Project 180 Saved Us

[Rover]

i have had the good fortune of being in charge of business development for companies involved in supplying equipment to building developers and contractors for more than 20 years. Most of the time, I have served as VP Sales & Marketing covering more than 30 countries. So, I have visited hundreds of cities worldwide, large and small and have my own opinions of what makes a city livable and what doesn't. I celebrate the uniqueness in cities and appreciate the ones that have their own personality. I don't happen to think there is one blueprint as to what is "urban" and desirable. I see plazas and parks that work and some that don't (it isn't the concept it is the execution that matters). Doesn't mean I am right, but that I have first hand experiences and definite opinions.

By the way, I am actively recruiting two new businesses to Oklahoma City from LA because I feel so strongly about this city. I love what is going on here. I just am not so doom and gloom about clearing out some really bad buildings.

[Mikemarsh51]

So how much is this approximate 1/4 of a square mile going to cost?

[ljbab728]

So how much is this approximate 1/4 of a square mile going to cost?

Mike, the estimate has been $140 million. And, somehow, I get the feeling this discussion is going to go back to how this money should be spent for fire and police instead.

[Mikemarsh51]

This is a different thread, I have never heard how much this was going to cost and at $777,777.78 I am certainly wondering where the funding for this is coming from!

[Urbanized]

Mike, the funding for Project 180 is coming from a special tax increment finance district (TIF). Property tax, more specifically NEW property tax, is where the money comes from. TIF money does not come from the general fund or any other sources. This is not a case of robbing Peter to pay Paul.

Funding from TIF, by law, must be spent within the TIF district and be used for capital improvements or economic development incentives. The TIF funding is derived by first setting a baseline for the existing property tax level for the identified property/area, and locking that tax in for the current recipients of ad valorem tax. Any new tax then goes to the TIF. In the case of OKC, property tax generally goes to the schools, and if I am not mistaken, some to the county. All of the entities who currently get property tax funding must agree in advance to allow TIF to happen, which they have done. In the case of the OKC public schools and other entities, the groups in question felt that rather than securing their slice of the current pie it was better to work together to bake a bigger pie. The theory being that a bigger pie, in the long run, will benefit them more.

In most cases, TIF is used to help lure a developer. Those developers usually request amenities (parking garages, pedestrian walkways, etc.) to improve their own sites. In the case of Devon, however, the company is unselfishly funding all of these types of improvements attached to their project themselves. They requested that all new property tax generated by their building be dedicated instead to improving PUBLIC amenities like the Myriad Gardens and the streets and sidewalks in downtown. This despite the fact that the City would likely have been willing to spend all of it on parking garages or whatever Devon asked them to.

Again, it seems that their big-picture view told them that a healthier downtown would have a positive impact on their own recruitment efforts, among other things. In other words, the more the community around them improves and succeeds, the more likely the company's own needs would be met.

Recall, again, that TIF dollars by law must be spent on capital improvements and incentives, and that it MUST be spent within the TIF boundaries. Note also that these new tax dollars would not exist at all if not for the new building.

Personally, I think Devon and Project 180 are above reproach in this area. If you spend time trying to link Project 180 with public safety spending woes, you're really barking up the wrong tree.

[Mikemarsh51]

Sounds like we are getting a pretty good deal out of this!

[Urbanized]

If you mean that sincerely, then I wholeheartedly agree. The best of deals.

Devon is obvoiusly hoping to benefit by attracting a larger, more qualified pool of potential hires, but they are still being incredibly unselfish here. I don't think most people in OKC appreciate quite HOW generous Devon is being.

[mugofbeer]

If you mean that sincerely, then I wholeheartedly agree. The best of deals.

Devon is obvoiusly hoping to benefit by attracting a larger, more qualified pool of potential hires, but they are still being incredibly unselfish here. I don't think most people in OKC appreciate quite HOW generous Devon is being.

I agree. They could have very easily negotiated themselves out of the tax district but not only volunteered for it, but paid years of it in advance!

[Mikemarsh51]

I am all about our city being the best city that we can be. Sometimes we may disagree about priorities and how to get there.