TIF incentives in Edmond have attracted $158M in development. Here's a look at the projects
Jack Money/The Oklahoman/5/28/2024
EDMOND — City leaders created Edmond's Tax Increment Financing district in October 2020 hoping to generate more than $500 million of new construction inside of Edmond's core and raise an additional $61 million in property tax revenues over the next 20 years.
When the district goes away, increased future property values left behind will benefit schools, the county and other government agencies supported by property taxes assessed and collected there.
Edmond's elected leaders have approved using about $13.8 million of expected additional TIF District-generated property tax to defray developers' up-front costs to build needed public improvements to support six projects that have an estimated market value of more than $158 million, so far.
After getting lots of questions about the program, they also created a citizens committee that will regularly meet publicly to review and then forward information about its operations to the city council.
More: High-end, mixed-use projects bringing 'Best of all worlds' livability to Edmond's core
Here's what we know about the six projects whose developers entered into agreements for TIF assistance, to date.
Edmond spent $2 million to make public improvements to support the Lark
What is it, and where is it? The Lark, bordered by Main on the north, First on the south, Santa Fe Drive on the east and Fretz on the west, is a project by Matthew Myers and Tray McPherson bringing 42 single family, for-sale urban cottages built in 1, 2 and 2 ½ bedroom configurations.
Permitted value: About $17 million.
Public assistance: $2 million from Edmond's Capital Improvement Plan sales taxes to upgrade water, sewage and storm water drainage systems and area streets and alleys.
The TIF's role in the project: Increased property tax revenues generated by the project's 42 homes during the life of the TIF will be used to reimburse the city for its upfront costs.
Status: Under construction with 15 homes completed and sold and more being built.
Edmond committed $6.7 million to support construction of The Oxlley
What is it, and where is it? The Oxlley is two, three-story apartment buildings getting built by Milhaus that will offer 276 studio and one-two- and three-bedroom pet-friendly units and an associated 346-space parking garage on the eastern halves of two blocks bordered by Hurd on the north, W First on the south, the BNSF Railway tracks on the east and Santa Fe Drive on the west.
Permitted value: $104 million.
Public assistance: $3.5 million to help pay for building the city-owned parking garage, $1.2 million to defray costs to add perimeter sidewalks, lighting and on-street parking, plus another $2 million to help Milhaus defray other development costs.
The TIF's role in the project: After the project is complete, Milhaus will receive 25% of the TIF District property taxes it generates annually until it has received $2 million while the $3.5 million Edmond paid toward building the garage and $1.2 million it spent for surrounding streetscape will be recovered the say way. Plus, Milhaus is paying Edmond $4 million to lease non-public spaces inside the garage for 20 years. Milhaus then can either choose to execute another 20-year lease on the garage or offer to buy out Edmond entirely.
Status: Under construction, estimated completion in late 2024.
Edmond's reimbursement for The Campbell includes incentive
What is it, and where is it? Two, three-story buildings containing 61 luxury one- and two-bedroom apartments are being built by Campbell 215 LLC (Rader Development) on the eastern two-thirds of a block bordered on the west by Boulevard, on the east by Jackson, on the north by Edwards and on the south by Campbell. The north building will be entirely residential, while the south building will be a mix of residential units and about 20,000 square feet for retail, office and restaurant space.
Permitted value: $12.1 million.
Public assistance: About $800,000 to defray Rader's costs to prepare the site, pave an alley, build street parking, landscaping, decorative lighting, put in additional fire hydrants and a related fire pump. Rader also will get an incentive payment of $181,077 because its project is the first that attempts to link the University of Central Oklahoma's campus with downtown Edmond.
The TIF's role in the project: Edmond will provide the developer with a $500,000 payment from its Capital Improvement Plan sales taxes two years after the buildings are certified for occupancy. It will recover that expense from project-associated property tax revenues. The developer will be reimbursed the remainder of what its owed (another $500,000) through project-associated property taxes collected over six years.
Status: Under construction with expected completion in summer, 2024.
The Ember adjusted by Edmond to account for inflation
What is it, and where is it? Twenty-three brick, cottage-style luxury homes ranging from 1,200 to 2,100 square feet, many with tuck-under parking, are being built by Ember Development LLC on land bordered by E Eighth and Ninth streets on the north and south, Littler Avenue on the west and Boulevard on the east.
Permitted value: About $16 million.
Public assistance: About $1.65 million (increased in 2023 to cover inflationary pressures) to defray Ember's engineering and construction costs associated with paving, parking, sidewalks, decorative street lighting, landscaping and irrigation, plus drainage, sewer and water systems upgrades.
The TIF's role in the project: The developer will be reimbursed for those costs from project-related property taxes over 13 years.
Status: Infrastructure upgrades should be completed by July 2024, with total project completion about two years after that.
103 Broadway to offer unique view of downtown Edmond
What is it, and where is it? A four-story, 11,000-square-foot building getting built by Switchgrass Capital that will include a restaurant, offices and private roof-top event space, plus eight living units ranging from 440 to 2,200 square feet in size at 103 N Broadway (the corner of North Broadway and Hurd).
Permitted value: About $9 million.
Public assistance: $1.08 million to defray Switchgrass' costs to upgrade water and sewer systems, to make alley improvements and to build on-street parking, lighting, sidewalk and landscaping.
The TIF's role in the project: Incremental payments associated with TIF District property tax revenues tied to the project will be paid to the developer to recover its costs.
Status: Construction will begin by July 2024 and be completed by Late 2025.
Storm water system upgrade achieved by smallest TIF-related award in Edmond, so far
What is it, and where is it? An upgraded storm water drainage pipe serving Stephenson Park built by Edmond passing under on-street parking and outdoor patios for new restaurants and shops built across the street on the park's south side by Fifth Street Partners.
Permitted value: $1.3 million for the storm water drainage improvements, $110,000 for curbside parking.
Public assistance: $1.3M from Edmond's Drainage Utility Fund and Capital Improvement Plan sales taxes.
The TIF's role in the project: TIF District property tax revenues associated with projects built near Stephenson Park will be used to reimburse the city and developer for their costs.
Why did Edmond create a TIF District?
Edmond's city leaders began talking about creating a TIF because they wanted to attract urban-style developments to its core to bring additional residents and commercial activities that could boost its sales taxes, over time.
Former Edmond Councilman David Chapman wrote a column for Edmond Outlook in November 2017 supporting its creation, stating urban developments near downtown would help cut street traffic counts, as well.
Chapman wrote urban-style projects within an established community are more expensive for developers because of city-required water, sewage and drainage upgrades, plus requirements for on-street parking and other improvements.
"If city officials want to encourage this type of development they must consider incentives," he wrote.
Leana Dozier, brought aboard recently as Edmond's downtown transformation manager, said TIF revenues are part of a creative capital stack a city can offer developers to help defray increased costs.
"Land values are a little bit higher in downtown areas than they are on the outskirts of any city. Construction can cost a lot more in a downtown area (because) worksites are more complicated. So, having incentives for development always help — it is a huge tool for economic development in a downtown area," Dozier said.
How the TIF will help schools, libraries and other local agencies
The city of Edmond receives no property taxes to help it provide services to city residents.
Property tax revenues inside of the community flow to Edmond Public Schools, Oklahoma County, the Oklahoma City-Oklahoma County Health Department, Francis Tuttle Technology Center and the Metropolitan Library System of Oklahoma County.
The cumulative assessed property value inside the TIF when it was created was about $14.97 million, and each of those entities will continue to get revenues tied to that value between now and the end of 2040.
Officials estimate the additional projects will have a market value of $530 million, which will more than triple the assessed value inside the district and increase annual property taxes inside its borders by at least about $2.4 million.
Between now and the end of 2040, Edmond Public Schools will receive 10% of TIF-generated property taxes, an estimated $6 million, assuming plans progress as expected. After that, city officials expect increased values across the area will contribute an additional $400,000 annually to support the school system's operations.
Once the TIF ends, it also is expected:
Oklahoma County's net annual revenue will increase by $600,000.
The city-county health department's net annual revenue will increase by $150,000.
Francis-Tuttle's net increased annual revenue will increase by $915,000.
The Metropolitan Library System's annual revenue will increase about $300,000.
Public questions about Edmond's TIF prompted committee's creation, sponsor says
Some argue a TIF district is just a way to enrich already wealthy developers at the expense of everyone else. Others don't support TIF districts, even when fully understanding how one works.
Better understanding is needed, said Edmond City Councilman Barry Moore, who said he often fields questions about the program and its goals.
Council members in March unanimously approved Moore's proposal to establish a five-member citizens committee that will meet at least four times a year to review Edmond's TIF District and its projects.
"We are dealing with a large sum of money, and the citizens have questions from time to time about that," Moore said. "So, I thought some sunshine and transparency on that would be a good thing, so they could know about the financial status of our TIF District. This adds to it."
Dozier agreed. "It is important that our citizens understand what we are doing," she said.