Muskogee council approves TIF for industrial parks, county to consider another

Cathy Spaulding, Muskogee Phoenix, Okla.
3 min read
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Apr. 26—City and county officials say improvements to roads and other infrastructure could help spur industrial development south of Muskogee.

"There are a number of prospects out there," Muskogee County District 1 County Commissioner Ken Doke said.

Muskogee City Council members agreed last Monday to create a Tax Increment Financing (TIF) district south of West 53rd Street South.

Muskogee County Commissioners are to vote on a TIF district along South 24th Street at their upcoming meeting, 9 a.m. Monday.

A TIF allows a city or county to capture part of new ad valorem and construction taxes generated as a result of a project. Revenues are used to fund infrastructure improvements, such as roads, said Nate Ellis, attorney with Public Finance Law Group pf Oklahoma City.

Ellis said a TIF is an economic development tool used to incentivize capital investment in undeveloped areas.

"It allows a city to identify a specific geographic area to capture the incremental new tax revenue that's generated as a result of development and use that revenue to help offset infrastructure costs and other necessary costs related to making those projects move forward," Ellis said. "You need the infrastructure to have the development and you need the development to have the infrastructure."

The city approved a TIF district for Southside Industrial Park, south of West 53rd Street South on both sides of U.S. 64. Ellis said the Southside projects include Project Heart on the west side of U.S 64, where proposals call for a battery grade lithium refinery. The refinery could be a $1.3 million investment and the potential to create hundreds of new jobs, he said.

Another Southside project, Project Structure, calls for a new fabrication facility for an existing Muskogee business. It could be at least a $20 million capital investment with the potential to create 10 to 15 new jobs.

That TIF is for a 17-year term and would capture 100% of new ad valorem increment revenue. Half of that would go to TIF infrastructure costs, and half would be allocated to overlying taxing entities, including Hilldale Public Schools. Projected infrastructure projects include industrial road and utility improvements and rail improvements.

Commissioners are to discuss creation of a TIF at John T. Griffin Industrial Park, on the southeast corner of 24th Street and Smith Ferry Road. The project would include construction of a bitcoin data center. It could be an investment of at least $200 million and could create 20 new jobs.

The proposed TIF would have a 15-year term and would capture 100% of new ad valorem increment revenue, estimated at $9.4 million. Half of that would go to TIF infrastructure costs, and half would be allocated to overlying taxing entities, including Muskogee Public Schools.

Doke said there are a number of prospects in the area.

He said creation of an OG&E substation south of Smith Ferry helped draw companies.

"Every property out there is probably a highly desired property, and it's because of the huge power that's available out of that substation," he said. "When you have companies that are big power users, the types of resources available on those properties make it appealing."

The city council also agreed to terminate an unsuccessful 23-year TIF established in 2015 by the city and county. The proposed manufacturing facility supported by that TIF never came into fruition. Project cost was estimated at $10.2 million. The county is to discuss the TIF's termination on Monday.

"This would put the county in position to consider other incentives if they come along," Ellis said.

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