This week the Oklahoma City Council voted 8-1 to authorize Mayor Mick Cornett explore the idea of creating two new tax increment financing, or TIF, districts in downtown Oklahoma City.
These subsidies for redevelopment and community improvement projects embody the idea of “public-private partnerships” between cities and businesses.
Oklahoma City Councilman Ed Shadid cast the lone “no” vote.
“He's generally pretty suspicious of any sort of incentive plan that gives away city money,” says The Journal Record’s managing editor Adam Brooks. “His stance seems to be that he doesn't want to give away money that isn't a good investment, and he worries that sometimes they incentivize projects that would've come to the city anyhow.”
One of these districts includes the Core to Shore area that runs from the old Interstate 40 path (soon to be the Crosstown Blvd.) south to the Oklahoma River. The second TIF is bounded by Western Ave. and E.K. Gaylord Ave., and the Crosstown Blvd. and Main Street.
The Journal Record’s Brian Brus reports Councilman James Greiner was concerned that the whole idea behind a TIF assumes the district would grow slowly or stagnate without the influx of funding.
“I’m a skeptic on needing another TIF for this to develop,” he said. “So I really hope the committee is able to convince me that it’s needed, that this area will not develop without it … I would really like a ‘but-for’ test.” Downtown and the surrounding districts are expected to grow significantly in residential, office and business density in the next few years. Cathy O’Connor, president and chief executive of the Alliance for Economic Development of Oklahoma City, said Bricktown’s current average use density is expected to double by 2025, and Core to Shore space use will grow by almost seven times its current density. The latter is projected to build out to 1.5 million square feet of office space, 6,700 housing units, 157,000 square feet of retail and 152,000 square feet of adaptive reuse of existing buildings. O’Connor said the combined development value of Core to Shore alone is estimated at $930 million.
Brooks says this revenue bump to Oklahoma City’s coffers could pay for a number of projects, from new schools, to streets and sewers. But it could also be dedicated to a specific business or project the city wants to assist.
"[It’s] not necessarily part of these districts, but the big 499 Sheridan development in downtown could be the sort-of thing that gets a little bit of help,” Brooks says. It could also go for the parking garage that will go with the convention center.”
Cultural Center Conundrum Continues
Back in September Brooks said the future of the American Indian Cultural Center and Museum could be on hold until after the November elections. They’re over now, the Legislature is set, and the new session starts Monday. This week Gov. Mary Fallin, Senate Minority Leader Randy Bass, and House Democratic Leader Scott Inman all weighed in on how to complete the project.
Inman said he would support a $40 million bond issue to complete the bill.
"With the budget as tight as it is, to come in and say that we’re going to take general revenue dollars this year, and allocate it for the cultural center, when you’re looking at budget cuts for other agencies, is difficult,” Inman said during the Associated Press’ annual legislative forum. “I mean, if that’s what they want to do, so be it, I guess. But bond rates are still great, we can still do it. In that sense, it’s still cheap. I think that’s probably the most economically feasible way to do it.”
Brooks attended a recent Greater Oklahoma City Chamber legislative breakfast with Inman and House Speaker Jeff Hickman, and says there’s still no single, solid idea, or even a clear consensus.
“There are parts of the state where they just don't want to give anything to what they see as an Oklahoma City project, although some say it will benefit the whole state,” Brooks says. “There's a proposal in the legislature right now that would even take lottery funds and move it over to the museum, but right now we still really don't have a solid idea that's a leading contender.”
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