Bethany bans business subsidies

Voters in the City of Bethany have banned city subsidies to private businesses and have enabled the recall of elected officials. The propositions were on the February 11, 2025, municipal ballot, along with elections for city council and mayor.

State Rep. Tom Gann (R-Inola), a vocal critic of taxpayer subsidies to attract businesses, posted the following post-election press release from Bethany City Councilor Chris Powell, who is also the State Chairman of the Libertarian Party of Oklahoma:

Press Release Bethany voters pass subsidy prohibition, recall procedure

BETHANY - Voters in Bethany passed two propositions placed on the ballot by initiative petition, one creating a procedure by which a city elected official could be recalled and another that prohibits the city from subsidizing private businesses. The subsidy prohibition [Propositon 4] received 57% support while the recall procedure [Proposition 3] earned 64% of the vote. Two other propositions put forward by a charter review committee, removing an obsolete personnel board and allowing the city to trade surplus materials, also passed by large margins.

The subsidy prohibition and recall procedure questions qualified for the ballot by initiative petitions carried out by Councilman Chris Powell who gathered signatures of over 400 voters for each. Several members of the council, including incumbents Steve Palmer and Marilyn McPhail as well Jeff Knapp who recently resigned his council seat to run for Mayor, publicly took positions against the prohibition of subsidies. The council passed a resolution in December opposing the proposition, with Powell being the lone vote against the resolution. Palmer and McPhail lost their re-election bids and Knapp was defeated for Mayor by Amanda Sandoval.

Powell was motivated to carry out the initiatives after a charter review committee proposal for a recall procedure was blocked from the ballot by council. After deciding to petition for recall, Powell chose to petition at the same time for the proposal to prevent the city from subsidizing private businesses. Powell said, "We have had a number of these subsidy deals that in my view were unnecessary to support a business that would have been successful regardless or worse, supported a business venture that failed and left us with empty storefronts. I don't believe these tax rebates and TIF subsidies are proper, the track record in Bethany shows they haven't worked out or weren't needed, and on Tuesday the voters showed that they agree with that viewpoint."

Recent criticism of subsidy programs such as the state funds going to electronic vehicle manufacturer Canoo, which filed for bankruptcy last month, as well as concerns about Tax Increment Finance (TIFs) may have played a part in voter's support for the subsidy ban proposition. Norman's Arena TIF has faced a referendum petition that gathered far more signatures than necessary but is now tied up in court by TIF proponents with legal challenges over technicalities, and Rep. Tom Gann (R-Inola) has introduced HB1069 which would require proposed TIFs to undergo greater scrutiny and go to a vote of the people before being enacted. "People are starting to become more aware of the subsidy programs and don't like what they see," Powell said, "we're likely to see more rejection of these handouts to businesses and developers whenever they can be forced to put them before the voters."

Contact

Chris Powell
405-408-4898
okcspowell@gmail.com

Gann comments:

A local official in Bethany, OK saw through all the hype about subsidies and Tax Increment Financing Districts. He took action and informed the people. The people responded and stood up for their community and rejected the concept of subsidies and incentives, will others follow?

HB1069 which would have required TIF districts to be voted on by the people failed in the General Government Committee on the same day this email was written. HB1069 received 2 YES votes and 5 NO votes.

State Reps. Derrick Hildebrant (R-Catoosa) and Gabe Woolley (R-Broken Arrow) voted in favor of HB1069; Stacy Jo Adams (R-Duncan), Cyndi Munson (D-OKC), Ellen Pogemiller (D-OKC), Eric Roberts (R-OKC), Judd Strom (R-Copan) voted against.

The Bethany City Council approved the following resolution opposing the ban on subsidies at its December 17, 2024, meeting (page 64 of the PDF). According to the minutes, Mayor Nikki Lloyd, Councilors Ken Smart, Marilyn McPhail, Peter Plank, and Kathy Larsen voted yes; Chris Powell voted no. McPhail lost her re-election bid; the other councilors voting yes won't face re-election until 2027. Mayor Lloyd did not run for re-election.

RESOLUTION NO. 1710

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BETHANY, OKLAHOMA OPPOSING PASSAGE OF THE FEBRUARY BALLOT ITEM CONCERNING SUBSIDIES TO BUSINESSES AND CORPORATIONS, A CHARTER AMENDMENT.

WHEREAS, an initiative petition ballot measure proposing an amendment to the Charter of the City of Bethany to prohibit the subsidy of businesses and corporations with public funds controlled by the City of Bethany, as set forth in Resolution No. 1706 and published in accordance with the laws of the State of Oklahoma has been placed on the February election calendar; and

WHEREAS, the measure if passed would prohibit Tax Increment Financing as authorized by the Oklahoma Constitution at Article 10 Section 6C; and

WHEREAS, the measure if passed would prohibit the use of tax rebates to induce businesses to come to the City of Bethany; and

WHEREAS, the measure if passed prevents would prevent subsidies to any businesses or corporations to include non-profit corporations and municipal corporations; and

WHEREAS, the measure if passed may have unintended consequences that could impact, impede, or prevent agreements with public interest programs in which corporations participate are benefit from to include the Bethany Economic Development Authority's Bethan Improvement Grant; and.

WHEREAS, the measure if passed would reduce the City of Bethany's bargaining power to enter into agreements with businesses and corporations to promulgate economic and tax base growth in the public interest, and to compete with Oklahoma City in attracting businesses to our community.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Bethany, Oklahoma opposes the passage of the subsidy ballot item.