City Council Meeting, September 13

[Doug Loudenback]

So, what's the council (wearing one or another of its hats) going to do tomorrow? I've perused the council agenda and have come up with the following items of interest:

(1) $10,000,000 Bond Authorization. On the agenda is the following item on the OCMFA agenda:

ADJOURN OCMFA, CONVENE AS OKLAHOMA CITY PUBLIC PROPERTY AUTHORITY
(Five affirmative votes required for approval.)

A. Resolution authorizing the issuance of the Oklahoma City Public Property Authority Hotel Tax Revenue Bonds, Series 2011, in the aggregate principal amount not to exceed $10,000,000; waiving competitive bidding and authorizing the sale of said bonds by negotiation at less than par value, including original issue discount bonds, within the limits provided by Title 60, Oklahoma Statutes, Section 176; approving the following documents and authorizing the Chairman or Vice Chairman of the Authority to execute and deliver same, to-wit: bond purchase agreement with certificate of determination, Series 2011 supplemental bond indenture, preliminary official statement, official statement, closing order, and any and all other documents necessary to consummate issuance of the bonds, to include certifications as to continuing disclosure by the authority; ratifying Security Agreement between The City of Oklahoma City and the Authority; ratifying Lease Agreement between The City and the Authority and agreeing to extend the term to cover the term of the Bonds; providing for determinations and bond insurance, but not requiring same; authorizing execution, modification and delivery of necessary documents regarding the Bonds and direction of disbursements of proceeds from the sale of the Bonds, including payment of the cost of issuance of the Bonds as set out in the closing order.
Three-fourths affirmative vote required to waive competitive bidding.
Two-thirds affirmative vote required to incur indebtedness.

The accompanying City Manager memo concerning this item reads, in part:

Background: On September 14, 2004, the City adopted Ordinance No. 22,538 setting an election to put before the qualified voters of Oklahoma City to repeal the existing 2% levy and enacting a 5.5% additional hotel tax levy with proceeds dedicated to certain purposes related to encouraging, promoting, and fostering convention and visitor development of the City. ¶ On December 14, 2004, voters approved the repeal of the existing 2% hotel occupancy tax and approved a new 5.5% hotel occupancy tax. Approximately 54% of the 5.5% levy is dedicated to fund capital improvements to the Oklahoma City Fairgrounds. On March 15, 2005 (Item No. PPA.2.), the Oklahoma City Public Property Authority and the Oklahoma City Council (Item No. VIII.G.) adopted resolutions approving the issuance of debt not to exceed $57,000,000 to fund capital improvements for the Fairground and its facilities. On March 28, 2005, approximately $52,820,000 in bonds were sold. The bond issue closed on April 12, 2005. ¶ On June 19, 2007 (Item No. PPA.7.), the Oklahoma City Public Property Authority and the Oklahoma City Council (Item Nos. VIII.G and H.) adopted resolutions approving the issuance of debt not to exceed $20,000,000 to fund additional capital improvements for the Fairground and its facilities. On July 18, 2007, $20,000,000 in bonds were sold. The bond issue closed on August 7, 2007. ¶ Construction has been ongoing since May 2005 at the fairgrounds. Using the proceeds of the 2005 and 2007 bond issues, including interest earnings, approximately $79 million in projects have been completed at the fairgrounds including improvements to the Norick Arena, ballpark removal/parking lot addition, Cox Pavilion, maintenance facility, ITC building, RV park, Feed and Bedding building, and Barns 1, 2, 3, 6 and 7. The proceeds and interest earnings from the 2005 and 2007 issues have been fully expended and no additional funds remain from those issues. Fairgounds officials have identified additional projects that need funding. It is anticipated that the proceeds from the 2011 issue will be used to fund improvements to Barns 4 and 5. These improvements will assist the Oklahoma City Fairgrounds to continue attracting events to Oklahoma City. ¶ Accordingly, City staff and the City's financial advisor have determined that there is sufficient capacity in the hotel occupancy tax to support additional debt. The attached resolution authorizes the Oklahoma City Public Property Authority to issue bonds in the amount not to exceed $10,000,000 for the continued development of the Fairgrounds facilities.

So, what's the $10 million to be used for? I was unable to figure that out by reading the agenda item or the attachments associated with it. Clearly, it's not nearly enough for a convention center hotel, so it must be for some other purpose. I guess we'll learn tomorrow about that.

VI. Consent Docket.
Q. Memorandum of Understanding formalizing the relationship with the Association of Central Oklahoma Governments to participate with the Cities of Norman, Edmond, Moore, Midwest City and Del City in a Commuter Corridor Alternatives Analysis for Central Oklahoma, $160,555.

This could be a very important item concerning the city's mass transit future, I'm thinking.

VI. Consent Docket.
AN. Resolution authorizing submittal of a $17,000,000 application to the United States Department of Transportation for a Transportation Investment Generating Economic Recovery III Grant related to development of a multi-modal transportation hub; and authorizing execution of necessary documents.

Another potentially big deal concerning the city's obtaining federal funding for mass-transit.

AT. Resolution approving Amendment No. 1 to Contract for MAPS 3 Program Consultant Services, Project M3-G001, fee increase of $1,405,140. Project M3-G001, fee increase of $1,405,140.

Fees to Program Consultant Services would be increased by $1.4M.

VII. Concurrence Docket
A. Concurrence with the Oklahoma City Economic Development Trust in adopting resolution authorizing and directing the General Manager and/or his designee to negotiate an Economic Development Agreement, for subsequent Trust and City Council consideration, with Continental Resources, Inc. to provide for certain economic development incentives in exchange for expanding its headquarters in Oklahoma City and creating quality jobs.

This action appears to be linked to securing Enid's Continental Resources to its relocation to the city in the soon-to-be-vacated-and-existed Devon property on Broadway. Sounds like we'll be setting up an arrangement via the Alliance for Economic Development to grant incentives, after the fact (?), perhaps.

Probably there is more of general interest, but the above is what I've come up with so far.

[kevinpate]

Doug, The 10 million in new bonds appears to be for this:

...
The accompanying City Manager memo concerning this item reads, in part:

... Fairgounds officials have identified additional projects that need funding. It is anticipated that the proceeds from the 2011 issue will be used to fund improvements to Barns 4 and 5. These improvements will assist the Oklahoma City Fairgrounds to continue attracting events to Oklahoma City. ¶ Accordingly, City staff and the City's financial advisor have determined that there is sufficient capacity in the hotel occupancy tax to support additional debt. The attached resolution authorizes the Oklahoma City Public Property Authority to issue bonds in the amount not to exceed $10,000,000 for the continued development of the Fairgrounds facilities.

[Doug Loudenback]

Thanks, I missed that.

[kevinpate]

I dinna find it at first myself. But then I looked at it in reverse order and it jumped at me then.

[BoulderSooner]

the CR resolution is about CR creating new jobs in OKC .. over and above what they move from Enid ...

[Steve]

The CR resolution is exactly what I wrote about two weeks ago.

[Just the facts]

The CR resolution is exactly what I wrote about two weeks ago.

Steve - I don't know how you do it. Do you ever feel like you are totally wasting your time? Keep up the good work.

[Steve]

Just trying to clarify ...

[Larry OKC]

Doug must have been otherwise occupied??

[Doug Loudenback]

Doug must have been otherwise occupied??

I am so out of it most of the time!
Flagellation accepted.

[Just the facts]

Doug must have been otherwise occupied??

dp

[Just the facts]

Sorry - that comment was directed at anyone on OKCTalk in particular. The topic is being discussed in three different threads and there is atleast one TV news station and one council person that are mis-informed. It isn't a hard subject to figure out. People might disagree on the topic, but the facts are easy of enough for anyone to understand.

Fact 1 - Continental Resources says the are going to grow by 400%
Fact 2 - They look around and say, "Where should we add the jobs since we are out of room in Enid?"
Fact 3 - OKC has a program that will pay us $X dollars for each new job
Fact 4 - Let's move the whole company to OKC.
Fact 5 - CR wins, OKC wins.

I know some people aren't happy about that or wish it could have been done another way. Maybe it could have, who knows, one thing we know for sure though is that it did work and OKC will make back the $7 million in very little time. When you bet on sure things you tend to win more often.

[Larry OKC]

To get the expansion they are desiring they need to be able to attract employees, and while I am sure Enid is a wonderful town in its own way, they don't have the same things that OKC or Tulsa or a myriad of other cities in the country could offer CR in helping it achieve it's goals.

Doug: you are forgiven. :-) No flagellation intended (you made me go look the word up, thanks!)
Can't expect someone to keep up with 100% of what is going on 100% of the time. You may have even been on vacation when this part of the story developed??

[Just the facts]

To get the expansion they are desiring they need to be able to attract employees, and while I am sure Enid is a wonderful town in its own way, they don't have the same things that OKC or Tulsa or a myriad of other cities in the country could offer CR in helping it achieve it's goals.

They survived in Enid somehow but you are right, they could have just as easily gone to Tulsa (or Houston). I am glad they chose to make OKC home.