
simple to the subject property. To facilitate conveyance of clear and unencumbered title, it is
necessary for the OEDA to disclaim all rights it may have under Section 22.7 of the Commercial
Lease Agreement. The full fifteen (15) year lease term set forth in the Agreement has not
expired and thus Oneok has not yet fully repaid the balance of the OEDA's construction loan
back to the Authority. In addition, Oneok has not sought to purchase the property under any of
the alternate provisions contained within the Agreement. Therefore, a Special Warranty Deed
has never been given to Oneok by the OEDA which would convey title to the subject property.
However, to fully protect the OEDA's rights as a grantor of the subject property, and to fully
ensure that Hunt Properties as a grantee ultimately receives unencumbered title to the property,
all parties involved have agreed that it would be best for the OEDA to expressly disclaim any
and all rights it may have under Section 22.7.
To facilitate review and execution of the documents which will be required to consummate
termination of the Commercial Lease Agreement, the purchase and development of the subject
site by Hunt Properties and the relocation of ONG to the Cherokee Industrial Park, it is
suggested and requested that the OEDA Manager be given full authority to execute all necessary
agreements and other documents which may be required.
RECOMMENDATION
Staff recommends that the Owasso Development Authority approve Resolution 2007 -01.
13
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION No. 2007 -01
A RESOLUTION OF THE OWASSO ECONOMIC DEVELOPMENT
AUTHORITY ( "OEDA ") 1) WAIVING ALL RIGHTS UNDER SECTION 22.7 OF
THE COMMERCIAL LEASE AGREEMENT BETWEEN THE OEDA AND
ONEOK, INC., 2) DISCLAIMING ALL RIGHTS TO RECEIVE ANY MONIES
FROM ONEOK, INC. IN THE EVENT THE SUBJECT PROPERTY IS
CONVEYED WITHIN ONE (1) YEAR SUBSEQUENT TO DELIVERY BY THE
OEDA OF A SPECIAL WARRANTY DEED TO ONEOK, INC., AND 3)
AUTHORIZING THE OEDA MANAGER TO EXECUTE ALL NECESSARY
DOCUMENTATION TO TERMINATE THE COMMERCIAL LEASE
AGREEMENT AND FACILITATE BOTH RELOCATION OF THE
OKLAHOMA NATURAL GAS ( "ONG ") FACILITY TO THE CHEROKEE
INDUSTRIAL PARK AND DEVELOPMENT BY HUNT PROPERTIES OF THE
SUBJECT PROPERTY AS A RETAIL SITE.
WHEREAS: A Commercial Lease Agreement was executed by the OEDA and
ONEOK, INC. on October 29, 1996 setting forth terms and conditions for the rental and
potential purchase by ONEOK, INC. of a building to be constructed on the subject
property for use as an ONG maintenance facility;
WHEREAS: The OEDA secured a construction loan as Landlord of the subject
property to construct the facility and the Commercial Lease Agreement provided that
ONEOK, INC. would repay as rent the principal amount of this loan and all interest over
a fifteen (15) year period;
WHEREAS: The Commercial Lease Agreement granted to ONEOK, INC. an
exclusive right and option to purchase the premises and provided that the OEDA would
deliver to ONEOK, INC. a Special Warranty Deed for the premises in the event ONEOK,
INC. elected to exercise this option; the lease further provided in Section 22.7 that if
ONEOK, INC. purchased the premises from the OEDA under the lease option and
subsequently conveyed the property to another party, other than an affiliate, within one
(1) year following delivery of the Special Warranty Deed, ONEOK, INC. would be
obligated to pay over to the OEDA fifty percent (50 %) of the amount received by
ONEOK, INC. which exceeded the original principal amount of the loan;
WHEREAS: To facilitate the purchase of the subject property by HUNT
PROPERTIES and the related relocation of the ONG facility to the Cherokee Industrial
Park, the OEDA hereby desires to release and disclaim all of its rights under Section 22.7
of the Commercial Lease Agreement and forgo payment by ONEOK, INC. of any
amounts received which exceed the amount of the original loan, and to additionally
confer upon the OEDA Manager authority to execute all documents necessary to
terminate the Commercial Lease Agreement and to facilitate both relocation of ONG to
the Cherokee Industrial Park and development by Hunt Properties of the subject property
as a retail site.
relocation of the ONG facility to the Cherokee Industrial Park and the purchase and
development of the subject property by HUNT PROPERTIES.
APPROVED AND ADOPTED this 10"' day of May, 2007, by the Owasso Economic
Development Authority.
Attest:
Sherry Bishop, City Clerk
Approved As To Fonn:
Julie Trout Lombardi
Attorney for the Owasso Economic
Development Authority
Dominic Sokolosky, Chairman