BROKEN ARROW, Okla. — Broken Arrow approved a way to pay for infrastructure costs related to the Sunset Amphitheater.
It's in the form of a tax-increment financing district - which means no tax increases.
The 12,500-seat amphitheater, with 45 events expected a year, is coming near Events Park.
The developer, Notes Live, committed about $70 million to the project. The city is in charge of the infrastructure in and around the facility.
After multiple public hearings, Broken Arrow City Council approved the TIF district on Jan. 16.
2 News spoke with Broken Arrow Assistant City Manager of Administration Norman Stephens on Friday.
"All the things that we need to put in as far as infrastructure to support the amphitheater - we will be taking out a banknote and paying it back with all the sales tax within that TIF area," he said.
To break it down further - any new local revenue tax generated by restaurants, hotels, and other properties projected to come to the area will pay back construction costs, which the city estimates at over $28 million.
Currently, the only sales tax being generated in the area is a dollar store, which isn't included in the TIF area.
The duration of the TIF is 25 years, but Stephens believes it'll end quicker than that.
"We try to keep ours less, but it just depends how big the amount is," Stephens said.
Wagoner County's involved, too. A portion of their sales tax will be used to help pay back the TIF up until 2033.
Construction projects include additional parking, stormwater improvements, in-and-out road access, and land acquisition.
"It really is a huge economic development driver to build up an area that, if not for a TIF, would not build up for decades," Stephens said.
The Sunset Amphitheater is expected to open in December 2025.
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