Tulsa Lines Up $885 Million for Economic Development

Here is an example of a community that has decidedly scaled up its economic development efforts.

Tulsa County voters passed $885 million in economic development projects earlier this week, according to unofficial returns, raising their sales tax to promote growth in the slumping city.

The four-part package, funded by a one penny sales tax increase over 13 years, contains money for more than 30 projects including:

- $350 million in incentives to lure Boeing's new 7E7 jet plant. It had 58 percent support.

- $22.3 million in incentives to persuade American Airlines to retain its roughly 9,000 jobs in Tulsa, or to move more jobs here. Nearly 61 percent of voters were approving this question.

- $350.3 million in funding for higher and common education proposals and an 18,000-seat regional events center. This package had 61 percent approval.

- $157.4 million to improve parks, trails and community centers, enhance infrastructure and attractions including Route 66 and the Oklahoma Aquarium. About 59 percent of votes counted were for this proposition.

Also, philanthropists have pledged an additional $29 million for package projects including $10 million from the Schusterman family for a library and more classrooms at the University of Oklahoma-Tulsa. The plan includes $5 million to exempt seniors from the tax increase.

A couple observations and questions about this funding effort:

1. This is a lot of money; a whole of money.

2. I don't think it's a particularly good idea to lay $350 million on the table for the Boeing folks to just swoop-up without a lot of negotiation around what the community will get in return.

3. The margin of support for the package is fairly thin, if I understand the analysis properly, which suggests that the leaders of this initiative are open to considerable criticism if parts of the package fall apart.

4. How is the money aimed at Boeing to be used, if a deal with Boeing cannot be struck?

I will continue to follow this one.

Read more here.