Planners OK downtown TIF district

By Pat Hammert A tax increment financing district in downtown El Reno passed its second hurdle last week when the Municipal Planning Commission gave it the nod. Earlier in the month, the Local Development Act Review Committee voted to create a TIF district in combination with a $300,000 sidewalk enhancement grant the city will be receiving from the state Department of Transportation. The TIF measure will now go to the El Reno City Council for approval. If approved, a TIF district will be created in a portion of the Central Business District bounded by Rogers Street on the north, the alleyway of Rock Island Avenue on the east, London Street on the south and Choctaw Avenue on the west. Just over 30 property owners are affected. MPC chairman Jerry Robertson said the old waterlines underneath the sidewalks should be replaced at the same time. “Most of those lines are 100 years old,” he said. The sidewalk project will involve removing old sidewalks and curbing and replacing them with fresh concrete lining a ribbon of brick pavers. Vintage-type light poles will be added. The grant depends on a local match, dollar for dollar, with total project costs for Phase I estimated at about $600,000. Adding another $300,000 through a TIF would complete at least Phase I of a three-phase project, officials say. The TIF method allows property improvements to be made, with the increase in ad valorem taxes paying for the improvements. The additional property taxes generated by the development that would have gone to other taxing jurisdictions are “captured” and used to finance the development costs, whether it is improving or expanding industrial parks, creating jobs, building houses in blighted neighborhoods or business district revitalization. “At first we weren’t even looking at this (sidewalk) project,” said Community Development Director Robert Coleman. “We didn’t think it would pay for itself because of several non-profits in the downtown area not having to pay ad valorem.” But when word of the grant approval was received, the project appeared more attractive for a TIF, he said. The resolution approved by LDARC includes a payout time limit of no more than 10 years for the project. The 13-member LDARC has been meeting weekly at city hall with an Oklahoma City attorney who specializes in TIFs. When its review is completed, the committee expects to establish more districts in El Reno.