ORDINANCE NO. 2024-5
PURSUANT TO THE LEGAL NOTICE AS IS REQUIRED BY THE OKLAHOMA OPEN MEETING ACT INCLUDING THE POSTING OF NOTICE AND AGENDA AS IS REQUIRED BY THE TERMS THEREOF, THE CITY COUNCIL OF THE CITY OF OKEMAH, OKLAHOMA, MET IN REGULAR SESSION ON THE 26
TH
DAY OF AUGUST, 2024, AT 6:00 O'CLOCK P.M.
(OTHER PROCEEDINGS)
Thereupon, the following Ordinance was introduced and caused to be read by Title by the City Clerk. Mayor Ron Gott moved passage of the Ordinance and Councilmember Mike Ishmael seconded the motion. The motion carrying with it the approval of said Ordinance was approved by the following vote:
AYE: Mayor Ron Gott, Vice Mayor Ronnie Lucas, Wayne Bacon, and Mike Ishmael
NAY: None
THEREUPON, Mayor Ron Gott moved that an emergency be declared and that the Ordinance become effective immediately. Councilmember Wayne Bacon seconded the motion. The motion was adopted by the following vote:
AYE: Mayor Ron Gott, Vice Mayor Ronnie Lucas, Wayne Bacon, and Mike Ishmael
NAY: None
The Ordinance so approved is as follows:
[Ordinance No. 2024-5 begins on following page]
ORDINANCE NO. 2024-5
AN ORDINANCE OF THE CITY OF OKEMAH, OKLAHOMA (THE “CITY”) APPROVING UTILIZATION OF APPORTIONED TAX REVENUES AUTHORIZED BY STATEWIDE VOTE ADOPTING ARTICLE 10, SECTION 6C OF THE OKLAHOMA CONSTITUTION AND IMPLEMENTED BY THE LOCAL DEVELOPMENT ACT, 62 O.S. §850, ET SEQ.; APPROVING AND ADOPTING THE OKEMAH ECONOMIC DEVELOPMENT PROJECT PLAN AND EXPRESSING INTENT TO CARRY OUT THE PROJECT PLAN; RATIFYING AND CONFIRMING THE ACTIONS, RECOMMENDATIONS AND FINDINGS OF THE REVIEW COMMITTEE AND THE PLANNING COMMISSION; CREATING AND ESTABLISHING INCREMENT DISTRICT NO. 1, CITY OF OKEMAH; DESIGNATING AND ADOPTING THE INCREMENT DISTRICT BOUNDARIES AND THE PROJECT AREA BOUNDARIES; ADOPTING CERTAIN FINDINGS; RESERVING TO THE CITY THE AUTHORITY TO MAKE MINOR AMENDMENTS TO THE PROJECT PLAN; AUTHORIZING THE CITY COUNCIL OF THE CITY TO CARRY OUT AND ADMINISTER THE PROJECT PLAN; ESTABLISHING A TAX APPORTIONMENT FUND; AUTHORIZING DIRECTIONS FOR PROSPECTIVE APPORTIONMENT OF TAX INCREMENTS; ESTABLISHING AN ALLOCATION OF USE FOR TAX INCREMENTS; DECLARING APPORTIONMENT FUNDS TO BE FUNDS OF THE CITY AND LIMITING THE PLEDGE OF APPORTIONED INCREMENTS TO INCREMENTS ACTUALLY APPORTIONED BY THE CITY; AUTHORIZING THE CITY COUNCIL OF THE CITY, OR A PUBLIC TRUST DESIGNATED THEREBY, TO IMPLEMENT THE PROJECT PLAN UTILIZING APPORTIONED TAX INCREMENTS TO PAY OR REIMBURSE PROJECT COSTS DIRECTLY AND/OR TO ISSUE BONDS OR NOTES, IF FEASIBLE AND DESIRABLE, TO PAY PROJECT COSTS AND TO RETIRE SAID BONDS OR NOTES FROM APPORTIONED TAX INCREMENTS; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY; AND CONTAINING OTHER PROVISIONS RELATED THERETO.
WHEREAS, by statewide vote, the people of the State of Oklahoma adopted Article 10, §6C as an amendment to the Constitution of the State of Oklahoma to allow the Legislature to authorize cities, towns and counties to use local taxes for specific public investments, for assistance in development financing and as a revenue source for other public entities in the area, and to direct the apportionment of local taxes to plan, finance and carry out development of areas determined by the governing body of the city, town or county to be unproductive, undeveloped, underdeveloped or blighted; and
WHEREAS, the Legislature has enacted the Local Development Act, 62 Okla. Stat. §850, et seq. (the “Local Development Act”), for purpose of furthering the provisions of Article 10, §6C of the Oklahoma Constitution; and
WHEREAS, the Okemah Economic Development Project Plan (the “Project Plan”) supports the achievement of the economic development objectives of the City of Okemah, Oklahoma (the “City”) in accordance with previously approved strategies and plans to incentivize capital investment in facilities to serve as a catalyst for expanding employment in the area, attract major investment in the area, preserve and enhance the tax base and make possible investment, development, and economic growth that would be difficult or impossible without the project and the apportionment of ad valorem, sales and use, and hotel taxes from within the Increment District; and
WHEREAS, the Project Plan calls for the creation of Increment District No. 1, City of Okemah (the “Increment District”); and
WHEREAS, the Planning Commission of the City (the “Planning Commission”) has adopted its Resolution (attached hereto as Exhibit “D”) declaring that the Project Plan is in compliance with the Comprehensive Plan of the City and recommending the approval of the Project Plan to the City Council of the City; and
WHEREAS, the Tax Increment District Review Committee (the “Review Committee”), comprised of individuals representing each of the taxing jurisdictions in which the proposed increment district is located, as well as the public at large, has considered the financial impacts of the proposed Project Plan on each such taxing jurisdiction and has found that the proposed project will have a positive financial impact on the affected taxing entities and existing business activities within the Increment District; and
WHEREAS, the affected taxing entities comprising the Review Committee include the City; Okfuskee County, Oklahoma (the “County”); Okfuskee County Health Department; Okemah Independent School District No. 26 of Okfuskee County (the “School District”); and Wes Watkins Technology Center Vo-Tech District No. 25; and
WHEREAS, the Review Committee has reviewed the proposed Increment District in accordance with the criteria specified in the Local Development Act, and has found that the proposed Increment District is unproductive, undeveloped, and/or underdeveloped within the meaning of Article 10, §6C of the Oklahoma Constitution and the Local Development Act, and is located within a reinvestment area (as defined in Section 853(17) of the Act) and is therefore eligible for assistance under the Local Development Act; further, that the area comprising the Increment District is contained within a designated enterprise zone and therefore constitutes an enterprise area (as defined in Section 853(5) of the Act) and is therefore eligible for assistance under the Local Development Act; and
WHEREAS, the Review Committee has found that approval of the Project Plan is appropriate and has recommended its approval to the City Council of the City, evidenced by its Resolution (attached hereto as Exhibit “E”); and
WHEREAS, tax apportionment financing is a necessary component in generating economic development in the proposed project area and the Increment District; and
WHEREAS, investment, development and economic growth will be difficult within the proposed project area and proposed Increment District, but possible if the Project Plan is adopted; and
WHEREAS, the Project Plan will use the tools provided by the Local Development Act only in an area where investment, development and economic growth would not otherwise occur, and
WHEREAS, the Project Plan provides tools that will supplement and not supplant or replace nominal public functions and services; and
WHEREAS, the establishment of the Increment District will be used in conjunction with existing programs and other locally implemented economic development efforts in order to encourage economic development in the proposed project area; and
WHEREAS, the boundaries of the Increment District do not dissect any similar area or create an unfair competitive advantage; and
WHEREAS, the City Council of the City recognizes the need for residential and neighborhood treatment as well as commercial/industrial development; and
WHEREAS, maximum effort has been made to allow full public knowledge and participation in the application of the Local Development Act in the review and approval of the Project Plan, including creation of the Increment District; and
WHEREAS, all required notices have been given and all required hearings have been held in connection with the proposed Project Plan, as prescribed in the Local Development Act, the Oklahoma Open Meeting Act, 25 Okla. Stat. §301 et seq., and other applicable law; and
WHEREAS, implementation of the Project Plan will be facilitated by designation of a public trust with the City as its beneficiary (referred to herein as the “Authority”), to assist the City in carrying out and administering the Project Plan and exercising all powers necessary thereto except those powers reserved by the City herein; and
WHEREAS, implementation of the Project Plan will be facilitated by reserving to the City the authority to make minor amendments to the Project Plan, as provided in the Local Development Act; and
WHEREAS, implementation of the Project Plan will be facilitated by authorizing the Authority to pay or reimburse authorized Project Costs pursuant to Section IX of the Project Plan from apportioned tax increments, and/or issue its tax apportionment notes or bonds (referred to herein as the “TIF Bonds”) payable from apportioned tax increments; and
WHEREAS, it is in the best interests of the City and its citizens to approve the Project Plan, including the establishment of the Increment District.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEMAH, OKLAHOMA:
Section 1. Utilization of Local Development Act. In order to undertake redevelopment of an undeveloped or underdeveloped area within the City, the City elects to utilize Article 10, §6C of the Constitution of the State of Oklahoma, adopted by statewide vote and implemented by the Local Development Act, which authorizes the use of local taxes for specific public investments, assistance in development financing and as a revenue source for other public entities in the area and which provides for the direction of apportionment of local taxes to plan, finance, and carry out development of unproductive, undeveloped, underdeveloped, or blighted areas as determined by the governing body of a city, town, or county.
Section 2. Project Plan Approval. The Project Plan is hereby approved and adopted as recommended by the Planning Commission and the Review Committee. As used in this Ordinance, “Okemah Economic Development Project Plan” or “Project Plan” shall mean the document entitled “Okemah Economic Development Project Plan” dated July 19, 2024, and attached hereto as Exhibit “A”. It is the intent of the City to carry out the Project Plan as provided by this Ordinance.
Section 3. Ratification of Actions. All actions, findings and recommendations made or taken in connection with the Project Plan by the Planning Commission and the Review Committee are hereby ratified and confirmed, including, but not limited to, the designation and selection of representatives to the Review Committee from the taxing jurisdictions and the public at large, recommendations for approval, and the findings of conformance with the Comprehensive Plan, eligibility of the Increment District and financial impact upon the taxing jurisdictions.
Section 4. Increment District Creation. There is hereby created an Increment District. For identification purposes, the name of the Increment District shall be “Increment District No. 1, City of Okemah”. The Increment District shall commence as of the date determined by the City Council of the City in accordance with Section 856(B)(2) of the Local Development Act (the “Commencement Date”); provided however, the Commencement Date shall not be later than ten (10) years following adoption of the Project Plan and this Ordinance. The City Council will evidence the Commencement Date, designation, and naming of the Increment District by adoption of its Resolution at such time as shall be determined by the City Council of the City.
Section 5. Increment District and Project Area Boundaries. The boundaries of Increment District No. 1, City of Okemah contain an area generally described as certain property north and south of Interstate 40, centered on the South Woody Guthrie Street interchange (Exit 221), and east of N 3760 Road, and west of N 3790 Road, all within the City of Okemah, Oklahoma, and the specific Increment District legal description is hereby designated and adopted as described in Exhibit “B”. The boundaries of the Project Area (the area within which project activities will take place, including construction of the supporting public improvements) contain an area comprising 6 square miles, roughly bordered on the south by E 1110 Rd, on the west by N 3760 Road, on the north by Columbia Street/OK Highway 62, and on the east by N 3790 Road, and the specific Project Area legal description is hereby designated and adopted as described in Exhibit “C”.
Section 6. Findings. The City Council hereby finds that:
(a)
The Increment District is located within an enterprise area as defined by the Local Development Act;
(b)
The proposed improvements and incentives (as set forth in the Project Plan) within the Increment District are likely to enhance the value of other real property in the area and to promote the general public interest;
(c)
The guidelines of paragraphs 1 and 2 of Section 852 of the Local Development Act shall be followed;
(d)
The aggregate net assessed value of the taxable property in all increment districts within the City, as determined pursuant to Section 862 of the Local Development Act, does not exceed 35% of the total net assessed value of taxable property within the City;
(e)
The aggregate net assessed value of the taxable property in all increment districts within the City, as determined pursuant to Section 862 of the Local Development Act, does not exceed 25% of the total assessed net value of any affected school districts located within the City;
(f)
The land area of all increment districts within the City does not exceed 25% of the total land area of the City; and
(g)
The Project Plan is feasible and conforms to the Comprehensive Plan of the City, as amended; and
(h)
The approval of the Project Plan is likely to significantly benefit contiguous or nearby enterprise zone census tracts, and therefore shall be eligible for the state local government matching payment authorized pursuant to the Oklahoma Local Development and Enterprise Zone Incentive Leverage Act, 62 O.S. §840, et seq. (the “Leverage Act”), and the City is hereby authorized and directed to make application to the Oklahoma Department of Commerce pursuant to the Leverage Act.
Section 7. Right to Amend Project Plan. The City reserves to itself the authority to make minor amendments to the Project Plan in accordance with the definition provided in Section 858(D) of the Local Development Act. Notwithstanding the foregoing, the Review Committee may be reconvened at the direction of the City Council at any time following adoption of this Ordinance to consider and recommend any appropriate amendments to the Project Plan.
Section 8. City and Authority the Designated Public Entities. The City Council of the City is hereby designated and authorized as the public entity to carry out and administer the provisions of the Project Plan and to exercise all powers necessary or appropriate thereto, including, without limitation, those powers described in Section 854 of the Local Development Act. Upon designation by the City Council of the City, the Authority shall assist in carrying out and administering the provisions of the Project Plan and shall be authorized to exercise all powers necessary or appropriate thereto pursuant to Section 854 of the Local Development Act, except for approval of the Project Plan and those powers enumerated in paragraphs 1, 2, 3, 4, 7, 13, and 16 of that section, which powers shall be reserved to the City Council of the City.
Section 9. Tax Apportionment Fund. There is hereby created a fund called the “Increment District No. 1, City of Okemah, Tax Apportionment Fund” (referred to herein as the “Apportionment Fund”), which fund will be held by and be the property of the City (except that such fund may also be held by the Authority or a trustee acting on behalf of the Authority). All monies apportioned pursuant to Section 10 shall be deposited in the Apportionment Fund. No portion of the TIF Revenues described in Section 10 and no portion of the Apportionment Fund shall constitute a part of the general fund of the City.
Section 10. Apportionment of Tax Increments.
(a)
The apportionment of the Ad Valorem Increment Revenues, the Sales Tax Increment Revenues, the Hotel Tax Increment Revenues, and the Leverage Act Increment Revenues (each as defined herein, and collectively referred to as the “TIF Revenues”) shall continue for that period required for the payment of the Project Costs, or a period not to exceed twenty-five (25) full fiscal years following the respective Commencement Date (each referred to as the “Expiration Date”), whichever is less..
(b)
The apportionment of the TIF Revenues pursuant to this section shall terminate upon the final payment of, or reimbursement for, all Project Costs incurred in connection with the projects listed in the Project Plan, and the payment of all outstanding principal, accrued interest, and premium due on the TIF Bonds; provided, however, that in no case shall the apportionment of revenues pursuant hereto extend beyond the Expiration Date.
(c)
In the event that any portion of the principal of or interest on the TIF Bonds, issued in connection herewith, or any amount due and owing for payment or reimbursement under a development agreement entered into by the City, remains unpaid as of the Expiration Date, then the Increment District shall not terminate until the increment apportioned during the term of the Increment District is actually received by the Apportionment Fund, even if the receipt of such revenues occurs subsequent to the Expiration Date.
(d) Ad Valorem Increment Revenues (TIF Revenues). In accordance with the provisions of the Local Development Act, one hundred percent (100%) of the increments of real and personal property ad valorem taxes generated within the Increment District, in excess of the real and personal property ad valorem taxes generated from the base assessed value of the Increment District, as such increments are determined and defined pursuant to the Local Development Act (collectively, the “Ad Valorem Increment Revenues”), are to be apportioned and set aside from all other ad valorem taxes levied within the Increment District, to be used exclusively for:
(i)
the payment of principal, interest and premium, if any, on any TIF Bonds issued pursuant to Section 863 of the Local Development Act (including pledging as security for such payments);
(ii)
the payment, if required, of amounts necessary to satisfy or replenish any reserve requirement established with respect to any TIF Bonds;
(iii)
the payment of Project Costs incurred in connection with the development, construction, or implementation of the TIF Projects;
(iv)
the reimbursement of a third party developer (pursuant to a development agreement with the City or the Authority), the City, or any agency thereof (including the Authority), which has paid Project Costs from funds which were not increments derived from the Increment District, but only to the extent that such sums were actually paid or, in the case of reimbursement of third party developer, constitute an interest component on sums that were actually paid; and
(v)
the establishment and payment of a specific revenue source for affected taxing entities pursuant to Sections 853(9), 853(14)(i), and 854(4) of the Local Development Act.
Pursuant to the Local Development Act, the Ad Valorem Increment Revenues (as determined annually by the Okfuskee County Assessor) apportioned hereunder and so collected shall be placed into the Apportionment Fund. All Ad Valorem Increment Revenues so collected shall be apportioned as follows: (i) fifty percent (50.0%) of the Ad Valorem Increment Revenues shall be pledged as security for the payment of the TIF Bonds or otherwise used to pay (or reimburse the payment of) Project Costs authorized pursuant to Section IX of this Project Plan; and (ii) fifty percent(50.0%) of the Ad Valorem Increment Revenues shall be apportioned to the affecting taxing jurisdictions in proportion to the allocation that the taxing jurisdictions would ordinarily receive from the increased assessed values, in the absence of the Increment District (as set forth in Sections 853(9), 853(14)(i) and 854(4) of the Local Development Act; provided that any portion of the TIF Revenues allocated to the School District shall be for the purpose of providing a specific revenue source for capital expenditures (and any related financing costs) for the benefit of the School District.
(e) Sales Tax Increment Revenues (TIF Revenues). In accordance with the provisions of the Local Development Act, fifty percent (50%) of the incremental sales and use tax revenue (representing an amount equivalent to a one and three-quarters percent (1.75%) sales and use tax based on a total of 3.5% sales and use tax levied by the City as of the date of this Ordinance pursuant to Chapter 2, Article 2, Section 2-2-1 et seq., of the Okemah Code of Ordinances (the “Code of Ordinances”), as such Code of Ordinances may be amended, replaced, extended, superseded, terminated, or otherwise modified from time to time, including with regards to the total amount of applicable City sales and use tax rate) generated within the Increment District, as such increments are determined and defined pursuant to the Local Development Act (collectively, the “Sales Tax Increment Revenues”), are to be apportioned and set aside from all other sales and use taxes levied within the Increment District; provided, however, the Sales Tax Increment Revenues shall be reduced by the amount of sales tax revenues generated by any existing businesses (currently located within the City, but outside the boundaries of the Increment District) that cease operations at their existing location and relocate to within the Increment District, but provided further, said reduction shall not be applied to any existing businesses that open an additional location within the Increment District for so long as all other existing location(s) remain open for business. Said amount of reduction (collectively, the “Transfer Adjustment”) shall be calculated based on the sales tax collections during the twelve month period prior to closing the previous location. The Sales Tax Increment Revenues are to be used exclusively for:
(i) the payment of principal, interest and premium, if any, on any TIF Bonds issued pursuant to Section 863 of the Local Development Act (including pledging as security for such payments);
(ii) the payment, if required, of amounts necessary to satisfy or replenish any reserve requirement established with respect to any TIF Bonds
;
(iii) the payment of Project Costs incurred in connection with the development, construction, or implementation of the TIF Projects; and
(iv) the reimbursement of a third party developer (pursuant to a development agreement with the City or the Authority), including any interest component (pursuant to a development agreement with the City and/or the Authority), the City, or any agency thereof (including the Authority), which has paid Project Costs from funds which were not increments derived from the Increment District, but only to the extent that such sums were actually paid or, in the case of reimbursement of a third party developer, constitute an interest component on sums that were actually paid.
Provided, however, the remaining unapportioned incremental sales and use tax revenues derived from the Increment District, as of the date of this Ordinance representing the equivalent of 1.75% of the total 3.5% sales and use tax levied by the City, shall be retained by the City and utilized for any lawful purpose consistent with the aforementioned Code of Ordinances. For purposes of determining the incremental portion of the sales and use taxes generated within or sourced to the Increment District, the Mayor of the City shall certify as the “base sales tax amount” the annual sales taxes received by the City that were generated within the area comprising the Increment District during the calendar year immediately preceding the Commencement Date of the Increment District. Fifty percent (50%) of the sales and use tax generated within or sourced to the Increment District and received by the City which are in excess of such base amount, net of any Transfer Adjustment, shall be considered to be the “increment” subject to apportionment by this section. In addition to sales and use tax generated from retail sales, the Sales Tax Increment Revenues shall include sales and use tax generated from actual construction occurring within the Increment District. The City shall establish procedures related to the calculation and determination of construction related sales and use tax revenue qualifying as Sales Tax Increment Revenues. Such procedures shall stipulate that construction related Sales Tax Increment Revenues be derived only from new construction activities occurring within the Increment District. The City shall be entitled to rely on certifications of actual construction costs provided by a third party developer(s) or related parties in connection with determining any applicable Sales Tax Increment Revenues.
Pursuant to the Local Development Act, the Sales Tax Increment Revenues apportioned hereunder and so collected shall be placed into the Apportionment Fund and shall be pledged as security for the payment of the TIF Bonds or otherwise used to pay (or reimburse the payment of) Project Costs authorized pursuant to Section IX of the Project Plan, including any interest component (pursuant to a development agreement with the City and/or the Authority).
(f) Hotel Tax Increment Revenues (TIF Revenues). In accordance with the provisions of the Local Development Act, fifty percent (50%) of the incremental hotel/motel tax revenues (representing an amount equivalent to a two and one-half percent (2.5%) hotel/motel tax based on a total of 5.0% hotel/motel tax levied by the City as of the date of this Ordinance pursuant to Ordinance No. 2017-12 of the City adopted October 12, 2017 (the “Hotel Tax Ordinance”), as such Hotel Tax Ordinance may be amended, replaced, extended, superseded, terminated, or otherwise modified from time to time, including with regards to the total amount of applicable City hotel/motel tax rate) generated within the Increment District, as such increments are determined and defined pursuant to the Local Development Act (collectively, the “Hotel Tax Increment Revenues”) are to be apportioned and set aside from all other hotel/motel taxes levied within the Increment District; provided that all of the generated increment shall be pledged as security for the payment of the TIF Bonds or otherwise used to pay (or reimburse the payment of) Project Costs authorized pursuant to Section IX of the Project Plan. The Hotel Tax Increment Revenues are to be used exclusively for:
(i) the payment of principal, interest and premium, if any, on any TIF Bonds issued pursuant to Section 863 of the Local Development Act (including pledging as security for such payments);
(ii) the payment, if required, of amounts necessary to satisfy or replenish any reserve requirement established with respect to any TIF Bonds
;
(iii) the payment of Project Costs incurred in connection with the development, construction, or implementation of the TIF Projects; and
(iv) the reimbursement of a third party developer (pursuant to a development agreement with the City or the Authority), including any interest component (pursuant to a development agreement with the City and/or the Authority), the City, or any agency thereof (including the Authority), which has paid Project Costs from funds which were not increments derived from the Increment District, but only to the extent that such sums were actually paid or, in the case of reimbursement of a third party developer, constitute an interest component on sums that were actually paid.
Provided, however, the remaining unapportioned incremental hotel/motel tax revenues derived from the Increment District, as of the date of this Project Plan representing the equivalent of 2.5% of the total 5.0% hotel/motel tax levied by the City, shall be retained by the City and utilized on a pro rata basis for any lawful purpose consistent with the aforementioned Hotel Tax Ordinance. For purposes of determining the incremental portion of the hotel/motel taxes generated within or sourced to the Increment District, the Mayor of the City shall certify as the “base lodging tax amount” the annual hotel/motel taxes received by the City that were generated within the area comprising the Increment District during the calendar year immediately preceding the Commencement Date of the Increment District. All hotel/motel tax revenue generated within the Increment District and received by the City which are in excess of such base amount, shall be considered to be the “increment” subject to apportionment by this section.
(g) Leverage Act Increment Revenues (TIF Revenues). In accordance with the provisions of the Local Development Act, one hundred percent (100%) of the incentive matching payments made by the State of Oklahoma pursuant to the Leverage Act, based on sales and use tax and hotel/motel tax increments dedicated to the Increment District, as such amounts are hereinafter determined and defined (collectively, the “Leverage Act Increment Revenues”), are to be apportioned and set aside from all other hotel/motel taxes levied within the Increment District. The Leverage Act Increment Revenues are to be used exclusively for:
(i) the payment of principal, interest and premium, if any, on any TIF Bonds issued pursuant to Section 863 of the Local Development Act (including pledging as security for such payments);
(ii) the payment, if required, of amounts necessary to satisfy or replenish any reserve requirement established with respect to any TIF Bonds
;
(iii) the payment of Project Costs incurred in connection with the development, construction, or implementation of the TIF Projects; and
(iv) the reimbursement of a third party developer (pursuant to a development agreement with the City or the Authority), including any interest component (pursuant to a development agreement with the City and/or the Authority), the City, or any agency thereof (including the Authority), which has paid Project Costs from funds which were not increments derived from the Increment District, but only to the extent that such sums were actually paid or, in the case of reimbursement of a third party developer, constitute an interest component on sums that were actually paid.
The City shall establish procedures related to application under the Leverage Act for sales and use tax and hotel/motel tax matching funds. It is hereby recognized that any Leverage Act Increment Revenues represent a substantial economic benefit to the City and the development of the Project, and the City and the Authority shall take all reasonable actions necessary to maximize the Leverage Act Increment Revenues.
Pursuant to the Local Development Act, the Leverage Act Increment Revenues apportioned hereunder and so collected shall be placed into the Apportionment Fund and shall be pledged as security for the payment of the TIF Bonds or otherwise used to pay (or reimburse the payment of) Project Costs authorized pursuant to Section IX of the Project Plan, including any interest component (pursuant to a development agreement with the City and/or the Authority).
(h) Use of TIF Revenues. During the term of the Increment District, TIF Revenues (excluding such portions allocated to affected taxing entities) shall be utilized as follows:
(i) The payment of principal, accrued interest, and premium, if any, due on the TIF Bonds;
(ii)
If applicable, transfers to any debt service reserve established in connection with the TIF Bonds in such amounts as may be necessary to restore the reserve to its prescribed levels;
(iii)
The payment and/or reimbursement of authorized Project Costs (including any interest component pursuant to a development agreement);
(iv)
If applicable, the prepayment of principal on any TIF Bonds until such time as all TIF Bonds are retired; and
(v)
Upon retirement of all TIF Bonds (if any) and payment of all Project Costs (including any interest component pursuant to a development agreement), (a) any remaining Ad Valorem Increment Revenues shall be transferred to the various ad valorem taxing jurisdictions, in the same percentages as originally collected, as determined by reference to the millage levied by each of the various ad valorem taxing jurisdictions for the related tax year, excluding sinking fund levies, and (b) any remaining Sales Tax Increment Revenues and/or Hotel Tax Increment Revenues shall be transferred to the City for deposit into the General Fund or to the appropriate special fund, in each case consistent with the provisions of the Local Development Act. Any remaining Leverage Act Increment Revenues either shall be treated appropriately as ad valorem tax revenue, sales and use tax revenue, or hotel/motel tax revenue, and shall be transferred as set forth in (a) and (b) herein, or, if required by the Leverage Act, shall be returned to the State of Oklahoma.
Section 11. Increments Constitute City Funds; Uses. From and after apportionment, the apportioned increments shall constitute funds of the City (except that such funds may also be held by the Authority or a trustee acting on behalf of the Authority). Apportioned increments may be used for the payment of Project Costs; provided, however, the pledge of apportioned increments toward payment of such Project Costs shall be limited to increments actually apportioned by the City and any security instruments shall provide that except as provided for in this Ordinance, the City has no legal obligation or promise to apportion additional increments in future years. The City and the Authority (as and when designated by the City) shall have the authorization to carry out certain provisions of the Project Plan, as authorized in Section VIII of the Project Plan, to incur and pay or reimburse Project Costs (including any interest, capitalized interest, and other related financing costs) pursuant to Section IX of the Project Plan and also, if feasible and desirable, to issue tax apportionment bonds or notes, incur the costs of issuance of such bonds, and accumulate appropriate reserves, if any, in connection with such bonds, and to retire said bonds or notes from apportioned tax increments, all in accordance with the provisions of the Project Plan. The Authority may (upon designation by the City) also be authorized to irrevocably pledge all or any part of the apportioned TIF Revenues and/or other available revenue for the payment of the TIF Bonds, or for the payment (or reimbursement) of Project Costs. In authorizing the irrevocable pledging of such TIF Revenues, it is the express intention of the City Council that the Increment District will remain in place until all of the outstanding principal, accrued interest and premium, if any, on any such TIF Bonds have been paid in full. Notwithstanding such intention, the City, by these provisions, does not waive any right which it has now or may have in the future, to repeal, modify or amend this Ordinance, by subsequent action of the City Council, as provided in Section 856(C) of the Local Development Act. In adopting this Ordinance, the City does not purport to create any contractual obligation extending beyond the City’s current or any subsequent fiscal year with regard to the establishment or maintenance of the Increment District, or the apportionment of the TIF Revenues; provided, however, that the City may, on a year-to-year basis, agree to transfer to the Apportionment Fund, as appropriate, any apportioned increments which it receives. All TIF Bonds so issued shall state that such bond or note is not a debt, general or special, liability or obligation of the City, Okfuskee County, or the State of Oklahoma or any other agency or authority of such entities, other than the Authority. The bond or note shall further state to the effect that:
(a)
The issuance of such bond or note does not give rise to a charge against the general credit or taxing powers of the City, or a claim on the revenues or resources of the State of Oklahoma, and
(b)
Such bond or note is a special, limited obligation of the Authority, payable solely from the income, revenues and receipts derived or to be derived from the proceeds of certain tax increments paid over to the Authority and the funds and accounts held pursuant to the terms of any indenture or agreement authorizing the issuance of such bonds or notes.
Section 12. Severability. If any term, section, subsection, sentence, clause, phrase or portion of this Ordinance or the Project Plan approved hereby is for any reason held invalid or unconstitutional, such term, section, subsection, sentence, clause, phrase or portion shall not affect the validity of the remaining portions of this Ordinance.
Section 13. Emergency. It is immediately necessary for the preservation of the public health, peace and safety of the City of Okemah, Oklahoma, and the inhabitants thereof that the provisions of this Ordinance become operative immediately and therefore, an emergency is hereby declared to exist and this Ordinance shall be in full force and effect immediately from and after its passage and approval.
Section 14. Necessary Action. The Mayor or Vice Mayor and City Clerk or Deputy City Clerk be and hereby are authorized and empowered to execute and deliver for and on behalf of the City any and all other documents or instruments reasonably necessary to accomplish the implementation of the Project Plan.
[Remainder of Page Left Blank Intentionally]
PASSED AND APPROVED AND THE EMERGENCY CLAUSE RULED UPON SEPARATELY THIS 26TH DAY OF AUGUST, 2024.
CITY OF OKEMAH, OKLAHOMA
(SEAL) /s/ Ron Gott
Mayor
ATTEST:
/s/ Relena Haddox
City Clerk
STATE OF OKLAHOMA )
)SS
COUNTY OF OKFUSKEE )
I, the undersigned, City Clerk of the City of Okemah, Oklahoma, do hereby certify that the above and foregoing is a true, full and correct copy of an excerpt from the minutes of a meeting of the City Council of said City held on the date above stated, all as recorded in the official minutes of such meeting. I further certify that the “Open Meeting Law” was complied with for such meeting.
GIVEN UNDER MY HAND THIS 26TH DAY OF AUGUST, 2024.
(SEAL) /s/ Relena Haddox
City Clerk
EXHIBIT “A”
OKEMAH
ECONOMIC DEVELOPMENT PROJECT PLAN
ECONOMIC DEVELOPMENT PROJECT PLAN
[On file with the City Clerk of the City of Okemah, Oklahoma]
EXHIBIT “B”
INCREMENT DISTRICT LEGAL DESCRIPTION
INCREMENT DISTRICT NO. 1, CITY OF OKEMAH
The composite legal description for the Increment District is an area located entirely in Okfuskee County, Oklahoma, more particularly described as follows:
Tract I
A tract of land situated in the S½ of the SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, Oklahoma, more particularly described as follows: Beginning at a point on the North Boundary of said S½ SE¼, said point being 215.00 feet West of the Northeast Corner of said S½ SE¼; thence West 336.35 feet; thence in a Southwesterly direction 127.30 feet; thence West 850.33 feet; thence South 218.00 feet; thence East 140.00 feet; thence South 149.46 feet; thence Northeasterly along the North Right-of-Way of Frontage Road, a distance of 1124.68 feet; thence North 243.80 feet to the Point of Beginning.
AND
Beginning 760.00 feet West and 180.00 feet South of the Northeast Corner of SW¼ of the SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, Oklahoma; thence S01°01’25”E, a distance of 586.00 feet; thence S73°05’31”W, a distance of 245.00 feet; thence N0l°01’25”W, a distance of 653.76 feet; thence N89°08’51”E, a distance of 235.65 feet to the Point of Beginning LESS AND EXCEPT: Commencing at the Northeast Corner of the SW¼ SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, Oklahoma; thence S89°08’51”W, along the North Line of said SW¼ SE¼, a distance of 451.10 feet; thence S01°01’25”E, a distance of 233.00 feet for the Point of Beginning; thence N89°08’51”E, a distance of 87.40 feet; thence S18°07’22”E, a distance of 395.85 feet to the North Right-of-Way of Interstate 40; thence S73°51’24”W, a distance of 411.12 feet; thence N16°08’42”W, a distance of 504.28 feet; thence N89°08’51”E, a distance of 324.65 feet to the Point of Beginning.
AND
Lot Seven (7) of Block Twenty-one (21), McIntosh Addition to the City of Okemah, Okfuskee County, State of Oklahoma, according to the recorded plat thereof,
A tract Beginning 433.00 feet North of the Southeast Corner of the Northeast Quarter of the Southwest Quarter (NE¼ SW¼) of Section Thirteen (13), Township Eleven (11) North, Range Nine (9) East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma; thence North a distance of 75.00 feet; thence West a distance of 179.00 feet to the actual Point of Beginning; thence West a distance of 396.30 feet; thence South a distance of 75.00 feet; thence East a distance of 396.30 feet; thence North a distance of 75.00 feet to the Point of Beginning.
AND
A tract of land Beginning at the Southeast Corner of the Northeast Quarter of the Southwest Quarter (SE/c of NE¼ SW¼) of Section Thirteen (13), Township Eleven (11) North, Range Nine (9) East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma; thence North 433.0 feet; thence West 575.3 feet; thence South 433.0 feet; thence East 575.3 feet to the Point of Beginning,
LESS AND EXCEPT: A tract of land conveyed to Orvil Lee Thompson and Brenda J. Thompson, deed recorded on September 14, 2009 in Book 1068, Page 704 (Instrument No. 412253) in the office of the County Clerk of Okfuskee County, State of Oklahoma, said tract of land being described as: That part of the NE¼ SW¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma, more particularly described as follows: Commencing at the Southeast Corner of the said NE¼ SW¼; thence North along the East line of said NE¼ SW¼, a distance of 280.00 feet; thence West a distance of 15.00 feet to the Point of Beginning; thence continuing West a distance of 40.3 feet; thence North a distance of 140.00 feet; thence East a distance of 40.3 feet; thence South a distance of 140.00 feet to the Point of Beginning,
AND LESS AND EXCEPT: A tract of land conveyed to John M. Raspberry, deed recorded on September 14, 2009 in Book 1068, Page 706 (Instrument No. 412254) of the office of the County Clerk of Okfuskee County, State of Oklahoma, said tract of land being described as: That part of the NE¼ SW¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma, more particularly described as follows: Commencing at the Southeast Corner of the said NE¼ SW¼; thence North along the East line of said NE¼ SW¼ a distance of 280.00 feet; thence West a distance of 55.30 feet to the Point of Beginning; thence continuing West a distance of 166.20 feet; thence North a distance of 140.00 feet; thence East a distance of 166.20 feet; thence South a distance of 140.00 feet to the Point of Beginning,
AND
The East Half of the Southeast Quarter of the Southwest Quarter (E¼ SE¼ SW¼) of Section Thirteen (13), Township Eleven (11) North, Range Nine (9) East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma,
LESS AND EXCEPT: A tract of land conveyed to John W. Black, .Jr. and Mona L. Black, Co-Trustees of the John W. Black, Jr. and Mona L. Black Revocable Trust dated 9/6/91, deed recorded on June 7, 1995 in Book 835, Page 595 (Instrument No. 335549) in the office of the County Clerk of Okfuskee County; State of Oklahoma, said tract of land being described as: A tract of land Beginning at a point 420 feet North of the Southeast Corner of the NE¼ SW¼ of said Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma; thence West a distance of 179 feet; thence North a distance of 88 feet; thence East a distance of 179 feet; thence South a distance of 88 feet to the Point of Beginning,
AND
A tract of land Beginning at the Northwest Corner of the Southwest Quarter of the Southeast Quarter (NW/c SW¼ SE¼) of Section Thirteen (13), Township Eleven (11) North, Range Nine (9) East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma; thence East 367.0 feet: thence South 180.0 feet; thence East 190.0 feet; thence South 1140.0 feet; thence West 557.0 feet; thence North 1320.0 feet to the Point of Beginning,
LESS AND EXCEPT: Rights acquired on lands taken in Condemnation Proceeding No. 13701, District Court of Okfuskee County, by State of Oklahoma ex rel., Department of Highways for Interstate 40 and being more particularly described as follows: A strip, piece or parcel of land lying in the E½ SE¼ SW¼ and part of the W½ SW¼ SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma, said parcel of land being described by metes and bounds as follows: Beginning at a point on the West line of said E½ SE¼ SW¼, 24.75 feet North of the SW corner of said E½ SE¼ SW¼; thence North along said West line a distance of 113.39 feet; thence Northeasterly on a curve to the left, having a radius of 1352.4 feet. a distance of 154.16 feet; thence Northeasterly on a curve to the right, having a radius of 8068.06 feet, a distance or 1137.39 feet to a point 557.01 feet East of the West line and 567.91 feet North of the South line of said W½ SW¼ SE¼; thence S01°00’43”E, a distance of 441.28 feet; thence Southwesterly on a curve to the left, having a radius of 7643.06 feet, a distance of 343.04 feet to a point 24.75 feet North of the South line of said W½ SW¼ SE¼; thence West on a line parallel to and 24.75 feet North of the South line of said Section 13, a distance of 890.01 feet to the Point of Beginning,
AND LESS AND EXCEPT: A tract of land conveyed to Edwin D. Landers and Barbara D. Landers, deed recorded on October 12, 1984 in Book 696, Page 920 (Instrument No. 281722) in the office of the County Clerk of Okfuskee County, State of Oklahoma, said tract of land being described as: A tract of land located entirely within the SW¼ SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma, described as follows: Beginning at a point 187.5 feet East and 15 feet South of the SW corner of the NW¼ SE¼ of said Section 13, or a distance of 40 feet South of the SW corner of Lot 6, Block 21 McIntosh Addition to the Town of Okemah, Oklahoma and extending South a distance of 150 feet; thence extending east a distance of 155 feet; thence extending North a distance of 150 feet; thence extending West a distance of 155 feet to the Point of Beginning,
AND LESS AND EXCEPT: tract of land conveyed to Edwin D. Landers and Barbara D. Landers, deed recorded on August 22, 1994 in Book-826, Page 852 (Instrument No. 332234) in the office of the County Clerk of Okfuskee County, State of Oklahoma, said tract of land being described as: A tract of land in the W½ SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma, described as follows: Beginning at the Southwest Corner of Lot 6, Block 21 McIntosh Addition to the Town of Okemah, Oklahoma and running thence South 40 feet; thence East 155 feet; thence North 40 feel; thence West 155 feet to the Point of Beginning,
AND LESS AND EXCEPT: A tract of land conveyed to Colonial Park N.H. Inc., deeds recorded on October 25, 2000 in Book 904, Page 338 (Instrument No. 360857), and October 27, 2000 in Book 904, Page 487 (Instrument No. 360930) in the office of the County Clerk of Okfuskee County, State of Oklahoma, said tract of land being described as: A tract of land lying in the SW¼ SE¼ of Section I3, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma and further described as Beginning 760.00 feet West and 180.00 feet South of the Northeast Corner of said SW¼ SE¼; thence S01°01’25”E and parallel to the East line of said SW¼ SE¼, a distance of 586.00 feet; thence S73°05’3l”W, a distance of 245.00 feet; thence N01°01’25”W, and parallel to the East line of said SW¼ SE¼, a distance of 653.76 feet; thence N89°08’51”E, and parallel to the North line of said SW¼ SE¼ a distance of 235.65 feet to the Point of Beginning,
AND LESS AND EXCEPT: A tract of land conveyed to Billy L. Elliott and Cammy L. Elliott, deed recorded on January 28, 2002 in Book 923, Page 270 (Instrument No. 367586) in the office of the County Clerk of Okfuskee County, State of Oklahoma, said tract of land described as: All that part of the following tract lying South of Highway I-40, Okfuskee County, State of Oklahoma: Beginning at the Northwest Corner of the SW¼ SE¼ of Section 13, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, State of Oklahoma; thence East 367 feet; thence South 180 feet; thence East 190 feet; thence South 1140 feet; thence West 557 feet; thence North 1320 feet to the Point of Beginning.
Tract II
All that part of the SE¼ of Section 17, and All that part of the S½ of Section 16 and All that part of the SW¼ of Section 15, lying South of Interstate 40, all in Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma.
Tract III
The NW¼ NE¼ of Section 19, Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma.
Tract IV
The N½ NW¼ of Section 19, Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma LESS AND EXCEPT: Beginning at the Northeast Corner of the NE¼ NW¼; thence West 614.76 feet for the Point of Beginning; thence South 417.42 feet; thence West 208.71 feet; thence North 417.42 feet; thence East 208.71 feet to the Point of Beginning.
AND
N½ NE¼ of Section 24, Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, Oklahoma LESS AND EXCEPT: The West 205.00 feet of the East 245.00 feet of the South 430.00 feet thereof.
AND
All that part of the SW¼ and the SW¼ of the SE¼ of Section 18, Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma, lying North of Interstate 40 and South of Glen D. Johnson Road LESS AND EXCEPT: Beginning 920.02 feet North of the Southeast Corner of the SW¼ SE¼; thence North 344.04 feet to a point 55.33 feet South of the Northeast Corner of said SW¼ SE¼; thence N89°25’50”W, a distance of 245.012 feet; thence South 366.748 feet to a point on the North Right-of-Way of Interstate 40; thence Easterly, along said Right-of-Way on a curve to the left having a radius of 17018.74 feet, an arc distance of 245.84 feet to the Point of Beginning.
AND
All that part of the SW¼ of Section 18, Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma, lying North of Glen D. Johnson Road and South of Date Street LESS AND EXCEPT The East 60.00 feet thereof AND LESS AND EXCEPT: Commencing at the Southwest Corner of said Section 18; thence North 1216.30 feet; thence N89°55’50”E, a distance of 1072.91 feet for the Point of Beginning; thence N89°55’50”E, along the North Right-of-Way Line of Glen Johnson Road, a distance of 417.42 feet; thence N00°04’10”W, a distance of 417.42 feet; thence S89°55’50”W, a distance of 417.42 feet; thence S00°04’10”E, a distance of 417.42 feet to the Point of Beginning AND LESS AND EXCEPT: All that part of the East 208.71 feet of the West 268.71 feet of the North 410.48 feet of the said SW¼ lying North of Glen D. Johnson Road and South of Date Street.
AND
A tract of land in the SW¼ of Section 18, Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma, more particularly described as follows: Commencing at the Northwest Corner of said SW¼; thence N89°57’50”E, a distance of 115.00 feet for the Point of Beginning, said point being on the East Right-of-Way Line of State Highway 27; thence South 50.00 feet; thence N89°57’50”E, a distance of 210.86 feet; thence South 372.46 feet; thence S86°54’49”E, a distance of 1106.24 feet; thence N00°06’04”E, a distance of 1040.08 feet; thence S89°57’52”W, a distance of 636.96 feet; thence South 557.37 feet; thence S89°57’50”W, a distance of 676.70 feet to the Point of Beginning.
EXHIBIT “C”
PROJECT AREA LEGAL DESCRIPTION
INCREMENT DISTRICT NO. 1, CITY OF OKEMAH PROJECT AREA
An area located in Okfuskee County, Oklahoma, more particularly described as follows:
All of Sections Nineteen (19), Twenty (20), Twenty-One (21), and Twenty-Two (22), Township 11 North, Range 10 East of the Indian Base and Meridian, Okfuskee County, Oklahoma.
All of Sections Thirteen (13) and Twenty-Four (24), Township 11 North, Range 9 East of the Indian Base and Meridian, Okfuskee County, Oklahoma.
EXHIBIT “D”
RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF OKEMAH
OF THE CITY OF OKEMAH
Resolution dated July 22, 2024
[Copy on file with the City Clerk of the City of Okemah, Oklahoma]
EXHIBIT “E”
RESOLUTION OF THE TAX INCREMENT DISTRICT REVIEW COMMITTEE
Resolution dated July 19, 2024
[Copy on file with the City Clerk of the City of Okemah, Oklahoma]