School board members oppose proposed TIF to fund county road

Two school board members expressed their opinions on the proposed tax increment financing (TIF) district that would fund two miles of a county road near the future construction site of the elementary school in southern Logan County.

During the regular scheduled Board of Education (BOE) meeting on Monday, Guthrie Public School board members Terry Pennington and Travis Sallee voiced their concerns on the proposed TIF that would essentially take money from the school district.

“We (school district) are looking at a budget that is starting us off an estimated million dollars in the hole from last year. We had to lose teachers and increase the classrooms,” Pennington said during the discussion of the agenda item.

To view the conversation on this topic watch the video below this article starting at the 34:00 mark.

District 2 Logan County Commissioner Mike Pearson on Aug. 31 asked for a Logan County Local Development Act Review Committee to be formed during a Board of County Commissioners (BOCC) meeting. The board voted 2-1 to form the review committee.

A representative from each entity, within the proposed district who collects property taxes, will be on the review committee. Those entities, include Guthrie EMS, Logan County Health Department, Vo-Tech, Guthrie Public Schools and Logan County (sitting commissioner). In addition, three at-large members will be selected to be on the committee.

Instead of property taxes going to the entities mentioned, the tax money generated within the TIF district, during a specified time (five years), would go toward paying off the construction of the road project.

Pearson is seeking to pave two miles of road on Charter Oak Road in his road district. The project would extend east from I-35 to Douglas Blvd. The estimated cost is to be said around $750,000. Related article: Review committee to discuss adding possible TIF district in Logan County

Along with an elementary school and the nearby Woodcrest Volunteer Fire Department, Pearson says 80 acres has started to be developed with new homes south of Charter Oak between Douglas Blvd. and Midwest Blvd. With a price tag near $245,000 per home, Pearson says 100 houses are expected in the first year.

Pearson added due to funding and the size of the project, if a TIF is not established it would take years to develop and would likely go undeveloped.

However, Pennington says the area is already being developed and a TIF does not seem necessary.

“They (BOCC) want to take our ad valorem money for the next five years and spend three-quarters of a million dollars to build new roads and intersections were there are already going to be, in my opinion, construction occurring because there are a number of houses slated to be built.”

Pennington concluded his thought by saying, “The TIF is designed to encourage or create construction of an improvement of an area that wouldn’t be improved or constructed if not for the TIF.”

Sallee says the timing of the proposal comes at a crucial time for the school district.

“At a time of unprecedented education cuts in the state, the last thing they (commissioners) should be doing is taking ad valorem growth and paying for county roads. I am opposed to the county commissioners taking new ad valorem growth and fund construction of roads.”

Pennington said, “I don’t want this (school) board and this district to subsidize a bunch of brand new quarter-million dollar homes in southern Logan County. I say we encourage the vote no on this from the start to the finish.”

The school board unanimously (6-0) voted for Superintendent Dr. Mike Simpson to serve as the school district’s representative on the TIF review committee.

“I would urge the board to seriously consider sending a representative, Mike, with a mission of saying we are opposed to this TIF,” Pennington said just before the final vote.

Simpson started the conversation by saying, “Know that I will represent the interest of the district and I will represent the interest that you (BOE) guys give me.”