TIF Committee Debates Future of Small Business Enhancement Program
Committee recommends approval of small business assistance application for new interior design business
TIF #3 Implementation Policy Committee
The Stillwater Tax Increment Finance District #3 Implementation Policy Committee recommends $15,000 in small business enhancement funds for The Tile Haus, a new interior design studio opening at 102 S. Main St.
Former Oklahoma State University student Kylee Reazin is bringing her interior design business to Stillwater, offering tile, flooring, cabinetry and stone countertop selections to local residents and builders.
"We are bringing Tile Haus to Stillwater which, in my opinion, obviously I'm biased, but it is very much needed here," Reazin told the committee during its May 12 meeting.
The committee voted 4-1 to recommend the funding request to trustees of the Stillwater Economic Development Authority, with Doug Major, Superintendent/CEO at Meridian Technology Center, voting against the measure due to procedural concerns about budget allocation.
"I think you're going to be very successful. Just procedurally I'm going to vote no today," Major said, citing concerns about the current lack of budget in the small business enhancement category.
A new interior design business, The Tile Haus, is moving into the property located at 102 S. Main St. in Stillwater. The business has applied for small business enhancement funding from the downtown-campus TIF district. – Photos by Chris Peters
Staff exploring transfer process to replenish funding levels for program
The committee's approval comes as the small business enhancement fund faces depletion, prompting discussions about reallocating $150,000 from general project improvements to continue supporting local businesses. That category shows $4.7 million balance in not-committed funds.
Christy Cluck, Assistant City Manager and Finance Director, explains the situation in her financial update to the committee.
"That balance of budget not committed is at $2,687," Cluck said regarding the small business enhancement fund. "What staff is proposing is moving forward with a reallocation of budget from the general project improvements... reallocating $150,000 from that bucket over to the small business enhancements so that this committee can continue to evaluate those requests."
City staff is awaiting legal opinion on whether this reallocation requires formal approval from the Stillwater Economic Development Authority (SEDA) or can be handled administratively.
Reazin's Tile Haus project includes comprehensive exterior improvements to the aging house at 102 S. Main St., with a total project cost of $32,000. The TIF funding will cover $15,000, representing approximately 47% of the total renovation costs.
"It's not that appealing from the outside," Reazin said of the current building condition. "On the inside, we have already started our renovation and of course, like any project, it's costing more than we assumed it would."
Planned improvements include front porch renovations with new railing systems, porch makeover with cedar planks, landscaping with new beds, improved sidewalks, replacement of crawlspace stone, fresh paint, and upgraded signage.
"The whole sidewalk's busted up. Quite frankly, it's like a tripping hazard," Reazin noted. "So we're going to do what we can to level that out."
Reazin emphasizes the business will help keep renovation and design spending in Stillwater rather than Oklahoma City, where many residents currently shop for these products.
"We're also seeing a great response for everybody that's doing the building ever since the fires that this is going to be a huge help to them to pick out and design their spaces and also have just another place that they can order supplies and get what they need for their homes and keep the money here in Stillwater," she said.
The business plans to open in July or August 2025.
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Schools receive first payment, proposed convention center project will not move forward
In other financial updates, Cluck reported that the TIF District has released its first payment of $375,000 to Stillwater Public Schools as part of a long-term agreement.
"We did release our first payment to Stillwater Public Schools in the amount of $375,000," Cluck said. "And then we did enter into an MOU with the schools to outline a schedule through 2043."
The agreement provides a total of $2.88 million to the school district over the life of the TIF district to assist with capital financing needs.
Committee member Charles Johnson inquired about the purpose of the school funding.
"It's the intent, I believe, to assist with some capital financing or capital funding that they need," Cluck explained. "Until recently that was very vague as to how we release those funds to the school district and when the release of funds would occur. And we were able to sit down with their administration and work through a mutually agreeable schedule of payment that does span the full timeline of the TIF district."
The committee also discussed the apparent termination of the HK Development hotel and convention center project (Duck Street & Elm Street), with staff working on a mutual termination agreement that would free up committed funds for other potential projects.
"It does appear that that project is not moving forward, at least not at this time," Cluck said. "So staff is working with the developer to enter into a mutual termination agreement."
The TIF District #3 Implementation Policy Committee meets regularly to review applications for development assistance within the district and make recommendations to the Stillwater Economic Development Authority.
Members Discussion