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CONSIDERATION OF ORDINANCE O-1516-10 UPON SECOND AND FINAL READING: AN ORDINANCE OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA ADOPTING AND RATIFYING THE ASSESSMENT ROLL FOR THE UNIVERSITY NORTH PARK BUSINESS IMPROVEMENT DISTRICT; ESTABLISHING THE TIME AND TERMS OF PAYMENT OF THE ASSESSMENTS AND OTHER EXPENSES; FIXING PENALTIES TO BE CHARGED FOR DELINQUENT PAYMENT OF THE ASSESSMENT OR AN INSTALLMENT THEREOF; SETTING FORTH THE TRACTS OR PARCELS OF LAND AGAINST WHICH THE ASSESSMENTS ARE BEING ADOPTED, RATIFIED AND LEVIED; DIRECTING THE CITY CLERK TO PREPARE, SIGN, ATTEST AND RECORD WITH THE COUNTY CLERK OF CLEVELAND COUNTY, FOLLOWING PASSAGE OF THE PAYMENT DEADLINE, A CLAIM OF LIEN FOR ANY UNPAID AMOUNT DUE AND ASSESSED AGAINST A TRACT OR PARCEL OF LAND; AND PROVIDING FOR THE SEVERABILITY THEREOF.
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BACKGROUND: Upon adoption of Resolution R-1415-11 on July 8, 2014, the University North Park (UNP) Business Improvement District (BID) was created to primarily provide for maintenance of Legacy Park. After a district is created and the assessed property owners have the opportunity to object to the assessments, an ordinance is proposed to formally levy the assessments and provide for penalties for delinquent payments. Because the amount of the assessment for each property owner will change each year, a new ordinance must be adopted each year ratifying the current assessment roll for the UNP BID. Staff discussed this process with Council during the UNP TIF Update that was presented on July 28, 2015 at the Council Conference.
DISCUSSION: As discussed in the July 28, 2015 UNP TIF Update, UNP TIF District Development Agreement #5 provides for the creation of a Business Improvement District over a ten year period that is assisted by $900,000 in TIF Revenues to help stimulate development in the area. The BID Petition adopted by Council last summer provides $200,000 per year for ten years for a total of $2 million for maintenance and improvements in the UNP BID District. In the first year of the BID, $200,000 was provided through UNP TIF Revenues. In the second year, the $200,000 is to be provided with $175,000 of TIF Revenues and $25,000 in assessments to the property owners. Accordingly, $25,000 in BID assessments were levied and collected last fiscal year for use in FYE2016. In subsequent years, the TIF Revenues contribution will be decreased by $25,000 per year and the Bid Assessments to property owners will be increased by $25,000 per year until the full $200,000 assessment is made to property owners without a TIF Revenue contribution.
Ordinance O-1516-10 formally ratifies the 2016 Assessment Roll as presented and sets the deadline for payment of such assessments for March 31, 2016. Following the pattern outlined above, the fifty thousand dollars in BID assessments levied and collected this fiscal year will be budgeted along with $150,000 in TIF Revenue for use in FYE2017. The Ordinance also establishes a 10% penalty fee should a property owner fail to make such payment. Once the payment deadline passes, a lien will be filed with the Cleveland County Clerk’s office for any properties for which timely payment hasn’t been received.
RECOMMENDATION: Based on the above discussion, and the presentation on July 28, 2015, Staff recommends adoption of Ordinance O-1516-10.