Bank of Oklahoma to purchase Campus Corner property from ice cream shop
SEDA requires $125,000 repayment before closing, marking early end to tax increment financing deal
Stillwater Economic Development Authority
The Stillwater Economic Development Authority unanimously approved Bank of Oklahoma's purchase of 229 S. Knoblock Street during its Sept. 8 meeting, requiring full repayment of outstanding public assistance before the transaction can close.
SEDA will receive approximately $125,000 — the outstanding balance plus accrued interest from its original $150,000 investment in the property's redevelopment. The authority provided the financing in 2021 through a 15-year tax increment financing agreement at 1.75% annual interest to fund facade remodeling and conversion of over 1,500 square feet of unused space into a short-term rental unit.
"This means we get our money back faster," said Mayor Will Joyce, noting the early repayment benefits the authority.
The sale requires SEDA's consent because Bank of Oklahoma plans to operate a bank branch at the location, which differs from the retail operation originally envisioned under the redevelopment agreement. This change triggers provisions allowing SEDA to declare all outstanding obligations immediately due.
SEDA originally partnered with Campus Corner Creamery, Campus Corner Cottage and Knoblock Holdings in July 2021 to renovate the property, which housed a Marble Slab Creamery and cookie company. The project was among the first to receive assistance under Stillwater's Downtown/Campus Link Tax Increment Finance District, created to revitalize the corridor between Oklahoma State University and downtown.
📺 Watch the 2021 presentation to SEDA
The authority structured repayment to come from incremental sales, business personal property and real property tax revenues generated by the redevelopment. To secure the investment, the developer executed a covenant agreement in August 2021 that imposed a continuing lien and minimum annual payment obligation on the property.
Under both agreements, any sale or transfer requires SEDA's written consent, and the change from retail to banking constitutes a material event requiring approval.
Resolution SEDA-2025-4 authorizes City Manager Brady Moore to review final transaction documents and execute closing paperwork once payment conditions are satisfied.
"So long as that condition is met, we can execute the additional documents needed to approve the transfer," City Attorney Kimberly Carnley told trustees.
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The resolution requires SEDA to receive full payment in immediately available funds before or during closing. A title company will hold the covenant agreement's release in escrow, recording it only after confirming payment.
The transaction marks an early conclusion to what was originally a 15-year public-private partnership scheduled to extend through 2036.
Trustees Christie Hawkins, Kevin Clark, Tim Hardin and Vice Chair Amy Dzialowski joined Mayor Joyce in the unanimous vote.
The early repayment provides SEDA with recovered funds that could potentially support future economic development projects, though no specific redeployment plans were discussed during the meeting.
📺 Watch the Sept. 8, 2025 SEDA meeting
Members Discussion