Today we continue with our guest blog posts from Summer 2024 TURC students’ research project. Each student was challenged to write a brief post that showcased an element of their research from this summer, in addition to an original visual representation of data they have been analyzing. Students will present their full research project on August 9th from 1-2pm (Helmerich Hall, Room 219). The presentation is open to the public and you can find more information and RSVP here: https://pp.events/a8l1nMpb
Our first guest blog today is from Truett Meier, a TURC junior scholar who is a rising senior at Holland Hall. Truett has been focusing this summer on economic incentives for development in Tulsa. Truett can be reached at tmeier25@hollandhall.org
The Role of Tax Increment Financing in Revitalizing Tulsa
I have been investigating how the Tax Increment Financing (TIF) affects Tulsa as part of my
involvement with the University of Tulsa Center for Real Estate Studies. TIF assists in funding
infrastructure and community improvement projects by dedicating future increases in property
taxes. TIF does not use existing public money to fund things, but rather gains from additional
taxation that new developments bring about because they wouldn’t happen without TIF.
An instance of this is Santa Fe Square development located in Blue Dome District, Tulsa. The
purpose of this mixed-use project is to redevelop two city blocks and include retail spaces,
apartments, office buildings, a boutique hotel and over 1,100 parking spaces while preserving the
historical Santa Fe Station. Consequently, it is essential to have TIF that will provide $36.2
million towards ad valorem incremental tax and sales revenue for district number eight.
Visual Description: Above is a chart showing some elements of Santa Fe Square’s finances; it
reveals how private investors spent $160 million in total while $36.2 million was invested into
various public projects by TIF investments so far. The sales tax revenue that can go up to
between 500000-650000 dollars and ad valorem tax which can be between 2000000-2350000 on
annual basis should be generated by such a project. Spending of these amounts is quite
indispensable to create development and reduce financial threats for developers driving more
private investment.
Motivation and Impact: When it comes to getting a bigger picture of how Tulsa, with the help
of TIF, can reanimate neighborhoods and not raise property tax on current residents, the
knowledge of TIF’s contribution to a project like Santa Fe Square is essential. The mechanisms
of TIF operate to provide resources through the growth of the tax base, which eventually leads to
the attraction of private investments, for the development of public infrastructure and community
amenities, so as to consequently, see an increase in living standards and economic development.
Moreover, TIF responds to the challenge of affordable housing by channeling funds to
construction and rehabilitation, lowering the costs of development, and also, leading to the
establishment of the all-inclusive community. Through the application of TIF initiatives and
affordable housing policies in an associated manner, the city will be able to prevent gentrification
and the displacement of the poorer population.
Future Plans: Tulsa plans to continue using TIF for future developments, focusing on
downtown revitalization, cultural enhancements, and infrastructure modernization. These efforts
aim to attract new businesses and residents, boosting the city’s economic vitality. It’s crucial to
monitor these projects to ensure they contribute to equitable urban development and address
housing affordability challenges.
In summary, TIF emerges as a potent instrument for economic growth — and breathing life into
those stagnating regions in Tulsa. Only by making use of TIF in its entirety can we foster
sustainable development, which paves the way for us to address a growth model that enhances
quality of life for every Tulsa dweller.
References:
● Tulsa Economic Development Corporation. (2024). “Santa Fe Square Economic
Development Project Plan.”