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Additionally, aerospace continues to be an economic driver in our region, employing more than 15,OOO of our friends and neighbors at facilities surrounding the Tulsa lnternational Airport. Many of these jobs are high-paying, meeting or exceeding the $5O,OOO annual salary threshold established by Tulsa's Future, the Tulsa Metro Chamber's economic development
entity, ln the case of our region's vital aerospace sector, it is imperative we do what is necessary to ensure our public-owned aerospace facilities are world class and state of the art, wlth modern enhancements, to attract and retain a large aerospace presence, lnvesting in the Tulsa lnternational Airport facilities is investing in the future of these public-owned assets. lnvestments now will reap abundant rewards in the future for the citizens of northeast Oklahoma. And those citizens have communicated their support of growing jobs in our community.
Authority have a responsibility to maintain and modernize the facilities,/infrastructure and improve the future marketability of these facilities for use in aircraft maintenance, aerospace manufacturing and/or other advance nlanufacturing. ln order to upgrade these facilities and
infrastructure,$254.4 million in requirements has been identified and validated by three independent sources: Eliot Lees, ICF SH&E (an international aerospace consulting group out of Boston); Jim Jobes, Ghafari ,Associates (an international engineering firm out of Chicago specializing in airport development); and a local Tulsa commercial/industrial construction company). A breakdown of the requirements is as follows:
'0u24
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pgrades/replacement
Hangar
shop building repairs (exterion) and waste water) - 521.5 million - 511.4 million
modifications/
upgrades (plating
[nvironmentalcapacity
Roof maintenance/repla(ement
- 523.5 million
"The above referenced infrastructure improvements are necessary to repair, maintain and upgrade the facilities to modern standards so that they can be more effectively used by the existing tenants, or any other party in conducting aircraft manufacture or maintenance. The buildings are well along in their useful lives and require investment simply to remain functional."
- Eliot
The following equipment requirements will be needed to upgrade and enhance existing capabilities to support future aircraft fleets (Boeing 737, Airbus 32O, Boeing 777 and Boeing 787). A significant portion of the existing equipment located on the complex is antiquated, not efficient and cannot support new generation aircraft. A breakdown of the requirements is as
(GENEX)
- $15 million
(onsolidate/expa nd com posites repairs (next generation aircraft/ technology) $18.4 million
Machining equipment (for engines, landing gear, machine shop) - $5.6 million Wheeland brake center (replace antiquated and ineffi cient quipment) - 52.6 million
- S8.5 million Auxiliary power unit test equipment (expand capabilities) - 51.2 million
- 560 million
lnternational aerospace consulting group ICF SH&E concluded that the above equlpment list is necessary if the current MRO (maintenance repair and overhaul) provider is to shift focus from supporting its existing fleet to the fleet that the carrier is in the process of acquiring, Today, approximately 60 percent of the maintenance work completed at Tulsa is to support
an aging aircraft fleet that will be retired over the next five years, Without facility and equipment upgrade of the industrial complex to support the future fleet mix, the carrier will be forced to move a significant portion of the work to other bases, or contract the work to third parties. Much of the equipment prooosed is sufficiently interchangeable so that it could be used by other maintenance providers anC would be an added selling point to other aircraft maintenance providers.
June 29, 2012
American Airlines Maintenance & Engineering Center: $477|4 - construction of a turbine building, office building, test cell, waste plant, Hangar 5, building additions, computer center, test cell modifications, composite shop, waste treatment upgrades, roof repairs/replacement, electrical upgrades and cabling, dock modifications, cooling tower renovations fire protection repairs and upgrades, etc. Spirit AeroSystems: $65.8M in site infrastructure in Tulsa which includes roofs, HVAC, paving, site power systems, site fire protection systems, doors, floors, rest rooms, elevators, remodeling, rest room remodeling, ADA compliance, lighting, building construction, fencing'
security, etc. lC Bus, LLC: $!5M - lmplementing more than 20 facillty upgrades at the Mingo Road facility.
As the Tulsa region strives to attract high-wage jobs and increased capital investment, public incentives have been identified as a necessary tool for successful economic development. Such incentives are a primary component of economic development across the country, and can include investment in recruitment and expansion assistance to support growing existing companies and to recruit new comj)anies from outside the region. Public incentives funding of {ffmllion over the next 10 years will help upgrade infrastructure related to our region's targefsectors, including advanced manufacturing, aerospace and aviation, energy, health care, information security, professional services and regional headquarters, and transportation/distribution/logistics. These funds will play an integral role in high-wage job attraction and ongoing business retention, expansion and attraction efforts throughout northeast Oklahoma.
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The Tulsa Metro Chamber is focused on recruitin6Os in the seven aforementioned target industries. Tulsa County public incentives of ${million over a lO-year period would be an
invaluable tool to retain and grow existing companies while recruiting new companies to the region. This local incentive would be integral in increasing high-wage employment and capital investment in Tulsa County and the region. The assistance would be for primary jobs and restricted to land, buildings and infrastructure to make the Tulsa region more attractive. The fund would be overseen by an appointed trust authorlty. One technique used time and time again by our competitors to land and keep successful industry is economic incentives and infrastructure investments. Economic development professionals across the country will tell you the top reason for not getting projects is not offering incentives and investments. Therefore, it is critical the Tulsa region be equipped to effectively retain our top employers and attract new companies to Northeast Oklahoma,
A Trust Authority should be created and made up of a c County Commissioners, recommended that the trust authority size be eitherffS^7 members. A mechanism /rlArq v "'- / for confidential discussions during the initial stages of the project must be put in ,, place so projects are not subject to open records until the project is ready ,, ,o
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June
29,2012
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All projects should be reviewed and approved or denied by the trust authority, tf a project is approved, the Tulsa County lndustrial Authority will vote to approve the issuance of bonds or release of capital as appropriate.
decisions as quickly as projects demand,
>r The Trust Authority will meet as needed to review projects and shall strive to make
To qualify for consideration, a project must meet the minimum wage thresholds set
out by the Oklahoma Quality Jobs Incentive which is currently $30,754 annually (not including benefits) and 50% of each employee's health insurance paid by the employer. The company does not have to be enrolled in the Oklahoma Quality Jobs
incentive but they must meet the payroll thresholds which change annually.
ln order to qualify for consideration, the project must create a minimum of 50 new direct jobs. A lower minimum number of jobs will be considered on a case by case basis if the average wages are equal to or exceed $7S,OOO per year (not including benefits).
> )
All projects will be analyzed by using a model to be created by a to-be-identified, Oklahoma university to show the economic impact of a project.
Projects will be scored using objective criteria which includes new capital investment, number of new jobs, average wages and likelihood of other businesses locating nearby. Scoring will help determine project priority when multiple projects are being reviewed.
The fund will be restricted to expanding,/new companies creating new primary jobs only. Retail or secondary jobs shall not be eligible,
, >
lncentive funds use should mainly be restricted to buildings, land, equipment, fixtures, furniture, infrastructure or other tangible assets. The ownership of these assets will elther be retained by the Tulsa County Trust Authority, transferred to another local government entity, or transferred to the company based on meeting specific criteria. The group has also recommended that cash transactions should also be considered when they make sense and limited to specific uses, When setting up the guidelines, it is suggested that the Trust Authority have the ability to transfer the asset to the company when they meet the job and wage thresholds for a set period of time noted in their incentives contract. Company will be required to sign a sworn statement that says, "but for this incentive, my company would not have expanded or located in Tulsa County". Company will be required to submit quarterly Oklahoma Employment Security Commission OES-s reports detailing the current employment and payroll to the incentive administrator for the duration of the incentive. This is for the administrator to confirm that the company is meeting their agreed upon thresholds of employment in order to receive the incentive, lf a company fails to meet their number of jobs, average wages, or capital investment, etc. outlined in their incentive agreement, the County will have the ability to exercise claw back provisions as descr'tbed in the agreement. lncentive fund could be used for a project outside of Tulsa County. Any facility outside the borders of Tulsa County would require that a direct benefit be shown to Tulsa County in proportion to any sales tax being used to fund incentives.
> > )
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Aerospace facility
Total investment
required'
upgrades:
sffinon
5254.4 million
tfrmillion
With the identification of these critical areas of development, the Tulsa regiorl requires a public incentives investment to meet its goals of spurring job creation. Public incentives funding of $Zszrnillion over the next 1O years will make the region more competitive and more successful /in its ongoing economic development efforts as the upgrades to the infrastructure at the Tulsa lnternational Airport lndustrial Complex will solidify our valuable aerospace jobs. r
?ok'f
1.
Q: What are the most important issues for Tulsa County voters?
A:
2,
Survey shows voters are solely focused on Jobs and the Economy
Q: What is Tulsa lnternational Airport,s lndustrial Complex? A: lt is an industrial area on the east side of the airport. lt is bordered on the south by the railroad tracks, on the north by the Oklahoma Air National Guard base, on the west by the airport's main north,/south runway and on the east by Mingo Road. Q: Who owns the land and building/structures with the industrial complex?
3.
5.
6.
7.
8.
Gl:
O: Why is this funding needed? A: To maintain and modernize the facilities/infrastructure and improve the future maketability of these facilities, the Tulsa region and its skilled workforce Q: How much ls identlfled to support the facility/infrastructure requirement?
lo.
A:$122 million
Gl:
11.
What are some examples of ttre tacllity/infrastructure reguirement? A: Roof maintenance and replacement on World War ll aircraft plant cuirently occupied by two advanced manufacturers; hangar modifications to support new air craft (i.e. Boeing 732 Airbus 32O, Boeing 787); pavement repairs of ramps/roads/
parking lots; upgrade /repair utilities
12.
A: $132.4 million
13.
requirement? O: What are some examples of the equipment upgrades/replacements tirat will support next generation engines for the Boeing 787; A: New engine test cell upgrades to current engine test cell to support new and future aircraft fleets: aircraft: avionic and componenitest equipment to support next generation material/composite technology advance
14.
Q: What will be the return on investment to taxpayers? increasingly A: The assistance will enable the Tulsa region to be competitive in an industry by maintaining a highly-skilled workforce global race for business and positive that contributes to the economy and quality of life in the region and drives sales-tax growth for cities in Northeastern Oklahoma' Q; Could the facilities be privatized? Tulsa, A: The facilities, on." ,pgruded, will remain a valuable asset for the city of in attracting business and industry and a enabling the region ti be competitive skilled-workforce. Public ownership of the facilities ensures the interests of the Tulsa region and its workforce are top priority' O: What is needed to attract high-wage iobs and increase capital investments? A: Public incentives have been identified as a necessary tool for successful economic development.. O: What is our regional iob incentive investment?
15.
16,
17.
A:
^
18.
nvestment
t,:ricrv
ryry,,,o"
playing field investment in Tulsa Courity and the region. lt levels the competitive
19.
O: What will these funds be used for? buildings, infra A: The assistance would be for primary iobs and restricted to land, lowering operating costs to make the Tulsa region rnore attractive' structure a nd
O; What are the industry sectors that are targeted by the incentive? lnformation Advanced yanufactuilng, Aerospace & Aviation, Energy, Health Care,
24.
A:
Security, Professional
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