Edmond has strong economic outlook

EDMOND — The economic outlook for 2017 in Edmond remains positive while state budget woes are not as upbeat, about 200 local officials and business leaders heard at the annual Edmond Economic Development Authority economic preview.

Oklahoma State Treasurer Ken Miller said this week there needs to be changes at the state level because of an $878 million budget gap facing legislators.

On a more positive note, Janet Yowell, the authority’s executive director, said 2016 recorded the largest amount of commercial investments ever in the history of Edmond.

“Commercial development was very strong for Edmond with 66 new permits in 2016 verses 42 permits in 2015,” she said.

There were 620,000 square feet of new commercial space with a $109 million price tag. That includes 106,000 square feet of retail space and another 83,000 square feet for offices.

That includes a $30 million permit for a hotel and conference center, activity at eight office parks and seven retail centers across the city.

“And, when you combine permits and investments made to our existing businesses and buildings throughout Edmond, which I think is very, very important, there has been over $153 million of commercial investment in Edmond in 2016,” Yowell said.

New restaurants

There were 20 new restaurants opened here last year, Yowell said, with 10 more coming in 2017.

Yowell classified one of the most active areas in Edmond at Bryant Square where the owners are undergoing a massive redevelopment project. Last year, InvenTrust Properties Corp. invested $7.5 million in the 286,579-square-foot shopping centers at Second Street and Bryant Avenue.

“Ulta Beauty, Zoe’s, PDQ and they are going to knock down two or three buildings to make way for Torchy’s Tacos and Five Guys Burgers and more landscaping throughout the development and new signage,” Yowell said.

At Kelly Avenue and Covell Road, Yowell said, $7.5 million was spent in private investment on a 16,000-squarefoot building and a freestanding building where a Garage Restaurant will be located. Another $2 million was invested in this area in 2015.

Pure Barre, Pie Five, Three Dogs, All about Cha and Roxy’s Ice Cream Social are planning to open there.

Since 2000 in downtown, over $30 million has been spent on improvements. Last year, over $3.1 million was spent on commercial development.

“That is important to the city council when we look at the public investment,” Yowell said. “To see the private investment really says a lot.”

Medical investment

Along Interstate 35, medical investment continues to be big in Edmond.

“The medical investment is very, very high,” Yowell said. “Integris (Health Edmond) is planning significant expansion in hospital beds and square footage for surgery and just for some office space out there.

“Mercy has some space to develop, also. And our medical impact in Edmond continues to be high with over $225 million investment to date.”

The biggest commercial investment in Edmond is the hotel and conference center being constructed near Covell Road and I-35. It is expected to open later this year.

“We are very, very proud of this development and we have been talking about it for a very long time,” Yowell said.

The six-story hotel has 158 rooms, and the conference center is 20,000 square feet. The city has invested $9 million and infrastructure improvements.

“The city expects $7 million will be paid back within 15 years,” Yowell said.

Near the hotel and conference center will be a ShowBiz Cinemas, an 82,000-square-foot family entertainment venue with 12 theater movie screens, 18 bowling lanes, restaurant, bar concessions and stateof-the-art sound system.

“The city invested $4.8 million and will take a portion of sales take to be paid back to the developers within 20 years,” Yowell said. “If they get it paid off longer than the 20-year time frame the incentive stops. If they reach 20 years and it’s not paid off, it still stops.”

“We have been working with several theater companies and we are very happy with this company. This is the best fit for Edmond.”

Yowell sees the growth in Edmond as positive.

“Edmond is a growing community,” Yowell said. “We are looking forward to an exciting 2017.”

State budget woes

The Oklahoma treasurer thinks the state’s economy is trying to turn around. But he said the state still has to deal with the $878 million budget gap for the next fiscal year.

Last year, there was a $1.3 billion gap, that was filled with budget cuts, some new revenue and more than $500 million in one-time funds.

“So, it looks like pretty systemic — things that are happening here,” Miller said of state funding. “We cannot continue to do the same things we have been doing and expect different results.”

Miller said he is proud of Gov. Mary Fallin for stepping up and saying that the state has a problem and here is one way to address it. She has proposed a slate of taxes on a variety of services.

“We have a problem,” Miller said. “It is a structural deficit and we have to do something about it.”

Miller predicts the Legislature will come up with different ways to make the budget work. He is hoping there will be a compromise that will sustain the state for a long time.

“Far too often what I see under that Capitol dome is people doing what’s good for them and their next election, instead of doing what is good for the next generation and that has to stop,” Miller said as the room full of people applauded.