What was the City’s portion of the incentive package?
$5.5 million in job creation incentives - which will be funded by a
forgivable section 108
loan and up to $11.7 million in infrastructure improvements. The $11.7 will be funded by a new Tax Increment Financing District.
What kind of return do we expect on this investment?
Based on a three year ramp up of 3,000 employees, we anticipate an annual direct economic impact of $246.5 million and an indirect economic impact of $135.9 million in year three. During the l 4 year ramp up period, we anticipate a cumulative overall economic impact of $764.7 million.
From a taxes standpoint, we anticipate a direct real estate tax impact of $664,807 over the initial three year period and Indirect Property tax impact of $5,544,246. By year three, we are anticipating an annual direct property tax to be $329,526 and indirect property taxes to be 3.1 million. As for sales tax, we anticipate n annual local sales tax impact of $2.0 million.
Why did the City provide such an attractive incentive package?
The City sees this Dell facility as an important, strategic decision.
This facility will provide good jobs and creates an anchor development on the Oklahoma River that will spur housing, entertainment and other amenities. If you look at the development that has occurred in other cities around Dell sites, you will see the enormous potential this location brings to our City.
What is the value of the land? How does this impact the river development?
The land chosen for this site was owned by the City and was being held in reserve for the development of the river. There will be a revision of the river’s master plan to reflect this change in development.
This facility will greatly enhance the value of surrounding properties, much the same way the MAPS projects have enhanced the value of Downtown and Bricktown property.
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