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City considers Frisco Road development proposal

A proposed retail and entertainment district that would be located just north of Interstate 40 along Frisco Road could bring hundreds of jobs and millions of dollars in revenue to the city, officials said Thursday.
The development, which has been code-named The Raptor Group, would include things like restaurants, hotels and other entertainment venues.
However, getting the project to land in Yukon will likely require some incentives. Those incentives could be paid for through the creation of tax incremental financing district.
Yukon already has a so-called TIF district that spans an area south of I-40 and west of Garth Brooks Boulevard.
However, the area that is being sought by the Raptor Group is not included. The property being sought by The Raptor Group is along the east side of the realigned Vandament Avenue and the east side of Frisco Road.
That is the same area that is now being considered for a second TIF district.
A TIF allows a portion of the sales tax that is collected from businesses located in the area to be reinvested as an incentive to draw more businesses.
Jeff Sabin, with the Center for Economic Development Law, reviewed a proposed economic development plan for the Frisco-Vandament district on Thursday.
Sabin said incentives will be needed, but the type of incentives has not been determined.
He said the incentives could range from rebates to helping with things like infrastructure such as interior roads, water and sewer lines, or possibly improved landscaping.
The proposed TIF would involved 15-year sales tax from monies generated in the area.
The money could also provide development financing assistance.
In this instance, the developer has proposed a maximum of $43 million in TIF assistance.
That includes $6.5 million in infrastructure iprovements and $35 million in development financing assistance.
The company plans to invest $72 million of its own funds, Sabin said.
Initially, the project is expected to generate an additional $414,000 per year in sales tax revenue. However, that could increase to as much as $4 million per year over the long term.
The project, Sabin said, would create more than 1,000 jobs during the construction phase, plus hundreds of permanent jobs once the work is completed.
The payroll during construction could be as much as $3.7 million.
Mitchell Hort, the director of Yukon’s development services, said it is important to be able to offer incentives to prospective businesses.
“If you don’t provide assistance, someone will,” he told members of the Frisco/Vandament Economic Development Project Plan Review Committee.
Mayor Michael McEachern, who chairs the committee, said the city needs to do something to ensure future revenue for Yukon.
There were some concerns raised during the meeting about possible opposition to the TIF district. The original district was opposed because a portion of the fund originally were to come from ad valorem taxes, and because the organizers wanted to many incentives.
That would not be the case with this district. It would solely be funded through sales taxes generated in the area, and the committee would decide on the amount of incentives.
The proposed TIF district and the incentive plan must be approved by the city council.
A public hearing is scheduled for Nov. 19 ad again on Dec. 3 on the proposal. The public hearings will occur as part of the normal city council meeting.
The city’s planning commission will discuss the proposal during its meeting Nov. 18.
Also, the Yukon Economic Development Authority will discuss the plan during a meeting later this month. That date has not yet been set.

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