Broken Arrow, Okla. (July 13, 2010) – The Broken Arrow City Council and Broken Arrow Public School’s School Board met Monday evening regarding a Tax Increment Financing proposal for FlightSafety International and downtown development.

Both boards voted unanimously to approve the use of a 25-year, $13.5 million downtown TIF district to finance FlightSafety and economic development in the downtown area.

“Tax Increment Financing is a powerful economic development tool that has been used across the state and nation to accomplish some great developments,” said Mayor Mike Lester. “Communities where TIF’s have been used are enjoying the benefits of new jobs, new tax base and both new and redevelopment.”

The TIF district will include the area from Kenosha to Houston streets and Elm Place to Lynn Lane. The fund will be used to purchase property for redevelopment -- $3 million; establish an incentive fund to entice businesses to move Downtown -- $3 million; and for FlightSafety infrastructure and job retention -- $7.5 million.

“The Broken Arrow taxpayer rightfully expects us to work together for the greater good of Broken Arrow; collaboration and open communication between the City and School District benefits all of Broken Arrow,” said Broken Arrow Public Schools Superintendant Jarod Mendenhall. “Our school district’s belief in downtown Broken Arrow can be seen in the location of the Performing Arts Center; this is another great opportunity to continue revitalization efforts to the heartbeat of the community.”

Tax Increment Financing is the difference between the taxes collected today and future tax collections. All parties collecting taxes will continue to receive the current amount for the life of the TIF. Both Ad Valorem and sales tax is used to repay the bonds.