Tulsa Standard

Adams Creek Town Center, a new 200,000-square-foot retail concept by the Parkes Development Group, is coming to Broken Arrow on 23 acres near Kenosha and 23rd Streets.  

The new development will be immediately east of the Lowe's store at Hillside Drive and west of County Line Road. 

Parkes Development Group is a 44-year-old construction company that has built centers in all 50 states. Their expected capital investment for the project is $37.1 million and promises retail brands that will be new to the city.  

Kohl's, Burlington Coat Factory, Carter's, Five Below, Shoe Station, Painted Tree, and Burkes Home Centric have already shown an interest in the new project. 

According to Robert Martin, Director of Development at the Parkes Companies, Broken Arrow was a good fit for the types of projects they like to build. 

"We're thankful, proud, and excited to be here," Martin said. "We're focusing on communities that can give us support. We couldn't do it without your help, and we couldn't do it without you guys seeing what this will become." 

Broken Arrow Economic Development Manager Jennifer Rush said it had been a struggle to develop that property due to high construction costs and what infrastructure was needed for the area.  

"This is a true example of a public/private partnership process," Rush said. "Not only will this development impact Broken Arrow, but it will also impact development on the eastern part of the city," Rush said.  

Nate Ellis, an attorney at the Public Finance Law Group, spoke at a public hearing for the development before the Broken Arrow City Council on May 16. According to Ellis, provisions will be implemented to ensure the development adds new brands currently unavailable within the City of Broken Arrow.  

"That way, tax dollars aren't just moving around, but it will be new tax dollars generated by the city," Ellis said. "If they would just close and move to the new area, there wouldn't be any benefit to the city."  

On June 19, the City Council approved Resolution 1537 authorizing the use of public funds to assist in financing the development.  And on June 5, they approved the creation of Tax Increment Finance (TIF) District 4. A TIF District is a valuable way for a city to promote economic growth by designating a particular area to capture new tax revenue generated. 

The city will incentivize the development by providing a maximum of $16 million, to be paid with two percent of the new sales tax collected from the gross sales from the businesses at the new shopping center. 

"They've got a full 23 years to build it up and generate that revenue," Ellis said. "If they hit that $16 million mark early, and projections show they likely will hit it 5 to 7 years earlier than that, the TIF cuts off at that time, and the tax just flows back to the city as it normally would." 

"There hasn't been any sales tax gained there for years, so even with giving up the two percent, we're still going to be gaining sales tax," Councilor Johnnie Parks said at the June 5 meeting.  

If, after 23 years, the Parkes Development Group has yet to earn the $16 million, then according to Ellis, they will not receive the total value of the incentive. 

The developer predicts that there will be $1.4 billion in gross taxable sales over 23 years. This is expected to generate an estimated $876,800 in city sales tax annually. Once the TIF expires, the city sales tax revenue is expected to increase to $2.86 million per year.  

The TIF will only capture the new sales tax generated from the shopping center. Ad valorem taxes, which are based on property taxes and are the traditional source of revenue for local schools, will not be negatively impacted by this TIF District. 

"Based on the $37.1 million, that would generate an additional $10.2 million in ad valorem taxes," Ellis said. "Again, not a part of the TIF district, but it would benefit the taxing jurisdictions." 

Broken Arrow Public Schools, Tulsa Technology Center, Tulsa Community College, Tulsa City-County Library, and Tulsa City-County Health Department are the jurisdictions that benefit from ad valorem taxes.  

"Those ad valorem taxes would start immediately, and so they will gain from that. That's the good thing about a TIF tax. It's always served us well," Parks said. 

The TIF Review Committee approved TIF District No. 4 on April 21, and the Planning Commission recommended approval on May 11. The City Council discussed the new TIF district during public hearings on June 5 and June 19.

Original source can be found here.