McAlester downtown TIF plan to utilize property, sales taxes

Feb. 22-- Feb. 22--The new McAlester Downtown Economic Development Project Plan would make up to $30 million available for the Downtown Tax Increment Financing project over a time period covering 25 years.

It calls for the money to come from portions of both ad valorem property taxes and city sales tax revenues in the district to be redirected to help finance projects in the Downtown Tax Increment Financing District.

It's designed to make a portion of those ad valorem property taxes and sales taxes -- which are to be collected above a pre-designated base line available -- for both public and private investment in the downtown area, which is called Increment District No. 2 in the plan.

Those are a few of the provisions in included in the Downtown TIF project plan, which barely passed the Downtown McAlester Reinvestment Review Committee by a split 5-to-4 vote on Tuesday. The four members who voted against the measure felt it was too broad in scope and lacked information about any specific projects.

City of McAlester Economic Development Director Kirk Ridenour said Thursday he hopes the project plan will be heard by the McAlester Planning Commission during the group's regularly-scheduled meeting next month.

"We're hoping it's on the March 14 meeting agenda of the Planning Commission," Ridenour said.

If it passes through the Planning Commission, at least two public hearings are required before the McAlester City Council votes on the matter -- with a previous included as part of a council meeting.

In the beginning, discussions had centered on only using ad valorem taxes to help finance the downtown TIF District. Talks recently led to the suggestion that a portion of the city sales tax could be used as well.

Now, the new plan calls for them both to be utilized.

"The project will be financed from a combination of public and private sources, including apportionment of the ad valorem and sales tax increments from Increment District No. 2. city of McAlester, established in connection with the project," the plan states.

Ridenour doesn't expect the base lines -- which are supposed to freeze the amount the taxing entities in the Downtown TIF District are receiving for ad valorem property taxes and sales taxes at the current level -- to be set unless city councilors accept the project plan when it's presented to them.

"Once it's passed, there will have to be an assessment," he said.

The plan states it is an economic development project, which contemplates the revitalization of downtown McAlester "in order to make possible additional development, attract new business, create new employment and stimulate increased private investment."

It designates and authorizes the city of McAlester as the principal public entity to carry out and administer the project plan and to exercise all the powers necessary to appropriate what's needed, with McAlester City Manager Pete Stasiak or his successor placed in charge of the project.

While $30 million has been approved for the Downtown TIF plan, Review Committee attorney Joe Ervin has stated that the $30 million threshold does not have to be reached.

"It's a cap," he said -- saying it means that no more than $30 million can be used on the project.

The $30 million approved in the plan, includes:

--Infrastructure improvements -- $15 million for improvements, including water system, roadway, sanitary sewer, storm drainage, sidewalks, Streetcapes, lighting, utility relocation, landscaping, signage, parks, civic structures and walkways.

--Redevelopment -- $5 million for land acquisition and remediation and assistance in development financing for business location, relocation or expansion, public and private redevelopment, job creation and housing.

--Project implementation -- $500,000, which would also be for administrative costs, including planning, consulting and engineering

--Public school facilities for McAlester Public Schools -- $5 million.

--Miscellaneous and contingencies -- $4.5 million.

Several TIF Review Committee members have questioned designating $4.5 million in a fund that is labeled only for "Miscellaneous and contingencies."

Property owners within the Downtown TIF boundaries, including owners of business property as well as public property, could apply to access the funds, either through applying for a grant, a low-interest loan or a no-interest loan, according to previous discussions.

Approved boundaries for the proposed TIF District are as follows:

--It starts at Wyandotte Avenue, from Main Street to Sixth Street;

--Sixth Street from Wyandotte Avenue to Jefferson Avenue;

--Jefferson Avenue, from Sixth Street to Fifth Street;

--Fifth Street, from Jefferson Avenue to Madison Avenue;

--Madison Avenue, from Fifth Street to Main Street;

--Main Street from Madison Avenue back to Wyandotte Avenue.

If the proposed project plan is indeed heard and passed by the Planning Commission on March 14, the next step will be to begin the public notices required before the public hearings can be held.

Contact James Beaty at [email protected]

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