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Thread: TIF Districts

  1. #251

    Default Re: TIF Districts

    Quote Originally Posted by Pete View Post
    Not to keep picking on them, but the Oklahoman uses that wording in virtually every single article they write on this subject.

    The specific wording I quoted that you quoted was a very recent document from the Chamber which was specifically addressing their success in defeating legislation that would require a public vote for new TIF. They frequently use this wording in their efforts and it's just flat-out misleading and factually wrong.
    The Oklahoman has always, even in its current incarnation, been a mouthpiece for the Chamber. Sometimes that's served the community well in that we had a newspaper that was a cheerleader for the business community. In other instances, it hasn't done us favors by making deliberate word chocies to frame issues in a misleading way.

    It was once valid that developments like the Skirvin Hilton and Devon would benefit ad valorem revenues by not only increasing the value of their own properties in the long run, thus leading to greater future collections once the bonds were retired, but they would be a rising tide to lift all boats. That is no longer valid when every single other boat is also jumping into the TIF bandwagon. Now we're basically seeing spec homes using TIF and that is getting into the absurd.

  2. #252

    Default Re: TIF Districts

    ^
    And since Cathy O'Connor became a paid consultant for developers, she is taking the TIF money grab all over the state.

    There was a big, puffy article in the Oklahoman about a proposed development in Chichasha and it never once mentioned that there is a new big proposed TIF district as the heart of all of that, and that Cathy O'Connor is involved.

    O'Connor is also the paid consultant for the Block 405 project, the one where the proposed developer probably couldn't get a secured credit card due to owing money all over town, yet, somehow, she had lined up millions in free tax dollars for him.

  3. #253

    Default Re: TIF Districts

    Quote Originally Posted by Pete View Post
    O'Connor is also the paid consultant for the Block 405 project, the one where the proposed developer probably couldn't get a secured credit card due to owing money all over town, yet, somehow, she had lined up millions in free tax dollars for him.
    And how much of that has been arranged under the OKC Alliance? The quasi-public, "private" "not-for-profit" which is immune from open records requests? Such a farce. It should be illegal.

  4. #254

    Default Re: TIF Districts

    Quote Originally Posted by Midtowner View Post
    And how much of that has been arranged under the OKC Alliance? The quasi-public, "private" "not-for-profit" which is immune from open records requests? Such a farce. It should be illegal.
    ALL of it is arranged through the Alliance and outside of open meetings and records laws.

    I say this over and over, but by the time the public sees anything everything has already been negotiated and although committee and Council approvals are ultimately required, each has provided 100% approval over the many years of this program which demonstrates there is no real oversight at all.

    We are talking about BILLIONS of taxpayer money being spent in this way, and people are freaking out over toaster ovens and BBQ restaurants which are a tiny fraction of the amounts involved here.

  5. #255
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    Default Re: TIF Districts

    Quote Originally Posted by Pete View Post
    ALL of it is arranged through the Alliance and outside of open meetings and records laws.

    I say this over and over, but by the time the public sees anything everything has already been negotiated and although committee and Council approvals are ultimately required, each has provided 100% approval over the many years of this program which demonstrates there is no real oversight at all.

    We are talking about BILLIONS of taxpayer money being spent in this way, and people are freaking out over toaster ovens and BBQ restaurants which are a tiny fraction of the amounts involved here.
    Would this be a form of socialism for the well off?

  6. #256

    Default Re: TIF Districts

    Quote Originally Posted by Mott View Post
    Would this be a form of socialism for the well off?
    I think it would fail definitionally there. Socialism is the means of production being owned by the State. Nothing is really owned here by the State except for a promise they have from the developer to retire bonds from the increased ad valorem taxes which would have gone mostly to schools.

    It's definitely a form of subsidy, but socialism? I don't think that works.

  7. #257

    Default Re: TIF Districts

    Question for the board: What projects do you think are worth TIF money? I will list mine and would like to know what others think:

    1. Skirvin
    2. Wheeler
    3. First National
    4. 21 C (even though it is now going to a Hyatt, it would be difficult to get it to cash flow without it)

    I am sure there are others out there, but those are the ones that I think of immediately.

  8. #258

    Default Re: TIF Districts

    Quote Originally Posted by warreng88 View Post
    Question for the board: What projects do you think are worth TIF money? I will list mine and would like to know what others think:

    1. Skirvin
    2. Wheeler
    3. First National
    4. 21 C (even though it is now going to a Hyatt, it would be difficult to get it to cash flow without it)

    I am sure there are others out there, but those are the ones that I think of immediately.
    Devon ??
    pretty much every downtown housing project in the last 20 years ..


    21 c would be way way way down the list ..

  9. #259

    Default Re: TIF Districts

    Quote Originally Posted by BoulderSooner View Post
    Devon ??
    pretty much every downtown housing project in the last 20 years ..


    21 c would be way way way down the list ..
    I was going to include Devon, but the use of the TIF funds were completely different than the others on the list. The only reason I said 21c is it, along with the apartments, just started development on the west side of downtown. And a big chunk at that.

  10. #260

    Default Re: TIF Districts

    Quote Originally Posted by warreng88 View Post
    Question for the board: What projects do you think are worth TIF money? I will list mine and would like to know what others think:

    1. Skirvin
    2. Wheeler
    3. First National
    4. 21 C (even though it is now going to a Hyatt, it would be difficult to get it to cash flow without it)

    I am sure there are others out there, but those are the ones that I think of immediately.
    I would have voted for the Skirvin. First National would be a maybe.

    The other two? Not a chance. The price of properties in Wheelers should support that development with a nice margin of profit. 21C isn't an historic project. It was an eyesore.

    But arguably all 4 of those aren't bad uses of TIF money. Trouble is, that nowadays, your run of the mill strip mall or housing development isn't getting built without hitting up our funding for local public schools. It would be pretty instructive if someone was to compile a list of all TIF bonds currently issued just to illustrate how much our schools have been shorted to support mostly mediocre devlepment.

    The City ought to assemble a task force to whittle down the criteria necessary for TIF money. Development should be a certain size, maybe require there to be an historic aspect to the development, etc. Clearly, leaving it up to the discretion of the powers that be seems to simply mean that everything which gets to a vote gets a pass.

  11. #261

    Default Re: TIF Districts

    More TIF Districts are on the way according to a recent report from the Alliance:

    Adventure District (we know Block 405 was to be part of this, but that now seems dead)
    Gold Dome
    Other districts unnamed by in progress


    The Gold Dome will be interesting. I believe this is still the Temple Live music concept. However, Jonathan Russel bought that property 8 years ago for $1.1 million, has done absolutely nothing with it (it's a neglected eyesore) and has been asking $3 million.

    If this TIF award turns out to be for 'gap funding' -- and that's what 98% of them are for -- and Russell gets anywhere near his asking price, then serious discussions are due regarding if these public giveaways are really needed for development or if they are just being used to line the pockets of flippers; especially if in this case the funding gap is less than $2 million.

  12. #262

    Default Re: TIF Districts

    I like the idea of a little public investment in keeping the Gold Dome around, but I would also like that money to not go to a clown show.

  13. #263

    Default Re: TIF Districts

    Quote Originally Posted by Pete View Post
    More TIF Districts are on the way according to a recent report from the Alliance:

    Adventure District (we know Block 405 was to be part of this, but that now seems dead)
    Gold Dome
    Other districts unnamed by in progress


    The Gold Dome will be interesting. I believe this is still the Temple Live music concept. However, Jonathan Russel bought that property 8 years ago for $1.1 million, has done absolutely nothing with it (it's a neglected eyesore) and has been asking $3 million.

    If this TIF award turns out to be for 'gap funding' -- and that's what 98% of them are for -- and Russell gets anywhere near his asking price, then serious discussions are due regarding if these public giveaways are really needed for development or if they are just being used to line the pockets of flippers; especially if in this case the funding gap is less than $2 million.
    These are the worst instances of TIF imo, when money is awarded for a project on a property that had been bought and held by a speculator. Russell has had multiple properties like this get awarded TIF money to people he sells to. Meanwhile he didnt do a thing to improve those properties, he just bought them and then put back on the market at a much higher price and then point out to prospective buyers that they can get TIF money to make their project work. This is where TIF money has skewed the market and inflated property values.

  14. #264

    Default Re: TIF Districts

    Quote Originally Posted by onthestrip View Post
    These are the worst instances of TIF imo, when money is awarded for a project on a property that had been bought and held by a speculator. Russell has had multiple properties like this get awarded TIF money to people he sells to. Meanwhile he didnt do a thing to improve those properties, he just bought them and then put back on the market at a much higher price and then point out to prospective buyers that they can get TIF money to make their project work. This is where TIF money has skewed the market and inflated property values.
    Once the old downtown Holiday Inn sale closes (also owned by Russel where he did absolutely nothing) we'll see how much profit he made there.

    That project is already lineup up for TIF as well.

  15. #265

    Default Re: TIF Districts

    Quote Originally Posted by David View Post
    I like the idea of a little public investment in keeping the Gold Dome around, but I would also like that money to not go to a clown show.
    I'm under the impression that due to the fact that it's in a design review district, it is going to be much more difficult to demolish the Gold Dome than it was to demolish Founders Bank, First Christian Church, etc.

    Is this correct?

  16. #266

    Default Re: TIF Districts

    Quote Originally Posted by SEMIweather View Post
    I'm under the impression that due to the fact that it's in a design review district, it is going to be much more difficult to demolish the Gold Dome than it was to demolish Founders Bank, First Christian Church, etc.

    Is this correct?
    Yes. David Box (previous owner) tried to demolish it once before but was thwarted.

  17. #267

    Default Re: TIF Districts

    I'm looking forward to the 2024 Annual reports whenever those come out - those should be the first reports that have more of the inflation baked into certain valuations which will give a better idea of the pace we are at within each TIF vis-a-vis the budget.

    With the 2022 Annual reports from last fall, this is what I could make out with the state of TIF in OKC at the end of FY 2022:

    1. Life-to-Date (LTD) We had spent $89.2M more than we've brought in. That current deficit is like 85% owing to the OMNI.

    2. There is a TON of back and forth movement LTD in terms of Debt proceeds/servicing. Ultimately, we have $260.6M debt outstanding, but $78.8M funds available, so really, we have about ~$180M of debt associated with TIF and there's something with the OMNI debt that is coming from outside of TIF (~$43M)

    3. If we take the $89M deficit plus the $79M available plus $3M outstanding encumbrances plus $12M active debt reserves plus $43M from OMNI ($226M), it would appear, based on our $260M outstanding debt that we have incurred ~$34M of interest cost with TIF so far.

    4. The Devon TIF put out $90M in bonds in FY22 which should mean the city has an advantaged interest rate for some time as back then rates were half of what they are today.

    5. We are bringing in ~$35M annually as of FY22 for tax receipts. The lion's share of that comes from the Devon and general downtown TIFs.

    6. The Convention/C2S district desperately needs park-front development to improve the shape of that TIF (#13) - given the state of Strawberry Fields and Mazaheri's penchant for sitting on property, the city is probably going to take a bath on the OMNI deal - by the time significant increases in property values start occurring in TIF #13, the interest accrued on such a substantial sum will kill the budget on this one. $83.5M in the red with <$3M coming in annually.

    7. The Wheeler TIF is refreshing to see. You can tell that this area is going to do very well and that the TIF funds here are ultimately a great use of community resources. With no debt, if they stopped today, they'd reach 50% of the TIF goal and obviously this whole area is in its infancy. I wouldn't be surprised if the TIF ends up bringing in twice what it was supposed to.

    I'm going to try to track this from year to year, so while I don't think 2023 report will be as interesting as 2024, it's probably be worth updating this post.

  18. #268

    Default Re: TIF Districts

    ^ Thank you for your reporting on this.

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