Claremore Sees Early Economic Return on Investment in Manufacturing
August 17, 2020
Story originally published by CIEDA
In a move hailed as an economic success by the Claremore Industrial & Economic Development Authority (CIEDA), the City of Claremore Council voted to authorize the closing of a financing plan set in motion in 2014, to be paid off nine years ahead of schedule. The tax increment financing district (TIF) was a cooperative effort between CIEDA, AXH air-coolers, and the community. The program was unanimously approved by the Claremore City Council in June 2014, set to expire in 2029. Due to the early conclusion, Claremore Public Schools, Northeast Tech, and other Rogers County property tax recipients will receive upwards of $270,000 in remaining fund distribution collectively.
The district was established to serve as a catalyst for economic growth in the Claremore Industrial Park, aiding in quality job growth and capital investment. This unique incentive facilitated the purchase and subsequent remodeling of the former Burgess-Norton building, which had previously sat vacant for many years. During the TIF period, AXH constructed three new manufacturing facilities within the district, allowing for it to significantly expand the number of local, quality career opportunities. Today, AXH air-coolers employs more than 400 individuals across its six facilities.
“The strong partnership and support from the City of Claremore and Rogers County have played a key role in the success of AXH,” said Jim Lynch, Vice President and General Manager for AXH air-coolers. "We are humbled and grateful to have witnessed results that enabled our TIF district’s early payoff, which will ultimately benefit and impact the community we are proud to call home."
In addition to an increase in ad valorem tax revenue generated by the significant expansion of AXH air-coolers over that past six years, Claremore Public Schools is set to receive approximately $200,000 from the early payoff of the TIF district. The remaining revenue will be divided between Northeast Tech and Rogers County according to the current apportionment rate schedule by the County treasurer.
“The funding generated by the TIF district’s early conclusion will greatly aid our school’s mission to best serve our students during these unprecedented times,” Bryan Frazier, Superintendent of Claremore Public Schools. “I am proud to serve as superintendent in a community where our schools, businesses, and city leaders collaborate to ensure we are building a strong community that provides ample opportunity for our students to one day find future success.”
A TIF district is a tool used by governments to encourage economic development. TIF districts are formed when governments borrow funds to support growth and then repay the loan by capturing the portion of ad valorem generated by the new development.
“The AXH TIF district is a prime example of how economic development incentives can create a domino effect resulting in multiple wins for a community,” said CIEDA Chairman, Ryan Neely. “A once empty structure was revitalized, and our community saw an increase in capital investment, which in turn generated new jobs and boosted tax revenues for the taxing bodies.”
TIF Payment Breakdown
- Rogers County General Fund - 10.8%
- Rogers County Health Fund - 1.663%
- Rogers County Fair - 0.25%
- Vo-Tech General - 11%
- Vo-Tech Building - 1%
- County-wide 4MIL - 4.4%
- Claremore Public School District General - 38.8%
- Claremore Public School District Building - 5.5%
- Claremore Public School District Sinking - 26.3%