By John Dobberstein, Editor
The city of Broken Arrow is proposing to implement a special district to pay for an estimated $28.4 million in land and road improvements for the proposed Sunset Amphitheater development.
On Thursday, the Broken Arrow Planning Commission will hear a proposal from city staff to form a tax increment finance district (TIF) to pay for the infrastructure needs, which includes upgrading arterial roads surrounding the property, building parking and improving stormwater and water facilities.
The Planning Commission, which is an advisory body, will be asked to consider whether to recommend the City Council create the TIF district and associated economic development plan.
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 describes an effort to lure at least two 150-room hotels to the project area, as well as several restaurants and a service station.
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.
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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.
The city said based solely on the proposed amphitheater project, development within the TIF could generate approximately $2.3 billion in taxable sales over 25 years. Additional development near the amphitheater could result in a total taxable capital investment of $30.5 million and $364 million in taxable sales.
City officials said the “unique nature” of the amphitheater project is expected to draw significant spending from outside the city, and 100% of new sales and use tax revenue of the city will be captured by TIF.
The city acknowledged there could be a negative impact to existing retail businesses outside the TIF district in using incentives to drive retail development near the amphitheater. To compensate, the city said the TIF will only capture 50% of the incremental sales and use tax revenue accruing to the city from additional development created by the amphitheater.
The city’s latest data predicts the amphitheater project will generate 459 “transient” jobs during construction with a payroll of nearly $40 million and a one-time economic impact of $141 million; and 240 permanent direct jobs and 393 permanent indirect jobs with a combined annual payroll of $18.3 million. The annual economic impact of the project could be more than $211 million.
The city also projects the amphitheater development could attract a potential total taxable capital investment of $30.5 million and an additional $364 million in taxable sales over the term of the TIF.
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