Urban Tulsa Weekly: October 2007 Archives

An edited version of this column appeared in the October 31, 2007, issue of Urban Tulsa Weekly. The published version is available online courtesy of the Internet Archive's Wayback Machine. Posted online September 9, 2017.

Infrequently Asked Questions about Tax Increment Financing: The Basics

By Michael D. Bates

What's all this I hear about using tiffs to finance land acquisition and site preparation for river development?

Does this involve capturing and selling the heat generated by snippy arguments over nothing of significance, some kind of tiff-to-energy plant? (It would have to be heat only; tiffs shed no light.) Should we also tap into spats, quibbles, quarrels, and rhubarbs?

Can grudges be profitably mined? Is it possible to harness safely the awesome power of the blood feud, and if so, how many family joules could be generated by turning Darla Hall and her kinfolk loose in that cemetery again?

This gives a whole new meaning to "Tulsa: A New Kind of Energy."

Beyond the practical considerations, is it ethical to stir up strife and bickering just to generate revenue for entertainment and recreational amenities?

What's that you say? It's an acronym? T-I-F? Something to do with tack implements?

To quote Emily Litella: Never mind.

The discussion is not, in fact, about tiffs, but about tax increment financing (TIF), a tool available to local governments in Oklahoma to assist economic development within a small area known as a TIF district. A TIF district captures increased local tax revenues within the district to pay for improvements within the district, and it does this without diverting the revenues that the district is already generating for local government and without raising tax rates.

The cities of Jenks and Bixby are both using TIF districts to facilitate private riverfront development. Branson, Missouri, used a TIF district to acquire land, stabilize the shore, and build public infrastructure for the Branson Landing mixed-use development on Lake Taneycomo, just down hill to the east of Branson's old Main Street.

When HCW, the developers who built Branson Landing, first approached the City of Tulsa in 2006 about building a similar development on the west bank of the Arkansas River near the 23rd Street bridge, a TIF district was the obvious choice for facilitating the development.

But the TIF district idea was put on hold. Some speculate it was because Tulsa Mayor Kathy Taylor would prefer to see an upscale lifestyle center and entertainment district in east downtown rather than along the river.

Others wonder if the delay was to allow the Tulsa County Commissioners to use west bank development as a selling point for their proposed county sales tax increase for river projects.

Now that the sales tax increase has been defeated, tax increment financing is back on the table, with added momentum thanks to the Tulsa City Council's unanimous passage of a resolution urging vigorous pursuit of the opportunity.

Tax increment financing can be a complex thing, and even some public officials seem to be confused about where the money in a TIF district comes from. At a Tulsa City Council committee meeting a week after the sales tax election, Councilor Cason Carter worried that using a TIF district to finance the public part of a west bank development "would potentially come at the expense of much-needed road improvements and additional police officers."

While TIF is not a magic wand, it is a valuable tool that a city can use to bootstrap a strategic new development, overcoming the obstacles that might prevent it from going forward.

In the interest of informing the public and their elected officials, here are some answers to infrequently-asked questions about the basics of tax increment financing:

What's the legal basis for TIF?

Municipalities and counties were authorized to create tax increment financing by the Local Development Act of 1992, which has been codified as Sections 850 through 869 of Title 62 of the Oklahoma Statutes. Section 861 specifically addresses tax increment financing.
The Local Development Act was enabled by the passage of State Question 641 in 1990, which created Article X, Section 6C, of the Oklahoma Constitution. SQ 707, passed in 2004, amended Article X, Section 6C, to make it possible to borrow against future TIF revenues.

Does a TIF district reduce the amount of property tax paid by property owners or the amount of sales tax paid by consumers in the district?

No. The county assessor appraises the property and the county treasurer collects taxes using the same rates as if the TIF district didn't exist. The usual sales tax rate applies as well. The difference in a TIF district is in what happens to the money once it's collected.

Does a TIF district reduce the amount of property taxes and sales taxes that currently go to the schools, the city, the libraries, and other government entities dependent on those funds?

No. The taxes being generated by the property value and retail activity already present in the district when the district is established will continue to go the same government entities. It's only the new, incremental revenues generated by increased retail activity and property values that can be captured for use within a TIF district.

How many TIF districts does Tulsa have?

Tulsa has six TIF districts:

1. Brady Village: Denver to Elgin, I-244 to the Frisco tracks. Established 1993, expires 2008.
2. Central Park: Approximately Elgin Ave. to Peoria Ave., 5th Pl. to 11th Pl. Established 1994, expires 2009. This district includes the downtown Home Depot, Centennial Park, and the Village at Central Park.
3. Technology: Denver Ave. to Detroit Ave., Frisco tracks to 3rd St., plus the block south of 3rd between Boulder and Cheyenne, and the half block south of 3rd between Boston and Cincinnati. Established 1999, expires 2014.
4. North Peoria Ave.: Approximately Midland Valley right-of-way to Utica Ave., Pine St. to Apache St, plus the old Brainerd Chemical site just south of US 75 and Peoria. Established 2002, expires 2017. This district includes the shopping center surrounding the now-closed Albertson's on the northeast corner of Pine and Peoria.
5. Blue Dome: Detroit Ave. to Greenwood Ave., Frisco tracks to 3rd St. Established 2003, expires 2018.
6. Tulsa Hills: East of US 75 between 71st St. and 81st St. Established 2006. Unlike the other Tulsa TIF districts, this district will expire as soon as it generates sufficient revenue to pay off the $16.5 million in revenue bonds used to fund infrastructure for the development. That could happen in four to five years after the shopping center opens.

Although state law allows for a 25-year maximum term, all of Tulsa's districts were set up with a 15-year term. All of Tulsa's TIF districts capture incremental property tax and two pennies of the city's three-cent sales tax on incremental retail sales. In some districts, there's a cap on the amount of incremental revenue - anything above the cap is treated like normal sales and property tax revenue.

What generates the money in a TIF district?

The key is the "I" in TIF, which stands for "increment." TIF districts can capture incremental revenues from property tax, local sales tax, and other local government fees.

When a TIF district is established, the county assessor determines the base assessed value for taxable property in the district, and city government determines the base level of taxable sales already occurring in the district. The sales taxes and property taxes generated by this baseline will continue to go to the government entities that are receiving them now. But some or all of the tax revenues over and above the baseline - the incremental revenue - can be "captured" for use within the TIF district.

What can be done with TIF revenues?

The Local Development Act has a long list of qualified purposes for TIF revenues. They include acquiring land, clearing land, building public facilities or improvements such as roads, sidewalks, water lines, sewer lines, and drainage facilities.

In Tulsa, TIF revenues have been used for streetscaping and lighting, parking garages, and improvements to on-street parking. In the Central Park TIF district, the money helped to set the stage for the Village at Central Park townhouse development and helped to fund the beautiful new Central Community Center and Centennial Park lake, the first step in the plan to reduce flooding risks in the Elm Creek basin.

TIF funds from the North Peoria district have been used for improvements to Booker T. Washington High School and Lacy Park. In the Brady Village and Blue Dome districts, TIF money encourages adaptive reuse of historic buildings through the Fire Suppression Vault Installation assistance program.

The Tulsa Hills TIF district is funding sewer, street, and storm drainage work in the hilly 146-acre tract.

How much money could a TIF district generate?

Branson Landing was a $306 million project projected to generate $116 million in local TIF funds. (It also qualified to capture incremental state sales tax, because the project, which includes a convention center, was expected to bring new dollars into the State of Missouri.)

Jenks' proposed River District is a $1 billion project, and the TIF district is expected to capture $220 million.

Tulsa's TIF districts have been much more modest in scope. Tulsa Hills is the biggest by far, a $130 million development projected to generate $5 million annually in new city sales taxes and $1.1 million in property taxes.

That's TIF Districts 101. The advanced course will cover the process of setting up a TIF district, how one might be used to encourage river development in Tulsa, obstacles, and objections.

If you have questions or concerns about tax increment financing, drop me a line at mbates at urbantulsa dot com, and I'll try to respond in a future column.

An edited version of this column appeared in the October 17, 2007, issue of Urban Tulsa Weekly. The published version is not available online. Posted online October 6, 2017.

Why no

By Michael D. Bates

Every aeronautical engineering student is taught that given enough thrust, you can make a brick fly. You need a lot less thrust, of course, to power an airframe that's tapered and streamlined, designed for moving efficiently through the air, designed to make the best use of the forces acting upon it.

The proponents of the Tulsa County sales tax for river projects had an opportunity this summer to develop an approach to Arkansas River development, using existing revenues and resources, that could have glided easily on the prevailing winds of public opinion.

Instead, they engineered a brick and tried to shove it aloft with a $1.3 million campaign budget and plenty of free exposure in the daily paper and on local television. As much financial thrust as they had at their disposal, it wasn't enough to put this clunker of a plan in the air and keep it there.

With a 6,286-vote, five-percentage-point margin, it would be tempting for the vote yes folks to second-guess all their decisions and imagine that they could have won a narrow victory if only they had handled some aspect of the media campaign differently.

$1.3 million is record-setting for a local sales tax vote, and the Our River Yes campaign out-raised No River Tax by better than 100 to one.

And who can put a value on page after page of news stories and editorials touting the tax increase in the daily paper?

The yes campaign used the financial advantage exactly the way they should have. They took polls and convened focus groups to shape their message in the most appealing way possible. The information gleaned from voter research went into slickly produced TV ads featuring cute kids and senior citizens and countless four-color postcards and magazines mailed out to Tulsa County voters. They used phone surveys to identify their supporters and made sure their supporters got to the polls.

To prevent the opposition from getting an earned-media boost, the Our River Yes people successfully avoided having even one televised debate. Public meetings were referred to as "informational meetings" at which rebuttals were not permitted.

For all the money they spent trying to manipulate our emotions, the Our River Yes campaign did almost nothing to explain to voters exactly what we were voting on. They have only themselves to blame if some voters believed the plan included high-rises on islands in the river.

Here's what $1.3 million bought:

Before the campaign began, a poll showed that 52.2% opposed a sales tax increase for river projects.

On election day, 52.5% voted against the tax increase.

Evidently, a lot of voters made their decision as soon as they heard the words "sales tax increase for river projects." The same July poll shows river development as a low priority - desirable, sure, but not worth a tax increase, not when crime and streets need so much attention.

Not to say I told you so, but back in the August 2-9 issue, I wrote,

"The commissioners will almost certainly vote Thursday to schedule an October 9 election. Supporters of the new tax will pump hundreds of thousands of dollars into a slick PR campaign, confident that they can get the majority of votes they need, even at the cost of feeding public cynicism by brazenly asking citizens to tax themselves twice for the same projects. Those who prefer an alternative funding approach for river improvements will be dismissed as anti-river, anti-progress, anti-Tulsa.

"The same old playbook may work again, but the antagonism of officials and residents in the county's second largest city and the booming northern suburbs changes the political calculus. We will go through a contentious 60 days, tax promoters will spend a fortune, political capital will be squandered, and in the end the county commissioners may find themselves back at square one, finding a way to finance river projects without a new sales tax."

In saying that this tax proposal was fatally flawed, I don't want to minimize the importance of the formal opposition. The presence of credible opposition voices provided affirmation to voters that their gut instincts against the tax were reasonable.

We should particularly acknowledge the courage of the elected officials who stood against the tax increase, aware that their opposition could draw well-financed retribution at their next re-election bid.

Four years ago, only two elected officials in the entire county were willing to identify themselves publicly as opponents of Vision 2025 - State Sen. Randy Brogdon and Glenpool Councilor Keith Robinson. A combination of political pressure and pork barrel promises kept everyone else in line.

This time around Brogdon was joined by Tulsa city councilors Jack Henderson, Roscoe Turner, and John Eagleton, and the entire political establishment of Broken Arrow - the mayor, city council, chamber of commerce, and school board - standing up for the basic needs of their constituents. County Assessor Ken Yazel showed true grit, braving the disapproval of his county courthouse colleagues by speaking his mind against a new county sales tax.

New to politics, Ted and Andrea Darr provided an internet home base for the opposition, shattering the myth of young professional unanimity in support of the tax.

Even the oft-derided yard signs mattered, assuring skeptical voters that many of their neighbors shared their doubts.

The vote yes campaign handed the opposition several gifts.

The first was the stubborn refusal of County Commissioner Randi Miller and other officials to acknowledge two indisputable facts, obvious to anyone who bothered to look up the relevant documents: That the two new low-water dams and modifications to Zink Dam were included in Vision 2025, and that most of the project money in this package was going to projects not included in the Arkansas River Corridor Master Plan.

What if, instead, proponents had said up front, "We guessed wrong about how much new dams would cost, we were wrong about the prospects for federal funds, no one was minding the store when the cost of the arena spiraled out of control and we spent the overage money we had planned to use on the dams on the arena instead, and it's easier to ask you for more tax money than it is to reorganize our priorities to get the dams built as promised"? What if they'd admitted that the proposal included several major items that hadn't been vetted through the master plan review process?

Such an admission would have raised other uncomfortable issues, but it might have reduced the impact of the trust issue. At least it would have been honest.

It didn't help the vote yes campaign that Tulsa County voters had a dramatic reminder of poor judgment on the part of Miller and other county officials: Despite beautiful weather nearly every day, the Tulsa State Fair dropped in attendance and midway receipts, due in large part to Miller's push to evict Bell's Amusement Park the previous fall.

With Bell's gone, those who came to the fair had less reason to stick around and spend money, and less reason to come back for a second visit. If fairgoers hadn't planned to boycott the Murphy Bros. midway already, several injuries on Murphy rides persuaded many to stay away.

(Why would Miller et al. grant a 10 year midway lease to a company that has all its rides on wheels, while putting a family-owned local business with millions invested in permanent structures, a 51-year-tenant of the fairgrounds, on the equivalent of a month-to-month lease?)

The vote yes campaign got caught in a couple of other fibs. There was the TV ad featuring the old fellow with the Walter Cronkite mustache, who told us, "Streets to the river will be improved, the first step in a street improvement program." That assertion was easy pickings for a Fox 23 News "Truth Test" feature that aired two nights before the election, labeling the claim false.

Perhaps the biggest gift the over-funded proponents gave to the opposition was the misleading postcard sent to Broken Arrow voters, featuring an artist's conception labeled "Broken Arrow Riverfront," a project for which no funds were included in the package on the October 9 ballot. Broken Arrow leaders held a press conference the day before the election denouncing the deception. KOTV viewers heard Randi Miller say that the picture wasn't misleading "because it not once says that this is what is going to happen."

OK... next tax election, expect to see flying cars in the campaign sketches.

The next day motivated Broken Arrow voters turned out in droves to vote down the tax by a two-to-one margin.

We're told that that mail piece was the work of AH Strategies, run by Republican consultants Fount Holland and Karl Ahlgren. (Remember those names. You'll likely hear them again as the state ethics commission probes Republican campaign fund transfers.) AH Strategies was responsible for the misleading mail pieces smearing District Attorney Tim Harris in his contentious 2006 Republican primary race against attorney Brett Swab.

There was collateral damage: INCOG burned a good deal of the credibility the regional planning agency had earned from the careful way it developed the Arkansas River Corridor Master Plan and the thorough approach it took last year to reviewing "The Channels" proposal for inclusion in the ARCMP. Instead of remaining an honest broker, its leaders were coopted to blur the distinction between the ARCMP and the proposal on the ballot.

TYpros, the Astroturf young professionals organization controlled by the Tulsa Metro Chamber, threw itself under the vote yes bus, alienating many of its members and projecting an image of young professionals as whiny, bored children demanding that daddy and mommy give them a pretty new plaything. (We've met enough entrepreneurial YPs who are busy "making their own cool" - to borrow a phrase from Jamie Pierson - that we know the TYpros' attitude isn't typical of the demographic.)

Bruce Plante, the daily paper's brand new editorial cartoonist, must be wondering what the heck he's gotten himself into. In two of his first four cartoons he was directed to depict no voters as brainless troglodytes, insulting what turns out to be a majority of his potential readers.

I was hopeful that new leadership at the Chamber plus George Kaiser's involvement would mean a different tone to this campaign, but that hope was disappointed.

The most damaging effect of this campaign is that, in the process of trying to persuade voters that the county's sales tax increase was the only way to make something good happen on our riverfront, many of our elected leaders drank deeply of their own Kool-Aid.

Miller said after the election, "There is no plan B. River development is over." Tulsa Mayor Kathy Taylor said that Tulsans didn't want river development, and she was moving on to other priorities.

Happily, after a few days of cooling off, there seems to be some willingness by the tax proponents to work with tax opponents to do what could have been done two months and $1.3 million ago: Move ahead with a City of Tulsa TIF to acquire land for west bank development and with engineering and permitting on the low-water dams and Zink Dam improvements approved in Vision 2025.

I'm hoping that the City Council will act either this week or next to pass a resolution requesting that the Taylor administration start the process for establishing a west bank TIF district, giving Tulsa the same tool that Jenks and Bixby are using to assist riverfront development.

Next week, a look at what went right during the river tax campaign, and how we move forward from here.

An edited version of this column appeared in the October 3, 2007, issue of Urban Tulsa Weekly. The published version is no longer available online. My contemporaneous blog entry linking the column is here. Posted online October 6, 2017.

Say no to plutocracy

By Michael D. Bates

"Does that disturb you?"

My lunch companion asked the question after a lengthy lull in an otherwise lively conversation. I can only guess at what my countenance must have conveyed.

He had just been explaining to me how we wouldn't need to worry about elected officials acting imprudently with the new river tax money. The $100 million or so in private donations would give the donors leverage over the elected officials, and the donors intended to use it.

I thought back to a Step-Up Tulsa meeting I had attended last year. This group also talked about using the billions that Tulsa's large charitable foundations have accumulated, not simply to spend it directly for useful projects, but as a lever to shift government priorities, to reorient the spending of taxpayer dollars to fit the priorities of the private foundations.

Even if I assume that the foundations' goals are laudable, there's something deeply wrong with that approach.

I struggled to explain why the notion troubled me to the point of speechlessness. Finally I said, "Instead of using this money leverage to get elected officials to do what you think they should, why not help intelligent, creative, and discerning critical thinkers get elected to office?"

In the realm of politics, it's still possible for the will of the majority to trump the will of the wealthy. Sure, more money means their message gets more exposure, means they can hire focus groups to craft their image and message to resonate with the voters, means they can identify their supporters and badger them with phone calls on election day until they go vote.

But for all that money, they can still lose. If you don't believe me, ask President John Connally, California Sen. Michael Huffington, and Oklahoma Governor Gary Richardson.

You can knock on enough doors, marshal passionate supporters, give expression to the voters' deep-seated concerns, and, when the votes are counted, you can beat someone even if the other side has millions to spend and you have only thousands.

There ought to be at least one realm of society which is not subject to the rule of the marketplace. Politics and governance shouldn't be up for sale to the highest bidder.

(By the same token, not every realm of society should be subject to the tyranny of the majority, either.)

To millionaires and billionaires seeking to use their wealth as leverage to mould public policy to their will, the most valued qualities in a public official would not be intelligence, critical thinking skills, or curiosity, but pliability and credulity.

They'd be best served by the kind of elected official who will nod his head vigorously and salivate when presented with wildly optimistic economic impact numbers. An official who asks for the rationale and basis for the numbers would be seen as an obstacle, not a public asset.

I don't often describe myself as horrified, appalled, nauseated, or outraged by some political development. Those words ought to be reserved for a truly visceral reaction - something that really makes one's hair stand on end, face go pale, stomach turn, or blood pressure rise, respectively.

The idea of the wealthy using their private charitable contributions as leverage to shift public priorities gives me the creeps.

As of September 24, the vote yes campaign has raised $1.1 million and spent nearly $700,000. That doesn't count money spent on charitable donations, campaign contributions, or threats of campaign contributions to a potential opponent in order to leverage key endorsements.

Even if they weren't persuaded by the problems with the specifics of the river sales tax proposal, I'd hope that Tulsa County residents would rebel against the sheer amount of money being expended to get this thing passed. Public priorities shouldn't be for sale to the highest bidder.

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Here's a thought experiment regarding priorities:

You own a small café that has seen better days. The carpet is stained and torn, the booth seats are ripped, and the chairs wobble. The lights in the parking lot are broken, and customers occasionally get mugged. The food is good, but your sign (hidden by high weeds) advertises the least popular dish on the menu.

You have $2,000 available to try to rebuild your customer base. Should you:

(A) Use the $2,000 to fix the carpet, booths, chairs, and lights, pull the weeds, and improve your advertising?

(B) Use the $2,000 to build a beautiful koi pond in the lobby in hopes that it will attract enough new customers to bring in as much as $400 that you can then afford to fix the carpet, booths, chairs, and lights, pull the weeds, and improve your advertising?

Which answer do you think you'd get from the company that sells koi pond supplies?

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So what should we do after next Tuesday, after we've voted down (I hope) the proposed county sales tax increase?

Use the Vision 2025 dollars that are already allocated for two new low water dams and the modifications for the existing Zink Lake dam at 31st Street to finish the engineering work for those projects. Develop and submit the application to the Corps of Engineers for a construction permit, a process likely to take at least two years.

In the meantime, county officials should lay out a clear month-by-month spending plan for Vision 2025 - what money is already committed for debt service and for remaining projects - and see if there's any room to move the funding of the promised construction of the dams higher up the priority list.

At the same time, county officials should keep an eye on sales tax receipts; if growth continues at its current pace, another $16 million could be available over and above the county's revenue estimates by the time the permits are granted.

Once the Corps has given its blessing, combine available Vision 2025 funds and Federal dollars. If there's still not enough to do the dam work, then and only then county officials should go to the voters for just enough extra tax dollars to finish those promised Vision 2025 projects. Any other river projects should go on a separate ballot item.

As for west bank land acquisition, Oklahoma's Local Development Act, specifically 68 O. S. 854, authorizes local governments to use revenues from a Tax Increment Finance district to acquire land. The City of The Village, an inner suburb of Oklahoma City, is using such an approach to redevelop its town center. Given that the TIF for Jenks' River District is projected to raise $220 million for that project, it's not hard to imagine that a City of Tulsa west bank development TIF could bring in enough money to acquire the concrete plant north of 23rd Street, which was valued last year at $37 million.

We can make our river happen without raising taxes.

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The composition of the proposed Tulsa County sales tax package is a perfect example of the use of private leverage to override the plans and priorities of public officials.

Instead of allocating the full $282 million to implement projects in the Arkansas River Corridor Master Plan, more than half of the project money ($135 million) and all of the private donations will be used to implement a plan for the river developed by Canadian architect Bing Thom under commission from the George Kaiser Family Foundation. You'll remember Bing Thom as the guy behind last fall's proposal called "The Channels."

The Kaiser/Thom plan is not The Channels, but like The Channels, the projects in the Kaiser/Thom plan are not part of the Arkansas River Corridor Master Plan (ARCMP). But a glance back through last fall's news coverage reveals that the two outside plans have been treated very differently.

Last fall when The Channels were proposed, officials set up a three-month-long process to study the proposal and consider whether it should be incorporated into the ARCMP. It was described as "an expeditious but rigid technical review."

There were several technical committees examining the impact of The Channels proposal on the ecosystem, including stormwater drainage and endangered species. In the course of the process, many new concerns came to light, issues that might have been lost in a rush to the ballot.

A fifty-member advisory committee would have decided whether to recommend The Channels for incorporation into the ARCMP. Then the matter would have been considered by the Tulsa Metropolitan Area Planning Commission, the Tulsa County Commission, and the Tulsa City Council, as an amendment to the ARCMP and the Comprehensive Plan.

All of these steps had to be completed before the County Commission would submit a tax package for The Channels for voter approval.

A year later, barely a month passed between the public announcement of the Kaiser/Thom proposal until the County Commission scheduled a vote. None of the process that was used for The Channels has been followed this year. The Kaiser/Thom proposal hasn't been brought forward as an amendment to the ARCMP and the Comprehensive Plan. Instead, the vote yes campaign is using sleight of hand to make voters believe that the proposed sales tax package is consistent with the ARCMP and the Comprehensive Plan.

A precedent was set with the process used to evaluate The Channels as an amendment to the ARCMP. That precedent wasn't followed with the Kaiser/Thom proposal currently before us. Why not?

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As I file this story, there are rumblings that Sen. Jim Inhofe will announce his support for the tax increase. If tax backers expect this to sway conservative Republicans to vote yes, they're likely to be disappointed.

Tulsa County's grassroots conservatives aren't the sort to jump on bandwagons. Their loyalty to a politician is tied to his loyalty to the principles and issues that motivate their involvement in politics. When a Republican official deviates from those principles - for example, President Bush's support for amnesty for illegal immigrants - he alienates himself from his base of supporters and his approval ratings plummet.

The grassroots sentiment of the Tulsa County Republican Party was made plain in the platform that was adopted at February's county convention: "We oppose increasing taxes to fund river development projects. We support the use of TIF districts to facilitate river development. We urge Tulsa County Commissioners not to propose any increase in county sales tax."

Republican candidates and officials are free to deviate from the platform, but that deviation can come at a political cost.

If Inhofe backs the tax increase, will local conservatives still vote for his re-election to the Senate in 2008? Most likely. Will they volunteer, donate, and urge their friends to support him? That remains to be seen, but it will further damage the bond of trust with the grassroots that has carried Inhofe to one victory after another.

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This is my last column before the October 9th election. Keep an eye on my blog, batesline.com, for in-depth analysis of last-minute developments.

This week's column in Urban Tulsa Weekly is a collection of short pieces about next week's vote on the Tulsa County sales tax for river projects, but the overarching theme is government priorities and who should set them. I explain my qualms about private foundations using their massive wealth to shift priorities for public spending, offer a thought experiment involving a café and a koi pond, point out the contrast between the rigorous review process that The Channels underwent compared to the Kaiser/Bing Thom plan that we vote on next Tuesday, and wrap up with some thoughts on speculation about a last-minute Jim Inhofe tax hike endorsement.

I made a typo in the piece, incorrectly citing the section of the Oklahoma Local Development Act that authorizes the use of TIF proceeds for land acquisition. The correct citation is 62 O.S. 854. (For you non-lawyers, that's pronounced "Oklahoma Statutes, Title 62, Section 854.") The Local Development Act starts in section 850 of Title 62 and concludes with section 869.

Also in this issue, Brian Ervin has an election preview that ties together some of his earlier stories on the proposed county sales tax's claimed economic impact, environmental impact, and fiscal impact on municipalities.

The cover story this week, for the special restaurant issue, is about pizza, all kinds of pizza all over Tulsa.

And Jessica Naudziunas has a story on the Preserve Midtown effort and their upcoming October 16 public meeting on the issues of neighborhood conservation, teardowns, McMansions, and compatibility.

I got lazy back in September and neglected to link several of my Urban Tulsa Weekly columns. The column that came out on September 12, 2007, called "Show Your Work," dealt with the economic impact estimates that were developed for the Tulsa County river sales tax by the Tulsa Metro Chamber.

Click this link to view the economic impact spreadsheet developed by the Tulsa Metro Chamber's Bob Ball. It's PDF format. (Because of the way I scanned it, you'll need to either tell Adobe Reader to rotate it 90 degrees clockwise, or roll your head 90 degrees counter-clockwise. Or you could print it out and hold it right way up.

Please note that Ball did not provide UTW with an Excel spreadsheet file, which would have revealed a great deal about how the calculations were done. Instead, he provided a printout, which showed the resulting numbers without the formulae behind them.

Back at the end of August, UTW reporter Brian Ervin interviewed Ball about the assumptions in his economic numbers. A salient quote:

Since the $2.8 billion return is the top selling point for the river tax, UTW later contacted Ball for that "simple explanation" of how he arrived at that impressive number.

The initial capital investment figure is foundational to everything else, so Ball was asked how he came up with the $450 million in private investment that he added to the public funding and private donations.

"Through conversations with some developers," he answered.

He said he couldn't divulge exactly which developers, but that none had committed any specific amount of money for any particular development projects along the river.

"They were somewhat casual conversations," Ball explained.

"But, why wouldn't they want to develop? We've already got Riverwalk Crossing," he added.

During the City Council presentation, Neal had emphasized that the $450 million is "an extremely, extremely, extremely conservative number."

Ball told UTW that he utilized the IMPLAN economic analysis model, created by the Stillwater, Minn.-based IMPLAN Group, to calculate the economic impact of that estimated $786 million investment.

This is a good place to mention that two of the three large proposed riverfront private developments that have been claimed by proponents as dependent on this plan are already committed to moving forward regardless of next Tuesday's outcome, having already obtained tax incentives from their respective municipalities. It isn't right to include them in comparing public investment in this tax vs. private investment on the river.

Remy Cos. $50 million South Village lifestyle center, planned for the south bank of the Arkansas River in Bixby is moving forward with a $5 million tax increment finance (TIF) based incentive from the City of Bixby. That will be generated by a one-cent sales tax rebate to the developer for the first 10 years of operation. None of the dams, bridges, or river modifications in the Tulsa County sales tax package on next week's ballot will affect his development.

The $1,000 million River District in Jenks is also moving forward regardless. Jenks has approved a TIF district that is expected to bring in $220 million for project and development costs. Like Bixby's TIF, this one will also capture one cent of sales tax, as well as the ad valorem (property) tax.

A City of Tulsa TIF could be used for development on Tulsa's west bank at 21st Street. This should bring in enough money for land acquisition and site preparation to make way for a developer. Since we already have water in the river at 21st Street, any private investment at that location should not be counted as dependent on passage of the Tulsa County sales tax.