The City of Tulsa is releasing five companies that own downtown property from their tax covenants after just a few years.
The tax covenants are part of agreements Valley National Bank, Vast Bank NA, PH Stadium Hospitality LLC, WPX Energy Headquarters LLC and 403 Cheyenne LLC have with the city in which rising property tax values in designated districts are set aside to help fund development assistance and public improvements.
The longest-standing covenants started in November 2018.
"The pandemic had a downward effect not only last year, but on this year’s property assessments because the Tulsa County assessor uses the income approach. So, as we saw incomes drop because of the pandemic, the actual property valuations decreased as well, and it has led to this situation where a number of the development agreements that we have, the minimum tax covenant amount actually exceeds the taxes owed on the property," said Tulsa Authority for Economic Opportunity Director of Economic Incentives Spencer Mitchell.
The tax covenants were to last up to 25 years. While they have been set aside, the companies’ development agreements with the city and related financial assistance will continue.