Claremore Daily Progress

Government

December 5, 2012

TIF-errific: Tax increment financing district gets council approval to spur growth

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CLAREMORE —

“The TIF will save the CPWA money regardless,” Kolker added.
“If the project fails then the public works authority would be required to repay the money,” said City Attorney Matt Ballard.
The council considered all aspects of the project before giving the final approval.
Councilor Paula Watson stated that even though she fully supports the expansion of Baker Hughes, she does not support this use of the Hospital Trust Fund.
Watson did not vote to support the measure.
“I just can not bring myself to support going into debt,” Watson said. “It is something personal with me, I don't support using this money in this way without the public’s say.”
Another aspect of the project that was discussed included the long-term benefit to the hospital trust fund.
Kolker outlined the approximately $463,000 in interest that the fund would gain through the financing.
“The idea is to loan the money in-house instead of going through a third party,” Kolker said.
“We don't have a lot of tools in Oklahoma for the financing, it is important to use the tools we have,” said Dan McMahan, TIF attorney.
“This is a great investment, it is on a short 10-year note,” said City Manager Jim Thomas. “We want to pay it off as soon as possible.”
The financing used by the city will not only provide the opportunities associated with the TIF, but will benefit the hospital trust fund, according to Thomas.

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