By Carol Cole-Frowe
October 03, 2007 12:37 am
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By Carol Cole-Frowe
Transcript Staff Writer
The $54.7 million University North Park Tax Increment Financing District is off and running, Norman city councilmembers heard at their Tuesday study session.
“It’s a strong start coming out of the gates,” said City Manager Steve Lewis, who managed several TIF districts in Lee’s Summit, Mo., where he previously was city administrator. “It’s ahead of projections.”
Assistant City Attorney Kathryn Walker told councilmembers, “with the rate of growth going on out there, we should see some impressive numbers.” Walker presented the quarterly update requested by the council.
“The entire west side is spoken for,” Walker said of the first phase of construction, designed to drive traffic. “They have potential tenants for every space over there. … It is going quicker than anticipated.”
One of those tenants opens today, with a Kohl’s ribbon cutting at 7 a.m.
“Now my wife and daughter can shop in Norman instead of Moore,” said Ward 2 councilmember Richard Stawicki after the meeting.
The council will consider Development Agreement No. 3 at its Oct. 9 regular meeting and is projecting issuance of $15 to $20 million in bond financing in December.
“We think the revenue streams being shown right now will service the debt,” said Jeff Bryant, city attorney.
The TIF funds for public improvements include $13.475 million for initial project costs and roadway improvements; $8.25 million for Legacy Park, landscaping and Legacy Trail; conference center and cultural facilities, $16.5 million; Lifestyle Center, $8.25 million; and economic development, $8.25 million.
Fifty percent of the ad valorem dollars over the original base amount go into the UNP TIF District No. 2 coffers, with 60 percent of sales tax increases going toward the TIF.
Ad valorem taxes will be measured against the base calendar year of 2006, when the undeveloped district was valued at $7.5 million, which included two parcels purchased by developers from the University of Oklahoma Foundation.
In calendar year 2007, the same property is projected to be worth more than $21 million. Projections for 2008 and 2009 for already-permitted buildings on the west side would grow the property values to $102 million, an estimate that doesn’t include contents.
Ad valorem tax from 2007 is projected at $165,112, with $82,556 going to the UNP TIF. The 2008-2009 projections for ad valorem tax are $1.16 million, with $580,585 going to the TIF.
Sales tax for fiscal year 2007 in the UNP TIF District totaled $1.6 million. Because Super Target moved from another Norman location, the store’s previous sales tax revenues were subtracted and the amount was adjusted down to $832,082. Of that, $499,249 or 60 percent would go to the TIF and $332,833 or 40 percent would go to the general fund.
Super Target opened a year ago, with Kohl’s opening today.
John Q. Hammons broke ground for a $50 million Embassy Suites Hotel/Conference Center on Feb. 28. Construction on the 10-story hotel is up to the seventh floor. Conference center construction began recently.
Retail outlets or restaurants announced so far for the first phase include Pei Wei Asian Bistro, AT&T, T-Mobile, Petco, Circuit City, Office Depot, Dress Barn, Maurice’s, Rack Room Shoes and TJ Maxx.
The second phase is planned to include the Lifestyle Center and would include an upscale shopping element that was the focus of the Citizens TIF Advisory Group that evaluated the project before council approved it.
Ward 1 councilmember Bob Thompson expressed concern that the city might just be “pushing dollars around.”
“That’s the elephant in the room,” Thompson said.
Ward 7 councilmember Doug Cubberley called some of that discussion “premature.”
“Let’s get a year of data in,” Cubberley said. “Are we making progress or are we treading water? … This has always been a stepped process. This is coming and it’s coming a lot faster than anyone envisioned. People have to have patience.”
Lewis said the city might consider hiring outside professionals to examine the extent of cannibalization and effects the district has on the city’s tax base.
Carol Cole-Frowe366-3538ccole@normantranscript.com
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