ITEM TITLE:
Consider approving a resolution declaring the intent to consider approval of a proposed major amendment to the Skills Training, Education, Development and Investment (“STEDI”) Project Plan and creation of tax increment districts under the Local Development Act; directing preparation of a proposed amendment to the STEDI Project Plan; reconvening the review committee; directing the review committee to make findings as to eligibility and financial impact, if any, on taxing jurisdictions and business activities within the proposed increment districts; directing the review committee to make recommendation with respect to the proposed amendment to the STEDI Project Plan; directing the planning commission to determine conformance of the proposed amended project plan with the Lawton Comprehensive Plan and to make a recommendation with respect to the proposed amendment to the STEDI Project Plan.
INITIATOR: Stanley Booker - Mayor
STAFF INFORMATION SOURCE: John Ratliff - City Manager; John Andrew - City Attorney; Timothy Wilson - Deputy City Attorney
BACKGROUND: The Local Development Act was adopted by the Oklahoma Legislature to implement Section 6C of Article X of the Oklahoma Constitution, which empowers the governing bodies of cities, towns, and counties to approve project plans and to apportion tax increments to help finance the public costs of development in a project area. Through the adoption of the Skills Training, Education, Development, and Investment Project Plan, a project plan as defined under the Local Development Act (“STEDI Project Plan”) the City has undertaken a long-range development strategy to (1) fund needed public improvements necessary to attract and promote new and expanded private industrial development primarily centered around the West Side Industrial Park and withing the Airport Industrial Park, and (2) foster renewed partnerships with its public schools, Great Plains Technology Center, and Cameron University for STEM education, skills training, and internship programs.
With the adoption of the STEDI Project Plan, Increment District No. 3, City of Lawton, an ad valorem and sales tax increment district was established to support an expansion by Republic Paperboard Company (“Republic”) of its facility in the West Side Industrial Park, whereby Republic made a $94 million capital investment, created twenty new, high-quality jobs at Republic’s facility. Since the original adoption of the STEDI Project Plan, Increment District No. 4, City of Lawton, an ad valorem and sales tax increment district temporarily designated as Increment District “L” under the STEDI Project Plan, was activated for the new 70,000 square foot PepsiCo warehouse and distribution center in the Airport Industrial Park, generating approximately 40 new jobs in the community.
The City anticipates additional growth of non-retail business in its industrial parks. Consequently, the City finds it appropriate and desirable to amend the STEDI Project Plan to make new ad valorem and sales tax increment districts for the Fisher59 Development, the Westwin Pilot Facility, and the Westwin Refinery. The City also finds it appropriate and desirable to amend the STEDI Project Plan to expand the project area, to modify increment district boundaries, and to add new ad valorem and sales tax increment districts to stimulate additional non-retail businesses in its industrial parks. The City also finds it desirable to amend the STEDI Project Plan to increase the estimated project costs to be financed by ad valorem and sales tax increments apportioned from increment districts to: (a) account for the significant public improvements required to attract new companies and support the expansion of existing businesses; (b) provide workforce training and internship programs at Great Plains Technology Center and other local institutions to develop skilled local talent that aligns with the needs of growing non-retail businesses; and (c) provide home buyer assistance for the workforce generated by new and expanded non-retail businesses, pursuant to a policy to be adopted by the City and the terms of an economic development agreement entered between each non-retail developer and the City or another public entity designated by the City.
The city council, as the governing body of the City, is empowered to approve an amendment to the STEDI Project Plan to modify the budget of the project costs, expand the project area, and create tax increment districts to further the public purpose of economic development in the City. The taxing jurisdictions within the proposed districts whose taxes might be impacted by the establishment of an increment district within the City are: Comanche County; (2) Comanche County Health Department; (3) Great Plains Technology Center; (4) Lawton Public Schools; and (5) Cache Public Schools.
If the resolution is approved the Review Committee previously appointed consistent with the Local Development Act will reconvene to review and make a recommendation concerning a proposed amendment to the STEDI Project Plan as contemplated in the resolution, to consider and make findings and recommendations with respect to the conditions establishing the eligibility of the proposed increment districts, and for the Review Committee to consider and determine whether the proposed amendment to the STEDI Project Plan will have a financial impact on any taxing jurisdiction and business activities within the proposed increment districts and to report its findings and make its recommendations to the City. Finally, the planning commission will review the proposed amendment to the STEDI Project Plan and make a recommendation on the proposed amendment to the city council.
EXHIBIT: Proposed Resolution No. 2024-____
KEY ISSUES: N/A
FUNDING SOURCE: N/A
STAFF RECOMMENDED COUNCIL ACTION: Approve the proposed resolution declaring the intent to consider approval of a proposed major amendment to the Skills Training, Education, Development and Investment (“STEDI”) Project Plan and creation of tax increment districts under the Local Development Act; directing preparation of a proposed amendment to the STEDI Project Plan; reconvening the review committee; directing the review committee to make findings as to eligibility and financial impact, if any, on taxing jurisdictions and business activities within the proposed increment districts; directing the review committee to make recommendation with respect to the proposed amendment to the STEDI Project Plan; directing the planning commission to determine conformance of the proposed amended project plan with the Lawton Comprehensive Plan and to make a recommendation with respect to the proposed amendment to the STEDI Project Plan.