Council Urban & Economic Development Committee - 2026-02-25
Meeting Intelligence Preview
Meeting Summary
The Council Urban & Economic Development Committee approved a $2.5 million economic development incentive for IKEA's new store at Tulsa Hills, projected to generate $30-40 million in annual sales compared to the former Belk's $3 million. The committee also advanced a vehicle impoundment ordinance targeting reckless drivers going 40+ mph over highway speed limits or double posted speeds on city streets, with 10-day impoundment periods. HUD grant funding recommendations totaling nearly $5.8 million were presented for 29 projects across public service, housing, and homelessness programs.
Key Decisions (9)
IKEA Economic Development Incentive at Tulsa Hills
Resolution approving $2.5 million incentive for building and parking lot improvements at the former Belk store location in Tulsa Hills for IKEA retail store. The project is expected to generate $30-40 million in annual sales versus the former Belk's $3 million, with indirect economic impacts of $100-120 million to surrounding retailers.
Easement Closure at 17 for Redevelopment
Ordinance closing a portion of easements located at 17 for redevelopment purposes. Public Works confirmed no utilities were found in the area after research with all right-of-way occupants and city departments. The easements date from a 1965 plat.
Woodward Park Improvements Change Order
Change order for $52,734.76 for project number 147250, City of Tulsa Woodward Park improvements near the bluff area. Work required redesign of junction box due to unstable soils. Project is at 1.89% of the $15.7 million contract price.
Turkey Mountain West Parking Lot Change Order
Change order for $31,679.90 for slope revetment and treatment at the West Parking Lot of Turkey Mountain on West 61st Street. Work was completed by contractor to prevent cracking in the new concrete parking lot.
Hakee Creek Fertilizer Product Expansion Program
Budget amendment for $48 million for fertilizer product expansion at Hakee Creek Wastewater Treatment Plant, including $9.6 million USDA grant and $38.4 million from RMUA capital projects. Project will make Hakee Creek a standalone plant producing class A compost, eliminating need to truck biosolids to South Side. City of Tulsa and Broken Arrow each contributing $19.2 million (50/50 split).
Crow Creek Rehabilitation and Relief Project Funding
Budget amendment for $5,352,000 for Crow Creek Rehabilitation project (contract number six), transferring unassigned fund balance from sewer operating fund to sewer capital projects fund. Project includes 10,000 feet of sanitary sewer pipe rehab and replacement of over 100 manholes between Harvard and Lewis from 15th Street to 36th Street.
Civil Rights Settlement Payment - Leslie Hannon Case
Resolution authorizing $800,000 payment from sinking fund for case number 25CD00298. June 2023 incident where plaintiff contacted 911 about domestic situation, officers escorted boyfriend from premises, but he returned and raped and strangled the plaintiff. Settlement reached after three weeks of negotiation.
Vehicle Impoundment Ordinance for Reckless Driving
Discussion of ordinance amending title 37 relating to impoundment of vehicles and racing. Proposed 10-day calendar day impoundment for vehicles driven 40+ mph over highway speed limits, double posted speed on city streets, street racing, or causing collisions due to excessive speed. Oklahoma City has similar 10-day policy. Impoundment cost approximately $26/day paid by violator.
HUD Grant Funding Recommendations FY26-27
Presentation of HUD Community Development Committee recommendations for nearly $5.8 million across 29 projects: 9 public service projects ($526,000), 7 economic/physical/housing projects ($2.6 million), 4 HOME projects ($1.4 million), 1 HOPWA project, and 8 ESG projects. Public service minimum increased from $50,000 to $100,000. Five bonus points awarded for projects meeting homelessness and housing goals.
Zoning Changes (1)
17 (specific address referenced in easement closure)
Property owner (redevelopment planned)
Development Activity (5)
IKEA Tulsa Hills
Retail store in 51,000 square foot former Belk building. Projected $30-40 million annual sales versus former Belk's $3 million. Indirect economic impact estimated at $100-120 million to surrounding retailers. Regional draw expected from multiple states.
Hakee Creek Wastewater Treatment Plant Expansion
$48 million project to make Hakee Creek a standalone wastewater treatment plant with class A compost production capability. Plant treats 55% Tulsa flow and 45% Broken Arrow flow. Design 95-100% complete.
Woodward Park Improvements
Storm sewer improvements including 96-inch storm sewer and junction box redesign. Contract value $15.7 million, currently at $5.7 million spent. Encountering unstable soils requiring additional work.
Turkey Mountain West Parking Lot
Two parking lots - concrete replacement of former gravel lot with added lights, plus new lot to the west. Slope revetment added for long-term sustainability.
Crow Creek Basin Rehabilitation
Contract number six in Crow Creek Basin. 10,000 feet of sanitary sewer pipe rehabilitation and replacement of over 100 manholes to reduce rain-derived inflow and infiltration.
Market Signals (6)
Commercial Demand
IKEA's entry into Tulsa market expected to generate $100-120 million in indirect economic impacts to surrounding retailers, indicating strong regional retail demand.
Housing Demand
Hotels and motels in East Tulsa corridor are being used for weekly housing by unsheltered individuals and those with vouchers, indicating housing affordability crisis.
Infrastructure
Multiple wastewater and stormwater projects underway to address aging infrastructure and capacity constraints, with Crow Creek Basin requiring sixth rehabilitation contract.
Sentiment
Tourism investment generating $162 total economic impact per dollar invested, with 10 million annual visitors and $1.4 billion in direct visitor spending.
Commercial Demand
City competing for retail development against other states, with economic development described as 'contact sport' requiring $20 million closing fund to remain competitive.
Infrastructure
PFAS regulations being monitored for potential impact on biosolids land application, though current composting process expected to meet future thresholds through dilution with wood chips.