<div>Oct. 23—In a 6-3 vote by the Chickasha City Council, the commencement date for the tax increment district in downtown Chickasha will start at the beginning of the year.The City Council approved a resolution "creating, naming and establishing" a commencement date for the downtown area of the Chickasha Economic Development Project Plan. Increment District No. 2. will officially be commenced — or created — on Jan. 1, 2025 with a termination date of June 30, 2050."This just starts the date, commences the TIF..." Mayor Zachary Davis said. "So we can start getting that baseline, and then possibly any increment increase, we start collecting into that pot to be able to fulfill infrastructure needs or if a potential developer then we have something in the pop ready to go."Davis said the baseline for the valuation of property would be structured on the assessments available as of January 1.Nate Ellis, who is leading the TIF project with Public Finance Law Grou added that this baseline date would mean any remodeling taking place in the designated TIF area that is not completed by the end of the year that would increase the valuation would not be included in the baseline.A councilmember asked Ellis how ad valorem tax would increase in a section of town where all the structures were already built."You shouldn't have any for 2025 because the baseline is established based on the January 1 value," Ellis said. ".... If the baseline is established as of January 1, 2025. There should not be any increment because there will not be any increase that's assessed until January 1 of 2026. So things that happened during (2025) get picked up at the beginning of 2026."To have any increase, Ellis said there will be investments made in the already existing properties."There's a decent amount of property just in the...I mean, think of the Midfirst building," Ward 3 councilmember Erica Alexander, said. "There's been talks for several years about turning and remodeling that. (If) they do that (then) the property value of that goes up. "So there's ad valorem opportunity in this TIF district."While there might be a nearly two-year lag in the collection of ad valorem tax due to the timeline in property valuation and tax collection, the lag on collection of sales tax revenue for the TIF district will be about two months.When asked how to handle sales tax for events held in the TIF district, events such as the Food Truck Championship, how does the City go about collecting sales tax from those food trucks, if the City can collect any at all.Davis said he used to run a food truck and they were required to pay sales tax for the municipality the food truck was located in at the time of the sale.Ellis added that, in the future, the city can look at adopting policies on how to handle these situations. He used the example of a business opening a second location in the TIF district. If the business is owned by the same person or company, it likely only has one sales tax permit and will only pay one amount.He said the city could at how much, historically, the business was generating with one collection and compare it to the amount generated after the second location was opened."You can look at that as an increment on kind of a case-by-case basis.," Ellis said. "'These are the rules that we apply. We make assumptions as to how we're going to treat that when we get those raw numbers, how we're going to determine what's TIF and what's not TIF when we can't necessarily tell exactly what side of the line it was on to begin with.'"The City is able to amend the Tif ordinance at "any point in time that the city wanted to bring an amendment forward," according to Ellis, as long as it doesn't increase the projected costs or size of the district by more than 5 percent, or substantially change the TIF characteristics.City manager Keith Johnson did confirm that the city currently does not have the infrastructure, specifically noting water pressure, to support some of the larger buildings downtown, but added that these were the reasons a water treatment plant was being built and working to improve other infrastructure."Starting this timeline and starting that pot collecting could potentially have the revenue to start some infrastructure projects that are needed utilizing (the money captures)," Davis said.Ward 4 councilmember John Smith, Ward 4 councilmember Erica Alexander, Ward 3 councilmember Oscar Nelson, Ward 1 councilmember Ken Ginn, Ward 2 councilmember Georgianne Hebblethwaite, and Mayor Zachary Davis voted in favor of commencing the TIF district as of January 1, 2025.Ward 2 councilmember Brian Gerdes, Ward 2 councilmember Charlie Burruss, and Ward 4 councilmember Kelly Boyd voted against the resolution.</div>

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City approves commencement date for downtown TIF district

Oct. 23—In a 6-3 vote by the Chickasha City Council, the commencement date for the tax increment district in downtown Chickasha will start at the beginning of the year. The City Council approved a resolution \"creating, naming and establishing\" a commencement date for the downtown area of the Chickasha Economic Development Project Plan. Increment District No. 2. will officially be commenced — or created — on Jan. 1, 2025 with a termination date of June 30, 2050.

Oct. 23—In a 6-3 vote by the Chickasha City Council, the commencement date for the tax increment district in downtown Chickasha will start at the beginning of the year. The City Council approved a resolution "creating, naming and establishing" a commencement date for the downtown area of the Chickasha Economic Development Project Plan. Increment District No. 2. will officially be commenced — or created — on Jan. 1, 2025 with a termination date of June 30, 2050.