Well, the land appears to be completely undeveloped, so I would assume our sales tax baseline is zero. (There's an existing McDonald's, but I don't think it's part of the TIF district.) Supporters assume that the outlet mall will attract other new businesses to the vicinity, and that would "increase" tax dollars.
It's funny b/c they assume that there's some pent up demand for shopping goods that we're not currently able to meet. Only with a heavily subsidized development will we be able to meet our needs! ("Did you hear you can buy an orangutan in that store over by the new outlet mall? I'm going to buy one today!") In reality, most of us are buying the things we need--shampoo, shirts, pogo sticks--at existing stores in town... and we can buy any specialty items on the internet.
So, yeah, I still don't get it. (I do sort of understand TIFs used to revitalize existing, strategic locations in the central core. I also believe they should not exceed 15 years.)
Here's a nice staff report related to the outlet mall TIF district:
http://www.tmapc.org/Documents/Agendas/11-18-15/Admiral%20Place%20Com.%20Dev.%20Plan.pdfThe length of the payback would indicate the city will be getting a reasonable share of funds. It was estimated that Simon was going to net the city $4m a year in sales tax (either our esteemed Mr. Bird’s numbers or Simon’s, not sure). Let’s assume just the outlet mall on this location will generate $4m a year. The TIF is for $20M with a 25 year payback, which means the city will end up receiving 80% of the normal sales tax collected.
The assessor’s web site shows the combined parcels of land (@130 acres total) owned by I-244 Admiral Land LLC is currently taxed at about $32K per year. I would assume since the TIF is alleged to be via sales tax collection, that the property tax assessment on this parcel will be a good deal higher after there’s $80+ million in improvements. The Crossroads Warehouse Center which is the fence line neighbor of this place is valued at $23M and paid $225K in property tax last year. (Whoops, just found another 15 acre parcel belonging to same group that paid $3300 or so in PT last year.)
Now, consider that this project is much more than an outlet mall. It will also have pad space for restaurants and space for hotels. All told, this development group holds around 145 acres and the outlet mall should take less than 40. As far as it being auto-centric, it’s right near the intersection of an interstate and interstate spur, there’s really no hope of pedestrian-friendly development right off a major interstate, especially when there’s a fair amount of warehouse space, trucking companies, tractor/trailer dealers, etc. in the immediate area this is not going to be any place we’d consider pedestrian-friendly in yours or my lifetime.
Somehow TPS and the COT own land that is hemmed in on the north and east by the I-244 Admiral property which currently nets no property tax.
East of the property on 145th, AEP/PSO is sitting on a 70 acre parcel that is netting $81 a year in property tax. To the south of that, the tract pays $52 for 20 acres. To the south of that is another fallow parcel of 20 acres paying $49 in taxes. To the east of that is another 42 acres paying $56 a year in property tax.
There are a couple of churches in the area that pay no property tax. If property values get hot enough, those might just be temped to relocate. Over to Catoosa where they wouldn’t pay property tax either would be great! Perhaps people living in some of the older housing additions in the vicinity might think about selling out.
I’d say the upshot is there. Granted, I will never believe the city can sales tax it’s way to prosperity. Our needs and wants have always seemed to outstrip our means, at least in the last 20-30 years. I also don’t care for sprawl nor corporate welfare, but the Tulsa Hills TIF appears to have been a really sound investment considering all the residential and commercial development it has helped catalyze. I hate to see the great 5 and 10 acre mini-ranches in west Tulsa sub-divided, but that is what happens when people wish to live in suburbia and suburban property is becoming more scarce.
One advantage I do see this has over the previously-proposed Simon site on Turkey Mountain (aside from it wrecking great recreational space) is its access from the interstates is good and it’s in the eastern gateway to Tulsa which makes it attractive for people from western Arkansas and SW Mo.
I’d personally rather take a head-long dive into a tree shredder than go to an outlet mall. The couple of times I’ve been in the last five years, I was unimpressed with the offerings and found nothing special about the pricing. MC and I aren’t very materialistic and we try to support local retailers and eateries any time it’s possible to do so. I generally hate big box retail shopping so bad, if I were to buy a Christmas or birthday gift from say Target or Best Buy, I’ll go on line just to avoid having to: park, dodge moving cars in the parking lot, screaming kids, and people with bad hygiene habits.
