ITEM TITLE:
Presentation and First Public Hearing, pursuant to 62 O.S. §859, of the proposed Second Amended Skills Training, Education, Development, and Investment (STEDI) Project Plan and supporting increment districts for the purpose of providing information, including an analysis of potential positive or negative impacts, and answering questions regarding the proposed Second Amended STEDI Project Plan and increment districts.
First Read of Ordinance No. 24-___ Repealing Article 10-20 of Chapter 10, Lawton City Code, in its entirety and replacing it with the enactment of Sections 10-20-101 through 10-20-171 by approving and adopting the Second Amended Skills Training, Education, Development, and Investment (STEDI) Project Plan; designating and adopting the Project Area and increment district boundaries; establishing a date for the creation of Increment District No. Five, City of Lawton; establishing a date for the creation of Increment District No. Six, City of Lawton; identifying and establishing tax increment districts temporarily designated as Increment Districts No. “A”, “B”, “Ca”, “Cb”, “Da” “Db”, “E”, “Fa”, “Fb”, “G”, “Ha”, “Hb”, “I”, “J”, “K”, “M”, “N”, “O”, “P”, Q”, “R”, “S”, “T”, and “U”, City of Lawton; deferring their numbering and effective date; establishing the City of Lawton as the principal entity to carry out and administer the project plan; authorizing and designating the Lawton Economic Development Authority to carry out implementation actions for the project; establishing a tax apportionment fund; declaring apportioned funds to be funds of the Lawton Economic Development Authority; authorizing the use of ad valorem and sales tax increment revenues for the payment or financing of certain project costs; authorizing the Lawton Economic Development Authority to pledge the apportioned increments to repayment of debt; establishing plan objectives and implementation procedures; authorizing the use of other resources to pay for or finance project costs; authorizing the Lawton Economic Development Authority to issue bonds and carry out certain provisions of the project plan; ratifying and confirming the actions of, and acknowledging the recommendations and findings of the review committee and the planning commission; directing continuing apportionment; providing for severability; providing for codification; and declaring an emergency.
INITIATOR: Stanley Booker, Mayor
STAFF INFORMATION SOURCE: John Andrew, City Attorney
BACKGROUND: On December 10, 2019, the Lawton City Council adopted the Skills Training, Education, Development and Investment (STEDI) Project Plan for the creation of tax increment financing districts, pursuant to the Oklahoma Local Development Act, 62 O.S. § 850, et seq. (“Act”), to provide the legal and financial framework necessary to attract and support non-retail business expansion in the City’s West Side Industrial Park and the Airport Industrial Park, and thereafter approved a minor amendment on December 29, 2023 to further refine and clarify the City’s strategies, objectives, and goals outlined therein.
This Second Amended STEDI Project Plan provides the necessary financial and legal authorizations for the City of Lawton to continue implementing its long-range strategy for Skills Training, Education, Development, and Investment. This is essential for fostering public-private partnerships that promote Non-Retail Business development in Lawton, ultimately leading to thousands of new jobs, several hundred million dollars of new private investment, and an enhanced quality of life for the community. The Non-Retail Business growth and expansion may include innovative businesses, high-technology businesses, and light industrial as well as manufacturing. A key benefit of this Second Amended Project Plan is its ability to accelerate new business activities, investment and job creation, which in turn will enhance school district revenues and increase property taxes outside the increment districts. Accordingly, the first priorities are to develop infrastructure, provide incentives, and acquire land for development. In addition to financing the critical public infrastructure and development incentives, this Second Amended Project Plan authorizes revenue allocations to: (a) provide a specific revenue source to the affected taxing jurisdictions within the respective increment districts, (b) fund programs and initiatives developed under the STEM Strategic Plan, (c) provide workforce training programs, and (d) provide home buyer assistance for the new workforce.
Key objectives of this Amended Plan are:
1. Increased Direct Funding for Public Schools: To address rising demands on public schools, the amendment proposes raising the allocation to public school districts within the Increment Districts from 35% to 50% of the net financial benefit of total operating levies (excluding sinking funds). This increase addresses growing demands on local schools and enhances their capacity to serve the area’s needs.
2. Enhanced Investment in Critical Infrastructure: With an expanded budget for public infrastructure of up to $248 million, this amendment facilitates early-stage financing for essential improvements, creating "shovel-ready" sites for Non-Retail Business development. Budget adjustments will be made as each Increment District is activated, concentrating public improvement expenditures initially in the earlier activated districts to manage costs in subsequent districts.
3. Work Force Training: A new budget category is introduced to support work force training, development, and internships, in collaboration with Great Plains Technology Center and other local institutions. These programs aim to build a skilled talent pool aligned with the needs of new and expanding Non-Retail Businesses.
4. Home Buyer Assistance: Another new budget category funded with sales tax increment, supports a home buyer assistance program, helping accommodate the workforce growth resulting from the expansion of Non-Retail Businesses.
5. Increment District and Project Area Boundaries: The amendment activates increment districts for the Westwin Pilot Facility and a new warehouse development by Fisher59 Properties, modifies boundaries of certain existing TIF District, establishes additional potential TIF Districts, and expands the Project Area. Given the difficulty in predicting which properties within the Industrial Parks may require assistance in development financing and/or public infrastructure support, the amendment attempts to encompass potential development/expansion areas within and surrounding the parks areas as potential increment districts. Consistent with the original Project Plan, only those areas requiring assistance or expanded infrastructure will be activated. No increment is collected from un-activated districts.
The statutory process for approval of this amendment to the STEDI Project Plan requires action by a Review Committee, comprised of representatives of the taxing authorities and members of the business community, the City Planning Commission, and the City Council, following two public hearings. On November 12, 2024, the Review Committee unanimously approved its Findings and a Resolution recommending City Council approval of the Second Amended STEDI Project Plan. On November 14, 2024, the City Planning Commission unanimously approved a resolution declaring the Second Amended STEDI Project Plan to be in conformance with the Comprehensive Land Use Plan of the City of Lawton. and recommending approval to the City Council. The Public Hearings before the City Council have been properly noticed for Monday, December 2, 2024, at 3:30 PM, and for Tuesday December 10, 2024, at 6:00 PM, whereafter the City Council may consider an Ordinance adopting the Second Amended STEDI Project Plan.
EXHIBIT: Proposed Ordinance 24-___ with Proposed Second Amended Skills Training, Education, Development and Investment (STEDI) Project Plan, the latter being an exhibit to the proposed ordinance.
KEY ISSUES: N/A
FUNDING SOURCE: N/A
STAFF RECOMMENDED COUNCIL ACTION: Receive a presentation and hold the First Public Hearing, pursuant to 62 O.S. §859, of the proposed Second Amended Skills Training, Education, Development, and Investment (STEDI) Project Plan and supporting increment districts for the purpose of providing information, including an analysis of potential positive or negative impacts, and answering questions regarding the proposed Second Amended STEDI Project Plan and increment districts.