Published: August 23, 2007 01:01 am            

One TIF down, one TIF to go

By Carol L. Cole

Transcript Staff Writer

Norman recently fulfilled its first Tax Increment Financing District, just as it’s getting started on its second.

The city’s first TIF — Campus Corner TIF District No. 1, recently completed its $1.25 million in new funds created by increased revenues in the district. It was originally approved in December 2001.

It has been a resounding success, according to Rainey Powell, a Campus Corner Association board member.

“It’s paid off and it will continue to pay off,” Powell said. “I think the money that was spent was all new money, theoretically money spent that the city wouldn’t have had if the private investment hadn’t occurred. And going forward, the city will enjoy 24 to 25 percent investment return every year going forward. So from a financial investment perspective, it’s been a very good deal for the city.”

Overall revenues in the district have gone up 85 percent since 2001.

Five new businesses have yet to open this year, Powell said, and several have opened recently or are expanding.

Lucca Fashion Boutique opened in the old Balfour location and Blush recently opened. Tulips opened on Buchanan Street about a year ago and they are expanding. Starbucks now occupies the corner of Boyd Street and Asp Avenue.

Powell said there are four construction projects going on and additional private investment occurring as a result.

Several stores are in the process of expanding, including Happy Cat Yarn Company, Café Plaid and Savvy.

Norman’s iconic O’Connell’s Irish Pub is expected to open in the old Al Eschbach’s Sports Grille location in time for about the third home football game.

The Campus Corner TIF District yielded $369,019 in sales and property taxes in its first year, 2001. Its fiscal year 2007 total was $676,414. The amount over the original sum went to the TIF District for improvements until the $1.25 million was fulfilled.

About $862,767 of that amount has been spent or encumbered, said Norman Finance Director Anthony Francisco, leaving about $400,000.

“We still have a number of sidewalks to repair and a number of repairs have been made,” Powell said. “The White Street sidewalks and the curbs and Asp Street, the curbs were designed for a one-way street south. … There is an opportunity to increase several parking spaces the way the curbs and the bumpouts work.”

He said on the original plan there were trash cans, benches and bike racks.

“Because we got started a little later because of some accounting issues, and there was a little hurricane down in New Orleans, there was a pretty strong jump in construction costs.”

He said they spent $117,000 on design for the district.

“We’re working on the planning phase right now,” Powell said. “We’d like to start the next phase right after Jan. 1. … There are still things that needed to be done as part of the original project. … Parking was on that list and it hasn’t even been touched.”

He said with the diversity of ownership — 100 percent local ownership, but different owners — it would be difficult to achieve any uniformity in the look of the district without the city’s help.

Powell said they hoped to schedule the balance of the work just after the holiday rush and the University of Oklahoma’s home football season conclude.

Norman recently started implementing its second TIF District, the $54.75 million University North Park TIF No. 2. The TIF District is between Robinson Street and Tecumseh Road, east of Interstate-35.

Norman city councilmembers approved the UNP TIF on May 2006.

So far the City of Norman has spent about $180,000 in TIF funds, mostly for design and legal fees to create the TIF project plan.

“There has been quite a bit more upfronted by the developer,” Francisco said, about $1.6 million in funds primarily used to widen the intersection at Robinson Street and 24th Avenue NW and begin building the frontage road on the east side of I-35 between Mount Williams Road and Conference Center Drive.

Francisco said he expects the City to issue about $16 million in revenue bonds some time this fall to reimburse the developer and create Legacy Park.

Carol L. Cole

366-3538

ccole@normantranscript.com

        

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