e good afternoon welcome to the January 30th 2024 Oklahoma City Economic Development trust meeting we now call the meeting to order item two on the agenda are the minutes from the January 5th 20204 trust meeting does anyone have any questions or comments on the minutes if not we can take a motion all right we have a motion a second the item passes item three on the agenda is the ratification of claims with no questions or comments we can take a motion in a second on that as well we have a motion in a second please vote item three passes as well brings us to item four items for individual consideration item 4 a is a joint resolution certifying that keep quiet movie llc's proposed feature film project project silence uh approving an allocation not to exceed $ 26,120 in pay for performance film Inc Miss Simpson I want to start by telling you where we are with the program this is the fourth application so far and I expect to have a fifth to present to you next month um as far as the allocation goes we are with this project will leave us with a balance of about 1.9 million out of our 3 million so we're about halfway through um project code name SI project silence came to us at the end of the year it is a small $800,000 budget film they originally planned to film in Tulsa and there were some complications so at the last minute they brought everything back to Oklahoma City they're housed out at Green Pastures which has now become filmmaker Ranch is the PowerPoint coming up um small character driven project uh it has a name cast member it's set on a native reservation and it's basically um a a present day uh crime drama filming dates are January 24th they started last week they wrap on February 16th um the producer and director actually filmed here in 2020 a film called uh what Josiah saw which was utilize the state rebate this film also is utilizing the state rebate um they're hiring 93% of their crew locally which we love to see of their $800,000 budget they anticipated Oklahoma qualified expenditures are [Music] 522,000 and above rank qualifies it for 5% So based on the expenditures that we believe we can qualify at 522 584 they will qualify at 5% of 26,1 129 and again the things uh for consideration on this project they're spending at least $500,000 a requirement and statute or in policy 50% of the filming days are at Green pasture Studios which we also o love to see because they're utilizing our vendor and their services um they're going to do post- production here which is a bonus which is all of the sound editing picture editing scoring which is a sector of the industry we're really interested in growing and they are utilizing the state rebate they are hiring 150 people and at 18 days of production that translates to 2700 work days um 93% % again Oklahoma City residents total labor income that will qualify for our incentive is $ 29,42 nine days at the sound stages and 100% of picture post sound editing and mixing here in Oklahoma City these are this is helping grow really quality jobs here the post- production aspect um this really just breaks down similar information one other thing to point out 90% of the vendors are okoma City City vendors within okoma city limits with an eye toward diversity highes um and 90 93% of the tech Talent is local the total economic output and these numbers come to us after putting it through the modeler that we created at the greater okoma City Chamber in the research Department um the total impact of this project will be 1.5 million for Oklahoma City jobs supported direct and indirect are 16 5 and labor income 5208956197 Jill so far have you spread the wealth of incentives across different entities which entities all the all the ones that have come thus far have gone to different entities it's not to one or two oh yeah absolutely please um twist uh project dirt road as we know utilize Prairie surf um this project is utilizing Green Pastures in Apex post the film that I'll present to you in March hopefully we'll be using all Suite which is another small production house so it it's across the board that that's something that I've been really happy about we're hitting a lot of different metrics as far as diversity size of budget genres I mean one of them is boiling point media which is digital Vis digital animation and they're doing that inhouse so all right no further questions or comments we can take a motion on the item have a motion in a second the item passes thank you thank you brings us to item 4B resolution approving Oklahoma industry Authority sale of site F of the 577 Acres property Mr sud thank you Mr chairman um having Sarah go ahead and pull up kind of a map here just and and I'm going to talk briefly about 4B and 4C but this is as you recall part of the agreement between the Oklahoma industries's Authority and the economic development trust was that any of these 577 proposals come forward to this body for approval of the general terms the actual sales agreement goes and gets approved by oia and then funds you know come back to uh ocdt so what we're looking at here is site F which is kind of the lower southwest corner of the site as a reminder we've previously done site e and site I and then item 4 C is for a portion of site H so just kind of letting you know kind of doing the've done the northwest corner we're doing the far south portion of it so we still have quite a bit to develop in the middle on 4B 4B is for site F that's 76.7 3 acres the sale the purchase price would be 16.7 million as a reminder the economic development trust gets a quarter of that back so they'll will'll receive about 4.2 million from this sale um this project is for a hyperscale Data Center and I did want to make a couple comments about that what we're focusing on the majority of this side is really manufacturing this is a strategic move in that this is different than just sort of a normal data center where there's no employees this will have 100 to 125 employees all paying a range between about 80 and $125,000 a year the capital investment on this will probably be somewhere around a billion dollars for just the the building it's different than a warehouse you has to be highly secured climate controlled and it could end up being a capex of upwards of three billion depending on the buildout you know these are for very large types of users like your Facebook your your Microsoft you know those Google those types of users one of the Strategic reasons we're looking at this is as you if you'll recall you know this site there's a lot of infrastructure work um utility work etc and we've you know tackled some of the water and sewer things with arpa this project will help us pay for probably 40% of the OG electrical cost to the site because they'll be such a big user so it's really something that a we get a nice chunk of change out of it it's it's basically five bucks a square foot for really probably our farthest away you know least valuable site farthest away from the amenities Etc but it'll help set the stage for reducing some costs for the the other future prospects we might have here um once if you know if this one and also the next item uh which is just a revision to a previous item we've seen and I'll talk about that when we come to that item but it you know the proceeds we've received so far plus this we these two items today would bring us to about uh $9.3 million received back already um the initial investment this trust made in this site was about 12.3 so to kind of put that in perspective this would be about a third of the acreage that has been sold here of the usable acreage and we've already recovered over 75% of our investment so we're on pay Pace if we keep up just this same Pace we would double our investment so it's it's going very very well and this is really through kind of a tough economic period too so hopefully the goal is these prices keep increasing on on this land and it just you know we get a quarter of what we can sell this for so that's 4B and I'll give you a little bit more detail on 4C when we get to that item all right any questions or comments on 4B all right we can take a motion second have a motion a second please vote item passes item 4C is a resolution approving the revised terms of Oklahoma industry authorities sale of site h of the 577 Acer's property Mr sud okay so this is one we've revised a couple times before and I'm hoping this is the last one um as we've gone through the due diligence period on this this is for the project with onq for a it's really more it's not a regular enq it's more of a truck servicing amenity for this site you know this site will obviously have a lot of trucks and things on it um as they went through this looking at some of the turning radiuses and things on trucks they decided they wanted to add some additional acreage so that's really what this revision is taking this up to a total of 7.34 Acres it's a new purchase price that's larger of 3.4 million which means our share of that will be $ 49,7 so um this is one that's been reconfigured a couple of times why we've we've amended this a couple times and I think hope this is the last Amendment on it all right if there are no questions or comments we can take a motion we have a motion a second and the item passes brings us to item 4D Economic Development agreement with the commun community community enhancement Corporation for assistance and development financing not to exceed 1.25 million in support of phase one of the Creston Park neighborhood affordable housing project Mr Su thank you Mr chairman so this one is the economic development agreement this has been the allocation of this was approved by Council back in April of 22 and this body approved it back in August of 22 so it's been a little while getting this worked out but just as a reminder this this is a multiphase project but this this U incentive applies to phase one and phase one uh this again will have some of the covenants in the agreement that it's for 60% Ami and it's for the construction of 170 new family units and I believe Cassie from the housing authorities here if there are any questions about the project but this is really just the contract from these previous allocations Mr chairman I have a question yes so far as this project will this project um receive any of the maps for funding from the homelessness uh I don't believe so but Cassie's here from the Housing Authority can talk about that hello um Cassie I'm with the Oklahoma City Housing Authority and Community enhancement Corporation so phase one will not receive any of the maps for funding it phase two has an allocation of I believe it was just adjusted to $1 million okay and there are three phases yes right now there are three phases got it thank you any other questions if not we can take a motion we have a motion in a second the item passes item four is a resolution waving the trust's right to terminate the job creation incentive Economic Development agreement with Booze Allen Hamilton Mr sudel thank you Mr chairman so this is a an amendment essentially to our Economic Development agreement this was entered into back in June of 2019 and part of this was you know they were going to bring 130 new jobs about $800,000 of capex in these Economic Development agreements we generally have kind of an interim Target so if someone has a you know total number of jobs they're targeting we usually have an interim Target roughly about two years out um well that happened for this project during covid so they have hit the 50 job interim Target but it was a little bit after Co in 2021 so we're recommending we basically wave that one requirement all the other terms and conditions of the economic development agreement um are still in effect they've actually I believe added more than the 50 jobs I believe um and there're still other hurdle uh hurdles that they have to hit you know meet requirements for growth and jobs over and different time period so nothing else is waved it's just that one requirement um which is typically something we do to make sure folks are actually getting something started but this was you know a unique case of happening during the the pandemic all right if we don't have any questions or comments we can take a motion on that item have a motion a second the item passes brings us to item 4f Oklahoma City Economic Development trust fiscal year 2022 2023 annual financial report Miss Jameson good afternoon uh my name is Christy Jameson I'm one of the assistant controllers uh from the accounting services division and I'm just going to give just a brief summary of the financial statements for fiscal year 23 for the Oklahoma City Economic Development trust the financial statements were audited by our external Auditors Alan Gibbs and hulik and they issued an unmodified opinion which means it was a clean audit um their report is on page five of the financial statements and basically they state that the financial statements are prepared in accordance with generally accounted accounting uh accepted accounting principles in the United States as well as uh that the financial statements are presented fairly in all material respects and there were no findings in the audit for the trust uh the net position uh for physical year 23 increased 15.9 million to negative 9.7 million uh this was uh an increase from the prior year uh where the results were 25.6 million negative and as typical for this trust uh negative net position um is typical because the trust does issue debt and it funds economic uh activities as well as uh sometimes participates in construction of assets that are then transferred to others that are maintaining the asset for physical year 23 um there was 8 18.5 million of assets that were transferred to the city the majority of uh these assets were project 180 projects that had not been previously transferred to the city the debt for the trust um at the end of the year was 219 million which compared to 235 million from the prior year this was down basically due to regularly uh scheduled debt payments and the fact that there was no new debt issued the bond ratings remain the same as the prior year um AA plus from standard and pores and this reflects um it's considered relatively low credit risk there are more detailed there is more detailed information in the Management's discussion and Analysis it's on page nine of the financial statement but I am more than happy to try to answer any questions you might have all right if we don't have any questions we'll take a motion to receive all right we have a motion in a second and the item passes was received I guess thank you item 4G is the Oklahoma City economic development foundation retail Recruitment and development presentation Miss Timmy fate hello good afternoon so today I just want to give you a quick recap of what we saw for 2023 on the Retail Landscape so today we'll go over retail Trends um sales tax reports monthly developments that are currently under way our retail recruitment ongoing engagement and then the announcements that we saw either announced or under construction in 2023 I think the first thing that's really important to point out is retail is now the favorite asset class So Co really showed that retail um is really a success and it's needed and now office is looking for retail to help breathe some life back into the office Market by using retail as a catalyst to ameniti some of those so that's been really um beneficial icial to see retailers are investing more in the physical store now versus online and they're doing everything possible to get retailers or get consumers in the store so shrinking return times to creating Partnerships with other brands um embracing technology so some of the mall developers have launched platforms like shop now and this allows if you're looking for a specific item that you can look across the entire Mall platform and you can look for a size eight black Boot and it'll show every every store that has that so that's some of the things that um technology has really allowed some of these retailers to do and that's really changing the shopping experience and helping plan better for trips the evolution of the tenant mix is really key so many years ago you wouldn't do um go to the gym the supermarket and Shop all in one trip and now you're seeing all that kind of blend together and the consumer behaviors are changing pretty rapidly and health and wellness is really here to stay there's a lot of new Concepts that are emerging in this sector and then grocery is the dominant stable sector so a lot of developers a lot of landlords really want grocery because it is such a big driver um the one thing that I heard over and over last year is the importance of Partnerships and this continues to be really a focal point for landlords is really creating that win-win strategy and being strategic about who they put in those shopping centers and who the co- tency is and then curating an environment retailers want to be in so many years ago retailers kind of went wherever they had to but now they're becoming more picky and choosy and really finding out what are the big traffic drivers are there events that are being curated at that Center and I think that the new development the oak has really done a great job in terms of creating that green space plac making the art the live units the hotel and then the food and beverage so food and beverage is now an anchor tenant so you're looking at food and beverage as like being a cat is to really Drive traffic for a development and then size and scale is really important so developers with multiple locations can really have leverage to position tenants easier and this is really changing the shopping experience as well so retailers were downsizing um probably a few years ago just because of Co and other things and now they realize that they've downsized so small that they're trying to get bigger spaces again because it changes the way that the consumer wants to have the space and and that shopping experience is is kind of played out uh resilience and adapt adaptability is really key so looking at the whole relationship versus just a transaction engaging with those retailers early on to find out if there's exclusives in the center and what those exclusivities are because a lot of times people say why don't we have a particular retailer at a specific Center and a lot of times whoever is currently there has an exclusive where they won't allow somebody else to sell let's say Sporting apparel they won't all another you know equipment sporting equipment or something like that so A lot of times it has nothing to do with the center as it does with the type of lease that they signed and then enhan security and loss protection so centers need to have Security in place to really protect retailers theft is on the rise and retails have to implement new policies and procedures and luckily this is not a big deal for us in Oklahoma City yet um but every retail trade show that I go to this is a big topic is talking about loss prevention and how to combat this for retailers uh retail vacancy is at an all-time low so we were at the ICC New York show in December and Retail advisor Services indicated that nationally we're at a 4.8% vacancy uh second generation Space is really hard to come by and then the cost for new construction is really challenging in this current economic condition with the interest rates what they are so that's kind of a a little bit of what we're seeing like nationally and then AI is really um taking shape and increasing even more so right now they say AI is at 5 billion and it's expected to increase to 31 billion by 2028 and retailers are using this for automation loss prevention sustainability and really looking at how they can bring the cost down in supply chain optimization um I had the opportunity to um moderate a panel out in LA and one of the the people that we were moderating the panel for was an owner of a major real estate technology platform and they were saying that typically you spend 1% on research and development but in order to be relevant companies need to really spend about 7 to 8% um this next slide here shows the sales tax monthly overview and we didn't have um octob or November and December because we changed this in from last month and this is just showing you that the major categories that are winners in terms of highest growth which was hotel and restaurant manufacturing and utilities um from last year we saw about a 3.5% increase in sales tax and now I'll just kind of highlight some of the major developments that are underway in our Market I mean the oak has really gained a lot of Attraction and attention so with the announcement of Restoration Hardware ourhouse C Grill Marlon bar Pottery Barn William Sonoma along with the Lively hotel and the residential units um the half continues to take shape with the Andre's go-kart racing so 100,000 square F feet experiential entertainment concept and then also the developer has the South half so now you have 100 acres um right there off of 235 and they're working with a lot of out ofate um restaurants kind of eyeing at this concept so they have the ponds and the restaurants in in that area so that should be taking shape here pretty quick I think in terms of other new tenants that should be announcing um the Homeland at Rose Creek Plaza opened as well as several new provision Concepts that are announced that will be going 164th in May and then boardwalk at Bricktown has made some national headlines with some pretty ambitious aspirations for Oklahoma City so we continue to to work closely with the developer on that in terms of their overall plan and what they're hoping to accomplish um in Bricktown um Chisum Creek welcome Gordon Ramsey restaurant which is really elevating the the resta SE in Oklahoma City they're also going to be adding spark which is the social order concept that's at sisel Park and then Dave's Hot Chicken will also be added to to Chisum Creek um Okana just really being able to show you know this is a resort style destination as to the fabric of Oklahoma City and our storytelling capabilities of the close proximity this is to downtown and the connectivity that this is really going to change for for downtown and for that whole I40 corridor uh Mustang Creek Crossing had a 280 acre development West off of I40 they announced the notes Live Theater which is a 12,000 seat Amphitheater and there's other tenants that they are evaluating for this Corridor as well and then ongoing engagement one of the things that I think is really important is the overall housing growth map so we work really closely with the city planning department and I'll show you a picture of the map later on in the slides but this is really the most um requested document that we get is to show where the residential housing is what's the potential developments and people can really see what those rooftops look like um site visits and tours we had 11 new to Market retailers come to okahoma City last year um anything from National change to multif family to senior housing developers that were first time in the market and we work really closely with the commercial re retail districts um had a lot of involvement with the Asian District as well as the adventure District on really growing and elevating some of the things that are happening in these corridors uh we support the independent shopkeepers association with what they do at the Holiday pop-up shops and then ongoing some of their efforts to work with the the local retailers throughout the year and then nationally every opportunity that we can to Showcase Oklahoma City on a national level so that's involved in icsc Uli we go to the entertainment experience Evolution conference a grocery conference so really just trying to make sure that Oklahoma City is um showcased in the best light and talking about the growth that's happening in our market so the next slide shows you the housing growth map so this is the the red dots indicate housing growth since 2018 the orange area shows the potential homes and the tan color is a single family housing built since 2018 and this map was updated by the planning department in the fall of 2023 so as I mentioned here are some of the different um Outreach groups that we were really involved in so I leave tomorrow for ICC Red River and then next week we're at the entertainment conference so ICC is still the major leader in terms of um Recruitment and having that face-to-face opportunity to meet with developers and and retailers and and showcase our brand I wanted do point out to um our marketing team did a complete recas on our booth so last year we put all new graphics new design and updated all the the material on the booth for for ICC here's a quick rundown of the metrics that we really have been able to track which would be active projects that we have in the pipeline and then new contacts that we've made um local retail engagement so working with property owners to mall owners to developers and really kind of keeping that relationship open we attended 13 different retail specific trade shows and then hosted three events here's a quick rundown of the announcements that were either announced or under construction for 2023 and then I think it's really important to talk about Kroger a little bit too so Kroger has our distribution facility here in Oklahoma City and we continue to curate this relationship and stay in involved with them and one thing I think it's really interesting to show is that we outpace The Dallas store in terms of delivery which I think is huge considering our population compared to Dallas so our hope is to continue to Foster this relationship and hopefully um Kroger will look at Oklahoma City for Brick and Mortar locations so and with that I'm happy to take any questions Tammy I was just wondering on there um you had listed some leadership opportunities or um is that that referring to the conferences or is that something different it's well it's within the the National Organization so we're involved I am UL next to America so it's nationally being able to elevate Oklahoma City nationally so we moderate panels discussions go to the Uli spring conference the fall conference and then really engaged with the the next americaas chapter and then ICC really involved with the Red River I was a planning chair for two years this year I'm won the committee so I've passed the Baton to somebody else and just really anytime that we can Elevate so when we were at icsc um Las Vegas we moderated a panel that talked about incentives and talked about what Oklahoma City's done talked about the maps for um maps and what that's done for Oklahoma City so just really getting our name out there and volunteering allows the gateway to open the door to to meet developers and to retailers okay thank you Tammy historically uh Oklahoma City wasn't necessarily attractive to a lot of retailers because of density issues and they didn't understand that we don't take an hour and a half to go 5 miles we can get we can get across town in 20 minutes so have you seen in just in the last year at all your respective trade shows an attitude shift I think the the more I'm seeing is about the mixed use development and really creating that master plan is really key so having the walkability having the art having that one place so when people talk about going somewhere they go to a place and then there's multiple Concepts within that place and creating you know the safety the events and all those things so just being out here on an island by yourself is probably not as beneficial as it is is really creating that Partnerships and clustering and clustering with like-minded tenants so anything that we can do to really kind of bring home the collaboration and introduce you know developers to Brokers to to Concepts is really key Mr chairman Tammy great presentation um I'm just thinking about sort of the end of 2023 and it's spilling into 2024 and I know I'm sure that you've read the headlines you you talked about food and beverages commercial districts um vacancies we've had a lot of recent closures of restaurants in the area I think the last number was maybe 48 restaurants many of which are locally grown and owned and operated I was just trying to figure out what's what's going on in the market I don't know if that falls in your wheelhouse but what's happening out there it does so I mean I think that we're seeing a lot of new Concepts so even though we're seeing some that are closed some of those are tired Concepts or maybe they are by themselves versus being in that mixed use development or really being a part of a district so I think concepts are evolving and changing and having the staff to support some of those establishments is really tough um the cost of food has gone up substantially so really that price point and and making sure that you're changing your menu and changing things to really adapt to the the current economic conditions is really key because we have people call all the time and like I have meetings set up later this week with some folks in in Dallas area that are looking to kind of come this way and looking at opportunity for our our market so I don't think it's so much as um a negative that that we're seeing some of these restaurant shutter as we are seeing just the changing of where they want to be and what that location looks like and some of them might close but then like they're opening in additional locations throughout the city and other places so I think what was an eye opener for me when you would when you jaapos the closures with all the openings of the last two years uh We've we've had a lot of new restaurants come into town we have we have we've had a lot of new pretty high-end restaurants I think come in as well um and then we've had some like smaller local groups out of Dallas because I feel like we're somewhat of an arm of of Texas I know people don't really like to consider us an arm of Texas but they have so many robust Concepts inste have really looked our way and said oh my gosh why are we not in okahoma city so and they don't just want one concept because it doesn't make sense to only have one here so they're looking at bringing two to three concepts TOA City good questions anybody else I I just have one more to follow up with that um with those is that kind of where we want to stay in those particular areas with just Uli and the other one or would you have any um hopes or wishes of any others that you could potentially be connected to are there any other ones out there that we might be considering um I think you good fit maybe sorry for what or a good fit a good fit I mean we go to quite a few I mean we we're at 13 different shows nationally so everything from retail live to the National shows of really on product councils to all kinds of things and then ICC we don't just go to the Vegas show we go to the Red River show we go to Western Division show so we have multiple times to really engage throughout the year and stay in front of people and talk about the success and we have our iPad that's full of you know all the different projects and developments that are underway in okoma city so I think the more of just being persistent and being in front of people has been really key thank you so thanks all right thank you fate brings us to item five on the agenda the general manager's report miss mpen good afternoon I just want to make a couple of Qui question quick comments um I would encourage you to take a look at our interest earnings for this year um and I want to let you know that we're um watching kind of the market market changes we're working with our Treasury Department to work on a good investment strategy moving forward um and I did make some modifications to the Tiff status report I've added back a few completed projects to create kind of a running task list for Sarah and I because we have a lot of projects that are completed but still have a lot of work involved in our office so um and we're working on some uh some changes to the go status list as well and those will come through hopefully next week or next month happy to answer questions thank you all right item six on the agenda any comments from staff comments from trustees did any citizens sign up no all right item seven we are adjourned yeah
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