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Thread: EastPoint

  1. #26

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    I was wondering the same thing...

  2. #27

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Quote Originally Posted by riflesforwatie View Post
    I'm generally strongly opposed to TIF but given how hard it is to get things built on the NE side, does it make sense in this case? Genuinely asking.
    There are legitimate issues with getting banks to lend money for projects over there.

    But in that case, the City could look at underwriting a loan rather than just gifting millions of tax dollars.

  3. #28

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Quote Originally Posted by Pete View Post
    There are legitimate issues with getting banks to lend money for projects over there.

    But in that case, the City could look at underwriting a loan rather than just gifting millions of tax dollars.
    But they already have 55% of the project leased and ready to go. Its not like its a spec retail/office project with no guaranteed income yet.

  4. #29

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Quote Originally Posted by onthestrip View Post
    But they already have 55% of the project leased and ready to go. Its not like its a spec retail/office project with no guaranteed income yet.
    Right but I was told by the developers that many banks simply won't lend money in that area of town.

  5. #30

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Quote Originally Posted by Pete View Post
    Right but I was told by the developers that many banks simply won't lend money in that area of town.
    Then maybe its time they put up more of their own money.

  6. #31

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    I see this project is going to council tomorrow and the more I read about it the more I just cant square up the city giving $1,300,000 to this project, which is over 30% of the entire costs of the project. With it being 18,000 sf building, that equals $72 per square foot the taxpayers are subsidizing, that goes quite a ways in finishing out a space. When it comes to retail, $72psf will cover all of the finish out. I also wonder how true their numbers are on saying this is a $4,300,000 project. They are spending $239 per square foot on the entire project, and apparently only have less than half the building rented for now?

    Thats the problem with handing out TIF money so easily and frequently, the city is basically asking developers to fudge the numbers, claiming they are going to have to spend a ton of money and that their pro forma only shows the worst case scenario for rent/income. This is basically a handout, a freebie imo.

    https://agenda.okc.gov/sirepub/cache...7091937755.PDF

  7. #32

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    The cost to the City is actually well more than $1.3 million because this money is to be paid to the developers upfront and there are virtually zero funds accumulated through TIF #9 (NE side).

    So, the money is being taken from the 2007 GOLT funds and will only be repaid as TIF #9 starts to generate TIF revenue.

    Another case of lots of additional and hidden cost not quantified and included in the presentation. Very similar to the Omni deal where they made sure to leak numbers to the Oklahoman and then completely left out about $50 million in additional lending costs.

    In this case, let's think optimistically and say this loan term will last 10 years. At 5% that is an additional cost of $841,112, for a total of $2.141 million which equates to nearly 50% of the total project cost.

    If it takes 20 years to repay the City, that would be a total cost of $3.526 million or 82% of the total cost of this project.

  8. #33

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    The Oklahoman continues to mis-report the public money being given to this development:

    http://newsok.com/city-is-investing-...rticle/5571078

    Opposition to the financing deal was led by Ward 2 Councilman Ed Shadid, whose role as a critical eye on these projects is healthy for the city. The amount of the assistance with the clinic is indeed significant when compared to the overall project cost of $4.3 million.

    That is 30 percent, when most projects come in at under 15 percent.
    Completely misleading. The highest percentage of TIF ever awarded is 10% to the 21c Hotel. And the average is below 7%:

    http://www.okctalk.com/showthread.php?t=39599

    And I will restate: The City has to borrow money to pay the developers up front and that cost is not reflected anywhere in these figures, similar to how the Oklahoman failed to report the tens of millions in borrowing costs involved in a similar arrangement with Omni Hotels.

    And, TIF in this area will be depleted for years (probably for the life of the TIF) all on this one development.

    The public assistance for this project will come in at 5 to 10 times average and several multiples of the previous largest TIF award. And, they will be asking for more for Phase II.


    Whether that is warranted is another discussion but the reporting by the Oklahoman on this project has been outright deceiving and amounts to nothing less than opinion, advocacy and bad information masquerading as news stories.

  9. #34

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Quote Originally Posted by Pete View Post
    The Oklahoman continues to mis-report the public money being given to this development:

    http://newsok.com/city-is-investing-...rticle/5571078



    Completely misleading. The highest percentage of TIF ever awarded is 10% to the 21c Hotel. And the average is below 7%:

    http://www.okctalk.com/showthread.php?t=39599

    And I will restate: The City has to borrow money to pay the developers up front and that cost is not reflected anywhere in these figures, similar to how the Oklahoman failed to report the tens of millions in borrowing costs involved in a similar arrangement with Omni Hotels.

    And, TIF in this area will be depleted for years (probably for the life of the TIF) all on this one development.

    The public assistance for this project will come in at 5 to 10 times average and several multiples of the previous largest TIF award. And, they will be asking for more for Phase II.


    Whether that is warranted is another discussion but the reporting by the Oklahoman on this project has been outright deceiving and amounts to nothing less than opinion, advocacy and bad information masquerading as news stories.
    This might be the craziest part of the story, they'll be back asking for even more! I just dont understand it. If they want to help NE 23rd, rather than highly subsidize ONE development, a fairer idea might be a streetscape improvement. There is a lot of good building stock along this stretch and $2million would go a long way if they improved sidewalks, streets, and lighting.

  10. #35

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Seems like $1.3 million would be enough to buy the dang building outright AND bring it up to Class A or B standards (without tenant build-out). So is the city is being asked to subsidize both the developer AND the tenant costs? At least the other stakeholders/risk-takers are getting equity out of the deal. The city just gets a lot of risk with seemingly no tangible return.

  11. #36

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    ^

    Again, it's not $1.3 million. It's that amount plus borrowing costs which O'Connor and Co. always leave out when presenting.

  12. #37

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Quote Originally Posted by onthestrip View Post
    This might be the craziest part of the story, they'll be back asking for even more! I just dont understand it. If they want to help NE 23rd, rather than highly subsidize ONE development, a fairer idea might be a streetscape improvement. There is a lot of good building stock along this stretch and $2million would go a long way if they improved sidewalks, streets, and lighting.
    ^^^^^^as an 'eastisder' myself I absolutely agree with your sentiments. Yet they still send odot over to the eastisder to repair streets with asphalt.....smh

  13. #38

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Wanzer development gets $1.4M from 23rd Street TIF

    By: Brian Brus The Journal Record January 30, 2018

    OKLAHOMA CITY – An as-yet-unnamed retail and commercial district on NE 23rd Street received nearly $1.4 million for economic development from Oklahoma City Hall on Tuesday.

    In early 2015, the City Council adopted the Northeast Renaissance Project Plan and created tax increment finance or TIF district No. 9 in response to a proposal by developer group Twoyetmany LLC. The developers wanted to turn six parcels in the 1700 block of NE 23rd into 19,000 square feet of commercial space. The conversion would complement a nearby clinic, a Twoyetmany representative said. The project was estimated at more than $4.4 million.

    The commercial development takes an entire city block. Most of the buildings were constructed in the 1940s and ‘50s and have been vacant for years, development group representative David Wanzer said.

    “There are some challenges with this project,” he said. “There hasn’t been much development in the area. It’s been tough finding a partner bank for this.

    “We do have in place, at this point, some environmental issues with the service station that was across the street.”

    There are tremendous opportunities, including an ice cream shop, a barber, more restaurants, retail co-sharing incubator spaces and offices, Wanzer said. Tenants will have ownership of the project if they fulfill the lease terms. More than 70 percent of the building will be minority-owned businesses.

    This year, the TIF district review committee recommended assistance be provided as development financing in conjunction with private financing and after all equity is expended. About $575,000 of the funds will be in the form of a forgivable loan and $800,000 will be an incentive payment. The loan will require a second mortgage on the property and disallow reselling it for 15 years.

    However, in order to meet lender requirements, the developer requested the assistance be made as a payment up front. That’s not possible with the money current in TIF No. 9, but City Hall financial staff members reported they feel confident the district will continue to grow strongly and produce more money in time. So Tuesday’s resolution moved money from the 2007 general obligation limited tax, or GOLT, bond to the Economic Development Trust fund as an internal loan covered by TIF revenue.

    Farmers Bank and First Security Bank have agreed to be finance partners in the deal, Wanzer said. The Oklahoma City Black Chamber of Commerce is helping to name it.

    The banks won’t actually close on the loans until the entire project is 70 percent leased, which protects the city’s investment, he said.

  14. #39

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Steve's article on newsok indicates that the TIF funding that was just approved is for the Phase II development.

    Pete, is that correct? If so, does that mean they never received any TIF funding for the clinic?

  15. #40

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    ^

    The $1.4 million is in addition to the TIF they had already been awarded for for the Clinic and first phase.

  16. #41

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    $2.8 million or so for a strip center. Crazy.

  17. Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    ^^^^^^^^^
    Fair to say on the surface, but the hoops the developers had to jump through on this make for an incredible story, much of which will maybe never be fully told publicly. Suffice to say that in the financial sector there is a systemic bias against development in places like the NE side. Decades ago it was more overt and could be pointed to directly as redlining, but these days it is more insidious and put off onto things like comps, available tenant mix, lack of national credit tenants, etc.

    Bluntly put, if this center were west of I-235 this project would have been a slam dunk, banks probably would have been standing in line to lend money, and none of the convoluted (and expensive) developer/investor hoops would have existed. That’s reality.

    Though obviously on a smaller scale, in its own way this development was as challenging for its various participants to put together as First National was for ITS champions, and it really took Herculean effort from the developers, their investors, City officials, and even some tenants.

    Hopefully (and likely) this development will be a catalyst for growth on the NE side, and will provide a jumping off point for NE side businesses owners, plus make capital acquisition a little less onerous for future development in the area. As pointed out in the article there’s also an innovative lease structure whereby a tenant upon completion of their lease term will own a financial interest in the entire development.

    The whole thing is unusually complex and even with the TIF it represents a huge risk for the developers, who will have much less potential for financial reward here than the rest of their projects offer, owing to the unusual aspects required to put it together. At this point it’s become a passion project for them, and they will tell you that as much as anything this one (by necessity but also by opportunity) has become more about personal and professional growth than about profit.

  18. #43

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    Has this project been progressing?

  19. #44

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health





  20. #45

    Default Re: 1720 NE 23rd - Oklahoma City Clinic & Global Health

    The first tenant -- a gym -- has moved into the strip center; it's the space with the awning.





  21. #46

    Default Re: EastPoint

    Press Release:

    ************

    THE MARKET AT EASTPOINT GRAND OPENING & FAMILY DAY

    OKLAHOMA CITY – The Market at Eastpoint, a 6,800-square-foot full-service grocery store, is set to have its Grand Opening ceremony on Wednesday, April 21st at 9am with music from the Douglass High School band and remarks from Councilwoman Nikki Nice, Marc Jones, President & Chief Executive Officer at Homeland, Caylee Dodson, Director of RestoreOKC, Pastor McDaniel of Northeast Missionary Baptist Church and poet Montise. The Market is located in the Eastpoint Development at 1708 NE 23rd St. Once the doors are open for business, attendees are welcome to tour the store, meet the staff, shop for groceries, enjoy a meal from the Eastside Eatery and snag some merchandise.

    The Market at Eastpoint will also host a Family Day on Saturday, April 24th from 11:30am-1pm with the OKC Thunder’s, Rumble welcoming and entertaining guests from 11am-12pm.

    The Northeast Oklahoma City area has long been considered a food desert. And, with the closing of the community’s last grocery store in August 2019, many families lost their final local food access point. As an asset-based community development ministry in Northeast Oklahoma City, RestoreOKC recognized not only the risk that this posed to the community, but also the opportunity to catalyst as neighbors. Community leaders and neighbors met together following food distributions to begin dreaming about how we could work together to help create long-term, community-led food access and we are really excited for how that has resulted in a project that is truly being led by the next generation of our community.

    And, working together is exactly what has transpired. Homeland worked with RestoreOKC early in the dreaming process to formulate a plan for public-private partnership that would allow the two partners to co-operate a grocery store on NE 23rd & Rhode Island. Through partnership, RestoreOKC was free as a 501c3 to focus efforts on fundraising and securing product donations and partnerships that could help sustain the store through the early years and allow Homeland’s expertise in the grocery industry to streamline the process and provide much needed oversight and infrastructure.

    “We are thrilled to see our public-private partnership with Restore OKC come to life. We have an opportunity here to serve our community in a deeper way and make an impact on food security and this store is a great way to do that, says Marc Jones, CEO and president of Homeland. This is an important project for our employee owners and we are proud to work hand in hand with the community to make it a reality.”

    “We are beyond grateful for the ingenuity and flexibility that the entire Homeland team has brought into this entire process. Marc Jones' leadership has been pivotal and we are humbled by the willingness that Homeland’s entire team has shown to absorb the extra work that comes along with anything new. We know that they didn’t have to, but they chose to do it anyway and we are so excited about what it means for this project and what it hopefully means for public-private partnerships both now and in the future,” said RestoreOKC Director, Caylee Dodson.

    And, while the vision began with a small group of committed students and neighbors it soon grew to a fundraising campaign that included partnerships like Life.Church who gave an early $300,000 grant to seek to encourage the Church to give generously to see justice and mercy through food access. Neighbors & grantors from Northeast Oklahoma City led the way, Neighborhood Associations, individuals, churches, groups like Black Lives Matter, family foundations, the City of Oklahoma City and even Tony the Tiger from the Kellogg Foundation were pivotal to helping raise the $1.3 million in funding that was needed for the grocery store. “We just simply couldn’t be prouder about the expression of unity and generosity that has made this project possible. And then, on top of those development funds to have received a $1 million Operational Grant from the Inasmuch Foundation at the end of 2020 is something we still can’t quite wrap our heads around,” said Dodson. “It’s truly been such a collaborative effort with a beautiful result.”

    In addition to bringing much needed access to food,“The Market at EastPoint” is poised to create 30-40 jobs for the community. “It has been incredible to watch how many individuals have come together as one to help not only eradicate food insecurity, but also to create needed jobs for the Northeast Oklahoma community,” says RestoreOKC Jobs Director, Jonathan Veal.

    The Market at Eastpoint will include an array of fresh offerings such as organic fruits and vegetables grown on RestoreOKC’s 5-acre Urban Farm which is currently led by 18 high school students from the Northeast Oklahoma City community. Additionally, the Eastside Eatery will have fresh baked breads and ready-to-eat hot foods prepared by community chef and leader, Brandi Jones of the former Family Affair Restaurant.

    Monarch Property Group, a Northeast Oklahoma City based contractor was established in 2016 with the goal of bringing their passion for creating beauty and crafts(woman)ship alongside the communities that they get to serve. To be good neighbors is our goal, say Monique Short and Erica Emery, co-founders of Monarch Property Group. “We are always excited to serve our clients, but it is especially amazing for it to serve a real need in the community to which we also belong.” Additionally, Gardner Architects has worked closely with Restore Farms Interns & Community Team to design the store in a way that reflects the unique mash-up that is our Urban Farm family and feels like a continuation of the 5-acre Urban Farm at RestoreOKC which is situated less than a mile from the grocery store it will serve.

    As a 501c3, RestoreOKC has been fundraising and seeking out grants and donations that can help offset some of the cost of foods that are typically less cost effective than pre-packaged counterparts. To help create sustainable food, you can invest by making a tax-deductible donation through their website: https://www.restoreokc.org/

    Partners such as the Inasmuch Foundation, Life.Church, Heartland Payment Systems, Simple Modern, the Baptist Ministers’ Association, Black Chamber of Commerce, Oklahoma Shirt Company, Black Lives Matter, The City of Oklahoma City, Monarch Property Group, The Alliance, Pivot Project, countless neighbors and so many others have invested in this incredible project.

    For more information, visit www.marketateastpoint.org.

  22. #47
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    Default Re: EastPoint

    I missed this thread back when it was created and was very surprised by seeing this opening (market) announced on social today. But glad to see it.

  23. #48
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    Northeast OKC Re: EastPoint



    The Market at EastPoint, located at NE 23rd Street and MLK Ave., is set to open Wednesday as the only grocery store in the area.

    Oklahoman video: https://www.oklahoman.com/videos/new...ty/7304951002/

  24. Default Re: EastPoint

    love the murals. Hopefully this will be a start to PROVE the area works so the 23rd/MLK lot can be redeveloped into a proper urban supermarket complex - I say build market below with apartments above. Then this market could go all-upscale or even become an urban Trader Joes (perhaps subsidized to make it work).

    This market and the other businesses opening are great for the area that hopefully will create synergy that inturn builds momentum to pick up the whole retail experience on the eastside. As someone in the film said - the people there have to do it themselves THEN people from outside the area will come, patronize, and the whole community will benefit. This is the same thing that has been happening in the Asian District, just need good leadership vision (check), a chance from the city/banks (check) and people to participate (TBD) to make it all work.
    Oklahoma City, the RENAISSANCE CITY!

  25. #50

    Default Re: EastPoint

    ^^^ Yes to all!

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