The Edmond Sun

Local News

October 23, 2012

City Council signs off on I-35/Covell agreements

EDMOND — The Edmond City Council approved the negotiated agreements 5-0 this week for developing the hotel and conference center to be located at the northwest corner of Interstate 35 and Covell interchange. A unanimous agreement by the council also was reached concerning the development of Summit Sports Complex to be located on the northeast corner of the interchange.

The City Council previously approved the $2.2 million purchase of 7.13 acres of undeveloped land at the hotel site. The $2.2 million was taken from the city’s Real Property Tax Fund. The Capital Projects and Financing task force voted in favor this month of reimbursing the $2.2 million to the city’s Real Property Tax Fund from the Capital Projects Tax Fund.

“We want to commend our city leaders for seeking the private and public partnerships that you’ve discussed,” said Carl Tipton, chairman of the Edmond Area Chamber of Commerce board.

A need for a hotel and conference center has been identified by the council to generate tourism, sales tax and improve quality of life.

Safeguards are in place to protect the city’s land investment, said attorney Leslie Batchelor, representing the city in the projects. It is a legal requirement that the public not give anything away to private investment, she said.

“Before the city executes any contracts for the construction of the conference center, the developer has to meet a series of preconditions, including showing evidence that it has sufficient financing of not less than $20 million for the construction of the hotel and additional cost for the conference center,” Batchelor said.

The partnering local ownership companies for the $25 million Hilton Garden Inn and conference center include Covell Partners in Development, Turner & Company and Covell 35 Development. They must work together as a single unit, she said.

“The hotel costs are solely the responsibility of the developer,” Batchelor said.

In April the city released details of the memorandum of understanding in regard to the $2.2 million investment in which the city will charge $1 dollar a year in leasing the property, Mayor Charles Lamb told The Edmond Sun. The business partners would have a 15-year buy-back option to purchase the land.

Covell Partners in Development is required to develop a 20,000-square-foot conference center, which will be owned by the Public Works Authority, Batchelor said.

“We specified there’s a ballroom of approximately 10,000 feet to ensure it can host events and meetings large enough for the community,” Batchelor said. “It will host banquet events up to 800 people and have all the appropriate supporting facilities you would expect in a high-quality conference center.”

The hotel will have about 160 guest rooms, a pool, fitness center and the amenities expected with the strict standards of a Hilton Hotel.

The developer is required to submit plans to the city for the conference center and the hotel within 12 months of the execution of the development agreement, Batchelor said.

“It’s the city’s discretion to approve or disapprove the plans of the conference center,” she said.

Public funds associated with the conference center require competitive public bidding, Batchelor continued.  The developer must meet the site plan requirements of the city, she said.

“If it costs more than that to build the conference center, it’s the responsibility of the developer,” Batchelor said.

Public land ownership with a private conference center facility means that both parties need to protect themselves by having an option to buy out the other, she said.

The developer has the option to purchase the conference center and the land underneath for a total of $7 million, Batchelor said. This figure represents the city’s $2.2 million land investment in land and the $4.8 million investment by the Public Works Authority.

The city and Public Works Authority also has the option of forcing the developer to purchase the land and conference center at the 15th anniversary of its operations. At that time, the property will go back on the ad valorem tax roll, Batchelor said.

“If they haven’t purchased the facility by then, they will make a payment in lieu of taxes just as if it’s privately owned,” Batchelor said. “That’s a commitment that was made to the school district.”

Managing a publicly owned conference center will be paid for with a service fee from hotel taxes from the Hilton Garden Inn and  not from any other hotel tax or source, Batchelor said.

Developing  the 170,000-square-foot Summit Sports Complex for $15 million is the responsibility of principal owners Derek Turner and Davis Hudiburg.

 Purchasing the 19.35 acres of land for the privately owned sports complex cost the city $2 million. The land had appraised for $2.1 million.

The city will provide the land for the sports complex and lease it to the developer for $5,000 a month or $60,000 a year, Batchelor said. Payments would begin by April 1, 2014, or if an occupancy permit is issued before that date.

“We want to make sure sufficient funds are available. We don’t want to end up with a half-constructed facility on public land,” Batchelor said.

The developer has the right to purchase the land at any time, Batchelor said. The city has the option to force the developer to purchase the land after 15 years of occupancy.

“It’s important to keep in mind that the overall goal of the economic development area means that by incentivising these two projects with the public participation, will generate more than $70 million of new investments that will go on the tax roll,” Batchelor said.

jcoburn@edmondsun.com | 341-2121

1
Text Only
Local News
  • Gas State gas price plummets 18 cents in 25 days

    Abundant domestic refinery production is behind a steep 18-cent plunge in Oklahoma gasoline prices at the pump during the last 25 days, AAA reports.

    July 22, 2014 1 Photo

  • A Q&A on ‘Obamacare’ Court Rulings

    On Tuesday, two federal appeals courts issued conflicting rulings on the legality of tax subsidies being provided to people who bought “Obamacare” health insurance policies in Oklahoma and 35 other states.
    Here’s a look at the rulings’ potential impact in Oklahoma.

    Q: I’m confused. What did the courts rule today?
    A: A three-judge panel of the U.S. Court of Appeals circuit in Washington, D.C., decided that the government can’t provide tax subsidies for Affordable Care Act plans purchased in 36 states where the federal government is operating the health insurance exchange. Oklahoma is one of the 36 states. A few hours later, the U.S. Court of Appeals circuit in Richmond, Va., issued a conflicting ruling that upheld the legality of the health-care law’s tax subsidies.

    July 22, 2014

  • June healthy month for Oklahoma jobs

    Nearly 10,000 new jobs in Oklahoma were created in June, according to the U.S. Labor Department.
    Gov. Mary Fallin said Tuesday the state experienced one of the largest increases in employment in the nation in June. More than 9,600 additional people joined the state’s workforce in June.
    The unemployment rate in June dropped to 4.5 percent, its lowest ratio in six years. June’s rate was down a percentage point from 4.6 percent in May and April, according to the Oklahoma Employment Security Commission.

    July 22, 2014

  • Former OSU line coach having impact on Texas staff

    It was quite possibly the biggest coaching coup of the offseason and Oklahoma State was at the wrong end of it — former Cowboy offensive line coach Joe Wickline joining the staff for Charlie Strong’s Texas Longhorns.
    “It’s always good when you go hire staff and you look at just getting the right people within your program. And, a lot of times, guys know a lot of Xs and Os, but it’s all just about developing a player,” said Strong, Tuesday during the Big 12 Conference Football Media Days. “Joe and I, we’ve coached together at two different places. But just with him being within his conference and knowing the conference, he’s been a great asset.”

    July 22, 2014

  • Whataburger celebrates children’s superhero spirit with ‘Super-Duper’ event

    It’s a bird! It’s a plane! It’s a Super Duper Celebration! In the heart of every child lives a superhero and on Thursday Whataburger restaurants will celebrate the superhero spirit in all of us with an evening of family fun from 5-7 p.m. at its location at 421 S. Broadway.
    Customers can spend quality time with their little heroes and treat them to a superhero-themed celebration of food, activities and giveaways. Children 12 and under dressed in a superhero costume will receive a free kid’s meal. There will be a Whataburger photo booth and Whataburger’s mascot, Whataguy, will also be present to join the fun.

    July 22, 2014

  • Kenya Edmond man confesses to crimes in Kenya

    A federal grand jury alleges a 19-year-old Edmond man staying at a children’s’ home in Kenya engaged in illicit sexual conduct with residents ages 4-9.

    July 22, 2014 1 Photo

  • NWS includes Edmond in heat advisory

    The National Weather Service has issued a heat advisory for areas including Edmond.
    It will be in effect from noon Tuesday to 7 p.m. Wednesday, a period during which afternoon heat index values will be near 105 degrees. Individuals exposed to the extreme heat for a prolonged period may develop heat-related illnesses, according to the NWS.

    July 22, 2014

  • Police respond to toddler tragedy at park

    A 2-year-old child has died after a tragic incident during the weekend at a popular Edmond park, a police spokeswoman said.

    July 22, 2014

  • Germans from Russia group plans annual meeting in Edmond

    The Central Oklahoma Chapter of American Historical Society of Germans from Russia will have its annual All State meeting on Aug. 9 at the Memorial Road Mennonite Brethren Church, 4201 E. Memorial Road, in Edmond.

    July 22, 2014

  • Goddard Students learn about animal behavior

    Animals can be fun, friendly and sometimes dangerous. That is what the students at Goddard School on North Western are learning this summer and this week they are learning about pets.
    Each summer Goddard School’s across the nation choose from a provided list of curriculum to use with their students that would be popular with the children. From learning about insects to a tiger safari, each summer is filled with creative learning.

    July 21, 2014 1 Photo

Featured Ads
NDN Video
LeBron James -- Dropped $2k On Cupcake Apology ... Proceeds To Benefit Charity Whoa! Watch "Housewives" Star Do the Unthinkable Raw: Fight Breaks Out in Ukraine Parliament Chris Pratt Interrupts Interview To French Braid Intern's Hair Shirtless Super Mario Balotelli Dances While Ironing - @TheBuzzeronFOX LeBron apologizes to neighbors with cupcakes Justin Bieber In Calvin Klein Underwear Shoot Samsung Pre-Trolls The IPhone 6 With New Ad Jimmy Kimmel Introduces His Baby Girl Swim Daily, Nina Agdal in the Cook Islands Guilty Dog Apologizes to Baby for Stealing Her Toy Prince George Turns 1 and is Already a Trendsetter Train Collides With Semi Truck Carrying Lighter Fluid Kanye West Tells-All on Wedding in "GQ" Interview Tony Dungy Weighs in on Michael Sam Scarlett Johansson Set To Marry In August New Star Wars Episode XII X-Wing Revealed Obama: Putin must push separatists to aid MH17 probe Michigan inmates no longer allowed to wear orange due to 'OITNB' Adam Levine Ties the Knot
Poll

If the Republican runoff for the 5th District congressional seat were today, which candidate would you vote for?

Patrice Douglas
Steve Russell
Undecided
     View Results