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Home / Capitol / Oklahoma legislation would require public vote on TIF districts
OKLAHOMA LEGISLATION WOULD REQUIRE PUBLIC VOTE ON TIF DISTRICTS
By: Janice Francis-Smith The Journal Record February 3, 2023 0
State Rep. Tom Gann, R-Inola, filed bills that would prohibit state officials
from creating tax increment financing districts without the knowledge and
approval of the citizens affected by the proposed development. Shown,
Mid-America Industrial Park. (Courtesy photo/Mid-America Industrial Park)
OKLAHOMA CITY – State Rep. Tom Gann, R-Inola, was not happy with the mysterious
process state officials used last year in their attempt to lure a Panasonic
battery factory to the state.
Gann responded by filing bills to be considered during the 2023 legislative
session that would prohibit state officials from creating tax increment
financing districts without the knowledge and approval of the citizens affected
by the proposed development.
House Bill 1379 would require a vote by citizens to redirect property tax
through tax increment financing districts. HB 1378 would prevent government
officials from entering into non-disclosure agreements with companies seeking
state or local incentives.
“The process I personally observed was not one where balanced information was
provided on whether a TIF district was a viable proposition for economic
growth,” Gann said. “I saw a process of one-sided information, using sales
techniques to promote the proposal.”
Gann referenced last year’s legal battle between a group of Mayes County
residents, county commissioners and administrators of Mid-America Industrial
Park in northeast Oklahoma.
MAIP is Oklahoma’s largest industrial park, covering 9,000 acres with more than
80 tenant firms, including Google, DuPont and Nordam. MAIP is owned and operated
by a self-sustaining public trust and generates operating revenues through a
park-owned water and wastewater system and park land sales and leases.
In 2021, Gov. Kevin Stitt and other state officials embarked on a project dubbed
Project Ocean – an effort to lure a Panasonic plant to Oklahoma. Panasonic,
working in partnership with electric vehicle company Canoo – another MAIP
resident – sought a site to build batteries for electric vehicles.
Stitt successfully got the Oklahoma Legislature to approve roughly $700 million
for the project while refusing to name the company the incentives were designed
for, claiming negotiators had signed nondisclosure agreements.
The incentives for the mystery company included move-in ready space at MAIP.
MAIP officials got Mayes County commissioners to approve a plan that would
direct property tax revenues toward a newly created 588-acre TIF district to
fund infrastructure improvements at the MAIP site offered up under Project
Ocean.
Local residents questioning the development failed to get clear answers
regarding how their tax dollars would be spent and for whom, according to Gann.
“The answers they were given were vague and they were told the information
couldn’t be revealed because it was part of a non-disclosure agreement,” Gann
said. “This caused further frustration and more questions about the creation of
a TIF district.”
Residents sued to obtain the information and won the opportunity to vote on the
proposal at the Nov. 8 election. Citizens in every precinct of Mayes County
voted down the TIF district, with 63.9% of the vote opposing the project.
Gann said he wants to prevent the situation from arising again. Gann said it is
the taxpayer who bears the risk when big incentive packages affect their
property tax base.
“House Bill 1379 will put the power back into the hands of citizens by requiring
a TIF district proposal to go to a vote of the people for approval,” Gann said.
“It will eliminate the costly legal battle against government imposing a TIF
district without the consent of the governed.”
Gann noted more than one occasion last year when state officials refused to
identify a company in line to receive state dollars. In addition to the mystery
surrounding Project Ocean, the State Board of Education refused to reveal what
vendor was awarded a $33.6 million contract, claiming the information was
protected under a nondisclosure agreement.
“When politicians are willing to invest and speculate with taxpayer dollars, the
Oklahoma taxpayer has a right to know exactly how taxpayer dollars are being
distributed for business activity and exactly who will be receiving the taxpayer
dollars from vendors seeking to do business with the state of Oklahoma,” Gann
said.
Canoo Google Oklahoma Legislature Panasonic Project Ocean 3:47 pm Fri, February
3, 2023 The Journal Record
Janice Francis-Smith
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