The Enid News and Eagle, Enid, OK

January 14, 2013

Canola TIF, rezoning, water top commission agenda

By James Neal, Staff Writer
Enid News & Eagle

ENID, Okla. — Enid City Commission will meet Tuesday in its only regular meeting this month to consider rezoning a 16-acre tract at Chestnut and Cleveland for commercial use, a Tax Increment Finance district for a proposed canola processing plant, and water infrastructure improvements.

The study session will begin at 5 p.m. in the lower-level conference room, with the regular meeting set for 6:30 p.m. in commission chambers at the city administration building, 401 W. Garriott.

Rezoning



Commissioners will consider changing the zoned land use for property at the northwest corner of Chestnut and Cleveland from low-intensity residential to medium-intensity residential.

A 16-acre tract immediately adjacent to Chestnut and Cleveland will be considered for rezoning to C-2 planned business center district.

The proposed rezoning area lies within the city’s 2025 Comprehensive Plan, which identifies the Chestnut and Cleveland intersection as a medium intensity Community Commercial Node 2, with 7.5 developed acres on each corner of the intersection.

This proposal would increase the size of the city’s planned commercial node on the northwest corner from 7.5 acres to 16.09 acres.

The area under consideration for rezoning to medium-intensity residential currently is being used as pasture, and includes a water detention area for the Rolling Acres development.

The city commission agenda indicates the city is “considering acquiring 27 acres east of Cleveland and south of the railroad tract for the detention site” in fiscal year 2012-13.

TIF District



Commissioners also will consider a Tax Increment Finance district, which would create an estimated $27 million in incentives over 25 years to bring a Northstar Agri Industries canola processing plant and 55 new jobs to the city.

A Tax Increment District creates incentive for new development by allowing a portion of the ad valorem tax revenue created by building new business to be returned to the developing company to defray start-up investment.

Estimates for the plant investment range from $150 million to $250 million, with TIF compensation ranging from $12 million to no more than $15 million.

Under the terms of the proposal, 90 percent of the increased ad valorem taxes from the TIF district would go toward Northstar’s investment compensation, compensating the city of Enid for infrastructure improvements and interest.

All tax-receiving entities would continue to receive ad valorem revenue from the current assessed value of the 399 acres on which the plant will be built, plus 10 percent of any increase in ad valorem revenue due to the plant’s development over the next 25 years.

Tax-receiving entities affected by the ad valorem tax drawn from the TIF district are: Pioneer-Pleasant Vale Public Schools; Garfield County, through the county general fund and the county school levy; Garfield County Health Department; city of Enid sinking fund; and Autry Technology Center.

The proposed canola processing plant would use an estimated 550,000-750,000 gallons of water per day. The city is projected to increase its water supply capacity by one million gallons per day in 2013 and two million additional gallons per day in 2014.



Water improvements



Commissioners will consider going out for emergency bids to replace a section of 20-inch water line.

The line, which runs from 54th and U.S. 412 to the Koch Nitrogen plant on 78th, carries about 50 percent of the city’s water demand, according to a city commission agenda.

The pipe supplies Koch Nitrogen, Salt Fork Water District and the towns of Covington and Fairmont.

According to tonight’s agenda, the pipe has deteriorated over time and has begun to fail, requiring 10 line repairs last month. A rupture in late November cut off water supply to Covington residents for three days.

Tonight’s emergency resolution would waive normal bidding procedures to replace the water line.

In other water-related concerns, commissioners will consider approving a contract with Alan Plummer Associates, of Fort Worth, for wastewater treatment professional services.

The engineering firm would provide consulting for ways to treat gray water so it could be reused for industrial purposes, in accordance with state and federal environmental quality requirements.

The contract with Alan Plummer Associates, as specified in tonight’s commission agenda, would not exceed $75,000.

Commissioners also will consider utility easements for two raw water collection lines, and a construction permit for two new water wells, all located in the Cleo Springs area in Major County.



Other business



In other business, commissioners will consider awarding a $312,000 contract for construction of the Cleveland Street Trailhead in the city’s master trail plan.

The project would include constructing restrooms, a picnic area and a localized walking loop and purchase of exercise equipment for the trailhead, to be partially funded by a $160,000 grant from the Oklahoma Department of Tourism and Recreation.

The balance of the project would be funded from the city’s capital improvement fund.

Henson Construction entered the low bid for the project, with a base bid of $312,242.

Commissioners also will consider expending $277,449 from the capital improvement fund for new playground equipment at Champion Park.

Tonight’s agenda calls for waiving the bidding requirements and purchasing the equipment from Child’s Play Inc. on the grounds Child’s Play has offered a discount of more than 32 percent off retail price for the equipment.

Commissioners will consider amending the capital improvement fund to add $83,000 to appropriations for the new carousel house at Meadowlake Park, bringing the project total to $393,000.

An additional $66,196.90 will be considered for Enid Renaissance Project to cover additional construction administration fees and routing software for Convention Hall and Enid Event Center.

Commissioners also will consider extending the contract term for Renaissance parking lot development by 60 days.

The parking area contract extension would have a revised completion date of May 31, with no additional contract cost.

Enid Municipal Authority will consider increasing its 2012-2013 fiscal financial plan by $276,924.32.

The additional funds would cover: $143,151 to purchase the Advanced Chiropractic space at 523 S. Independence, which lies in the planned Renaissance green space; additional costs to relocate Carter Paint and Wesley Creasey, moved to make way for Renaissance; rent on six months’ parking at the Homeland building; $106,000 in fees to The Public Finance Law Group, PLLC for TIF counsel services for the Oakwood Mall TIF and proposed Northstar Agri Industries canola processing plant TIF.