Voters asked to support industrial development

May 5—Muskogee County voters will be asked on Tuesday to support an industrial development initiative that would provide longterm, fixed rate loans to new or expanding companies.

Financing would be available by the Muskogee County Economic Authority if voters authorize the public trust to issue general obligation limited tax bonds worth up to $20 million. Proponents say bonds authorized by voters in 1998 and 2001 and issued by Muskogee County Industrial Trust Authority, MCEA's predecessor, helped create more than 600 jobs and an additional $650,000 annually in property tax revenue.

MCEA Vice Chairman Tim Thompson, who works for OG&E as its community affairs manager, said the upcoming election is an opportunity to let new and expanding businesses "know we are willing to partner with you." He said passage of the ballot proposition "will not increase taxes."

"We are not looking to replace any of our local lending institutions, in fact we prefer you go out to any of the lending institutions and get your loan," Thompson said. "But if you do that and find a shortcoming of your financial needs then you can apply with us."

District 1 Commissioner Ken Doke, who serves as MCEA chairman, said any business that applies for a loan through the trust would be vetted thoroughly before a recommendation is forwarded to Muskogee County Board of Commissioners. The board would grant final approval before the loan is made and collateral secured for the debt.

"Muskogee County has had one of the most successful bond programs in the state," Doke said, noting the program has been around since the 1960s. "For over 60 years the program can be credited for the successful recruitment of new companies and quality jobs."

Doke said issuing general obligation tax bonds "is one of the most important tools in our box when trying to build a strong local economy." Because the county guarantees payment to bondholders, the issuances attract below-market, fixed-rate interest rates for terms that are longer than what traditional lenders can offer, which makes them attractive to expanding businesses.

"When attempting to recruit new companies it is important to understand that every city, county and state in the country are competing for the same prospects," Doke said. "We have to remain competitive so that we can continue to successfully recruit new companies, expand existing companies and create high-paying jobs for our residents."

Marie Synar, industrial development director at the Port of Muskogee, said earlier this year her office is working with "a number of prospects that are waiting for this bond money to become available." Those prospects, she said, would be vetted by MCEA members, who would assess the local economic impact of any project proposed before forwarding a recommendation to county commissioners.

While most deals approved by the trust that predated MCEA proved successful, records show there were a couple that soured. The Phoenix reported in 1985 that county commissioners authorized foreclosure proceedings against Warner Furniture Co., which secured a taxpayer-backed loan to build its factory in 1974.

In 1993, a former chairman of the industrial trust authority said there were companies that benefited from the GOLTB program that got behind on payments during the preceding 12 years and others that had gone out of business. But former chairman Bob Lomax said taxpayers never had to pay off any of those notes.

Muskogee County Assessor Ron Dean said he recalled a poorly collateralized call center that went out of business at one point. But he believes that would be less likely to happen in the future due to multiple assessments that would take place.

"This is set up with the multiple layers, with the port vetting it, and then the economic authority vetting it, and then the commissioners vetting it," Dean said. "It's got to go through those three entities and have to win approval at each stage — this is well thought-out plan."

Mayor Marlon Coleman said he believes the $20 million bond proposal will outperform past packages with regard to job creation and industrial expansion opportunities.

"Successful recruitment requires we have land, infrastructure, workforce and business friendly environment to create the incentives needed to compete," Coleman said. "We will never be able to keep up with our competition who are ready to grab what we can't get if we don't act now."

In-person absentee voting will be from 8 am. to 6 p.m. Thursday and Friday at the Muskogee County Election Board. Election Day polling will be from 7 a.m. to 7 p.m. Tuesday at precincts across the county where a voter is registered.