The Tulsa City Council on Thursday approved the final piece of a tax abatement sought by the Tulsa World for a planned $15.5 million redevelopment and construction project.
The tax abatement, along with historical tax credits, are being used to rehabilitate one of Tulsa’s oldest downtown buildings, owned by the Tulsa World Media Co.
“This has a been a long road to get us to this point,” said Bill Masterson Jr., president and publisher of Tulsa World Media Co. “I’m excited now about the rebirth of the Palace Building and the positive impact it will have on our downtown.”
The project idea began after BH Media took ownership of the Tulsa World in early 2013 but took shape as a major investment during the last year and a half, developers said.
The tax abatement, approved by all affected tax entities, will also extend to construction of a new building on the Tulsa World’s property for paper storage above an existing parking lot.
Councilor Blake Ewing, who represents the downtown council district, said he hopes other organizations will follow the Tulsa World Media Co.’s example.
“I think it sets an example for others of reinvesting in the properties downtown,” Ewing said. “We have had decades of people thinking it’s OK to tear down buildings and add parking lots.”
The project’s developer, Wiggin Properties, and architecture firm, Kinslow Keith and Todd Architects, said they are working to preserve the historic significance of the building, while updating it for modern use.
Once completed, the Palace Building project will be a 58-unit apartment building with one-fifth of those planned as low-income housing.
It’s also planned as a mixed-use development with room for commercial space on the ground floor, according to developers.
Paul Selid, vice president and director of investments for Wiggin Properties, said tax credits were needed to make the project feasible.
“It’s a balancing act to preserve as much history and character of the building that we can,” Selid said. “But still, we need to make the building function as well. … That’s why these tools (tax credits) exist, to keep our history from being destroyed — from being razed.”
Instead of demolition, the Palace Building will be outfitted for mixed use with apartments, while retaining as many historical aspects as can be saved, said Todd Wade, architect and project manager for KKT Architects.
“The first floor would be for a tenant to move in,” Wade said. “It could be for retail or restaurant. The second floor has a main office for the building and a community room. The roof of the building is a terrace for use by the tenants.”
The whole of the inside is planned to get new plumbing, electrical wiring, heating and air conditioning, he said.
The plans for a new building above an existing parking lot will be a storage building for paper, with a large area inside for storage and movement.
It will connect to Tulsa World’s existing building and will be built on pedestals so that the onsite guest parking lot will remain, according to plans.
The properties — the Palace Building at 324 S. Main St. and a parking lot, both adjacent to the Tulsa World’s downtown structures — would continue to generate tax dollars at their current rate through the six-year abatement per the agreement.
The Palace Building, also known as the Excalibur Building, first opened in 1913 but has been vacant since 2012, when engineers with the Tulsa World’s prior ownership found structural damage from a 2011 earthquake.
In total, the tax abatement would account for about $1.16 million in tax credits for the Tulsa World Media Co. toward the estimated $15.5 million investment to renovate the historic building and build the additional storage structure.
After six years, the project would start paying taxes at the new rate, estimated to be more than $211,000 per year — an increase from about $17,700 paid in taxes per year as the properties stand today.
Thursday’s tax abatement vote passed unanimously with Councilor David Patrick absent and Councilor Karen Gilbert, who is the wife of Tulsa World Chief Photographer Tom Gilbert, recusing.
Jarrel Wade 918-581-8367
jarrel.wade@tulsaworld.com