HomeMy WebLinkAbout1998.12.22_OEDA Agenda_SpecialPUBLIC NOTICE OF THE SPECIAL MEETING OF THE
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
TYPE OF MEETING: Special
DATE: December 22, 1998
TIME: 7:45 a.m.
PLACE: Owasso City Hall
Lower Level Conference Room
207 S Cedar, Owasso, Oklahoma
Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at
5:00 p.m. on Thursday, December 17, 1998.
Marcia outwell, City Cle
AGENDA
1. Call to Order & Roll Call
2. Consideration and Appropriate Action Relating to the Payment of Property Taxes Associated
With the Lease Agreement With Precision Components.
Adjournment
TO: THE ECONOMIC DEVELOPMENT AUTHORITY
CITY OF OWASSO
FROM: TIMOTHY ROONEY
ASSISTANT CITY MANAGER
SUBJECT: PROPERTY TAXES ASSOCIATEDWITH THE LEASE AGREEMENT
WITH PRECISION COMPONENTS
DATE: December 21, 1998
0ROUR
As you are aware, staff has been meeting with Precision Components regarding the ad valorem
taxes of the OEDA property currently leased to Precision Components. The current taxes due
are as follows:
1997 = $4,701.00
Penalties for non - payment in 1997 = $ 795.42
1998 = $5,177.00 (Half due by December 31, 1998)
Total = $10,673.42
Total Due by December 31, 1998 = $ 8,084.92
Precision Components has agreed to pay all taxes associated with the lease of the property, with
the exception of the penalties. A check in the amount of $7,289.50 (1997 and half of the 1998
taxes) was delivered to the city on Friday, December 18, 1998.
In order to prevent additional penalties, staff recommends that all penalties be paid at this time.
Please note that staff will contact the Tulsa County Tax Accessor regarding the penalties in an
attempt to have those fees removed.
RECOMMENDATION:
Staff recommends OEDA authorize an expenditure and approve a payment in the amount of
$8,084.92 to the Tulsa County Treasurer for property taxes associated with the Precision
Components property.
ATTACHMENTS:
1. Letter of December 17, 1998 from Precision Components
2. OEDA invoice to Precision Components
i
A Bright Yutum
December 17, 1998
Jeff Hancock
City of Owasso
207 South Cedar
Owasso, OK 74055
Dear Jeff
/ (918) 274 -9094
FAX (918) 274 -9802
209 East 5th Avenue
Owasso, Oklahoma 74055
Due to your being out of town all next week and our office being closed the following
week, enclosed is our check in the amount of $7289.50 which is our payment in lieu of
taxes for 1997 ($4701.00) and one half of 1998 ($5177.00). We take exception to the
interest, fees & cost in the amount of $795.42 for the following reasons.
1. Precision Components, until now, was never billed for our balance due and was not
provided a copy of the advalorum tax billing on which our billing should be based.
2. The OEDA/City of Owasso failed to pay the advalorum taxes due on a timely basis
and therefore is responsible for any interest, fees and costs associated with the tax
billing.
3. There is no provision in the lease to assess interest, fees and cost related to
paragraph 14. of the lease.
4. Based on what the OEDA/City viewed as a compromise, I do not believe they
would expect Precision Components to pay an amount in excess of our obligation in
paragraph 14. of our lease for the first five years. Per our conversation, and giving
the OEDA/City the benefit of calculating all prior years at the 1997 tax amount of
$4701.00, the following calculation of Precision components liability is as follows:
1994 at 0% $0.00
1995 at 20% x $4701.00 $940.20
1996. at 40% x $4701.00 $1880.40
1997 at 60% x $4701.00 $2820.60
1998 at 80% x $5177.00 $4141.60
Total $9782.80
Total assessment per city invoice:
1998 at 100% $5177.00
1997 at 100% $4701.00
Total $9878.00
Considering the bonus afforded the OEDA/City in not having to pay any part of the taxes
for five (5) years where the clear intent of paragraph 14. was to provide a benefit to
Precision Components through shared cost; I feel the compromise is more than fair to the
OEDA/City. Please consider this check as full payment of our obligation through
December 31, 1998. Have a wonderful Christmas and I look forward to working with you
in 1999.
Sincerely, t�
Cathy Ifutchison
Vice President
PRECISION COMPONENTS COMPANY 11622
ivoice Date PO Num Description Gross Amount Disc Amount Net Amount
121698 12/17/98 TAXES 7289.50 7289.50
leck Number; 11622
PRECISION COMPONENTS COMPANY
209 E. 5TH AVE. 918- 274 -9094
OWASSO. OK 74055
THE FIRST NATIONAL BANK
PRYOR, OKLAHOMA 74362
86-262 -1031
Seven Thousand Two Hundred Eighty Nine And 50 /100
DATE
PRECISION ► -, I. „.. .., 12/17/98
I,.
COMPONENTS d' ^„ V, l vt:i . l,. i, ::;
fto of
11622
AMOUNT
$ * * ** *7289.50
OEDA
P.O. BOX 180
OWASSO, OK 74055 -0180
I.Oa.s.
110 011622u■ 1:10 3 10 26 2 41: 111035032111' `�--"—
c
E
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
INVOICE
PRECISION COMPONENTS
209 E 5TH AVE
OWASSO,OK
DATE SERVICE OR ITEM AMOUNT
12/16/98 11998 REAL ESTATE TAXES 1 $5,177.00
HALF PAYMENT DUE BY 12/31/98 1 $2,588.50
1997 REAL ESTATE TAXES $4,701.00
1997 INTEREST, FEES & COST $795.42
TOTAL 1997 DUE $5,496.42
TOTAL AMOUNT DUE BY 12/31/98 $8,084.92
MAKE CHECKS PAYABLE TO:
OEDA
P.O. Box 180
Owasso, OK 74055 -0180
(918) 272 -2251