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PUBLIC NOTICE OF A REGULAR MEETING OF THE
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
TYPE OF MEETING:
DATE:
TIME:
PLACE:
Regular
December 12, 1996
10:00 a.m.
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 4 p.m. on Thursday, December 5, 1996.
~?~ ~~,~~
Angela nderson, OEDA Director
AGENDA
1. Call to Order
2. Roll Call
3. Presentation from Zaremba Group, Inc. on the Oklahoma Industrial Finance
Authorities' "Building Oklahoma" Speculative Building Program.
Mr. Terry Heilig, ZGI
4. Request Approval of the Minutes of December 12, 1996 Regular Meeting.
Mr. Anderson
Attachment #4
~M
Owasso Economic Development Authority
December 12, 1996
Page 2
5. Request Approval of Claims.
Mr. Anderson
Attachment #5
6. Presentation of Financial Report.
Ms. Bishop
Attachment #6
7. Consideration and Appropriate Action Relating to a Construction Change Directive
for the Oklahoma Natural Gas Project, Allowing Contractor to Purchase Fly Ash or
Kiln Dust to Stabilize Soil at ONG Site.
Ms. Henderson
Attachment #7
Staff recommends approval of the Construction Change Directive allowing Brown
Construction Company, Inc. to purchase fly ash or kiln dust in quantities sufficient to
stabilize the soil at the ONG site in order that dirt work may begin on the project.
8. Update on Oklahoma Natural Gas Project.
Ms. Henderson
Attachment #8
,~~
Owasso Economic Development Authority
December 12, 1996
Page 3
9. Report from Economic Development Director.
Ms. Henderson
10. Old/New Business.
11. Adjournment.
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
MINUTES OF REGULAR MEETING
November 14, 1996
The Owasso Economic Development Authority met in regular session on Thursday,
November 14, 1996 in the Owasso City Hall Conference Room per the Notice of Public Meeting
and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Friday, November 8, 1996.
PRESENT ABSENT
STAFF PRESENT
Alan Anderson Bill Retherford
Angela Henderson
Gary Akin Brenda Lawrence
Marsha Hensley
Frank Enzbrenner
Sherry Bishop
Tom Kimball (in at 10:12 AM)
Rodney Ray
Joe Ramey
ITEM 1: CALL TO ORDER
Chairperson Alan Anderson called the meeting to order at 10:05 a.m. and declared a quorum
present. Due to power failure at City Hall the meeting was conducted at the Owasso
Community Center.
ITEM 2: ROLL CALL
ITEM 3: REQUEST APPROVAL OF THE MINUTES OF OCTOBER 7 1996
SPECIAL MEETING AND OCTOBER 10, 1996 REGULAR MEETING.
Mr. Enzbrenner moved to approve the minutes of the October 7, 1996 Special Meeting and the
October 10, 1996 Regular Meeting. Motion was seconded by Mr. Ramey. A vote on the
motion was recorded as follows:
Anderson - Yes
Enzbrenner - Yes
Akin - Yes
Ramey - Yes
The motion carried 4 -0.
ITEM 4: REQUEST APPROVAL OF CLAIMS
Mr. Enzbrenner moved to approve the current claims. Motion was seconded by Mr. Akin. A
vote on the motion was recorded as follows:
Anderson - Yes
Enzbrenner - Yes
Akin - Yes
Ramey - Yes
The motion carried 4 -0.
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
November 14, 1996
Page No. 2
ITEM 5: PRESENTATION OF FINANCIAL REPORT
Report was given by Ms. Bishop.
ITEM 6: UPDATE ON OKLAHOMA NATURAL GAS PROJECT
The Owasso Public Works Authority has redesigned the sewer line at a cost savings. The
easement for the sewer line should be signed over the Thanksgiving holiday. A groundbreaking
for the work center is scheduled for November 26, 1996 at 11:30 a.m. with a reception
following.
ITEM 7: REPORT FROM ECONOMIC DEVELOPMENT DIRECTOR
Ms. Henderson discussed current projects and economic development news.
ITEM 8: OLD/NEW BUSINESS
None
ITEM 9: ADJOURNMENT
Mr. Ramey moved to adjourn, seconded by Mr. Enzbrenner. A vote on the motion was
recorded as follows:
Anderson - Yes
Enzbrenner - Yes
Akin - Yes
Kimball - Yes
Ramey - Yes
Motion carried 5 -0 and the meeting was adjourned at 10:45 a.m.
Alan Anderson, Chairperson
Date Approved
CITY OF OWASSO
ONASSO ECONOMIC DEV. AUTHORITY
.IhI'3 REPORT APAPVP PAGE
C DESCIRI...� Ai l
OUT
- --- - ----- ---- -- -- ------ ----- - -- --- --- ----- --- -- ------ - -- - -- - ------ - - - ---
ECOITOMIC DE VELOP`'iEMT
971291
ANGELA HENDERSON
ONG GROUHDBRE..::IIiG
971292
TiIGHTECH SL =I:'S
BANNER-ONG
971293
CLASS ACTT
ONG RECEF'TIOM
971244
DOZIER PRINTING
ONG GROUNDEREAEING
971295
DECH THE WALLS
ONG GROUMDEF.'EAHTNG
971318
T.ERRACOM CONSULTANTS INC
TEST FORE
971319
RONALD D CATES
LEGAL SERVICES-ONG
DEPARTMENT TOTAL =__
FUND TOTAL =___,
GRAND TOTAL =___>
623.15
45.00
104.00
115.43
103.17
371.25
114.50
1,475.50
1,476.50
1,476.50
i
City of Owasso
Owasso Economic Development Authority
Schedule of Revenues and Expenses
For the month ending November 30, 1996
Revenues
Transfer from City - General Fund
Contributions
Sale of property
Other
Total revenues
Expenses
Current operating- -
Materials & supplies
Services & other charges
Capital outlay
Total expenses
Excess (deficiency) of
revenues over expenses
Retained earnings 07/01/96
Retained earnings 11/30/96
MTD YTD
$0.00 $0.00
0.00 0.00
0.00 0.00
42.16 1,271.68
42.16 1,271.68
90.50 90.50
1,838.26 5,572.37
0.00 0.00
1,928.76 5,662.87
($1,886.60) (4,391.19)
$23,019.91
$18,628.72
A copy of the Agenda Item #7, A Construction Change
Directive for the Oklahoma Natural Gas Project,
will be delivered to each trustee on Tuesday.
MEMORANDUM
TO: THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY
CITY OF OWASSO
FROM: ANGELA HENDERSON
ECONOMIC DEVELOPMENT DIRECTOR
SUBJECT: UPDATE ON OKLAHOMA NATURAL GAS PROJECT
DATE: December 5, 1996
UPDATE:
Dirt work has begun at the ONG Site. A Construction Change Directive to allow the contractor to
purchase fly ash or kiln dust in sufficient amounts to stabilize the soil is on this month's OEDA agenda
for approval. The architect notified us a week ago that this change would need to be made in order for
construction to begin.
Mr. Cates continues to negotiate with the Edison family for an easement. We are currently looking at
ways to expedite the annexation and zoning requests the family has made.
In addition, we are continuing to visit with Tulsa County about their participation on the roadway
project. Clarification by the Oklahoma Department of Transportation concerning the terms of the
agreement between ODOT and the City of Owasso for construction of the Industrial Access Road is
needed in order to outline a scope of work with Tulsa County.
The ONG Groundbreaking Reception was a success, despite weather conditions. Thank you to each
trustee who took time to attend the event and help make it a success.
1G /1. /UU va:LL me VIODOZII04 ICJ ArCMteCLS
CONSTRUCTION CHANGE DIRECTIVE
OWNER
❑
ARCHITECT
❑
CONTRACTOR
❑
CONSULTANT
❑
OTHER
r1
Project
ONG Owasso Work Center
Directive No.:
(name,
96th Street North a Hy 189
Date:
address)
Owasso, Oklahoma
Architects Project
To Contractor,
The Brown Construction Co, Inc.
Contract Date:
Contract For.
(name,
43
5 South Victor
address)
Tulsa, Oklahoma 74104
Fax O r]
IQ U 01
01
12/3196
9549
November, 1996
Gen. Construction
You are hereby directed to make the following change(s) in this Contract
jAddclS to 17% class C 0y ash to stabilize subgrade per Terraeon recommendations in specifications section 02010, where
ted by ArchteecL
PROPOSED ADJUSTMENTS
1. The proposed basis of adjustment to the Contract Sum or Guaranteed Matiimum Price Is:
D Lump Sum (ncrease)(decrease) of $
x Unit Price of $ per
❑ as provided in Subparagraph 7.3.6 of AIA Document A201, 1967 edition.
❑ as follows:
2 The Contract Time is proposed to (be adjusted)(remain unchanged). The proposed adjustment: if any, is (an
increase of— days)(a decrease of ^ days).
When Signed by the OMW and Arcttdtd and ax by the Conhsctvr, rift document beeanee
efiecate IMMEDIATELY wa canstnxaion Charge Dincmr, (CCD), and the Contractor shall proceed
With the chenge(s) described above.
Coleman Ervin Johnston, Inc. The Brown Const. Co., Inc
Arehded Contractor
610 South Main Suite 200
Tulsa, Oklahoma 74119
Address
By�
Date: i2 /9I ire
E:1g548MOCz:cOct .00c
543 South victor
Tulsa, Oklahoma 74104
Address
By:
Date:
SpnW= by the Cmbactor indicates the Conuacwr g
agreement with the P-Powd adpwtrnertts in the
Contact Sum and Connect Tmte sat forth in INC
Constriction Change Directive.
Owasso Economic Developtnent
Authority
Owner
207 South Cedar
Owasso, Oklahoma 74055
Addr
By:
Date:
Post -iN Fax Note
7671
WFI,
p Of b
o
P
J & M
• as
Co.
Phone f U
Phone
2-7103
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Fax O r]
Fax *
MEMORANDUM
TO: THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY
CITY OF OWASSO
FROM: ANGELA HENDERSON
ECONOMIC DEVELOPMENT DIRECTOR
SUBJECT: ECONOMIC DEVELOPMENT REPORT
DATE: December 5, 1996
ECONOMIC DEVELOPMENT NEWS:
1) HERITAGE SCHOOL CHILD DEVELOPMENT CENTER (Roxanne and Martin Blom) - Last
month, I updated the board on the Blom's plan to construct a school and child development center
in Owasso. The Blom's operate a very successful school and child care center in Dallas and are
hoping to replicate the facility. They are working with Keller - Williams Realty and plan to place a
contract on approximately two acres of land in Castlepoint Business Park, just north of Wal -Mart
on the Owasso Expressway Service Road. Mr. Anderson and I met with the Blom's last month and
requested that they update their proposal and make a presentation to the OEDA at their earliest
convenience. Mrs. Blom and I spoke recently and she will be prepared to present a proposal to the
OEDA at our January 9 meeting.
2) NEW YORK BAGEL SHOP - The OEDA was contacted recently about available property for
construction of a New York Bagel Shop franchise in Owasso. Gary Akin and I will meet with Ms.
Cynthia Woodson, a representative for the company, early next week to discuss the company's needs
and location preferences.
3) STATE SPEC BUILDING PROGRAM - As requested by many of you, a representative from
Zaremba Group, Inc, will be here Thursday during our meeting to present information on the state's
new Speculative Building Program, "Building Oklahoma." Mr. Terry Heilig, formerly of the
McAlester Economic Development Authority, is working with ZGI and will be here to present
information concerning the program and answer questions. Recently, I sent each trustee a copy of
the program outline. If you did not receive a copy, please let me know.
REPORT ON OEDA PROJECT STATUS
December 5, 1996
Page 2 of 3
ECONOMIC DEVELOPMENT NEWS Continued...
4) Enclosed for your review is an article from the November, 1996 issue of Governing entitled "Saving
the States From Each Other," which discusses how incentive programs and federal funding are being
used to lure businesses from one state to another and recent attempts to involve the federal
government in the control of such activities.
5) For your information, attached is a copy of the 1997 Calendar Year Schedule of Regular Meetings
which was filed with the City Clerk on December 4.
CURRENT PROJECTS:
1) OKLAHOMA NATURAL GAS: Dirt work has begun at the ONG Site. A Construction Change
Directive to allow the contractor to purchase fly ash or kiln dust in sufficient amounts to stabilize
the soil is on this month's OEDA agenda for approval. The architect notified us a week ago that this
change would need to be made in order for construction to begin. Mr. Cates continues to negotiate
with the Edison family for an easement. We are currently looking at ways to expedite the annexation
and zoning requests the family has made. In addition, we are continuing to visit with Tulsa County
about their participation on the roadway project. Clarification by the Oklahoma Department of
Transportation concerning the terms of the agreement between ODOT and the City of Owasso for
construction of the Industrial Access Road is needed in order to outline a scope of work with Tulsa
County. The ONG Groundbreaking Reception was a success, despite weather conditions. Thank you
to each trustee who took time to attend the event and help make it a success.
2) Roy Cartwright of the Bailey Trust has put us in contact with Mr. Larry Tooms, a site selector from
the Oklahoma City area, who is working with a window and door manufacturer from Illinois
considering relocation to Owasso. The company has been in business for more than 30 years, has
an annual payroll of $25 million, and needs approximately 30 to 40 acres upon which a 300,000
square foot facility would be constructed. The firm employs 1,000. A proposal to the company is
due in two weeks to Mr. Tooms.
3) We need to schedule a work session to discuss and finalize the 1996 -97 Owasso Economic
Development Authority Strategy. Please bring your calendar with you on Thursday so that we may
discuss appropriate dates to schedule the session.
REPORT ON OEDA PROJECT STATUS
December 5, 1996
Page 3 of 3
ATTACJEWENTS:
1. "Saving the States From Each Other," Article from Governing Magazine, November 1996.
2. 1997 Calendar Year Schedule of Regular Meetings.
T H E F E D S
Saving the States from Each Other
Can Congress dictate an end to the great smokestack chase?
S ay the words "smokestack chasing" BY CHARLES
. ... ....... ........ ..
...
to a governor these days, an there's ... ..
a good chance you will get a lecture about what a costly,
pointless, dangerous practice it is. You will be told that no state
in its right mind would build an economic strategy out of brib-
ing corporations to set up shop there. And the lecture will be
more or less sincere. Governors really do hate smokestack chas-
ing. The only trouble is, they can't stop doing it.
Given all the media scrutiny in recent months, and the
lessons learned from a few bone - headed, high -profile incentive
deals, the whole issue is becoming a bigger embarrassment to
state governments all the time. And that is why state officials are
beginning to talk openly about doing something that just a cou-
ple of years ago would have been unthinkable: Call in the fed-
eral government to protect them from the consequences of their
own reckless competition.
They are not the only ones who have mentioned it Two years
ago, the Federal Reserve Bank of Minneapolis brought up fed-
eral intervention in a widely noticed report that argued for Con-
gress to exercise its regulatory authority over interstate com-
merce to end the business - recruitment war between the states.
But the real momentum was generated this May; when the
Republican - controlled Ohio Senate unanimously passed a reso-
lution requesting federal assistance in halting the interstate
smokestack chase. Specifically, the first -of -its -kind measure
urged Congress to explore initiatives to mitigate interstate eco-
nomic warfare and to identify and eliminate the federally
funded programs that are currently used to lure businesses from
other states. Next year, legislators in as many as a dozen other
states are expected to introduce similar measures.
The Ohio resolution was not the embittered last gasp of a
jilted Rust Belt suitor. Ohio is one of the big winners in the
recent smokestack competition. According .to Site Selection
magazine, the state ranked first in the number of new and
expanded facilities it attracted from 1992 to 1994 And Ohio
Senate Republicans, it should be noted, are not generally recog-
nized as advocates for a larger federal presence in anything.
What the resolution really signified was a bacldash'against the
game as it most commonly practiced
today, which typically includes not just the
aggressive use of tax and financial incen-
tives but the misuse offederal funds —such
as industrial development bonds, Commu
nity Development Block Grants and V
money from the Joint Training Partnership `
Act --for business relocation purposes
The bidding wars are bad enough, says
Senator Charles Hoar, the Cassandra like
voice behind the Ohio bill and one of the
nation's leading anti-chase activists, with -
?:
out Washington subsidizing the various 5r
incentive deals. "We are not asking the
feds to solve our problems," he says, "we
are asking them to stop causing them."
M A H T E S I A N The case for federal intervention under
...... . ...................... those grounds is at once both reasonable
and specious. Certainly there is ample evidence that states and
localities are taking advantage of lax enforcement of restrictions
on certain federal monies and using those funds to move jobs out
of one community and into another. Two years ago, for example,
Wisconsin officials were outraged to learn that CDBG money
was going to be used to subsidize the transfer of 2,000 jobs from
a Milwaukee -area plant to sites in Missouri and Kentucky. More
recently, public financing of stadiums for wayward sports fran-
chises has attracted scrutiny. This summer, Congress directed
the General Accounting Office to check into the federal role in
interstate economic development piracy.
But blaming the feds and asking Washington to eliminate or
restrict these funds is a little like advocating gun control in
order to prevent suicide. Even if there is a crackdown on the
application of federal funds for recruitment purposes, that still
does little to address the states' larger problem.
If the feds are serious about ending the war —and if the states
are serious about federal oversight—there are some dramatic
steps they could conceivably take. One would be to mandate full
public disclosure of development incentives and tax expendi-
tures. A much more radical form of therapy would be to level the
playing field —and in effect, lessen interstate competition —by
equalizing benefit levels for AFDC and other federal assistance
programs. Or, as some have suggested, the federal government
could simply set a minimum level for corporate income taxes.
Of course, the more radical the idea, the less likely it is that
the feds will seriously consider it The state and local advocacy
groups are not united behind any one of the proposals, and even
if they were, there is scant evidence so far that Congress is
interested in policing state - against -state skirmishes. If the feds
do weigh in, most likely it would be by closing federal grant
loopholes and further tightening the rules for use of tax -exempt
bonds in economic development
Until then, the states might want to consider a recent action
taken by one of the bidding war's losers —the state of Maryland.
As part of a recently, enacted job - creation tax credit bill, the leg-
islature attached a "cease -fire" provision
-- directing the governor to negotiate an
agreernent with his counterparts in
Delaware, North Carolina, Pennsylvania,
Virginia and West Virginia that would kill
that same subsidy by July 1998. "If you
can get China and the U.S. to come to a
trade agreement," says Maryland Dele-
gate Jim Rosapepe, vice chairman of the
Ways and Means Committee, who does
not favor federal intervention, "you ought
to be able to get Maryland and Virginia to
come to one."
3F True enough. But if you can get a body
of Republicans to call in the feds, then per-
5
baps that too is an idea worth exploring. 0
1997 Calendar Year
SCHEDULE OF REGULAR MEETINGS
OWASSO ECONOMIC DEVELOPMENT AUTHORITY
Date Time
Location
January 9 10:00 a.m.
City Hall Conference Room
February 13
March 13 "
April 10
May 8 "
June 12 "
July 10 "
August 14
September 11
October 9
November 13
December 11 "
To be completed ''by person filing notice:
f�GIJ
Angela enderson
Title: Economic Development Director
Address: 207 S. Cedar
P.O. Box 180
Owasso, OK 74055
Phone: (918) 272 -2251
Filed in the office of the City Clerk at 11:00 a.m.
on December 4, 1996.
Marcia Boutwell, City Clerk