Patrick
03-30-2005, 12:26 AM
The area around Dell is now a TIF financing district. This will provide the necessary funds to complete rehabilitation work at the Dell campus.
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"Council adopts Dell tax district plan
by Brian Brus
The Journal Record
3/30/2005
The Oklahoma City Council unanimously adopted a plan Tuesday for two tax increment finance districts to help pay for site rehabilitation work for the new Dell Inc. business service center on the Oklahoma River.
The two districts are expected to be the last step necessary to fund the city's incentives to support the 68-acre campus, already under construction near Interstate 44 and N. Portland Avenue. The plan is based on expected benefits the new business brings to the area. It does not increase taxes, said Pat Downes, general manager of the Oklahoma City Riverfront Redevelopment Authority.
A tax increment finance, or TIF, district sets aside a small portion of growing property or sales taxes from a predetermined area and dedicates those funds to pay for public improvements - in the case of Dell, those improvements include extensive utility work and dynamic compaction because the property was once a landfill. A side benefit to a TIF district is that improvements may lure other businesses to the area, city Finance Director Cathy O'Connor said earlier.
Dan Batchelor addressed City Council on behalf of the city Urban Renewal Authority on Tuesday. Batchelor has been involved in the creation of several TIF districts and drafting related state legislation. He said the city's plan also would "impose some controls and generate redevelopment in the surrounding area, which was very much encouraged by Dell."
"The benefits of this project are that the Dell site itself will generate a direct investment in the order of $50 million, and create new direct payrolls of approximately $150 million," Batchelor said.
Dell expects to have about 3,500 employees at the site.
"The presence of this generative impact will create the potential of another $100 million of new development within the project area," he said. "It will have a tremendous positive impact on this community outside of the project area."
One of the new TIF districts centered on the Dell site would set aside a portion of additional property taxes in the area, which are expected to be worth from $250,000 to $1.5 million annually. The second district would tap into sales taxes generated from increased business around Dell, expected to increase by up to $1 million annually, officials have said.
To make use of those yet-to-be-realized increases, however, the city will need to issue about $30 million in bonds, a common process to pay for major projects before funding is available.
The TIF district plan was supported by the Greater Oklahoma City Chamber and the Oklahoma City Planning Commission."
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"Council adopts Dell tax district plan
by Brian Brus
The Journal Record
3/30/2005
The Oklahoma City Council unanimously adopted a plan Tuesday for two tax increment finance districts to help pay for site rehabilitation work for the new Dell Inc. business service center on the Oklahoma River.
The two districts are expected to be the last step necessary to fund the city's incentives to support the 68-acre campus, already under construction near Interstate 44 and N. Portland Avenue. The plan is based on expected benefits the new business brings to the area. It does not increase taxes, said Pat Downes, general manager of the Oklahoma City Riverfront Redevelopment Authority.
A tax increment finance, or TIF, district sets aside a small portion of growing property or sales taxes from a predetermined area and dedicates those funds to pay for public improvements - in the case of Dell, those improvements include extensive utility work and dynamic compaction because the property was once a landfill. A side benefit to a TIF district is that improvements may lure other businesses to the area, city Finance Director Cathy O'Connor said earlier.
Dan Batchelor addressed City Council on behalf of the city Urban Renewal Authority on Tuesday. Batchelor has been involved in the creation of several TIF districts and drafting related state legislation. He said the city's plan also would "impose some controls and generate redevelopment in the surrounding area, which was very much encouraged by Dell."
"The benefits of this project are that the Dell site itself will generate a direct investment in the order of $50 million, and create new direct payrolls of approximately $150 million," Batchelor said.
Dell expects to have about 3,500 employees at the site.
"The presence of this generative impact will create the potential of another $100 million of new development within the project area," he said. "It will have a tremendous positive impact on this community outside of the project area."
One of the new TIF districts centered on the Dell site would set aside a portion of additional property taxes in the area, which are expected to be worth from $250,000 to $1.5 million annually. The second district would tap into sales taxes generated from increased business around Dell, expected to increase by up to $1 million annually, officials have said.
To make use of those yet-to-be-realized increases, however, the city will need to issue about $30 million in bonds, a common process to pay for major projects before funding is available.
The TIF district plan was supported by the Greater Oklahoma City Chamber and the Oklahoma City Planning Commission."