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 18, 2019 Third Meeting 1

PROJECT PLAN PRINCIPAL OBJECTIVES Create and Approve a Long-Range Investment Strategy that: Provides Critically Needed Public Improvements Retains Existing Industry Attracts New Non-Retail Business Development Accelerates Job Growth Provides Direct Financial Support to Affected Taking Jurisdictions Supports STEM Education and Job Training Reverses Economic Decline and Stagnation 2

THE STRATEGY IS AN INVESTMENT IN THE FUTURE PROJECT PLAN STRATEGIC AUTHORIZATIONS Rather than waiting until a business prospect appears, the proposed Project Plan authorizes – in advance – the actions necessary to approve agreements with new and expanding business in Lawton. Otherwise, the City would have to say “yes, we want you – but first we have to prepare and approve a plan to make it possible. ” Delays of 6 – 12 months on the front end make commitments difficult. Effective long-range strategies require community support, commitment, and consistency. Effectively implemented, the proposed strategy can: • Stimulate several hundred million dollars in new non-retail business investment and development. • Create several hundred (or more) new high-quality jobs in the Lawton community. • Increase population in Comanche County by several thousand. • Add value to the tax base in surrounding jurisdictions, i. e. public schools, the County, and Great Plains. • Increase personal income 3

PROJECT PLAN STRATEGIC AUTHORIZATIONS Approval of the proposed Project Plan will create tax increment districts for a number of potential business development sites – at the Airport and Westside Industrial Parks – to be activated upon the approval of new business investment agreements. Clearly, the new revenue will only occur if the City is able to obtain these development agreements. The initial development – expansion of Republic Paperboard Company – was approved by its Board of Directors because of the conditional agreement of support by the City of Lawton. Worry over lost revenues is illusory – without the development, the tax revenues won’t be there. When they do occur, the Project Plan provides support for all affected taxing jurisdictions – and special support for STEM education. 4

Version 1 PROJECT PLAN ELEMENTS (TWO ALTERNATE PLANS) • Initial Funding of Critical Public Improvements/ Infrastructure and Project Support • After provision of most critical public improvement costs (estimated at $30 M) • 5% of Increment Allocated to Fund STEM Education and Job Training Programs through Partnership Agreements with all public schools within Lawton City limits, Great Plains Technology Center, and Cameron University • Remainder of Increment to provide a direct revenue source to the affected taxing jurisdictions: • To the County, Health Department, and Great Plains in proportion to their respective annual opera ting levies (excluding sinking fund levies) • Remainder to all public schools within Lawton City limits in proportion to their respective school population, in an amount equal to the net operational benefit they would receive without an increment district 5

Version 2 Allocations are Effective at the Beginning of Each Increment District PROJECT PLAN ELEMENTS (TWO ALTERNATE PLANS) • 25% of their respective annual operating levies to Great Plains Technology Center, Comanche County, and Comanche County Health Department • 25% of the net financial benefit of the total operating levies (excluding sinking funds) to the public schools whose jurisdictional boundaries are located in the respective increment districts After provision of most critical public improvement costs (estimated at $30 M): • 100% of their respective annual operating levies to Great Plains Technology Center, Comanche County, and Comanche County Health Department • 100% of the net financial benefit of the total operating levies (excluding sinking funds) to the public schools whose jurisdictional boundaries are located in the respective increment districts 10% of Total Increment Allocated to fund STEM education and jobs training programs through Partnership Agreements with the public schools within the City of Lawton municipal limits, Great Plains Technology Center, and Cameron University. 6

TOTAL AUTHORIZED PROJECT COSTS: Approx. $113 million PROJECT PLAN ESTIMATED REVENUE ALLOCATION COMPARISONS Public Entity Version 1 Version 2 Great Plains Technology $8, 203, 210 $12, 210, 029 Comanche County $5, 502, 229 $8, 193, 361 Comanche County Health $1, 378, 691 $2, 048, 675 Cache Public Schools $1, 054, 072 $2, 926, 475 Lawton Public Schools $8, 223, 671 $1, 834, 499 STEM Education $3, 581, 015 $13, 543, 123 $13, 563, 989 $15, 674, 097 Total for Public Schools and STEM Education 7

PROJECT PLAN KEY COMPONENTS Importance of STEM Education and Job Training Programs Allocation to Taxing Jurisdictions Basis of Revenue Share: Gross Revenue vs. Net Financial Benefit 8

REVENUE PROJECTION S Basis of Revenue Share: Gross Revenue vs. Net Financial Benefit 9

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The economic benefits of the proposed Project Plan indicate net positive financial impacts for the affected taxing jurisdictions and for the entire community. FINANCIAL AND COMMUNITY IMPACTS The developments anticipated by the proposed Project Plan will result in a moderate increase in demand for services by or in new costs to the affected taxing entities. The goal of the proposed Project Plan is to generate investment and development that would not occur but for its adoption and implementation. By attracting new businesses, creating new employment, adding STEM education and job training programs, and a direct financial revenue source to affected taxing jurisdictions, the entire community will benefit. The Long-Term Results will be Significant if the Proposed Project Plan is Implemented with a Consistent Strategy 12

PROPOSED INCREMENT DISTRICTS 13

PROPOSED PROJECT AREA 14

ELIGIBILIT Y OF PROJECT AREA • State-Designated Enterprise Zone • Reinvestment area: • Area requires public improvements to serve as a catalyst for expanding employment, to attract major investment, and to enhance the tax base. 15

Fourth Review Committee Meeting (scheduled Nov. 22) • Action to Approve Findings and Recommendations on alternate versions of the proposed Project Plan NEXT STEPS 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 multiple increment districts, and directing immediate commencement of Increment District No. 3 16

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 17