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Tax Increment Financing Town Center Project Midwest City, OK.

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Presentation on theme: "Tax Increment Financing Town Center Project Midwest City, OK."— Presentation transcript:

1 Tax Increment Financing Town Center Project Midwest City, OK

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3 Pre Development

4 1970 Comprehensive Plan 1985 Comprehensive Plan Midwest City Millennium Implementation Plan Midwest City Downtown Redevelopment Plan 2004 Report on Area Conditions Public Participation

5 Local & Regional Void For Commercial & Retail I-40 Frontage with Multiple Access Points Adjacent to Tinker Limited Interstate Frontage Eastern Oklahoma County as Market Area 90 Acre Development 240 Lots to Assemble the Property Timing was Right Major Project Aspects

6 3 Main Project Goals Create a People Place - Downtown/Town Square Improve the Image of Midwest City Economic Development/New Retail Center

7 Design Guidelines Process for Designers Philosophy Site Access and Traffic Flow Utilities Layout Site Lighting Architectural & Landscape Design Signage

8 Site Plan Phase I - 329,400 sq ft Phase II - 96,150 sq ft Phase III - 203,104 sq ft Retail Total 629,000 sq ft Plus 11 Outparcels

9 Town Center West Existing Site Conditions Site Improvements

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14 Funding 7 Million in Tax Increment Financing (TIF) 27 Million Midwest City Hospital Authority for Land Acquisition TCSP Highway Administration Funds Numerous Smaller Grants Partnership with Sooner Investment RFQ & RFP Process

15 TIF – Project Plan Adopted August 2002 DESCRIPTION OF PROJECT Redevelopment & revitalization of original downtown 90 acres Major commercial redevelopment New private investment of $50,000, to 1000 jobs over 7 year implementation Annual sales tax $1 to $2 million over 10 year period Direct payroll $15,000,000

16 TIF – Project Plan Adopted August 2002 ELIGIBILITY OF PROJECT Project area is unproductive, underdeveloped and blighted An area where investment, development and economic growth has not occurred Area is and was blighted and detrimental to the public health, safety and welfare

17 TIF – Project Plan Adopted August 2002 OBJECTIVE OF INCREMENT DISTRICT Revitalize original downtown area Promote economic development to increase sales tax revenues, raise property values, improve economic stability Retain jobs and create new ones Preserve and enhance tax base Make possible development that otherwise would be difficult without apportionment of ad valorem taxes

18 TIF – Project Plan Adopted August 2002 FINANCIAL IMPACTS Proposed private redevelopment will generate tax increments necessary to pay authorized public costs of the project Project does not create a measurable increase in demand for services or costs

19 TIF – Project Plan Adopted August 2002 STATEMENT OF PRINCIPAL ACTIONS Property acquisitions Negotiation, preparation, execution and implementation of development and redevelopment agreements Site preparation, planning and construction of public improvements All other actions necessary and appropriate to carry out project

20 TIF – Project Plan Adopted August 2002 ESTABLISHMENT OF DISTRICT #1 Increment of ad valorem may be used to pay project costs for a period not to exceed 20 years Increment is divided into 2 parts Part A: that portion of the increment generated by values up to the equalized assessed value of all real property and all personal property in the district for the year 1999 which is deemed to be $1,458,062 shall be allocated to affected taxing entities Part B: the balance of the increment generated within the increment district (the portion generated by values in excess of the 1999 value) shall be allocated to payment of project costs

21 TIF – Project Plan Adopted August 2002 ESTIMATED PROJECT COSTS Category A: Demolition$ 1,500,000 Street Improvements$ 1,900,000 Park Improvements$ 200,000 Utility Improvements$ 1,500,000 Category B: Organizational, administrative and professional services$ 300,000 Contingencies$ 550,000 Capitalized Interest$ 1,050,000 $ 7,000,000

22 TIF – Project Plan Adopted August 2002 FINANCING REVENUE SOURCES It is estimated that between $400,000 in the near and $900,000 over the longer term will be generated annually

23 TIF – Project Plan Adopted August 2002 ACTUAL RESULTS 1999 Assessed valuation $ 1,458,062 (generated $107,769 in property tax) 2011 Assessed valuation $10,326,826 (excludes value of land - $107,769 + $997,735 = $1,105,504 in property tax) TIF Note Payoff $7,000,000 - Borrowed from City Sewer Fund 2007$ 343, $ 568, $ 907, $ 1,110, $ 981, $ 1,007,703 (est.)

24 TIF – Project Plan Adopted August 2002 ACTUAL RESULTS – CONTINUED Sales tax generated from site: Fiscal Year $6,250,000 Number of jobs created: Estimated: 1000 Actual: 1150

25 Supreme Court Ruling – Condemnation under Local Development Act versus Urban Renewal Authority If you are going to condemn for economic development purposes, you have to use an Urban Renewal Authority.


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