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Council approves new TIF District
The Broken Arrow City Council has approved the creation of TIF District No. 5 to fund infrastructure improvements needed for the Sunset in Broken Arrow Amphitheater Project.
Projected to open by December 2025, Sunset in Broken Arrow will be a 12,500-seat outdoor performance and events venue located on the property immediately north of Broken Arrow Events Park.
Citizens had a second opportunity to address the possible implementation of the new TIF district at a public hearing on Jan. 16. Mayor Debra Wimpee opened the floor for the Public Hearing during the regularly held City Council Meeting at 6:30 p.m.
The Tax Increment District plan includes the creation of a new sales tax and hotel tax TIF area, including the Broken Arrow Events Park, 21101 E. 101st St., just east of the Muscogee Creek Turnpike and the surrounding non-residential property for a term of up to 25 years.
Tax Increment District No. 5 is now in effect and will capture a portion of new incremental sales and hotel revenues while existing baseline taxes are unaffected. TIF No. 5 will not capture ad valorem taxes.
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It captures 100 percent of new incremental city sales tax revenues from the Amphitheater Project.
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It captures 50 percent of new incremental city sales tax revenues from additional development. (Excluding businesses that relocate from other parts of the city.).
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It captures 100 percent of new incremental city hotel tax revenues (representing a total of 4 percent of city hotel tax).
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It captures 100 percent of new incremental city fee by agreement revenues (1 percent surcharge applied to all amphitheater retail sales, i.e., tickets, concessions, merchandise).
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It captures a portion of new incremental Wagoner County Sales tax revenues (100 percent in 2024-2027, 75 percent in 2028-2029, 50 percent in 2030-2031, and 25 percent in 2032-2033).
“This is the second of two required Public Hearings in connection with the establishment of Tax Increment District No. 5,” attorney Nathan Ellis of Public Finance Law Group, PLLC, said.
Authorized by Article X, Section 6C of the Oklahoma Constitution, a TIF provides economic development opportunities to areas that otherwise would not develop.
A Tax Increment Finance District is created by city ordinance after completing a lengthy process, including determining eligibility, developing a project plan, and establishing a TIF Review Committee. The TIF Review Committee considered the project plan and made findings of eligibility and financial impact for Wagoner County and the City of Broken Arrow. The plan was then reviewed by the City’s Planning Commission, followed by two Public Hearings on Jan. 2 and Jan. 16.
For more information about TIF No. 5, go to Amphitheater funding detailed.