A relatively new economic development tool recently implemented in Bartlesville is not only helping employers fill open positions, it’s also making a positive impact on the local housing market and city tax base, says Bartlesville Development Authority President David Wood.
The Resident Recruitment Program aims to bring — and keep — employees who are relocating for newly created jobs in Bartlesville.
“Thanks to tremendous support over the years from voters and the Bartlesville City Council, Bartlesville’s economic development program has been quite successful in its primary areas of focus, and that has been to grow the local business base, create and retain jobs, and implement retail expansion,” Wood said. “But while we’ve known for some time that our incentives work well for bringing jobs to Bartlesville, unfortunately, too many of the people relocating for those jobs choose not to reside in Bartlesville.”
Wood said Bartlesville loses those employees to the Tulsa metro area, prompting community economic development leaders who come up with a solution.
“We knew we were missing an opportunity to grow our community and our tax base,” he said. “So we decided to try a new approach, and that’s how the Resident Recruitment Program was born. Instead of providing incentives for an employer to locate in Bartlesville, this program provides incentives directly to the employees of the business to encourage them to buy or build homes here.”
Wood said the incentives offered are the same — only the beneficiary has changed.
“Generally, the job creation cost is the same as traditionally offered — the difference is merely the beneficiary, the employee rather than or instead of the employer,” he said. “In many respects, the return on the public investment is higher as the recipient must live in the local taxing jurisdiction. For this reason, targeted employee relocation incentives have proven to be the preferred use of job creation incentives.”
The pilot program
A pilot program was launched last year with incentives for relocating Concho Resources, which proved to be a success. Incentives offered are:
- $10,000 cash assistance for the purchase of a primary residence within the city limits
- $20,000 cash assistance for new construction of a primary residence within the city limits
- $10,000 cash assistance for new construction of a primary residence outside the city limits but within the Bartlesville School District
Wood said the Concho incentives have resulted in 13 new households — 11 home purchases and two new construction — with two additional residents pending.
“The total cost to date is $150,000 — essentially the same we would have offered to any primary industry adding quality jobs in hopes that the new inbound employees would choose to reside in Bartlesville but knowing many would not,” he said. “The Resident Relocation Program represents a guaranteed win. Our industries have a new, powerful employee recruitment tool, relocating employees found the benefit for choosing Bartlesville compelling, and the community’s cost remained the same while the net returns soared.”
New incentives
The program has proven so successful, the City Council recently approved proposals to offer the same incentives relating to the ConocoPhillips Permian Asset Acquisition and to Phoenix Rising, a maintenance, repair and overhaul facility servicing Dassault Falcon jets at the Bartlesville Municipal Airport since 2005.
“Phoenix Rising founder Warren Peck told us business is good and that he would hire four mechanics tomorrow, but he can’t find talent willing to come to Bartlesville,” Wood said.
He said the company currently employs 15 people and plans to double that number in 2022.
“Over the next three years, they envision a total workforce of 45 skilled full-time employees,” Wood said.
With approval of the City Council this week, BDA will allocate up to $150,000 from the Economic Development Fund, which is funded through the City’s voter-approved Half-cent Economic Development Sales Tax, to help grow the company’s workforce. BDA is also providing $150,000 to assist with discounted hangar rental fees at the airport to help facilitate the company’s expansion.
The program, in the same amounts offered to those relocating with the Concho expansion, will also be provided for up to 20 employees relocating to Bartlesville due to the ConocoPhillips PAA acquisition.
Community benefits
“Typically, BDA offers Bartlesville primary industry employers $10,000 per job per new employee meeting the average manufacturing wage. As the employer is the beneficiary, the community bears this cost regardless of where these employees choose to reside,” Wood said. “Under this program, the traditional job creation assistance of $10,000 per job guarantees the economic benefits of residency.”
Wood said the doubling of assistance for new construction within the city limits not only assures the capture of an inbound revenue stream, but directly bolsters the available housing stock.
“Sales taxes on a new home constructed in Bartlesville will produce a one-time sales tax boost of approximately $5,000 against the $20,000 of cash incentive,” he said. “New construction outside the city limits but within the Bartlesville School District guarantees that Bartlesville’s merchants will receive the overwhelming portion of new retail spending, with the City of Bartlesville as the beneficiary of the 3.4 percent sales taxes. In all cases, Bartlesville Public Schools will receive the benefit of property taxes, and in most cases, the City and Washington County will similarly receive property tax.
“It not only helps the employees who benefit from it and the community by the revenue it generates, it also helps new and expanding companies in Bartlesville recruit the qualified employees they need to help make their businesses successful,” he said. “It’s a win for all concerned.”
For more information about the Resident Recruitment Program, contact the BDA at 918.336.7371.
Photo by krakenimages on Unsplash