TIF is springing up all over Oklahoma. Are you prepared?

Bethany, Oklahoma is considering a number of new TIF districts as is Oklahoma City.  With the arise of TIF districts comes added scrutiny.  https://journalrecord.com/2019/04/15/no-mention-of-tifs-in-school-funding-rebalance-proposal/

Seven Professional Tips when thinking about creating a TIF district

Due Diligence and duty of care apply to TIF as an economic development strategy.  Is there a legal obligation to do proper analysis?  http://arizonalawreview.org/ellis-hayden-rogers/

How to Improve Tax Increment Financing

Improving Tax Increment Financing for Economic Development, Lincoln Land Institute, by David Merriman Link

This report provides an overview of how state and local governments can improve the practice of using TIF to stimulate economic development.

Sales Tax TIF - Flawed Deal Lessons

What can we learn from an extreme example of a TIF failure?

Getting STIF[ed]: Louisville’s Yum! Center, Sales-Tax Increment Financing, and Megaproject Underperformance by Robert Sroka, University of Michigan, 1402 Washington Heights, Ann Arbor, MI 48109, USA.Email : rsroka@umich.edu  link

Abstract

This article evaluates the revenue performance failings of the Yum! Center,

a sports arena in Louisville, with the primary objective of explaining how a

flawed deal arose in the first place. While the literature addressing public

subsidization of sports facilities primarily contemplates economic impact

underperformance, Louisville provides an extreme instance of failed

financial performance leading to a bailout. The revenue challenges, arising

from sales-tax increment financing and the lease agreement, link the arena

to a wider literature on megaproject underperformance, characterized by

three primary threads: rent-seeking, governance structures, and project

cultures. This article evaluates the Yum! Center through representative

lenses from each of these threads before offering key lessons for future

projects.

Trouble with TIF

The Trouble with TIF  article explains the pitfalls.

How effective is TIF anyway?

"The answer, like life itself, is complicated. But David Merriman, a professor at the University of Illinois at Chicago, takes a stab at it in a new report for the Lincoln Institute of Land Policy. After reviewing available research on the implementation and impacts of TIF, Merriman concludes that the mechanism, while helpful in some ways, leaves a lot to be desired.

“In the end, it can be a valuable mechanism,” he said. “It’s not something I’d like to get rid of—but it deserves a lot of scrutiny because public sector dollars are being re-routed into a different task, away from general purpose funds.”

CS&L Arena District Studies

The Evolution of the UNP Arena/entertainment District. Note comparisons between the 2015 County Study and the 19 slide 2018 "study" for the City.

2018 (May) CS&L Arena Feasibility Study for City and UNP Link

2017 - Center for Economic Development Law presentation on proposed UNP Arena TIF at 10/10 study session Link to packet

2017 - CarlsonRTKL Master Plan for UNP (North) Arena-Entertainment District Presentation Link

2015 - Cleveland County Arena Feasibility study Link
- This mentions using the .25% county jail tax to fund the arena
- Also suggests extending the UNP Tax Increment Finance District to fund the Arena
- The initial plan did not have a parking garage.

UNP Studies, Reviews, Study Session Materials!

Independent Review of Studies by HVS Consulting Link

Presentation of Benchmark Projections: concerns about assumptions in Dauffenbach's report

1.  Rogers' presentation to the University North Park TIF #2 Oversight Committee Slides


Community Study Session materials.  Community members held an information and discussion session on 6/5/18

1. My slides provide an overview of the questions that the UNP Arena-entertainment district studies have addressed.     (Link to slides)

2. Greg Jungman, Norman Resident and former Ward 4 city council member, discusses the risks associated with the UNP project.  (link to slides)

3. Prof. Cindy Simon Rosenthal's comments about TIF policy and procedures. (link to slides)

Presentations and Reports associated with the proposed UNP North Arena Entertainment District.

1. RTKL Mast plan outlines how the North and the rest of the South UNP area could be developed. There are two parts, a 29 page power point slide show (link to slides) and a spreadsheet which served the basis of Dauffenbach's projections. (Done for City and OU Foundation )

2. Convention Sports & Leisure conducted a feasibility study (link to slides) to see if an arena would be financially sustainable, assuming a $90 million subsidy. (paid for by OU Foundation)

3. Dr. Robert Dauffenbach used a spreadsheet to project sales and advalorem taxes that might be generated IN the University North Park area. (Link to report) (prepared at request of OU Foundation)

4. I reviewed Dauffenbach's projections, and provided projections using different input assumptions, including the possibility of cannibalization.  My benchmark projections show how small changes in assumptions and focus can lead to big difference in projected budget impact. (Link to my report) (prepared by request of City Council member Castleberry as a service to the community)

I have provided a spreadsheet file which makes it easy to make projections with different input assumptions. There is a separate spreadsheet for each tax component.  Change the input values in RED and see the projections in BLUE.  (Link to Excel file)

5. Emily Pomeroy at the Center for Economic Development Law serves as a TIF lawyer for the City of Norman. She has assisted in putting together a funding plan such that the earning that go to the UNP TIF fund should be adequate to cover public financing costs. She has offered her professional opinion regarding the potential economic benefits of the proposed project.  (Link to letter)


For historical perspective:

Dr. Lex Holmes' projections for the original University North Park area development (now referred to as UNP south). (Link to Holmes' report)

UNP TIF Links to Documents

University North Park TIF #2, Proposed Arena/Entertainment TIF, Norman Forward projects

UPDATED to include possible combining of Norman Forward quality of life projects in the negotiations to end the TIF.

TIF Oversight Committee - Link

TIF #2 Oversight Committee Minutes from 2010 forward Link

           1/16/18 minutes: City Attorney states senior center could qualify as cultural center link

2019 (May 14) City negotiates how to end the UNP TIF and considers possible sites for Norman Forward projects in the UNP.   Link to City Presentation  and comments Link to comments

2018 (May 28) Statutory Review Committee special meeting. agenda

2018 (April 27) Review of recommendations of UNP TIF Statutory Review Committee approving senior center as cultural facility in UNP TIF area  Link to file

2018 (April 13) Statutory Review Committee special meeting. agenda


2017 - Center for Economic Development Law presentation on proposed UNP Arena TIF at 10/10 study session Link to packet

2017 - CarlsonRTKL Master Plan for UNP (North) Arena-Entertainment District Presentation Link

2017 (Oct) - City Council study session minutes, RTKL Master Plan presentation Link

2017 (Sept) - TIF #2 Oversight Committee gets RTKL Master Plan presentation Link

2017 - Accounting error - money "found" in TIF account that belongs in general fund Link

2017 - Includes master operating agreement (2006), TIF Agreement # 5, IMMY Incentive, Link

2017 - Garver contract for Tecumseh Link

2016-2017 TIF #2 Committee annual report Link

2015 - Cleveland County Arena Feasibility study Link

2013 - Legacy Park Agreement Link

2010 - Article on TIF developments/load for land purchase Link

2010 - City discusses TIF agreement Link

2009 - Press Release about first financing for UNP TIF Link

2009 - City Council Special Meeting to discuss Cannibalization Study Link

2008 - City Council study session with quarterly update Link

2008 - TIF gets released from $15 million conference center commitment in trade for spending $8.25 million on I35/Rock Creek Overpass, freeing up $8.75 million, council leaves in fund Link

2008 - Retail Sales Cannibalization Study Link to Study

2008? - Original UNP development plan update link to presentation

2006 NewsOK Article - Dan Batchelor makes TIF promises Link

2005 - Early deliberation about the UNP TIF Link