Cityscape July 2017

How does the program work? In order to receive SIP funds, a company must meet strict criteria. Qualifying applicants must create new direct jobs within the limits of Oklahoma City. Those jobs must be primary, meaning that the goods and services are primarily sold outside the state of Oklahoma. The jobs must meet qualifying average wage thresholds, which is 100 percent of the Oklahoma City Metropolitan Statistical Area’s average wage. The company must provide 50 percent of the employee health care benefits, and the company must create at least 50 full-time jobs with an annual new payroll equal to or greater than $1.75 million. In order to qualify for incentive funds, companies must submit corporate financial information for scrutiny, and calculations are done in order to make sure the city “gets its money’s worth” on its investment. How does a company receive funds? The funds are dispersed on an annual basis and only after the company meets their previously agreed- upon wage and job creation goals. If a company qualifies with the program guidelines and meets their wage and job creation goals, incentive funds can be used to pay for capital expenses like site acquisition, construction, renovation, engineering, design and equipment. The program is pay-for-performance – no funds are released until companies prove they have fulfilled previously agreed-upon requirements. How is the SIP program funded? A portion of the 2007 General Obligation Bond approved by the voters of OKC in 2007 ($75 million of the $835.5 million package, or less than 9 percent) was dedicated to funds used to establish the SIP program. Since its creation, $64.5 million has been set aside for SIP projects, and $45 million has been made in payments. Companies continue to meet their obligations in order to receive the remaining payments. Strategic Investment Program Adds 4,200+ Jobs to OKC (continued from page 1)

5 CITYSCAPE AN UPDATE ON THE PROGRESS MOVING OKC FORWARD

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