The Tulsa Forum by TulsaNow

Sam's Club might be coming to Owasso
The store would be at 96th Street North and 129th East Avenue.

   
    By RHETT MORGAN World Staff Writer
       
    Published:  4/5/2012  2:30 AM
      
   Last Modified:  4/5/2012  3:20 AM
      
   
         
OWASSO  -  A Sam's Club retail store forecast to generate at least $1.8 million in annual sales tax revenue could be coming to the city.


At a special meeting Wednesday, the Owasso Economic Development Authority approved a $4.066 million infrastructure improvements agreement with the company.


Wal-Mart Stores Inc., which operates the membership-only Sam's, is expected to invest about $50 million in a 136,000-square-foot store at the northeast corner of 96th Street North and 129th East Avenue, City Manager Rodney Ray said.


The pact needs the approval of the City Council and Owasso Public Works Authority, which are scheduled to hear the matter April 17.


"What makes this so important to us is that this is one of those very unique retail outlets that attracts people from all over the region," Ray said. "It furthers Owasso's position as a destination shopping location for people all over northeastern Oklahoma and all over the northern part of Tulsa and Tulsa County."


Sam's Real Estate intends to purchase about 30 acres, 18 of which would be used to construct Sam's Club. Five additional lots would be prepared and made available for retail and business uses.


Sam's is expected to generate between $1.8 million $2.2 million in annual sales tax revenue.


To accommodate the development, Sam's initially would pay all costs for the design and construction of water, sewer and street upgrades, estimated at $4.566 million.


A construction agreement would allow Sam's to be reimbursed through the Owasso Public Works Authority an estimated $4,066,300 of the actual costs of the public improvements from the sales tax generated on that site.


The reimbursement would come from revenue generated from this site to include Sam's Club and any future businesses located on other lots. The agreement provides that Sam's would be reimbursed up to one-sixth of the agreed amount annually.


Based on estimates of sales tax generated by the project, the city would receive additional sales tax of $10.8 million to $13.2 million over a six-year period.


"We would be the smallest city in the world with a Sam's," said Dee Sokolosky, chair of the Owasso Economic Development Authority. "You look at the jobs. You can look at the savings of our people driving to Tulsa and back (for a Sam's there), the sales tax revenue and the additional development that will come with it.


"It will really provide us the funds we need to provide essential city services that have been so estranged in the past three or four years... It's a colossal win, and we get that infrastructure put in, paid for monies generated from the project that will allow another 30 acres to develop."


After reimbursing Sam's for the public improvements, the city would have an estimated $6.7 million to $9.1 million of increased sales tax revenue during those six years.


Since that money is considered debt, the City Council will need four affirmative votes to OK the pact at its April 17 meeting, Assistant City Manager Sherry Bishop said.


Street recommendations call for widening 96th Street to 138th East Avenue; 129th East Avenue to the ODOT frontage road; and the ODOT frontage road from 129th East Avenue to 99th Street North.


Officials have urged traffic signals for the entrances on 96th Street North, in front of the Windsor Lake subdivision, and the frontage road.


The City of Owasso's Technical Advisory Committee has reviewed the facility's site plan, which will go before the Planning Commission on Monday.


Sam's Club reportedly accounts for about 12 percent of Wal-Mart's annual sales. The Bentonville, Ark.-based retail giant operates 600 Sam's Clubs in 48 states and Puerto Rico.




Construction agreement between Owasso Public Works Authority and Sam’s, dba Sam’s Real Estate Business Trust

Water improvements: $1,247,300, includes design and construction

Sewer improvements: $203,000, includes design and construction

Transportation improvements: $3,053,000, includes design and
construction of all roads in concrete

Due diligence and other costs: $63,000, includes survey and
geotechnical services

Total estimated cost: $4,566,300

Sam’s contribution: $500,000

Total estimated reimbursement: $4,066,300

Water service: Construction of a new 16-inch water main about
1.2 miles from 96th Street North and Garnett Road to the development
along the north side of the existing Walmart store

Sewer service: The closest sanitary sewer line capable of serving
the site is on the west side of the CVS Pharmacy. This line
would need to be extended east to the southeast corner of the
CVS building, then north to the site

Transportation: Widen 96th Street North to 138th East Avenue;
129th East Avenue to the ODOT frontage road; and the ODOT
frontage road from 129th East Avenue to 99th Street North.


Rhett Morgan 918-581-8395

rhett.morgan@tulsaworld.com

 
       
     
   
   
      By RHETT MORGAN World Staff Writer
   

Read more from this Tulsa World article at http://www.tulsaworld.com/business/article.aspx?subjectid=49&articleid=20120405_53_E1_OWASSO890550

The city is looking at the sale tax revenues and little else.  Sams and Walmart offer low-paying jobs without benefits, relying on a permanent underclass as a source for employees.  Worse yet, those employees make so little that they qualify for government assistance, meaning we taxpayers subsidize those low, low discount wages.  It's fundamentally wrong.

Costco, one of Walmarts major competitors, treats their employees much better yet remains competitive.

I don't shop at Walmart, so having a Sams in town just gives me another big box store to avoid.

To be fair, they are not forced to work at Walmart/Sam's.

As a new Owasso resident, I am excited to have SAM's as a shopping option.

Sam's should be a good option for Owasso and will provide a good amount of new sales tax revenue.  Should break ground soon, I would think for a Summer 2013 opening.