30-01-2025
Committee approves preliminary plan for new TIF district
Jan. 30—A review committee voted to agree in principle for a Tax Increment Financing district project preliminary plan that could potentially bring new businesses and housing to McAlester.
The committee began to meet last year to begin discussions aimed to incentivize a developer to invest in the community after city councilors voted in September 2024 to for the committee.
According to the City of McAlester, the development aims to bring 128 town homes, a major sporting goods retail company, and a few more stores in the area. The proposed housing district will encompass a 12-acre parcel, zoned for residential use but underdeveloped. The proposed retail development district will be located within a three-acre commercial parcel and a separate eight-acre commercial zone near the town's central business district.
This proposed project area is along U.S. Highway 69 near Lakewood Christian Church and School.
Developers said the estimated total cost of the project is about $48 million and that they were looking for $10-11 million out of the TIF district.
According to a press release from the City of McAlester, the projected plan encompasses three major parcels already under discussion, with no immediate plans to expand the district boundaries. The committee determined that any future modifications, such as incorporating additional properties, will be revisited only if new developments are completed and deemed beneficial for the community.
Highlights of the preliminary plan state the TIF district would operate for eight years "or until it generates $10 million in funding," whichever comes first.
The Ad valorem tax apportionment will begin immediately upon ordinance approval, ensuring the city captures the lowest base value for properties in the district. Sales tax collection will start either with the first sale within the district or by July 15, 2026, aligning with projected openings of key retailers.
A portion of the funding, $30,000 annually for the life of the TIF, will be directed to the local school district to support portable facilities and other educational needs, according to the plan.
"This plan allows us to stay focused on the projects we've thoroughly vetted while leaving the door open for potential future opportunities," said TIF Committee Chairperson John Browne in the press release. "Our priority is to ensure responsible growth that benefits the community without overextending our resources."
McAlester City Manager Dave Andren said in the release the city is committed to delivering "meaningful results" through the TIF district while keeping the process transparent.
"Our approach balances the need for immediate action with the flexibility to adapt as new opportunities arise," Andren said.
According to the city, current plans call for the major sporting good retail company to begin operations by mid-2026 "contributing significantly to both sales tax and property tax growth within the district."
"The committee emphasized its commitment to ensuring that any changes to the TIF district will undergo thorough review and public consultation," the city said in its press release. "For now, the focus remains on executing the current plan and securing a solid foundation for the city's economic future."
Before the TIF district becomes active, several steps will still need to be taken including public notification, public hearings, city council approval, and more.
