Claremore Daily Progress

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October 4, 2012

Public absent at TIF hearing

Council schedules next public hearing for Nov. 5

CLAREMORE — The Claremore City Council held the first of two public meetings Monday night to consider the creation of a Master Tax Increment Finance Plan.

No members of the public spoke to the council regarding the TIF district and questions were limited to the media. 
The council was asked if the developments with Baker Hughes and the new electrical substation could be funded without the creation of the TIF.
In response, Mayor Mickey Perry said, “We couldn’t do these improvements without the substation. We are just trying to figure out how to finance this and keep the Baker Hughes development here.”
Without the improvement associated with the district, it would require the city find alternate financing options for the development, according to Dan MacMahan, TIF attorney representing Claremore.
The creation of the tax district will not create an increase in mileage rates inside the district, according to MacMahan. 
Tax revenue generated from the district would be revenue that would not be available without the developments, he explained.
The electrical substation that is being created to assist the development will also create future opportunities for growth in the area, according to MacMahan.
Baker Hughes will be adding $36 million in new development to the district. 
The TIF district could be expanded beyond the area north of Claremore and in the industrial park.
A 5 percent increase in size could be done without going back through the review committee process, according to MacMahan.
The second and final public hearing will be at 6 p.m. on Nov. 5. Public comments and questions will be permitted during the meeting.

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