CI TY OF LAWTON SKILLS TRAINING EDUCATION DEVELOPMENT

CI TY OF LAWTON SKILLS TRAINING, EDUCATION, DEVELOPMENT, AND INVESTMENT (STEDI) PROJECT PLAN REVIEW COMMITTEE Special Meeting November 8, 2019

City of Lawton STEDI Project Plan Review Committee Second Meeting PART ONE

Review Committee charged with making: RECAP – ROLE OF REVIEW COMMITTEE finding as to eligibility of proposed project area and increment district finding as to financial impacts of proposed increment district on taxing jurisdictions and business activities recommendation to the City regarding approval of the proposed project plan

City of Lawton STEDI Project Plan Review Committee Second Meeting PART TWO

Current Economic Outlook In the Absence of New Taxable Capital Investments, current REMI Report Indicates (in Comanche County over the next 25 years): PROJECT PLAN STRATEGY 8% DECREASE in Total Employment 10. 8% DECREASE in Population 12. 8% DECREASE in Total Labor Force Requires a Bold, Long-Range Strategy to Avoid Economic Stagnation and Decline focused on: Providing Critically Needed Public Improvements and Infrastructure Retaining Existing Industry Stimulating New Non-Retail Business Development Accelerating Job Growth Providing Direct Financial Support to Affected Taking Jurisdictions Supporting STEM Education and Job Training

City of Lawton STEDI Project Plan Review Committee Second Meeting PART THREE

ELIGIBILITY ENTERPRISE AREA

Public Infrastructure and Public Improvements Required to Reverse Economic Stagnation and Retain / Attract Investment ELIGIBILITY REINVESTMENT AREA Street Conditions are Behind Maintenance Lives Absence of Connectivity to Major Thoroughfares Insufficient Utility Capacity (including water, sewer, gas electric) to Support Future Growth

City of Lawton STEDI Project Plan Review Committee Second Meeting PART FOUR

PROJECT PLAN ELEMENTS (INCREMENT DISTRICT NO. 3) Creates an Ad Valorem and Sales Tax Increment District (Increment District No. 3) for Republic’s Proposed $94 M Facilities Expansion (with 20 additional high quality jobs) Subject to Conditional Development Agreement Total Authorized Project Costs = $11. 6 M Public Improvements = $5. 4 M Development Financing Assistance = $4. 3 M Equal to approx. 2 years’ projected annual payroll for the newly created jobs Payable in years 6 through 25 of Increment District No. 3 from the portion of annual increment generated by personal property added to the tax rolls Direct Financial Support to Taxing Jurisdictions: $1. 29 M Includes STEM Education/Job Training: $145 K Implementation, Financing, Contingencies = $615 K

PROJECT PLAN ELEMENTS (ADDITIONAL INCREMENT DISTRICTS ) Authorizes the Creation of Twelve Additional Ad Valorem and Sales Tax Increment Districts for Future Non-Retail Business Developments Effective Upon Dates Established by Resolution of City Council Within 10 years To be Established as New Development Commitments are Obtained

PROPOSED INCREMENT DISTRICTS

PROPOSED PROJECT AREA

PROJECT PLAN ELEMENTS (AUTHORIZED PROJECT COSTS FOR ADDITIONAL INCREMENT DISTRICTS) SUBJECT TO CHANGE BASED ON RECOMMENDATIONS OF REVIEW COMMITTEE Increment District Nos. “A”, “C”, and “D” For Each Development: Total Authorized Project Costs = $9. 3 M Public Improvements = $5. 3 M Development Financing Assistance = $2. 1 M Direct Financial Support to Taxing Jurisdictions: $1. 25 M Includes STEM Education / Job Training = $120 K Implementation, Financing, Contingencies = $720 K Increment District No. “B” Total Authorized Project Costs = $8. 4 M Public Improvements = $4. 6 M Development Financing Assistance = $2. 1 M Direct Financial Support to Taxing Jurisdictions: $1. 125 M Includes STEM Education / Job Training = $100 K Implementation, Financing, Contingencies = $600 K Increment District No. “E” Total Authorized Project Costs = $9. 9 M Public Improvements = $4. 9 M Development Financing Assistance = $1. 9 M Direct Financial Support to Taxing Jurisdictions: $2. 4 M Includes STEM Education / Job Training = $120 K Implementation, Financing, Contingencies = $720 K

PROJECT PLAN ELEMENTS (AUTHORIZED PROJECT COSTS FOR ADDITIONAL INCREMENT DISTRICTS) SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE Increment District No. “F” Total Authorized Project Costs = $10. 9 M Public Improvements = $4. 1 M Development Financing Assistance = $1. 9 M Direct Financial Support to Taxing Jurisdictions: $4. 2 M Includes STEM Education / Job Training = $130 K Implementation, Financing, Contingencies = $730 K Increment District Nos. “G” and “H” For Each Development: Total Authorized Project Costs = $10. 4 M Public Improvements = $3. 2 M Development Financing Assistance = $1. 9 M Direct Financial Support to Taxing Jurisdictions: $4. 6 M Includes STEM Education / Job Training = $120 K Implementation, Financing, Contingencies = $720 K Increment District Nos. “I” through “L” For Each Development: Total Authorized Project Costs = $4. 8 M Public Improvements = $1. 4 M Development Financing Assistance = $990 K Direct Financial Support to Taxing Jurisdictions: $2. 1 M Includes STEM Education / Job Training = $55 K Implementation, Financing, Contingencies = $335 K

For Republic’s $94 M Investment Plus 8 Developments Averaging $100 M Investment Each and 4 Developments Averaging $45 M Investment Each PROJECTION S Incremental Revenue Projections for 13 Increment Districts Ad valorem revenues are estimated to range between $1 M annually in the near term and $10 M annually over the longer term Sales tax revenues are estimated to generate $400 K annually in the near term and $2 M over the longer term Total Projected Private Investment for 13 Developments Projected to exceed $1 B

City of Lawton STEDI Project Plan Review Committee Second Meeting PART FIVE

FINANCIAL IMPACTS (REPUBLIC EXPANSION) SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE The Impacts of the Republic Expansion According to the Regional Economic Modeling, Inc. (REMI) by 2021: 65 -70 Additional Jobs in the Community Job Growth in Other Industries: Retail, Food Service, Construction, Professional Services, and Health Care $7 M Increase in Personal Income in Comanche County Population Increase by 125+ in Comanche County

FINANCIAL IMPACTS OVERALL (12 ADDITIONAL DEVELOPMENTS) SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE The Impacts of 12 Additional Developments Extending Proportionately the Overall Benefits of the Republic Expansion: 288 Directly Created Jobs 750 - 1, 000 Additional Jobs in the Community $25 - $30 M in Aggregate New Wages Population Increase: 1, 500 – 2, 000

FINANCIAL IMPACTS (TAXING JURISDICTIONS) SUBJECT TO CHANGE BASED ON RECOMMENDATIONS OF REVIEW COMMITTEE The Economic Development Strategies of the Proposed Project Plan will Enhance Public Tax Revenues Both Inside and Outside of the Project Area

A Moderate Increased Demand on School Districts FINANCIAL IMPACTS (PUBLIC SCHOOLS) SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE Proposed Revised Project Plan would provide cumulative direct financial benefit to the Public Schools: Approx. $5. 1 M (for all 13 proposed projects). Payments Received under the Proposed Project Plan are More Valuable than School Revenues Subject to State School Aid New Development, New Investments and New Jobs are Beneficial to School District Revenues Impacts Outside of the Increment Districts will be Positive The Amount of the Benefit Will Depend on the Rate and Quantity of New Investment The Oklahoma City Economic Development Strategy Changed Flat. Line Property Valuation to an Average 5% Annual Growth and is Creating New Taxable Value in the OKCPS District at TWO and ONE-HALF TIMES the Amount of Value Growth in All Increment Districts (See graphs below)

PRE-TIF ASSESSED VALUE GROWTH: OKLAHOMA CITY PUBLIC SCHOOLS 100, 00% 75, 00% Net Valuation 50, 00% Real/Personal ONLY Linear(Net Valuation) 25, 00% Linear(Real/Personal ONLY) 0, 00% -25, 00% 1988 1990 1992 1994 1996 1998 125, 00% 2000 POST-TIF ASSESSED VALUE GROWTH: OKLAHOMA CITY PUBLIC SCHOOLS Year Comparison to 1998 Index Year 125, 00% 100, 00% 75, 00% Net Valuation 50, 00% Real/Personal ONLY Linear(Net Valuation) 25, 00% Linear(Real/Personal ONLY) 0, 00% -25, 00% 2002 2004 2006 2008 Year 2010 2012 2014

Great Plains Technology Center Should Experience Minimal Impacts FINANCIAL IMPACTS Proposed Revised Project Plan would provide cumulative direct financial benefit to Great Plains Technology Center: Approx. $13. 2 M (for all 13 proposed projects). (GREAT PLAINS TECHNOLOGY CENTER) New Development, New Investments and New Jobs are Beneficial to Great Plains’ Revenues SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE Impacts Outside of the Increment Districts will be Positive The Amount of the Benefit Will Depend on the Rate and Quantity of New Investment Just as with the OKCPS District, the Oklahoma City Economic Development Strategy also Changed Flat-Line Property Valuation of Metro Tech to an Average 5% Annual Growth and is Creating New Taxable Value at TWO and ONE-HALF TIMES the Amount of Value Growth in All Increment Districts (See graphs below)

PRE-TIF ASSESSED VALUE GROWTH: METRO TECH 100, 00% 75, 00% Net Valuation 50, 00% Real/Personal ONLY Linear(Net Valuation) 25, 00% Linear(Real/Personal ONLY) 0, 00% POST-TIF ASSESSED VALUE GROWTH: METRO TECH -25, 00% 1988 1990 1992 1994 1996 1998 2000 125, 00% Year Comparison to 1998 Index Year 125, 00% 100, 00% 75, 00% Net Valuation 50, 00% Real/Personal ONLY Linear(Net Valuation) Linear(Real/Personal ONLY) 25, 00% 0, 00% -25, 00% 2002 2004 2006 2008 Year 2010 2012 2014

No Specific Measurable Demand for Increased Services on Comanche County is Anticipated Other Than General Population Growth FINANCIAL IMPACTS (COMANCHE COUNTY) SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE Proposed Revised Project Plan would provide cumulative direct financial benefit to Comanche County: Approx. $8. 9 M (for all 13 proposed projects). New Development, New Investments and New Jobs are Beneficial to Comanche County Impacts Outside of the Increment Districts will be Positive The Amount of the Benefit Will Depend on the Rate and Quantity of New Investment Oklahoma County’s Property Tax Base and Revenues have also been stimulated by the Oklahoma City Economic Development Policies. County-wide Property Valuations have improved from a modest 3% Annual Growth to an Average 8% Annual Growth, Mirroring the Growth Patterns Outside All Increment Districts as seen in the OKCPS and Metro Tech Districts. (See graphs below)

FINANCIAL IMPACTS (COMANCHE COUNTY HEALTH DEPT) SUBJECT TO CHANGE BASED ON RECOMMENDATION S OF REVIEW COMMITTEE No Specific Measurable Demand for Increased Services on the Comanche County Health Department is Anticipated other than General Population Growth Proposed Revised Project Plan would provide cumulative direct financial benefit to Comanche County Health Department: Approx. $2. 25 M (for all 13 proposed projects).

FINANCIAL IMPACTS (CITY OF LAWTON) Actual, Current, and Future Projected Benefits to the City of Lawton Mirror the Benefits of the Other Affected Taxing Jurisdictions and are Overwhelmingly Net Positive

FINANCIAL IMPACTS The Positive Impacts that a Sound Economic Development Strategy can have on Business Activities and on Communities as a Whole are Well Documented by the Oklahoma City Experiences (BUSINESS ACTIVITIES) The Long-Term Results will be Significant if the Proposed Project Plan is Implemented with a Consistent Strategy

City of Lawton STEDI Project Plan Review Committee Second Meeting PART SIX

GROSS REVENUE PROJECTIONS

ALLOCATION STRUCTURE – ALTERNATE NO. 1

ALLOCATION STRUCTURE – ALTERNATE NO. 2

ALLOCATION STRUCTURE - ALTERNATE NO. 3

Third Review Committee Meeting (scheduled Nov. 13) • Possible Action to Approve Findings and Recommendation Planning Commission (scheduled Nov. 14) NEXT STEPS Determines conformance with comprehensive plan City holds two public hearings before adoption First public hearing – provide information and answer questions (scheduled Nov. 26) Second public hearing – provide opportunity for those interested to express views (scheduled Dec. 10) At second hearing, City Council considers adoption of an ordinance approving the Project Plan and Increment District No. 3 is established City Council has up ten (10) years to trigger additional TIFs (will require separate future action)

QUESTIONS? Stan Booker Mayor (580) 581 -3301 sbooker@lawtonok. gov Or Dan Batchelor Lisa Harden Center for Economic Development Law (405) 232 -4606 dbatchelor@econlaw. com lisaharden@econlaw. com