TIF financing opens new doors for Edmond
By: Kathryn McNutt//The Journal Record//July 13, 2021
This rendering shows the 240-unit residential project and parking garage to be built in downtown Edmond just west of the railroad tracks. The Edmond City Council approved a development and financing agreement Monday with Milhaus Properties LLC for what will be the city’s first tax increment finance development. (Courtesy of Milhaus Properties)
EDMOND – The city’s first tax increment finance project will be a downtown apartment complex with amenities and a parking garage to be built on both sides of Main Street just west of the railroad tracks.
The Edmond City Council approved a development and financing agreement Monday with Milhaus Properties LLC to construct at least 240 living units – ranging from studio to three-bedroom apartments – and a parking garage on the site of the former Dolese plant.
The developer, based in Indianapolis, has built and maintains more than 5,000 units across the country, including Lift in Oklahoma City’s Midtown. The Edmond development is called The Silos.
“This is a major achievement for our community,” Councilmember David Chapman said.
The City Council approved the TIF district in October to stimulate private investment in downtown Edmond and the surrounding area. It is projected to create up to $530 million in new investment in downtown, bringing new commercial, residential, and mixed-use development to the core of the city.
The Silos is the first TIF project.
“It’s a big step,” said Andy Conyers, Edmond’s director of management services. Discussions with Milhaus began nearly one year ago, he said.
Under the agreement, Edmond Public Schools will get 10% off the top of the additional property tax the project generates or about $650,000 over the 20-year life of the agreement.
Milhaus will receive 25% of the rest, estimated to be $1.6 million with the total assistance capped at $2 million. The city will use the remaining $4 million for infrastructure improvements in the TIF district or for additional TIF projects.
Adding more living units to the downtown area is critical to support the existing businesses and to attract new ones, Conyers said. It is anticipated The Silos will bring about 400 additional residents downtown.
The Edmond Economic Development Authority projects the potential sales tax impact of the project is $125,000 per year. Additionally, the one-time sales tax bump from the cost of construction is anticipated to be $500,000.
John McGurk, Milhaus vice president of development for the region, said the project provides a missing piece in the renaissance of downtown Edmond.
“We’re really excited about this,” he said. “There isn’t this product in downtown Edmond right now.”
The construction cost must be a minimum of $30 million, but McGurk said it likely will be closer to $50 million. Milhaus wants to begin construction next summer and have initial units ready in early 2024, he said.
The city will own the 330-stall parking garage and pay $3.5 million toward its construction. At least 48 of the stalls will be for public parking. Milhaus will pay $4 million to lease the remaining stalls for a term of 20 years with the option to extend for an additional 20 years.
Rents will begin at $1,000 a month and run to nearly $2,000 a month for a three-bedroom apartment. Amenities will include a clubhouse, pool, dog park and makers’ space.
Two Edmond residents addressed the council Monday about the lack of affordable housing in the city.
Among priority projects to be considered for TIF funding, the city lists new residential units and notes, “Special consideration will be made for affordable/workforce housing units.”
Councilmember Chapman said the council is “acutely aware of our attainable housing issue.”
The Silos doesn’t address that need, he said, but officials are working on other models that would be subsidized in part by federal grants.
TIF financing opens new doors for Edmond | The Journal Record