Last Updated on March 21, 2018, 4:32 PM | Published: March 21, 2018
Two very different projects moved one step closer Tuesday toward receiving a total of $2.6 million from city coffers for incentives if approved later by the City Council.
Among other agenda items, the Oklahoma City Economic Development Trust approved one project from a federal contractor wanting to move into OKC.
The other was for a local group of developers who aim to continue the revitalization of the 23rd Street corridor on the near east side.
Local, east side
A group of local developers known as the Pivot Project includes Jonathan Dodson, Ben Sellers and David Wanzer.
They have joined with a silent investor to develop the second phase of their Northeast Corridor work at NE 23rd Street and Rhode Island under the OneYetMany LLC.
It will be across the street east from a clinic project that is being built at present.
Free Press reported the groundbreaking for the clinic phase.
The trust received the final report on negotiations with OneYetMany LLC for performance guarantees on the new retail project east of the clinic across Rhode Island Avenue and on the south side of NE 23rd Street.
Incentives the City is providing for the retail project are $1.38 million.
The total combined cost of the new retail phase of the project and the clinic already being built is $4.4 million.
Both developments are part of the Northeast Renaissance Project Plan to be funded by Tax Increment Finance (TIF) District No. 9 that includes the east side near the Oklahoma Capitol.
The district has not had enough time or commerce to build up a significant fund yet. So, the recommendation of city staff is to make an internal loan of $1.4 million from the 2007 GO Bond fund to the Economic Development Trust to provide “up front assistance” for the development to start.
The performance agreement has already been reached and includes about $575,000 in a forgivable loan and $800,000 as an incentive payment.
The loan requires a second mortgage on the property.
The performance agreement places a 15-year restriction on selling the property and requires there be no material changes within the ownership group.
“This is the most exciting project to date for us. It gives us a chance to be a part of the east side community,” Dodson told Free Press by phone. “The focus will be on local community members. As we build value in the property we will be building value for the tenets as well.”
Local tenants will be given 15% equity in the project from the day they sign the lease. As long as they keep paying their lease over ten years, they will retain the 15% whether they stay with the project or not.
Coming in
The trustees gave a green light for CACI, Inc. and OCEDT General Manager Catherine O’Connor to continue negotiations on exact performance requirements in exchange for what could go as high as $1.25 million incentive package.
The number was recommended by The Greater Oklahoma City Chamber Economic Development Division.
The large offensive cyber systems and intelligence contractor for the federal government is considering locating its new operations center in west Oklahoma City.
The building being considered is the former Western Electric/ATT plant at N. Council Road and West Reno Avenue.
CACI President and CEO Kenneth Asbury addressed the trustees during the meeting and said the company would add about 550 new jobs that pay an average of $56,999 in the first year.
He said the company has 18,600 employees worldwide.
Asbury cited the low cost of living, available workforce and an adequate existing building as strong reasons for wanting their operations center to be in Oklahoma City.
Research done by Chamber of Commerce staff estimates that the company could have a $252.4 million impact on the metro economy over the first five years.
O’Connor told Free Press after the meeting that the next step is for them to continue negotiations and come up with specific job and investment targets CACI will have to meet in order to receive the incentive.
She said the specific agreement will then come back to OCEDT. If trustees approve, the agreement will then go to the City Council for final approval.
Founder, publisher, and editor of Oklahoma City Free Press. Brett continues to contribute reports and photography to this site as he runs the business.
