Oklahoma River becoming TIF district?

[Patrick]

The Oklahoma River may become a TIF district, similar to downtown. This would mean development on the river, may benefit from grants similar to those being used for Legacy Summit and the Skirvin Hotel. Great news for the river.

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"City proposes tax increment for 2 districts


By Hank Jenkins
The Oklahoman

Up to $62.5 million could be used to make improvements to the Dell Business Service Center and lure other businesses into an area along the Oklahoma River.
The Oklahoma City Council introduced an ordinance Tuesday that would create two tax increment financing districts in an area just east of S May Avenue to S Meridian Avenue and from Interstate 44 to SW 22.

A second and final hearing on the proposal is set for March 29.

Tax increment districts take a portion of growing property or sales taxes from their areas after they are created and return them to districts to pay for public improvements that might spur future developments.

Ward 6 Councilwoman Ann Simank said these will be the city's fourth and fifth tax increment financing districts.

Cathy O'Connor, assistant city manager and finance director, said the money generated from both districts not only will be used on Dell, but also can be used to lure other businesses into the area.

In November, the city agreed to fund various improvements on and adjacent to the Dell site, including compacting the land because it once was a landfill.

O'Connor said in a presentation to the council that district No. 4, dealing with property taxes, is estimated to generate between $250,000 and $1.5 million annually. She said that is based on an estimation of $150 million of new investment in the area, including those to be made by Dell or any other new businesses that enter the area.

O'Connor said district No. 5, dealing with sales tax, is estimated to generate between $150,000 and more than $1 million annually.

Simank said the area is prime property that will start to see more businesses because it is close to where the Dell center will be built.

"I bet you there are going to be restaurants, service stations, convenience stores or apartments even," Simank said. "These (areas) are prime, so we have them in the TIF districts."

Simank said the city can use the tax increment financing districts for 25 years with no increased taxes to residents. "

[floater]

This is fabulous thinking by the city. It will help ensure that more development (hopefully the thoughtful kind) will continue for the next couple of decades.

[xrayman]

"Up to $62.5 million could be used to make improvements to the Dell Business Service Center and lure other businesses into an area along the Oklahoma River."

and

"Cathy O'Connor, assistant city manager and finance director, said the money generated from both districts not only will be used on Dell, but also can be used to lure other businesses into the area."


This is a great idea as long as this isn't another backdoor handout of cash to Dell. If there are improvements that need to be made to the Dell facility, let Dell, Inc. pay for it. Further money to this project would be wasteful spending of taxpayer dollars. Expecting government to "make improvements" over and beyond what has already been promised and given has only one word: Extortion. Enough of this! I'm a conservative who is tired of exploding deficits and increasing numbers of projects like this. This proposal is actually using FEDERAL dollars, funneled through the CITY, and passed along to further capitalize a facility for one of the most successful companies in the world. That is just wrong.

[mranderson]

Actually, X-ray, WHEN Dell makes improvments. The building under construction is just the first one. Yes. Dell should, and is paying for those.

[xrayman]

See my addition in my edit above. It sounds to me like this is a proposal for MORE CASH to Dell.

[xrayman]

Me again.....Apparently, I am wrong about the financing. I was thinking of something completely different that uses matching funds from the federal government. At any rate, I still am getting tired of the handouts to immensely successful companies.

[floater]

Xrayman, I'm thinking the improvements from a TIF district were part of the negotiations to land the facility. Anyway, any city serious about landing a major employer will help with infrastructure costs. It's become part of the cost of job creation. Unfortunately, assistance to bring in companies is like an arms race. Any major city, if it wants to compete, must be willing to offer them. No one wants to unilaterally "disarm". Until there's some kind of pact among cities that they're off the table, they'll continue to be used.

But it's important to say that stuff like that alone doesn't bring in employers. They usually sweeten a situation that the employer already likes.

[floater]

Nothing more to say.

[Patrick]

I don't like it, but unfortunately, public subsidies to attract corporations are just the typical way of life in operating a city today! Either compete or retreat!

[xrayman]

Don't get me wrong, I understand that this is a necessity in economic development today. What I oppose are companies coming to Oklahoma based on the Quality Jobs incentive program, municipal subsidies, etc. and then still looking for handouts every time you turn around. It resembles the old welfare society (pre-welfare reform) of individuals getting a help up, and another help up, and another help up and another.......Or, as I like to say, a sponge is a sponge is a sponge and always will be because that's what a sponge does - sponge. Many of our largest corporations have become beneficiaries of a kind of corporate socialism that has transferred a great amount of taxpayer dollars into their coffers and they return to the public trough to do it over and over and over again. That's what I think is wrong. I have a fundamental dislike for taxpayer giveaways at every level. We are taxed TO DEATH and not only by the federal government.