By John Dobberstein, Editor
After more than a decade of speculation about what development would occur near the Warren Theater, and when, the city now plans to buy the property outright to move some imminent retail projects forward.
The Broken Arrow City Council voted to permit the city’s Economic Development Authority to enter into a purchase agreement to buy 37.9 acres of undeveloped land along Aspen Creek Drive from Sig-Broken Arrow LTD and The Signorelli Co. for $7 million.
Assistant City Manager Norm Stephens told the City Council Tuesday that several national-level retailers are ready to commit to projects on the property. Stephens could not name the tenants but revealed that a three-phase project is planned that would create an estimated $76 million in sales annually, including $5.3 million in sales tax revenue per year for the city.
The city is opting to use federal CARES Act funding to acquire the land. Stephens said if the development generates as much revenue as planned, and the city can recoup some of its money through re-selling property back to developers, the land investment could be paid for in about 10 years.
The property to be sold includes 4 parcels east of the Warren Theater building, but not a small parcel fronting West Tucson Street that is directly south of the theater.
While the Shops at Aspen Creek opened several years ago with a small strip center, much of the surrounding property hasn’t been developed. A site plan on The Signorelli Co.’s website called for a grocery store, hotel and conference center and several retail parcels.
After spending much time spent in negotiations, Stephens told the City Council candidly that the only way he felt the project would move forward was if the city owned the land in question.
“This is not the deal I thought I would be bringing to you back in 2012,” he told the Council. “It’s my opinion that without a funding mechanism and funding from the city and the owner, we can’t get anywhere close. (The property) will lay in the same state that it is now for the next 5-10 years. The only way is a public-private partnership and city and the EDA getting authority to own the land.”
At-Large City Councilman Johnnie Parks voted against a resolution authorizing the negotiations and purchase, repeating his comments earlier this year that he didn’t like the city owning land for development.
“What I object to is setting a precedent where we’re going in and buying the land. It’s not even the money. I’ve always been opposed to using our public dollars to make money,” Parks said.
“I can’t stand that we’ve been put in this position, but it is what it is at this point,” added Ward 3 City Councilor Christi Gillespie. “But we’ve always done a good job of recouping our money.”
Stephens said it’s not the EDA’s intention to be a long-term owner of land, but in this case, is needed ownership is needed to get to negotiations on an economic development agreement – which he hopes to bring to the City Council by early May.
