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BROKEN ARROW, Okla. — Broken Arrow city leaders have no concerns about the amphitheater project itself. Investors will take care of that. The City Council is considering a tax increment financing district to fund peripheral infrastructure projects around the venue.
“This is not our first time in a TIF district, but they have served us well,” said City Councilman Johnny Parks.
Broken Arrow city leaders believe a new amphitheater will also help the city. They are trying to create a circulating fund. In order to attract more people to the theater, it will be necessary to build more parking lots, acquire land, and develop various infrastructure. The same people will be shopping in town and sleeping in BA hotel rooms. City leaders are eyeing these new taxes to fund infrastructure projects.
“This is not unique to Oklahoma,” said Nate Ellis of the Oklahoma City-based Fiscal Law Group. He is assisting the city in the process.
“Every state is a little bit different and every state has a little bit different legislation, but in Oklahoma it’s just an economic development tool,” Ellis said.
Although Ellis doesn’t live in Broken Arrow, he’s impressed with the amphitheater plans.
“Editorially, it seems like a really great project,” Ellis said.
The new taxes used to fund this plan will come from three different sources.
100% of sales tax from the amphitheater.
New development around the theater, such as new restaurants and shops, is subject to 50% of the sales tax.
Sales tax for hotels within the district is 50%.
Housing development is excluded from the plan.
“It didn’t make sense to include them in the TIF district. They’re not going to be redeveloped or altered in any way,” Ellis said.
Tuesday night’s meeting was just the beginning. No members of the public attended the hearing, but another hearing will be held at a date to be determined.
“The city can then enact an ordinance that actually creates a TIF district and adopts a project plan,” Ellis said.
The State of Oklahoma has a FAQ page related to TIF districts that can be found at this link.
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