2026-10-08 - Oklahoma City Economic Development Trust

04:49You see that?

04:55>> It is too deep.

04:57>> All right. Good morning. We'll go ahead

04:58and call the meeting to order. Welcome

05:00to the Oklahoma City Economic

05:01Development Trust of October 8th, 2026.

05:05[snorts] We have items for individual

05:08consideration.

05:10Item 2 A

05:14is a joint resolution approving an

05:15allocation not to exceed $13 million

05:18from increment district number B of the

05:21South Oklahoma City. Is that number B or

05:24eight?

05:25>> B.

05:26>> Okay. Of the South Oklahoma City

05:28Economic Development Project Plan in

05:30support of the Shields Plaza mixeduse

05:32redevelopment project. Mr. Sudel.

05:35>> Thank you, Mr. Chairman. So, this one

05:37[clears throat] as it mentions, the

05:39reason it says TIFF B is this uh this

05:42this deal would also be contingent upon

05:44the Southside TIF being created, which

05:46it's in the process. It still has to go

05:48through with council. It's gone through

05:49the TIFF committees and the planning

05:52commission. Um, and then once that

05:56increment district gets activated, it

05:58gets a number at that point. So, just a

06:00reminder, but this this deal would be

06:02structured as a not to exceed uh 13

06:05million. And it would be structured as a

06:07pay as you go tiff that years 1 through

06:09five we return 85% of the taxes. Years 6

06:13through 10 75% years 11 through 15 30%

06:17and the total of that not to exceed 13

06:21uh million. This is [clears throat]

06:23really for a project that's at uh uh

06:26I240 in Shields kind of the northwest

06:29corner. There's an old shopping center

06:31and some vacant property there. And I

06:32think Kathy Okconor is here on behalf of

06:34the developer is going to give you a

06:36presentation about uh the project. So

06:39I'll turn it over to you Kathy.

06:41>> Good morning. I'm Kathy Okconor with the

06:43coalign group um here on behalf of uh

06:46Zerby Partners for this project. We'll

06:48go ahead and get started.

06:50>> It's not up there. There it is. Okay. Um

06:53the project overview is this is a

06:55mixeduse um development that will

06:57include retail, restaurants potentially

07:01um in a multif family development. Uh

07:03we're planning on about an $84.4 million

07:07investment. Um the retail commercial

07:10piece is about 77,000 square feet in

07:13addition to the big box store. Um this

07:16is the location of the current South

07:19Shields Plaza um shopping center. Uh

07:23that shopping center will be torn down

07:25and a new development built at its

07:27place.

07:30So this is just another look at the at

07:32the location. Um Zerby Partners has

07:36purchased that north track and that's

07:38where uh mostly the apartments will be

07:40constructed.

07:43So again, the the components of the

07:45development are a is a big box anchor

07:47store that we're still in negotiations

07:50with. We anticipate that it will have

07:52about $58 million in annual sales

07:55subject to the city sales tax. Um it

07:57will be the anchor for this the retail

08:00portion of this u project. There will be

08:03junior anchor space and um shop space.

08:06In addition to that, we have some retail

08:08pad sites. Um there's some additional

08:11retail that fronts Shields Boulevard and

08:13then finally the multif family component

08:16of the project which we have um already

08:19done a site plan and some preliminary

08:21architecture work for a 305 unit market

08:24rate um project at this location.

08:29This is the site plan for the multif

08:31family. Again, it would um you'd enter

08:34the project off of uh Santa Fe and and a

08:37new road that will be built. Um a good

08:40portion of the allocation that we're

08:42requesting is for infrastructure to

08:44build new streets, drainage, um the

08:47other kinds of, you know, water and

08:48sewer lines.

08:51This is just some more information about

08:52the multif family. Um it's a mixture of

08:55one, two, and three bedrooms. Um again,

08:57this is a market rate project. So, um,

09:01but which we believe South Oklahoma City

09:03needs new market rate development. Um,

09:06there hasn't been a lot of new apartment

09:08complexes built in South Oklahoma City

09:10in quite some time.

09:12Um, again, this is a breakdown of our um

09:15development costs. The junior anchor and

09:18shop space will be about 8 million. The

09:21retail pad sites are about another 9.2.

09:24The Shields frontage is about 9.7 9.8

09:28million. And then the multif family is

09:30the the biggest component of this with

09:32um the $57 million multif family

09:35project. Uh right now we're looking at

09:38developer equity of about 33.7 million

09:41and debt of a 50.6 million.

09:46Um this is a look at what happens with

09:48the tax increment revenues that are

09:50generated by the project. uh just

09:52looking at them generating a little bit

09:54over a million dollars in year one up to

09:58about 2.25 million in year 25. Um the

10:02current tax base is only about $89,000.

10:08Uh as Kenny mentioned earlier, we have

10:10proposed a tiered structure for this

10:13where we would um it's a payin payout uh

10:17incentive structure years 1 through 5 at

10:2085%, 6 through 10 at 75% and years 11

10:24through 15 at 30%.

10:27Um one of the things that the alliance

10:30and the city looks at when we look at

10:32these projects is the cash on cash

10:34returns. Uh for this project they are

10:37really low in year one without the tiff.

10:40Um they are about 2.9%. With the tiff

10:43they're still below investment grade but

10:46at about 5.7%

10:48with the tiff they they improve over

10:51time to around 12%.

10:54Um and that's about it. Yep. I'll be

10:58glad to answer any questions.

11:02>> Go ahead. You have a question? Oh, I'm

11:04sorry. Can we go back a couple slides?

11:09Uh,

11:12let's see. No, back forward now. I'm

11:14sorry.

11:20Oh, back again.

11:22Okay, right there. So, we're looking at

11:2485%

11:37And I think the point of this one is

11:38[clears throat] trying to show that this

11:40project will generate tiff above and

11:42beyond what it's receiving, which would

11:45be a benefit to the tiff district. We

11:47can do other projects, other

11:48improvements and things.

11:56>> I'll ask a question while you're

11:58figuring.

11:58>> Sorry. So this could be a key driver of

12:02economic development around this the

12:05>> Yeah. And and really to redevelop I mean

12:09you are in the process of creating a

12:11tiff district. So this area has been

12:13identified as as needing new investment

12:15and being um economically distressed or

12:18you know maybe not technically blighted

12:20but certainly um hasn't had a lot of

12:22investment in the last 50 or 60 years. I

12:25mean, Crossroads Mall was probably the

12:27last major investment in the area. So,

12:29you know, we there is a Lowe's and um a

12:32Home Depot nearby. So, there have been

12:34some other retail developments, but um

12:37for this location, we really think that

12:38this is hopefully a driver to boost up

12:42that area and and help revitalize some

12:44of the other neighborhoods around it.

12:48>> Any other questions?

12:50I was just going to comment that I I

12:52really love that it's because I was

12:54looking at the the other major retailers

12:56in the area, but the housing component

12:58being baked into so being mixed use um

13:01to really stabilize and catalyze

13:04reatalyze the area. So excited about the

13:07project.

13:08>> Thank you. Any other questions? Thank

13:11you, Miss Okconor.

13:12>> Thank you.

13:14>> All right. With that, we can go ahead

13:16and take a motion and a second on item

13:182A. Would

13:31you like to vote yes?

13:33>> Oh, we have a motion, a second. All

13:35right, we have a motion, a second.

13:37Everyone, cast your votes. I already

13:39have. I'll vote I, please.

13:42>> Are you on?

13:45>> Mine didn't come up.

13:47>> Interesting.

13:49Okay.

13:53>> And the items passed. Thank you.

13:57>> All right. Brings us to item 2B, a joint

13:59resolution allocating amount not to

14:01exceed 12 million in gold bond funds to

14:03the city and aquit to assist in the

14:06construction of necessary infrastructure

14:08in the vicinity of I40 and Simmeron

14:11Road. Mr. Sudel.

14:13>> Thank you, Mr. Chairman. [clears throat]

14:14So I wanted to give a presentation

14:16that's really a bigger picture

14:18presentation about this project and CSMS

14:22management as everybody may seen and

14:24this is the BIES travel plaza and so

14:27this really even though our trust today

14:29is considering a $12 million allocation

14:31it's it's a much bigger project so I

14:34wanted to give you all the full picture

14:36and note and I'll kind of go through

14:38this in the presentation there's a

14:40there's other approvals from other city

14:42trusts and bodies that will take place

14:44and I want to talk about why we would

14:46consider this big of a investment

14:48because it doesn't benefit just the

14:50travel center. It also benefits C page

14:53airport and our uh employment site that

14:55has been purchased around that. So just

14:58very quickly

15:00we have a couple slides here on just the

15:02the project itself. Um, you know, you

15:05may or may not be familiar with with the

15:08travel center, but some of the things I

15:09want to point out, you know, kind of on

15:11the right side of the screen, the the um

15:14uh 5 million visitors a year coming into

15:17the store. We think that, you know, 90%

15:20of these customers will come from

15:21outside Canadian County. Um, you know,

15:24it's about a 74,000 square foot travel

15:27center. And if you go to the next,

15:30these are kind of some of the economic

15:32impact numbers. So on the left, it's

15:35probably somewhere in the 200 FTEES, you

15:39know, around $20 an hour. So even though

15:41this is sort of a retail type of

15:44development, it's it's fairly good wages

15:46as retail goes. And then the middle

15:48piece there, the development, you know,

15:50this is going to be about a $50 million

15:53pro build. You know, so this is a very

15:55significant deal. Not counting we've got

15:59there for kind of, you know, their

16:00expectation is 18 million gallons of

16:02fuel sold. Not counting that. Just the

16:05inside the store sales is about $25

16:08million. And I think that's probably

16:11conservative based on some of their

16:13other stores, but that's what they

16:14wanted to to kind of, you know, use as a

16:16baseline. and using the 25 million in

16:19taxable sales for merchandise and things

16:22that are taxable. You know, on the right

16:24side, you see that ends up being about a

16:26million dollars a year of sales tax

16:28generation for the city. Okay. So,

16:31[clears throat] I wanted to talk about

16:31that very briefly. That's the store

16:33itself, the travel center. But I want to

16:35point out the location. So, this is I40

16:37and Simron Road. So, the red box on the

16:40top is the site that they are

16:42considering on the northwest corner of

16:44Simron and I40. But I wanted to remind

16:47the purple is all the property on the

16:49southside that's owned by the city

16:51through various trusts. You know the the

16:53airport and then some of the uh

16:55employment properties that have been

16:57assembled uh by the industrial and

16:59cultural facilities trust. So quite a

17:02bit of property and as we've looked at

17:04this in order to you know develop

17:06further at C page airport and on those

17:09employment sites we've always known that

17:11we're going to need to bring some

17:13additional water and sewer

17:15infrastructure

17:16um and bridge improvements um you know

17:19if we're trying to attract a

17:21manufacturer other big employer out here

17:24um we're going to need those

17:25improvements and we've been kind of

17:26working on those plans for a couple

17:28years now. Um So, if you go to the next

17:31site or the next slide, this was I

17:34really want to point out just to be

17:36transparent, this is a much bigger

17:38project and I think council has taken

17:40some action on a bridge component

17:43already with ODOT. Um, you know, this is

17:46being considered today for the Gulp

17:48portion and I'll explain in a moment why

17:50that is, but really there needs to be

17:52road improvements and this is some of

17:54the improvements kind of on Simmeron

17:55Road, but also the entry and exit ramps.

17:59You know, if you kind of think about

18:00that travel center and you know,

18:02typically they have longer entry and

18:04exit ramps so you don't back traffic up

18:07on the highway. The bridge is is

18:09obviously the biggest component here

18:11that there needs to be, you know,

18:12widening, a Texas turnaround, um, you

18:16know, a signalization, some of those

18:18things. Um, sewer and water obviously

18:21need to be expanded and and I will say

18:23but this also would include, you know,

18:26making the infrastructure large enough

18:28on sewer and water that can also provide

18:30service uh enhanced service to both the

18:33airport and the employment side. And we

18:35base this on, you know, projects that

18:37we've gone after and looked at um, you

18:39know, that that would be a major type of

18:41employer in their their water and sewer

18:43use.

18:45[clears throat] So, this again would

18:47support all those things. I think one

18:49thing I want to point out right now some

18:51of the existing Aqua customers are

18:54served by S the lagoons on the north

18:57side of I40 on kind of the northeast

19:00corner of I40 and Simro Road. There are

19:03sewer lagoons. I think the airport is on

19:06septic tank right now. So these are just

19:08some of the things we could support kind

19:10of some existing businesses as well. If

19:13you go to the next slide, why would we

19:16do this? Well, one to to support our

19:18site, but I think this this is the part

19:20I really wanted to um hit home was by by

19:23having this project and there's some

19:25excitement about it at the state level

19:26and they've committed some funding, we

19:29really are going to be able to get about

19:30$35 million of that $57 million price

19:33tag funded by some of these outside

19:36sources

19:37really because of the excitement about

19:39the travel plaza and the support that

19:41that has. And so, you know, this this

19:44has already gone to council, but the

19:45ODOT bridge funding, you know, they're

19:48planning to put 11.4 million in up to 15

19:51million. So, they've also kind of

19:52committed to cover some of the the

19:54overrun if there's any overruns there.

19:56Um, the Department of Commerce, we've

19:59been working with them and they've

20:00committed to fund up to $5 million from

20:03their P3 infrastructure program. So this

20:05is a program we've the city has used

20:07this one time in the past that it's a

20:10it's a partnership deal where in certain

20:12situations and if it meets certain

20:14requirements they can help fund uh

20:17infrastructure some infrastructure costs

20:19that will be owned by the public

20:21ultimately and they you know in

20:24discussions with them they they would

20:27allocate about five million now I want

20:29to put a flag in this because this

20:31funding that funding does not come up

20:33front you have to preund fund it and

20:35then they pay you back over about a two

20:38to threeyear period. So keep that in

20:40mind because that's going to be part of

20:41the reason we need 12 million uh in GT

20:44is a little bit of that's preunding that

20:465 million. The travel center themselves

20:49have are agreeing to put in you know $6

20:51million into that bridge project $3.2 $2

20:54million into, you know, the water,

20:56sewer, and road upgrades. And then I

20:58think an important point is we we we

21:00would not be paying them any incentives

21:02directly.

21:04The infrastructure is the incentive. And

21:06then, you know, so this and they would

21:08make an actual contribution into into

21:10this infrastructure. And then we have

21:13$10 million from a congressional

21:15congestion relief funds. These were

21:17funds that were allocated previously for

21:19a from Congress for a project. Um, and

21:22there's it's it's funding that couldn't

21:25be used for just anything. It had some

21:27specific things about relieving traffic

21:29congestion and it was related, you know,

21:32it it can go into part of the, you know,

21:34bridge project. So, when you add up

21:36these sources, this is really $35

21:38million of sort of outside sources that

21:41really will help us frontr run and

21:43preund, you know, fund some of that $57

21:46million price tag. So if you go to the

21:48next one. So kind of given the breakdown

21:51there and this is where you know you've

21:53got the 57 million the 35 million we

21:56talked about previously the airport

21:58trust and again this would be subject to

22:00them approving it but in working with

22:02staff you know they would they they are

22:04amanable to to bringing forward

22:06potentially funding at 1.1 million which

22:09is kind of their proportionate share of

22:11some of the water and sewer

22:12improvements. And then the water

22:14utilities trust would potentially fund

22:1613.1 million. Again, they cannot fund

22:20the prospective development with

22:21rateayer money. This would be like their

22:23portion of upgrading their water and

22:26sewer service to some of their existing

22:27customers, getting rid of those uh

22:30lagoons, building a lift station on the

22:32south side of I40 and running the pipes,

22:35you know, to to move the the the the

22:39effluent um away from the travel center

22:42and other other uh customers. So, if you

22:45look at the delta there, the delta is

22:47about 7 million and that's really what

22:50is needed from gold. However, as I

22:52mentioned earlier, the the $5 million

22:54program from the state has to be

22:56preunded. So, that's how we get to our

22:5812 million. So, you know, if if this 12

23:02million is approved by um OCEDt and

23:05council, uh you know, the the uh plan

23:09would be we would there would be another

23:11agreement later that would come on that

23:12P3 program for the 5 million and they

23:15would reimburse us over time and then

23:17net would be that we would be spending

23:19$7 million of our golden funds. And so

23:24if you go to the next slide

23:28just kind of in summary again this

23:30[clears throat] this is another stage in

23:33kind of those um you know enhancing the

23:36competitiveness of our employment sites

23:38and you know we've already had interest

23:40and and we've not really been

23:44overtly marketing those sites but people

23:46are aware of it. Site selectors

23:48companies are aware we've had people

23:50reaching out. We we've done a lot of

23:51studies on those sites prepare you know

23:54sampling environmental work all those

23:57things and so having infrastructure

23:59there water and sewer now it would be

24:02kind of right down if you kind of

24:03imagine Simron Road so we still in the

24:05future need to have that kind of last

24:07mile connection or last bit of

24:10connection and that's part we don't

24:11really know what that is until there's

24:13users there but it also enhances you

24:16know the infrastructure and

24:17competitiveness of C page if they also

24:20want to have development within the

24:21airport. Um, and you know, removes the

24:24sewer lagoons, creates some meaningful

24:27sales tax for the city. And then the

24:29other thing I would say, if you notice

24:31that red box previously, there's a lot

24:33of other undeveloped property around

24:35that. And we know that this type of

24:38travel center, virtually every other

24:40location it's gone attracts other tax

24:43creating, you know, uh, uses like more

24:46retail, more restaurant, those sorts of

24:48things. So, um, you know, we think that

24:51probably would help set the stage to

24:52bring some more, you know, potentially

24:54tax generating things there as well, but

24:56we don't have that included in this

24:58analysis today. But just, you know, in

25:00summary, I think it's one of those

25:02things if the travel center was going in

25:05a mile east or a mile west or somewhere

25:07else, you know, we might think about

25:09this a little differently, but I think

25:10it really does provide an opportunity to

25:12take advantage and get a great

25:14development, you know, great store that

25:16people like, but also have additional

25:18money that goes into help making our

25:20airport and our employment site more

25:22viable.

25:24>> Yes, ma'am.

25:25>> Couple questions. um relative to the

25:27footprint of 75,000 square feet, is that

25:30comparable to other of those travel

25:32centers locations?

25:34>> I think it's a little bit it's a little

25:36bit larger as we work through with them.

25:38And again, those plans will be

25:40finalized, but this is kind of what

25:42we're talking with them is it it's a

25:43little bit on the higher end side of

25:45their

25:46>> we need additional space for all the

25:48beef jerky that will be sold. So uh

25:51second question relative to and refresh

25:54my memory of the identified area for

25:56development not including the potential

25:59but how many acres does that represent?

26:02>> Do you remember that? I may have to get

26:04that. How many

26:06>> 35 acres

26:09and I yeah I think that sounds right but

26:12we we'll get that number to you for

26:14sure.

26:15>> Okay. Thank you.

26:17And what did we think their estimated

26:19our estimated income would be annually

26:22on the sales tax? It

26:23>> we think it'll be just a little bit over

26:25a million dollars a a year on the just

26:29the retail sales of the store not count

26:32you know fuel gets fuel tax and

26:35>> that gets collected at the state level

26:37and distributed. So we haven't really

26:39put that in the analysis but I will tell

26:41you I probably believe that to be a

26:43little bit conservative. I think we've

26:45looked at some of their other stores,

26:47you know, get closer to $40 million of

26:50sales, but this is based on $25 million

26:52of sales.

26:53>> And, you know, that's all they're they

26:55really want. They felt like that was a

26:57good conservative number they could

26:58could for sure hit. So, we want to use

27:00that number.

27:01>> Okay. Great. Any other questions?

27:06Um, so I I'm hearing, you know, a master

27:09plan, long-term vision, which I

27:11appreciate, pipeline employers. Um,

27:15really appreciate the current wages and

27:17employee count um by the anchor uh

27:21entity or corporation.

27:24Um, the annual income and really love

27:28that, you know, you have federal, state,

27:30and private participation in the capital

27:32stack. what we're approving today. Um,

27:36I'm just trying to because I was hearing

27:38that there are some committed sources,

27:41but maybe on the airport trust and water

27:44utilities trust. Those aren't committed

27:46just yet.

27:47>> Yeah. So, that's a good question and I

27:49alluded to but didn't fully explain. So,

27:52[clears throat] we've already had one

27:53agreement at council that is the bridge

27:55deal with ODOT. Okay.

27:57>> We would have this Gulp money that would

27:59go through OCDT and council. We would

28:02also have to have um the airport trust

28:05would have to approve their portion.

28:07Aquit would have to approve their

28:09portion. There would also have to be an

28:11agreement between

28:13department of commerce and council on

28:16the P3 program. There will also be an

28:19economic development agreement that and

28:22this is part of you know because if

28:23we're going to make all these we want to

28:25lock bies into that they're providing

28:28theirs their piece and

28:32I think that's it. But there there are

28:34variety of agreements and that's why I

28:35wanted to kind of give you the total

28:37picture and I think of course you know

28:40at any stage if some major piece of that

28:43unravels we would have to you know come

28:45back and and and sort of

28:47>> okay

28:47>> start over undo etc. But um there's a

28:51variety of things and so I want to give

28:53you the bigger okay the bigger picture

28:54because it's much more than just what

28:56this body is considering today.

28:58>> Okay. Got it. Thank you. So, we'll get

29:01to hear this multiple multiple

29:03>> multiple times. [laughter]

29:06>> All right. If we don't have [music] any

29:07other questions or comments, we can take

29:10a motion and a second, which we have.

29:13Please vote.

29:18And the items passed. All right. Item

29:21three on the agenda is comments from

29:23staff.

29:24>> None.

29:25>> Any comments from trustees?

29:29Any citizens? I speak.

29:32All right. Item four is we are

29:34adjourned.

29:35>> Thank you everybody.

29:36>> Thank you so much.