What was the City's portion of the incentive package?

$5.5 million in job creation incentives - which will be funded by a forgivable section 108 loan and up to $11.7 million in infrastructure improvements. The $11.7 will be funded by a new Tax Increment Financing District.

What kind of return do we expect on this investment?

Based on a three year ramp up of 3,000 employees, we anticipate an annual direct economic impact of $246.5 million and an indirect economic impact of $135.9 million in year three. During the l 4 year ramp up period, we anticipate a cumulative overall economic impact of $764.7 million.

From a taxes standpoint, we anticipate a direct real estate tax impact of $664,807 over the initial three year period and Indirect Property tax impact of $5,544,246. By year three, we are anticipating an annual direct property tax to be $329,526 and indirect property taxes to be 3.1 million. As for sales tax, we anticipate n annual local sales tax impact of $2.0 million.

Why did the City provide such an attractive incentive package?

The City sees this Dell facility as an important, strategic decision. This facility will provide good jobs and creates an anchor development on the Oklahoma River that will spur housing, entertainment and other amenities. If you look at the development that has occurred in other cities around Dell sites, you will see the enormous potential this location brings to our City.

We looked at this as a worldwide competition to win these for jobs for our region. Employees will travel from across the 10-county area to work in this facility. We are proud that we could put together the kind of package that seals this deal for our area.

Are these jobs worth the incentives?

Economic experts believe these jobs are absolutely worth the incentives. Employees at Dell get earning opportunities based on how well they perform. We structured our incentive package to the company in the same way – as they add additional jobs, we provide that incentive. This is not a “cash upfront” type of offer.  Our package is based on the potential of up to 3,000 jobs at an average salary of $40,000.

When does construction start?

Construction is scheduled for some time by the end of 2004.

When is opening scheduled?

It is anticipated that the new center will open in late Summer 2005.

When will the jobs be ready and where do we apply?

Dell already has a temporary site in NW OKC. Job information can be obtained here.

Is the City building the facility like Bass Pro?

The building will be built by Dell at its expense. We anticipate a phased-in investment of up to $36.0 million.

What type of infrastructure improvements has the City agreed to provide?

The improvements to the site the City is providing will prepare the site for construction and support access to the site. The City will also provide drainage, City utilities and similar services.

What is the value of the land? How does this impact the river development?

The land chosen for this site was owned by the City and was being held in reserve for the development of the river. There will be a revision of the river’s master plan to reflect this change in development. This facility will greatly enhance the value of surrounding properties, much the same way the MAPS projects have enhanced the value of Downtown and Bricktown property.

Is there a formal agreement between Dell and the City?

Yes. A Memorandum of Understanding was approved by the City Council on November 2, 2004.

How can the City afford to do this?

The City can’t afford not to invest in jobs and new investment. We have a strong history in this community of making wise investments in projects that reap huge rewards, such as the visionary MAPS projects. This is one of those investments.

Are incentives like this really necessary?

Experts say economic development is no different than any other business – it is competitive. Dell looked at cities worldwide for this location. Oklahoma City obviously stands out for its workforce and quality of life but we cannot ignore that in today’s economic development environment, incentives are important to closing the deal.