By John Dobberstein, Editor
In the first official regulatory hurdle for the proposed Sunset Amphitheater, the Broken Arrow Planning Commission green-lighted a special taxing district Wednesday to help pay for infrastructure improvements.
The Commission voted 5-0 to recommend approval of the tax-increment financing (TIF) district and economic development plan when it comes before the Broken Arrow City Council on Jan. 2. Hearings on the TIF proposal are expected that evening and on Jan. 16.
RELATED STORY: City proposes TIF district to pay for Broken Arrow amphitheater infrastructure
The city said based solely on the amphitheater project — which is proposed by Colorado Springs-based entertainment company Notes Live — development within the TIF could generate approximately $2.3 billion in taxable sales over the 25-year life of the TIF. Additional development near the amphitheater could result in a total taxable capital investment of $30.5 million and $364 million in taxable sales.
In addition to sales, use and property tax revenue anticipated from the $71.5 million development, Broken Arrow also forecasts additional proceeds to come from hotel taxes. The TIF proposal also describes an effort to lure at least two 150-room hotels to the project area, as well as several restaurants and a service station.
Planning Commission members generally seemed enthusiastic about the $71.5 million project, but did ask some questions about infrastructure around Broken Arrow Events Park, which is just south of the development site.
TIF revenues coming from the special district would be used to fund the infrastructure improvements, including $7.2 million in parking construction north and sound of the Events Park pond; $2.3 million for stormwater improvements; $10.3 million in road and traffic upgrades; $550,000 in utility upgrades; $2.2 million for acquisition of land north of the Events Park for the amphitheater, and $2 million for project engineering.
Upgrades are planned for internal roads at Events Park, Gary Street, New Orleans Street, a road extension to the north parcel, and a roadway connection to Highway 51 and 91st Street. All of this work is in the preliminary stages.
Broken Arrow Economic Development Manager Jennifer Rush said about 3,360 parking spaces are needed, and the city has an agreement to lease about 1,000 spaces from Northeastern State University on an overflow basis. The city will build the rest of the parking.
Rush noted the TIF is sales-tax only and didn’t involve property taxes, and that the city is confident it can handle the debt service without using ad valorem revenue.
The city is also talking to Wagoner County about continuing some of its tax revenue for the next decade, since that county owns some of the roads in the project.
In advantage of this plan, Rush said, is that the city may be able to access the state’s “Leverage Act,” which ordains that any project deemed a tourism project that could benefit an opportunity zone nearby may be eligible for state contributions into the TIF. In this case the opportunity zone would be the Rose District, she said.
Rush noted a master plan drawn up for the Events Park included an amphitheater. But through purchasing land north of the park there will be more space for parking and it leave some green space to utilize the Events Park.
Officials said they believe adding the parking for the amphitheater will enhance the utilization of the Events Park, which currently has only 300 spaces
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