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Midwest City committee recommends TIF District

Oklahoma County Treasurer Butch Freeman (Left) speaks as Jason Constable (Right) and others listen during a meeting about a proposed TIF district on the north side of Midwest City. Photo by Jeff Harrison

By Jeff Harrison
Midwest City Beacon

Midwest City’s efforts at sparking economic development on the north side received a boost.

The city is looking to create a tax increment finance district that would help pay for about $8 million in economic incentives and infrastructure improvements to attract two industrial businesses to city-owned property.

The TIF district would allow any increases in property tax revenues to be set aside to fund infrastructure improvements in that area. The proposed boundaries primarily run along NE 23rd St. between Post Rd. and Air Depot Blvd. The west boundary extends north to NE 36th St.

Midwest City plans to fund the projects through its Economic Development Authority and with federal American Rescue Plan Act dollars. The city would be reimbursed for the EDA funds but not ARPA. The proposed TIF District would last for 12 years.

“The city will have to fund the money for most all of the projects and reimburse itself from the increment revenue when they come in,” said Dan McMahan, attorney for Midwest City.

A review committee recently gave its blessing to the proposed North Side Improvement District after reviewing the city’s project plan and its impact on other local taxing entities.The committee included representatives from taxing entities impacted by the proposed TIF as well as representatives from city hall and the public.

On May 19, the committee held its fourth and final meeting which they reviewed the project plan and approved a resolution recommending adoption of the TIF district. The group determined that the private development will not occur without public improvements and development financing assistance.

“Clearly it’s an area requiring public improvements to reverse economic stagnation or decline,” McMahan said

McMahan provided projections about how much money the TIF district would generate, how the funds would be spent and the potential financial impact on taxing entities located within the boundaries.Those taxing entities include the City of Midwest City, Oklahoma County, Oklahoma City – County Health Department, Metropolitan Library System, Rose State College, Metro Technology District, Crutcho Public Schools, and Oklahoma City Public Schools.

Under the plan, taxing entities will continue to receive their current tax revenues. Only the increased tax revenues above the base level will be allocated for the TIF district.

“As a taxing entity, once that base is established that is protected,” said Butch Freeman, Oklahoma County treasurer. “We’re not losing anything. Our base is established, and we will continue to collect off that base.”

Global Turbine Services and Centrillium Proteins, LLC, intend to open facilities within the North Side Improvement District. The companies would bring more than 400 jobs and at least $45 million in private investment.

Global Turbine Services is planning to build a facility in the Soldier Creek Industrial Park, 7450 NE 23rd St. The Florida-based company plans to build a jet engine maintenance, repair, overhaul, and testing facility that would employ up to 290 people with an average salary of $65,000. The development is expected to cost between $25 million to $60 million and will be completed over three phases.

The company plans to begin phase one construction in August and open by August 2024. Additional phases are planned to open in 2025 and 2027.

Centrilllium Proteins, LLC, a food processing company, is interested in a parcel on NE 36th St., west of Midwest Blvd. The start-up company would be staffed by industry veterans promising to construct a 55,000-square-foot building valued at over $20 million. The company expects to hire 150 employees with average wages of $52,000 annually.

The food processing company says it plans to invest $20-25 million in the project. They plan to begin construction in November and open in July 2024. Midwest City would help with extension of sewer, water and construction of a rail spur.

Midwest City expects to spend about $8.9 million for the projects and administrative expenses. The projects include utility improvements ($3 million) and a rail spur ($1.65 million) at Centrillium Proteins. It would also include development financing assistance ($1.5 million) and offsite public improvements ($800,000) at GTS.  Midwest City also expects to spend $750,000 for improvements to NE 23rd St.

The city’s planning commission will review the recommendation to make sure it complies with zoning regulations. The city council will then consider it for final approval.

This will be the city’s third proposed TIF district. The city has taken similar action in development of the Town Center Plaza and Sooner Rose Shopping Center. Sooner Rose is the only active TIF district as the Town Center TIF wrapped up about four years ago.

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