2006 Section 108 Project Summaries - Oklahoma

Dell Corporate Business
Oklahoma City, OK
Section 108 Guaranteed Loan- $4,716,000

The City of Oklahoma City will provide financial assistance to Dell, Inc. for the development of a Dell Business Service Center which will be comprised of three office buildings and parking areas. The Business Service Center will be built on a 62-acre former landfill west of the downtown area in the City's Neighborhood Revitalization Strategy Area (NRSA) and a Federally-designated Empowerment Zone (EZ). The City will provide Dell, Inc. with a development ready site with all necessary infrastructure and site improvements completed, environmental liability insurance, as well as a grant to Dell, Inc., which will be based on the number of new, full-time employees hired by the company for the new business center. Dell estimates that the company will hire approximately 1500 persons.

The City will fund the Section 108 Guaranteed Loan proceeds to Dell, Inc. as a business operations grant calculated on a per employee amount for persons hired in newly created positions at the Dell Business Service Center. The infrastructure and site improvements will be funded with $8,116,000 in tax increment financing bonds (TIF) and with $3,725,000 in Economic Development Administration (EDA) Public Works Program grant funds. In conjunction with the guaranteed loan funds, the City will use an $822,645 Brownfields Economic Development Initiative (BEDI) grant to make interest payments on its guaranteed loan. The total project cost will be an estimated $17.3 million.

The Community Development Block Grant (CDBG) national objective for the City's use of the guaranteed loan proceeds is to benefit low-moderate income persons through job creation. The site is located in a census tract which qualifies as a low-moderate income tract, so jobs created from this project will be available to predominantly low-moderate income persons.

The City will repay the Section 108 Guaranteed Loan over a five-year period, paying interest only for the first two years. The City will use future CDBG funds to repay the loan and also pledges these funds to secure repayment of the guaranteed loan.