A formal Memorandum of Understanding was approved by City Council on November 2, 2004.
The City provided $5.5 million in job creation incentives which will be funded by a forgivable section 108 loan. The City is also providing up to $11.7 million in infrastructure improvements, such as water, sewer and street upgardes. The $11.7 million will be funded by a new Tax Increment Financing District.
The City's Finance Department, which helped put together the incentive package, anticipates a cumulative overall economic impact of $764.7 million.
The direct real estate tax impact is expected to be of $664,807 over the initial three year period – plus an indirect property tax impact of $5,544,246.
The City anticipates an annual local sales tax impact of $2.0 million. Sales tax revenue provides most of the money that goes into the City's General Fund. Under Oklahoma's Constitution, cities are not allowed to use property tax revenue for General Fund expenses.
“The location of Dell on the river is extremely significant for several reasons,” Mayor Mick Cornett said. “It is proof that our investment in the river through the MAPS program is attracting new jobs and investment to our urban core. In fact, I believe today’s announcement marks the beginning of the next stage of our city’s renaissance, one that began in downtown but is now spreading. The chosen site is also significant because of its location within the Empowerment Zone and the opportunity it brings to residents in this area.”
One year from the opening of the Center in Oklahoma City, Dell will be provided job creation grants of $1,000 per employee based upon the average number of full-time employees employed during the previous year. The total of all job creation incentives will not exceed $5.5 million.
The 68-acre site is also part of Oklahoma’s federally-designated Empowerment Zone. The Zone was created to promote public-private collaboration to stimulate job growth. Dell, Inc. will be able to take advantage of unique tax breaks and incentives due to its location in the area.
“While the location in the Empowerment Zone is advantageous for the company, it is even more important to our community,” Cornett said.