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1/4-cent tax: Small tax, big impact

Mar 23, 2021

Economic development sales tax up for extension

Bartlesville voters will decide whether to extend the nearly 35-year-old 1/4-cent Economic Development Sales Tax in an election set for April 6.

The tax, which was first approved by voters in 1986 and has been extended every five years since, supports the City’s economic development and tourism efforts — keeping jobs and sales tax dollars in Bartlesville and bringing new businesses to the area.

Approval of the extension will not result in an increase in sales tax, as the existing 1/4-cent will simply remain in effect beyond July 1, 2021.

Bartlesville Development Authority President/CEO David Wood says the BDA has worked diligently over the years to provide results for Bartlesville — and the current tax period has been no exception.

“The last five years has truly been a stellar run for economic development in Bartlesville,” Wood said. “Going into the election five years ago, we pledged that we were going to do everything we could to get a significant shopping venue in the center of town. And five years later, we have Silver Lake Village Shopping Center, which has been a great addition to the community. We also knew if Atwoods completed their move to the south, that would trigger bringing in Chick-fil-A, our most requested brand, as well as the redevelopment of all of Eastland Shopping Center.”

Record of success

Wood also points to the success of the recent redevelopment of the former Kmart property, home for three new stores and new restaurants on the way. (“We’ll know soon enough whether or not the Bricktown Brewery, just south of the CVS, will be coming in. I suspect it will but we don’t know for sure,” he said.)

Wood said that while a lot of attention was paid to retail development in the past five-year sales tax period, “some really good things have happened on the primary industry front, too.”

“We were all shocked when Siemens announced they would be closing their manufacturing operation west of Bartlesville, and certainly we were sad for the employees who lost their jobs when that occurred,” he said. “But since that time we have been able to utilize that facility to provide offices for a movie production company interested in filming a major motion picture in Bartlesville, relocate the Chicago start-up company Tritanium Labs, and help launch a new business that kept some of those Siemens-related jobs here.”

Wood said that one of the divisions operating at Siemens was a machine shop and that the plan, corporate-wise, was that Siemens would simply close the plant and outsource its machining needs, most likely to India or China.

“The machine shop foreman and his team stepped up and said, ‘If you need to outsource, we would like to form a company and you can outsource it to us — we’re skilled and we know what we’re doing,'” Wood said. “That’s how Phillips Precision Machining was born.”

Wood said the BDA worked with Siemens and PPM owner Mark Phillips to get the company up and running.

“Siemens was great to work with to make that happen,” he said. “We provided some operating capital as well as some equity for their building. Today, PPM is doing great. Their initial 16 employees has grown to 20 and they continue to grow. We were able to retain those jobs and keep those employees in Bartlesville.”

Wood said economic development dollars are also to thank for assisting Apple Productions LLC in their filming efforts in the Bartlesville area. Wood is prohibited from discussing the movie or project specifically, but media reports indicate the company will film “Killers of the Flower Moon” in the Bartlesville, Osage County and Tulsa area.

“We had no immediate prospects for the office tower (at the former Siemens facility), so this was a perfect opportunity to utilize the space for the benefit of the community,” Wood said. “As a result, we’ll have far more production personnel based in Bartlesville filling our hotels, eating in our restaurants and shopping in our stores.”

Under the terms of the lease, Apple Studios will have exclusive use of the 45,000-square-foot office building and approximately 10,000 square feet of the manufacturing area.

“Between now and late fall, they will have spent 50,000 room nights in our community,” Wood said. “And that comes at a time during COVID, when our hospitality industry has been absolutely hammered. So all of those workers staying in our hotels and eating in our restaurants is fantastic for the community.”

Other successes include the sale of the previously leased ABB building to the company, the proceeds of which were used to purchase the former Siemens facility.

“ABB’s purchase of that facility absolutely showed the company’s long-term commitment to Bartlesville,” Wood said. “We were happy to accommodate them with that transaction, plus we were able to utilize those proceeds to further invest in the community.”

Community support

Wood said Bartlesville’s success over the years has largely been due to the voters who have supported the 1/4-cent Economic Development Sales Tax.

“Bartlesville has some real advantages, one of them being the way economic development is funded — through a sales tax,” he said. “With that, every five years the community decides if this is something they want to continue. And since 1986, overwhelmingly, every five years the community has said that they do.”

Wood said the City Council and BDA Board of Trustees have also done an excellent job of staying focused on recruitment of primary industry jobs — “so that we can export goods and services and import money” — as well as boosting retail development to appeal not only to Bartlesville residents but also surrounding towns, including Coffeyville and Independence, Kan.

“We’re a bit of a hub for our friends to the north, which is a win-win for all concerned,” Wood said. “It gives them expanded shopping and dining options, and it means our visitors are contributing to our revenue streams.

“We’re very blessed in Bartlesville because, based on our policies and the support of our past and current council and trustees, we are able to go forward with confidence in showing potential investors what we can do for them. Bartlesville can turn a deal faster than any community I’m aware of, and that gives us the competitive edge we need to attract the brands that people want to see in our area.”

How to vote

Absentee ballots, sample ballots and other information are available at the OK Voter Portal. In-person early voting will be held 8 a.m. to 6 p.m. April 1 and April 2 in the first floor Council Chambers at City Hall, 401 S. Johnstone Ave. Voters should use the west (back) door. (Note Saturday voting is not available for this election). Polls will be open 7 a.m. to 7 p.m. on April 6.

For more information, contact the BDA at 918.336.8708, the Washington County Election Board at 918.337.2850, or the City of Bartlesville at 918.338.4282.

Some information in this report was originally broadcast via Bartlesville Radio.

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