DUNCAN — The Duncan Area Economic Development Foundation is studying the possibility of creating a tax increment financing district at the Stephens County Refinery Property, where a new refinery will be built, a DAEDF representative said last Monday.
“We’ll be contacting you guys about getting, possibly, a TIF district set up and getting that moving forward,” said DAEDF’s business and industry specialist, Henry Lehr, during a recent meeting of the Board of Stephens County Commissioners. “This is where the real work starts.”
A TIF is an economic development tool that allows local governments to capture part of the tax revenue from the district and use those dollars to offset the cost of making public improvements in the district, according to the Oklahoma Department of Commerce. The government entity that establishes the district borrows money to invest in the development, typically in the form of developer incentives or public improvements, then uses a portion of the tax revenue generated by the district to repay the loan.
Once the loan is paid off, the TIF district dissolves and its tax revenues are distributed among the taxing jurisdictions that were affected by the district, according to the Commerce Department.
A new refinery Stephens County officials broke ground May 29 for a new oil refinery at the Stephens County Refinery Property, the former site of a Sun Oil Co./Tosco Corp. refinery. Tosco closed its refinery in the 1980s, and the site has remained idle since then.
The Edmond-based fuel producer Green Fuels Operating plans to build a new refinery at the site, located one-half mile east of the intersection of Old U.S. Highway 81 and Refinery Road.
Green Fuels is investing in its new refinery at a time when other fuel production companies are consolidating their operations, CEO Derek Williamson said. He said the company decided to build the plant at the Stephens County site for the plant because of its ties to the refining industry.
“This site knows that story better than most,” Williamson said. “This site has been waiting, and today we’re answering the call.”
Green Fuels plans to invest about $400 million in the new refinery, which will produce jet fuel, kerosene, diesel and asphalt, Williamson said. The plant, which will use modern technology to capture and reuse vapors, emissions and byproducts, may be up and running within 24 to 36 months.
The new plant is expected to create 75 to 80 fulltime jobs with an average annual income in the six figures, Williamson said.
Improvements The refinery site needs water and sewer lines, road upgrades and other improvements, DAEDF President Lyle Roggow said. A TIF district at the site could generate revenue to help offset the cost of making those improvements, depending on how the district is set up.
“It’s not a revenue stream so much as it is trying to figure out how to build out your necessities of those components,” Roggow said. “As an example, there’s going to have to be a sewer extension that’s going to be run. We don’t know quite how much it’s going to cost.”
The foundation will help facilitate the creation of the TIF district and ensure that it is fair and equitable for everyone, Roggow said.
‘The company’s out there’ Roggow said DAEDF officials have consulted an Oklahoma City attorney about the possibility of establishing a TIF district at the refinery site and will be working through that process with the attorney’s guidance.
“The company’s out there,” Roggow said. “Now we just need to go through the mechanics of making sure here’s what’s needed, here’s what it’s going to cost to do that and then figure out how that gets taken care of.”