City councilors voted to approve and adopt ordinances for a Tax Increment Financing (TIF) district along George Nigh Expressway. The action outlines the anticipated parameters of the TIF agreement.
City Attorney John T. Hammons said the approval means the council will forgo $10 million in tax collections in exchange for an anticipated $48 million investment from the developer, with no financial risk to the city.
The TIF district will operate until June 30, 2034, or until it generates $10 million in funding — whichever comes first. The district does not require the city to pay any upfront costs, as a portion of the new tax revenue generated within the district will be reinvested into the area.
The Mid-McAlester TIF Review Committee held several meetings before recommending the proposed district plan to the City Council on Feb. 24. The project plan will go through city processes, meet state and federal regulations, and require City Council approval. Citizens provided input at two public hearings, and the developer addressed several concerns.
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 begin with the first sale within the district or by July 15, 2026, with 90% of the collections going to the developer. A portion of the funding — 2% annually for the life of the TIF — will go to the Frink-Chambers School District.
Although the TIF is not within the McAlester Public Schools district, the district will continue to benefit from a quarter-cent sales tax because the project is within McAlester city limits.