Everything is feasible without TIF, if you're fine waiting for the long haul for the money to come back.

Wheeler is a fine use of TIF because you are talking about a severely blighted area that is going to take a lot to bring together. Currently nothing sells between 4x-5x the average per square foot price of any home in OKC much less new construction. They are shooting to be at least somewhat affordable in parts, though maybe not in the first units they've talked about. That's not something that any developers downtown are doing with for sale housing.

Wheeler does have some site remediation issues not to mention a complete lack of utilities and services right in the middle of the city, and it is a very strategic place early in OKC's core development that it makes sense.

Furthermore, with TIF in OKC, limits can be set, both in time and amount. I don't think anybody wants to give Wheeler $200M in subsidies, but I doubt that's the amount they're asking for in the TIF. $20M seems pretty dang reasonable to literally turn over 50 acres from a nothing/brownfield site into a sustainably planned, full-scale urban neighborhood in the next 5-10 years.

I'm definitely on record saying we should shorten the capture period to incentivize quicker paced development, and choose a limit that is not guaranteed to be hit if the developers drag their asses but that, again, incentivizes quality construction and development of a place that truly adds value to our city.

Somebody could have just as easily bought this area to build a nice 250-unit gated subdivision the likes of which are built in suburbia. It would have come with a nice 12 foot wall on the west side so that it's completely walled off from the "dangerous" dwellers in the poor part of town, and probably have sold the homes for the same $225/sf as close as the area is to downtown, with much less invested.

Sometimes I do work in the public's best interest. Maybe kick over $20MM to me as an attaboy too? Developers are in business to make money. It's not as if developers will simply cease to function as an industry if they stop getting taxpayer funded kickbacks. I'm all for investment in what will be the crown jewels of the city. I don't imagine Wheeler is going to be that.

Also, mostly what TIF is involves financing Wal Marts and crappy industrial parks for the politically well-connected.

I'd love to see the Alliance have nothing futher to do with TIF money and for OKC to fund maybe one project per year chosen after significant open consideration as well as input from citizens.

As for those ne'r do wells you'd build the wall to exclude, that might as well happen as development like this typically prices those people out of their homes. That of course isn't bad for all of us as it increases the tax base overall, but let's not pretend we're doing those lower-income people any favors.

Sometimes I do work in the public's best interest. Maybe kick over $20MM to me as an attaboy too? Developers are in business to make money. It's not as if developers will simply cease to function as an industry if they stop getting taxpayer funded kickbacks. I'm all for investment in what will be the crown jewels of the city. I don't imagine Wheeler is going to be that.

Also, mostly what TIF is involves financing Wal Marts and crappy industrial parks for the politically well-connected.

You clearly haven't looked at the plans for Wheeler, and Oklahoma City's use of TIF has been anything but for Walmarts and crappy industrial parks. Although, I have to say based on my professional experience that those "crappy industrial parks" in other places in the state that have used TIF are (1) more likely to use the TIF funding for public infrastructure rather than development financing assistance, and (2) are the most likely to bring in actual job/economic growth to the state (let alone the local community). Those are two things that most TIF opponents will concede could be valid uses of TIF, in addition to specific blight remediation.

Since all we get is one side of the story from the City when it comes to this subject, I continue to feel compelled to share other perspectives.

This is a detailed analysis and criticism by an Oklahoma policy group called the 1889 Institute:

nebula.wsimg.com/0dcfc8fd9a848b5a4d8d3d4f5301ed8f?AccessKeyId=CB55D 82B5028ABD8BF94&disposition=0&alloworigin=1


Conclusion
Tax Increment Financing Districts are sold as a way to increase economic development in the state at public expense without costing taxpayers anything whatsoever. The evidence that this is not true, however, is clear. There is no solid evidence that TIFs, on net, increase economic activity. They do, however, allow for wealthy businesses to access public funds to make private investments. They allow the diversion of tax funds that TIF creating entities would not normally be able to access. TIFs contribute to the creation of a crony economy that hurts, rather than enhances, economic growth. TIFs avoid the usual checks and balances that protect taxpayers from being fleeced and their TIF finances, in the vast majority of circumstances, are opaque.

Oklahoma’s TIF laws should ideally be repealed. In the absence of repeal, other critical reforms should be passed. TIFs should be far more financially transparent. They should only have access to the tax base of the entities that create them. They should be limited to spending on legitimate publicly-financed infrastructure and to protect the public health and safety in cases of true blight. There should be greater state monitoring, with state level final approval of new TIFs. In these ways, the public can be protected from abuse by an institutional structure that is not needed.

...Also, mostly what TIF is involves financing Wal Marts and crappy industrial parks for the politically well-connected...

You keep making this assertion as if that is what OKC's TIF districts and the Alliance are doing. Criticism and questioning of TIF is completely fair and appropriate, but it is intellectually dishonest to give the impression that our local TIF or the Alliance are funding Wal-Marts or industrial parks in the boonies; they aren't. Also as has been pointed out it is unfair to act like the Clayco TIF request was an example of local TIF gone awry; it was appropriately ignored by the Alliance.

Everything is feasible without TIF, if you're fine waiting for the long haul for the money to come back.

Wheeler is a fine use of TIF because you are talking about a severely blighted area that is going to take a lot to bring together. Currently nothing sells between 4x-5x the average per square foot price of any home in OKC much less new construction. They are shooting to be at least somewhat affordable in parts, though maybe not in the first units they've talked about. That's not something that any developers downtown are doing with for sale housing.

Wheeler does have some site remediation issues not to mention a complete lack of utilities and services right in the middle of the city, and it is a very strategic place early in OKC's core development that it makes sense.

Furthermore, with TIF in OKC, limits can be set, both in time and amount. I don't think anybody wants to give Wheeler $200M in subsidies, but I doubt that's the amount they're asking for in the TIF. $20M seems pretty dang reasonable to literally turn over 50 acres from a nothing/brownfield site into a sustainably planned, full-scale urban neighborhood in the next 5-10 years.

I'm definitely on record saying we should shorten the capture period to incentivize quicker paced development, and choose a limit that is not guaranteed to be hit if the developers drag their asses but that, again, incentivizes quality construction and development of a place that truly adds value to our city.

Somebody could have just as easily bought this area to build a nice 250-unit gated subdivision the likes of which are built in suburbia. It would have come with a nice 12 foot wall on the west side so that it's completely walled off from the "dangerous" dwellers in the poor part of town, and probably have sold the homes for the same $225/sf as close as the area is to downtown, with much less invested.

Yes, but they knew this when they bought it a decade or so ago. Why does that have to play into their pleadings for TIF money now? So I can buy a polluted and utility-less property and then complain that I cant get anything developed without TIF help?

Thats another problem with TIFs, you are incentivized to show bad numbers and a bad pro forma, so that you can go to the Alliance with your hand out saying it wont happen unless you help.

Yes, but they knew this when they bought it a decade or so ago. Why does that have to play into their pleadings for TIF money now? So I can buy a polluted and utility-less property and then complain that I cant get anything developed without TIF help?
What's the alternative here? Let it sit vacant forever due to environmental contamination? If you buy property you know has environmental issues, and it takes you 10 years to ask for help, it sounds more like you've exhausted your other options first.


Thats another problem with TIFs, you are incentivized to show bad numbers and a bad pro forma, so that you can go to the Alliance with your hand out saying it wont happen unless you help.
This is why the City has reasonably proficient staff review TIF requests before doling out money. If a developer hasn't done their due diligence on the private financing market before asking for help, it's usually pretty apparent and comes out quickly during the review.

I'm struggling to learn about how the state financed public education. Recently I just learned about the Board of Equalization, which normalizes property taxes across the various Oklahoma school districts.

I was surprised to learn that increasing property values and ad valorem taxes from OKC do not linearly benefit OKCPS, due to the Equalization measures. Basically (my limited understanding is that) any increases in local ad valormen tax collection are offset by equivalent decrease in state allocations. Thus the benefit to public education of increasing property values in OKC proper are effectively distributed across the state of Oklahoma. There is nothing really wrong with this practice to my eyes as it prevents inequality to some degree.

But, unless I am wrong (which I very likely am) this practice ensures that OKCPS proper has very little to lose from the creation of TIF districts in OKC. The impact of decreasedn ad volerem tax collection in a TIF district is distributed across the state and is thus muted for any particular school district.

On the other hand the unofficial practice of sending some TIF money back into OKCPS occurs. I can think of a few examples but there are probably more: Emerson HS renovation and renovation of the new school district headquarters, construction of John Rex charter school, etc.

The net result of this might very well be an increase in funding to OKCPS, no? The decrease in ad valorem revenue is distributed statewide, but the funding for construction projects is localized. Might this be an end-run around the statewide equalization process? Could this explain why OKCPS never really fights these TIFs, as the outcome is not really material to them either way, and may even net out to their benefit?

I am probably missing something fundamental here.

^

You are fundamentally correct but remember when money is taken from the school district for TIF, that money comes from the general education pool which is then shared across the state. Education funding, of course, is a state-wide issue with the large percentage of funding coming at the state level.

Even if some TIF money is returned to OKCPS, it does not go into their general operating fund to pay teachers, buy textbooks, etc. It has to be used for infrastructure which is something they normally would not be spending money on when they can barely keep schools open.

I want to find out more about because if the the broad strokes here are correct, basically OKC is robbing the state educational fund -- and that's all OK schools -- to give money to downtown developers. In many ways, that's even worse.

^

You are fundamentally correct but remember when money is taken from the school district for TIF, that money comes from the general education pool which is then shared across the state. Education funding, of course, is a state-wide issue with the large percentage of funding coming at the state level.

Even if some TIF money is returned to OKCPS, it does not go into their general operating fund to pay teachers, buy textbooks, etc. It has to be used for infrastructure which is something they normally would not be spending money on when they can barely keep schools open.

I want to find out more about because if the the broad strokes here are correct, basically OKC is robbing the state educational fund -- and that's all OK schools -- to give money to downtown developers. In many ways, that's even worse.

Just think of it as revenge for all the pre-emption legislation that comes out of the rural-dominated legislature.

I'm going to put this here because the GOLT funds are another economic development tool administered by the Alliance, and they are seeking to get more money in the next bond election.

Everyone should be concerned about the relationship between the Oklahoman and the Alliance. Steve Lackmeyer recently made some very snarky and unprovable comments in defense of TIF in a recent chat and has consistently defended that program with incorrect information and half-truths. Now this article from Jack Money.

This reads like an editorial from Cathy O'Connor and I'll let readers decide what prompted it, where the information came from and if there was any independent verification of facts.

The bold line below is a completely editorial comment by the reporter and absolutely, positively cannot be proven. The fact is, they have no idea if the program is working or not.

Like TIF, GOLT funds are given to companies but in this specific case for job creation. And also like TIF there is no provable link whatsoever that the gifted funds are in any way tied to economic development. In fact, there are many companies that are awarded funds conditional on achieving promised job growth, then don't meet those goals.

And, there are companies like Chesapeake that were given millions and then actually cut thousands of jobs down the line.

GOLT and TIF may have some good aspects, but the idea that these tax dollars directly cause development and jobs are assertions made by those directly benefiting, both those at the Alliance and the companies that receive the free money.

And the Oklahoma continues to promote these completely one-sided arguments as facts when that is not the case.



Voters asked to reauthorize economic development bonds in OKC election (http://newsok.com/voters-asked-to-reauthorize-economic-development-bonds-in-okc-election/article/5562727)
by Jack Money Published: September 5, 2017 5:00 AM CDT Updated: September 5, 2017 5:00 AM CDT

Oklahoma City voters supported a $75 million measure in a 2007 bond issue intended to bring quality jobs to town and to keep them here.

That effort, which so far has expended about $64 million through the Oklahoma City Economic Development Trust's Strategic Investment Program, appears to have done what it proposed to accomplish.

In June, the program had active agreements worth about $43.1 million with 16 employers that promise to create more than 6,600 jobs.

I'll leave this here for future reference and comment.

I'm not aware of anyone other than me (and Ed Shadid who has picked up my research) who have been raising the issue of how TIF impacts schools

I take strong issue with the tone, condescension and accusation that this argument lacks understanding and merit.

This seems to be turning into a personal feud rather than an objective discussion and analysis of facts.

I will once again reiterate my concern that the state's largest news agency is simply parroting Alliance talking points, as a direct counter to the light being shined on this program almost exclusively by OKCTalk.


8/25/17 Chat Transcript (http://newsok.com/live-okc-central-chat-with-steve-lackmeyer/article/5561525)

Guest said:
What's your take on the potential lawsuit from the OKC schools and the State legislature? I find it kind of weird that the OKC school system would file a lawsuit for not adequately funding education when they fully support diverting millions of tax dollars to TIF projects. I bet they could give teachers in their district a $5,000 a year raise each & every year if they didn't give it away to TIFs. It's like my kids coming back and asking for more lunch money because they lost it or gave it away to someone else. Do you think other school districts will join their efforts?

Steve Lackmeyer replied:
We are living in an age where nuance is becoming a lost art. Those who argue TIF dollars represent money taken away from schools simply do not understand how tax increment financing works. When done correctly, TIF represents an increase in property taxes that would not occur without the possibility of the development using part of that increase for infrastructure like parking, streets, sidewalks, etc.
Most of the TIF districts allow for quite a bit of the increased property taxes to go to the schools. This is actually a better scenario for schools. Under normal circumstances, rising property taxes do not go directly to local schools. The money is allocated by the state board of equalization and is distributed statewide. This means Oklahoma City's success has essentially benefited some of the smaller, struggling rural schools.
Take the new Core to Shore TIF, in which 75 percent of the increment goes back to schools, libraries, the county, Career Tech and the health department. This may actually be a better deal for them.
I know this answer requires far more thought and doesn't roll off the tongue like "quit robbing schools to fund TIF projects." But alas, again, we live in an age where nuance is in short supply.
Now let's get to the other part of your question. Lawmakers are seen by many as having completely neglected schools for the past 20 years. And now they are at crisis stage. Let's say what nobody seems to want to say - there are political forces who are celebrating this breakdown. I know this because I've listened to them on many a morning at Kamp's 1910. And these folks do have like-minded friends who are state lawmakers.
But the frustration is building. And the lawsuit taps a nerve along with the initiative petition for a local income tax.
I don't know whether either will success, and I know of sober, pro-education folks who have concerns about both. What I do know is education and public transit are among the biggest obstacles to Oklahoma City attracting new investment and businesses.

Where is evidence of a personal feud in that quote? I don't follow.

^

"Those who argue TIF dollars represent money taken away from schools simply do not understand how tax increment financing works. "

"I know this answer requires far more thought and doesn't roll off the tongue like "quit robbing schools to fund TIF projects." "

Etc.

The thing about TIF which I find most upsetting is that many of these projects would still be built and still be profitable without TIF. I get TIF for a project like the Skirvin. I don't see why it's necessary to use TIF money to build Wal Marts. It absolutely takes money from education because there are developments which would be happening with or without TIF, but our municipal governments are pretty liberal at distributing that money.

The thing about TIF which I find most upsetting is that many of these projects would still be built and still be profitable without TIF. I get TIF for a project like the Skirvin. I don't see why it's necessary to use TIF money to build Wal Marts. It absolutely takes money from education because there are developments which would be happening with or without TIF, but our municipal governments are pretty liberal at distributing that money.

We haven't given any TIF to walmarts....

We haven't given any TIF to walmarts....

http://www.koco.com/article/blanchard-business-owners-furious-over-big-box-proposal/4302318?Content+Type=Story&linkId=12042428&utm_medium=FBPAGE&utm_source=Social&utm_campaign=KOCO+5+News+-+koco5

http://www.koco.com/article/blanchard-business-owners-furious-over-big-box-proposal/4302318?Content+Type=Story&linkId=12042428&utm_medium=FBPAGE&utm_source=Social&utm_campaign=KOCO+5+News+-+koco5
That's Blanchard

In OKC fairly recently, TIF was used to subsidize a development of drab suburban houses on the southeast side. They could have built something there without free money from the city. But they were well connected, so free money was theirs.

Things like this should spur a discussion on TIF approval being granted at the ballot box. The sums of money being spent are to great without direct voter approval.

Things like this should spur a discussion on TIF approval being granted at the ballot box. The sums of money being spent are to great without direct voter approval.

This is NOT to make a case for or against TIF in concept, but...

The City of Oklahoma City manages an annual (non-TIF-related) operating budget of more than a BILLION dollars. That is $2.7 million every day. This is done at the discretion of elected officials and their appointees. There is no way we want to put to a vote of the citizens a contract to purchase police cars, or whether or not to remodel City Hall, or which brand of paint to use, or which contractor, or approval of individual road paving contracts. It would be absolute chaos, and a lot of those things would not happen if they were line item votes of the people, the majority of whom could care less if there are potholes or cop cars in parts of town other than their own.

We elect officials to take care of the business of our city on our behalf. We entrust them with massively large amounts of money every day. We give them the discretion in how to spend it. If the City needs additional tax monies or bonding capacity (or the extension of expiring bonding capacity) we get to vote on it. Other than that, it is up to our representatives.

Under both federal and state law TIF exists as a legal instrument for municipalities - including Oklahoma City - and under that law its use is at the discretion of elected officials. This is not unusual. All 50 states have some sort of TIF on the books. Simply put, if a citizen doesn't like TIF or how it is used in their city, they should contact their city councilperson and make them aware. It is possible that their councilperson is a firm believer in TIF for a variety of reasons, including a personal belief that it is in fact a valuable tool for their community and by extension their constituents. Be prepared for them to explain why they believe in it. Heck, they may even convince you to change YOUR mind.

But if you don't like the councilperson's position, you always have the option to support their opponent in the next election, support candidates in other wards who share your opinion - financially, through volunteering, whatever - or talk to your state representative about changing the way the law works. These are all appropriate and adequate ways for citizens to become involved in the process.

A line item referendum on individual TIF projects at the ballot box is not. It would be absolutely disastrous, as would pretty much any line item financial decision made by voters. There is a reason why our form of government is not direct democracy but rather a representative democracy.

Things like this should spur a discussion on TIF approval being granted at the ballot box. The sums of money being spent are to great without direct voter approval.

Or stipulations attached to the money. As far as the private events go, sure, that income is great for the operator and all, but small, private events are absolutely not the reason they received public dollars.

...small, private events are absolutely not the reason they received public dollars.

You're 100% right. They received public dollars because the numbers didn't work for the original design they pitched - which would not pass Bricktown Urban Design - and the City suggested TIF as a way to close the gap and make it a building that met the City's design ordinance. TIF funding had absolutely zero to do with how many or what type of shows would be booked into the venue.

You're 100% right. They received public dollars because the numbers didn't work for the original design they pitched - which would not pass Bricktown Urban Design - and the City suggested TIF as a way to close the gap and make it a building that met the City's design ordinance. TIF funding had absolutely zero to do with how many or what type of shows would be booked into the venue.

Source? That's not my understanding of TIF at all. If that's right, that's a horrible use of TIF, which creates all kinds of opportunities for this kind of abuse.

You're 100% right. They received public dollars because the numbers didn't work for the original design they pitched - which would not pass Bricktown Urban Design - and the City suggested TIF as a way to close the gap and make it a building that met the City's design ordinance. TIF funding had absolutely zero to do with how many or what type of shows would be booked into the venue.

And IMO set a very, very dangerous precedent.

The idea that the City is now going to pay developers to build something correctly and that fits within our guidelines and desires is just a bad idea.

All anyone has to do is come up with a cheapo design then claim they can't afford to do it right. No matter that there is nearly an identical facility almost directly next door that never needed a dime of public money.

We just need to stop with this altogether except for very rare circumstances like First National or the Skrivin. We keep jacking with the free market to the point it has become completely bastardized.

BTW, pretty amazing that pretty much every single developer comes to the City with a 5-9% gap, which happens to be the exact range of virtually every TIF award. Simple truth is they know the game, know how to write their pro formas and know what they can get. And if that wasn't obvious enough, that has been told to me by more than one developer.

This is NOT to make a case for or against TIF in concept, but...

There is a reason why our form of government is not direct democracy but rather a representative democracy.

Well acquainted with the way a democracy versus a representative democracy works. However when Cathy O'Conner is pitching the TIF behind closed doors and it is "approved" before a formal vote, a meaningful discussion with citizen input then is just a moot point. That is not the way a representative democracy works. That is closer to the way a plutocracy operates. An intiative petition and a succesful vote could very easily take TIF approval out of the hands of those who are circumventing open meetings and put it in voters hands.

Source? That's not my understanding of TIF at all. If that's right, that's a horrible use of TIF, which creates all kinds of opportunities for this kind of abuse.

http://newsok.com/article/5371940

Well acquainted with the way a democracy versus a representative democracy works. However when Cathy O'Conner is pitching the TIF behind closed doors and it is "approved" before a formal vote, a meaningful discussion with citizen input then is just a moot point. That is not the way a representative democracy works. That is closer to the way a plutocracy operates. An intiative petition and a succesful vote could very easily take TIF approval out of the hands of those who are circumventing open meetings and put it in voters hands.

City officials negotiate deals with third party companies all of the time before it is brought to City Council for formal approval. I listed in my post a few of several thousands of negotiations that happen on your behalf every year, assuming you are an OKC resident. Every Tuesday you are likely to see a contract approved that was previously negotiated by City staff or on the City's behalf by one of their partners with City staff input, before being put to Council. It is the way cities all over America work, by the way.

Again, if you want TIF (or other incentives) negotiated in the open, you are welcome to advocate this change with your elected officials. There are of course many reasons why that would be a terrible idea and put the City at an extreme disadvantage in all sorts of negotiations.

It is totally fair to question whether or not TIF is good policy for a city. That is open to debate. Also it is fair to look at refining how TIF is used, and such analysis should always be in the minds of public officials too. But there is nothing about the way OKC uses TIF that is especially unusual or violates any laws, ethics or standards as accepted in municipal governance nationally.

By the way this discussion is seriously off-topic.

By the way this discussion is seriously off-topic.

Was about to make the same point.

http://newsok.com/article/5371940

Yeah, that's a horrible use of TIF.

By the way this discussion is seriously off-topic.

This is the debate equivalent of starting a personal argument then saying "I don't want to talk about it". :)

I'll move some of this to the TIF thread because that Newsok article you posted is almost championing that TIF be used in this way (a horrible idea IMO) and the writer uses a definition of TIF that is completely and totally incorrect.

I restate: TIF (like most dedicated economic development dollars) is money that goes looking for a problem.

This is the debate equivalent of starting a personal argument then saying "I don't want to talk about it". :)
...
Haha, well, I'll cop to participating but will point out that Jersey Boss started it!

Petition drive seeks to overturn Stillwater TIF District:

http://www.stwnewspress.com/news/update-stillwater-tif-opponents-launch-petition-drive/article_31b3bdd6-8193-11e8-9ce1-932e7c29cb57.html

Looks like Norman is ending the huge TIF for University North Park.

Anticipates the city will getting an extra $4.8 million per year as a result.

https://journalrecord.com/2019/03/27/norman-city-council-approves-mou-to-end-unp-tif/

Maybe this belongs in the other thread, but which TIF is the "Thunder Alley" TIF request targeting? There are just so many TIF districts to keep track of.

Looks like Norman is ending the huge TIF for University North Park.

Anticipates the city will getting an extra $4.8 million per year as a result.

https://journalrecord.com/2019/03/27/norman-city-council-approves-mou-to-end-unp-tif/

My belief from living here is that the majority of citizens wanted TIF to just go away. UNP did not turn out the way the early supporters portrayed it using this funding mechanism.

Pete, it feels like the Downtown TIF hasn't spit out any money towards any projects for a while. Shouldn't it be in its greatest period of earnings right now towards the end of its lifesepan?

Pete, it feels like the Downtown TIF hasn't spit out any money towards any projects for a while. Shouldn't it be in its greatest period of earnings right now towards the end of its lifesepan?

A lot was moved around and taken for the Omni and related garage.

A lot was moved around and taken for the Omni and related garage.

ah thanks.

On other threads, there were questions about the total amount that OKC has spent on TIF thus far.

As of 6/30/22, that number is $1,149,336,498.

On top of that are several big awards that have been obligated but not paid, such as the $120,000,000 for the first phase of OKANA; not to mention there will almost certainly be similar sums for Phases II & III.

Wheeler District will get at least $120,000,000 in TIF which is yet to be paid.

And very recently, other awards have been given such as $3,888,000 for the Eastpoint Hotel and $2,700,000 for Channel 9's new studio in the Century Center. There are millions more that are obligated (as in approved by city council, which is the last step) but not yet paid out.

On other threads, there were questions about the total amount that OKC has spent on TIF thus far.

As of 6/30/22, that number is $1,149,336,498.

On top of that are several big awards that have been obligated but not paid, such as the $120,000,000 for the first phase of OKANA; not to mention there will almost certainly be similar sums for Phases II & III.

And very recently, other awards have been given such as $3,888,000 for the Eastpoint Hotel and $2,700,000 for Channel 9's new studio in the Century Center. There are millions more that are obligated (as in approved by city council, which is the last step) but not yet paid out.

over what about of time??

over what about of time??

The largest TIFs started in 2000 (CBD) and 2008 (Devon). Realistically, the majority of the TIF that has been spent was in the 2010s.

An article in the Oklahoman today stated that Cathy O'Connor is serving as a consultant on the Strawberry Fields project and helping to negotiate their TIF awards, including the one in the process of being approved for $16 million in infrastructure improvements.

I believe O'Connor is serving in the same capacity for OKANA which just received a $120 million TIF award; you can bet she's involved in other projects seeking public funds. And OKANA and Strawberry Fields are just getting started and you can be sure much more TIF is still to come.


So, she runs the entire TIF program for years, then flips to being a consultant to maximize the TIF grants to her paying clients.

An article in the Oklahoman today stated that Cathy O'Connor is serving as a consultant on the Strawberry Fields project and helping to negotiate their TIF awards, including the one in the process of being approved for $16 million in infrastructure improvements.

I believe O'Connor is serving in the same capacity for OKANA which just received a $120 million TIF award; you can bet she's involved in other projects seeking public funds. And OKANA and Strawberry Fields are just getting started and you can be sure much more TIF is still to come.


So, she runs the entire TIF program for years, then flips to being a consultant to maximize the TIF grants to her paying clients.

unfortunately that is pretty par for the course across all Gov ...

Conflicts of interest aside, Cathy O'Connor working for the Strawberry Fields people give me the first hope that the Strawberry Fields people might actually build something someday.

Conflicts of interest aside, Cathy O'Connor working for the Strawberry Fields people give me the first hope that the Strawberry Fields people might actually build something someday.

Hahaha... you're not wrong per se. Ir does sound like she's just consulting. Wouldn't be surprised if she has earned over $500k already for those 2 services alone.

Oklahoma legislation would require public vote on TIF districts (https://journalrecord.com/2023/02/03/oklahoma-legislation-would-require-public-vote-on-tif-districts/)
By: Janice Francis-Smith The Journal Record February 3, 2023

OKLAHOMA CITY – State Rep. Tom Gann, R-Inola, was not happy with the mysterious process state officials used last year in their attempt to lure a Panasonic battery factory to the state.

Gann responded by filing bills to be considered during the 2023 legislative session that would prohibit state officials from creating tax increment financing districts without the knowledge and approval of the citizens affected by the proposed development.

House Bill 1379 would require a vote by citizens to redirect property tax through tax increment financing districts. HB 1378 would prevent government officials from entering into non-disclosure agreements with companies seeking state or local incentives.

“The process I personally observed was not one where balanced information was provided on whether a TIF district was a viable proposition for economic growth,” Gann said. “I saw a process of one-sided information, using sales techniques to promote the proposal.”

Gann referenced last year’s legal battle between a group of Mayes County residents, county commissioners and administrators of Mid-America Industrial Park in northeast Oklahoma.

MAIP is Oklahoma’s largest industrial park, covering 9,000 acres with more than 80 tenant firms, including Google, DuPont and Nordam. MAIP is owned and operated by a self-sustaining public trust and generates operating revenues through a park-owned water and wastewater system and park land sales and leases.

In 2021, Gov. Kevin Stitt and other state officials embarked on a project dubbed Project Ocean – an effort to lure a Panasonic plant to Oklahoma. Panasonic, working in partnership with electric vehicle company Canoo – another MAIP resident – sought a site to build batteries for electric vehicles.

Stitt successfully got the Oklahoma Legislature to approve roughly $700 million for the project while refusing to name the company the incentives were designed for, claiming negotiators had signed nondisclosure agreements.

The incentives for the mystery company included move-in ready space at MAIP. MAIP officials got Mayes County commissioners to approve a plan that would direct property tax revenues toward a newly created 588-acre TIF district to fund infrastructure improvements at the MAIP site offered up under Project Ocean.

Local residents questioning the development failed to get clear answers regarding how their tax dollars would be spent and for whom, according to Gann.

“The answers they were given were vague and they were told the information couldn’t be revealed because it was part of a non-disclosure agreement,” Gann said. “This caused further frustration and more questions about the creation of a TIF district.”

Residents sued to obtain the information and won the opportunity to vote on the proposal at the Nov. 8 election. Citizens in every precinct of Mayes County voted down the TIF district, with 63.9% of the vote opposing the project.

Gann said he wants to prevent the situation from arising again. Gann said it is the taxpayer who bears the risk when big incentive packages affect their property tax base.

“House Bill 1379 will put the power back into the hands of citizens by requiring a TIF district proposal to go to a vote of the people for approval,” Gann said. “It will eliminate the costly legal battle against government imposing a TIF district without the consent of the governed.”

Gann noted more than one occasion last year when state officials refused to identify a company in line to receive state dollars. In addition to the mystery surrounding Project Ocean, the State Board of Education refused to reveal what vendor was awarded a $33.6 million contract, claiming the information was protected under a nondisclosure agreement.

“When politicians are willing to invest and speculate with taxpayer dollars, the Oklahoma taxpayer has a right to know exactly how taxpayer dollars are being distributed for business activity and exactly who will be receiving the taxpayer dollars from vendors seeking to do business with the state of Oklahoma,” Gann said.

I definitely support that. TIF has shifted from something used to finance the occaional project like the Skirvin where traditional finance would fail into a means by which developers pad the bottom line as a general rule. When it's used to develop cool, historical properties fine. When it's used to develop Wal Marts and $500/sq. ft. cottage developments next to railroad tracks, it's not fine. I'm doubting it passes both houses or will be signed by the Governor though. Our current leadership doesn't seem likely to get between subpar developers and their bottom lines.

More TIF districts are being planned.

District A/#14 (they give them numbers after the payments start) is the OKANA area. They have already been granted $102 million but the revised TIF plan shows $85MM + 43MM for $128MM. The $128 is the budgeted amount to be paid out in TIF although it almost always goes way higher due to collections exceeding the budget. For example, the downtown TIF (#2) was budgeted at $195MM and they have already generated $360MM, all of which will be paid out in TIF.

District B is the area east of Eastern and is budgeted for $22MM. I bet the Chickasaws have their sites on that property as well.

District C is no doubt for the Dream Hotel project and is budgeted for $215(!) million.

District D will be carved out of the downtown TIF (which expires in 2026) and targets the two buildings along Broadway that Tanenbaum plans to convert to apartments; budgeted at $12MM.

With the amounts paid out to date for TIF ($1.2 billion) plus current obligations and these new additions, that would be almost $1.8 billion in TIF money and we are just starting to scratch the surface of Strawberry Fields and OKANA.


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District A being drawn to include the industrial land south of the railroad seems odd. Planning for the future, maybe? Or are we just grabbing a bit of unrelated tax money to hand over to the OKANA project?

District B is very interesting, has there been any indication of development activity in that area before now?

District C gives me fresh reassurance that the Dream Hotel project is still trucking along.

District D I like the look of since that project will further activate the downtown core following on the heels of the First National redevelopment. The more residents living downtown the better.

Are these 25 year proposals? That's the issue I take most exception with. Lowering the length would prevent the numbers far surpassing what we budget for.

Are these 25 year proposals? That's the issue I take most exception with. Lowering the length would prevent the numbers far surpassing what we budget for.

Yes, 25 years which is the max allowed by state law.

On a related note, we have been looking at condos in Cincinnati's OTR area and many of them were built with tax abatement funds (similar to a TIF). Most of the early ones are about to lose their tax abatement status and it is going to add close to $1000/mo in property taxes that the current owners haven't been paying. I think a lot of people are in for a rude awakening when that property tax bill hits.

In OKC, the TIF incentives are given to the developers, not the condo owner.

At last week's Planning Commission, they presented this graphic to illustrate they will be taking property from TIF #2 -- which is set to expire after 25 years -- and moving it to the Innovation District TIF which is just starting its 25-year run.

So, millions more in TIF is being planned although they did not submit the projected amount.

Also, these things run for a full 25 years at which time all the property involved is supposed to revert to the usual flow of property tax to education and the city. However, they keep creating new TIFs within the TIF #2 boundary, or moving chunks of it to new or existing TIFs.

In TIF #2 alone (which has now generated $360 million in 23 years vs. the $47.5 million originally budgeted) they have carved out the entire Devon complex, First National, parts of Core to Shore, the Dream Hotel/parking lots, the Tanenbaum projects on Broadway and now a big chunk on the eastern edge. You can expect more of the same as TIF #2 winds down.

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In OKC, the TIF incentives are given to the developers, not the condo owner.
How does that work? Is someone fronting the money to give to the developer? If so, where is that money coming from?

Here in Jax the property tax is collected and then give back to the property owner as a rebate. In Cincy it just isn't collected at all until time is up.

How does that work? Is someone fronting the money to give to the developer? If so, where is that money coming from?

Here in Jax the property tax is collected and then give back to the property owner as a rebate. In Cincy it just isn't collected at all until time is up.

Here, it is a mix.

Sometimes the city gives the money upfront and more recently (after a light started to be shined on their process) they began to shift towards providing property and sales tax abatement.

But they still give some developers money upfront before they've built anything. That's exactly what is being proposed at Strawberry Fields and the Omni demanded the city give them the full amount before they spent a dime of their own money. In that case, the city was hit with tens of millions of interest charges on top of the tens of millions given the Omni.


That thing with the Omni still burns my arse. I knew the Alliance was on a deadline to submit the full financial package to City Council and the day it was due (there is a deadline for compliance with open meetings law) I saw it hit the public agenda, quickly downloaded it, saw there was a huge finance charge involved that was not disclosed in dollar amounts, and immediately picked up the phone to call Cathy O'Connor. Within minutes I saw a full story in the Oklahoman about this very subject and with quotes from O'Connor and others. The Alliance obviously leaked it to Lackmeyer who of course just published what they fed him and never bothered to ask about the significant finance charges.

I was steaming by the time O'Connor called me back because it was an obvious manipulation of the facts. She refused to give me a number but there is absolutely no way they are proposing a massive financial deal without having all the details. So, I called the Director of Finance for OKC and he quickly gave me the run-down. In the addition to the $85 million in freebies given to the Omni, there would be a whopping $53 million (!!!) in interest costs.

Of course we were the only outlet to even bother to research this issue while the Oklahoman happily just reported $85 million.


It's things like this that causes me to keep a very sharp eye on the Alliance in general and TIF in particular because absolutely no one else is.

That is unbelievable...but I believe it. That is right out of the Devon playbook, except Devon loaned the City the money to give back to them and then collected the interest from the City. Almost sounds like money laundering.

That is unbelievable...but I believe it. That is right out of the Devon playbook, except Devon loaned the City the money to give back to them and then collected the interest from the City. Almost sounds like money laundering.

devon loaned the city money to complete street scape projects and a giant renovation to the myriad gardens .. not to " give back to them"

devon loaned the city money to complete street scape projects and a giant renovation to the myriad gardens .. not to " give back to them"

As a condition of building in OKC (they threatened to go to Houston) Devon insisted all their property and sales tax be spent on the Myriad Gardens and Project 180, and while 60% of P180 was cut, everything around Devon HQ was completed and completed first.

They merely loaned all the money to the city upfront (with interest) so all that work would be done around the time they opened their building.