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Improvement District -- Other Options?

KS
Kimberlee Spady
Tue, May 26, 2020 2:59 AM

Municipality needs to construct improvements to wastewater system (under DEQ
Consent Order).

One of the largest users of the system, and one of the properties that will
benefit most from the improvements, is a casino located on trust property.

11 OS 39-104 says the district shall include, for the purposes of
assessment, all property benefitted by the improvements except religious
properties and any property "of the United States, or any agency,
instrumentality or corporation thereof, in the absence of consent of
Congress."

Does this provision prevent the municipality from assessing the cost of
improvements against the property held in trust by the U.S. Government for
the benefit of the tribe?

Any other ideas for financing these improvements by requiring the expense be
borne by the benefiting property, at least in part?

Thanks

Kim Spady

Municipality needs to construct improvements to wastewater system (under DEQ Consent Order). One of the largest users of the system, and one of the properties that will benefit most from the improvements, is a casino located on trust property. 11 OS 39-104 says the district shall include, for the purposes of assessment, all property benefitted by the improvements except religious properties and any property "of the United States, or any agency, instrumentality or corporation thereof, in the absence of consent of Congress." Does this provision prevent the municipality from assessing the cost of improvements against the property held in trust by the U.S. Government for the benefit of the tribe? Any other ideas for financing these improvements by requiring the expense be borne by the benefiting property, at least in part? Thanks Kim Spady
JB
Jeff Bryant
Tue, May 26, 2020 12:53 PM

Kim,

These types of issues are interesting that, for me, have really required looking at the issue from a different perspective: how to solidify a revenue stream to support necessary financing to accomplish the improvement.

Although you may not be able to "assess" property over which the City or public trust has no jurisdiction, the purpose of the assessment district is to provide a revenue stream from which to finance the improvement.  Along those same lines, if you can reach a long term agreement that locks in a similar revenue stream with the tribe, or US Agency, or other entity that is not subject to assessment, but that is benefitting from the district, then a lending institution may be willing to advance financing costs based on both the property that you can assess within the district as well as income that is projected through those agreements.

Hope this idea is helpful.

Jeff Bryant

Jeff H Bryant
Director of Legal Services
Associate General Counsel
jbryant@omag.orgmailto:jbryant@omag.org

[OMAG Small Logo Smooth]
3650 S. Boulevard
Edmond, Oklahoma  73013
Phone: 405-657-1419
Fax: 405-657-1401
www.omag.orghttps://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0

From: Oama oama-bounces@lists.imla.org On Behalf Of Kimberlee Spady
Sent: Monday, May 25, 2020 9:59 PM
To: 'OAMA luistserv' OAMA@lists.imla.org
Subject: [Oama] Improvement District -- Other Options?

Municipality needs to construct improvements to wastewater system (under DEQ Consent Order).

One of the largest users of the system, and one of the properties that will benefit most from the improvements, is a casino located on trust property.

11 OS 39-104 says the district shall include, for the purposes of assessment, all property benefitted by the improvements except religious properties and any property "of the United States, or any agency, instrumentality or corporation thereof, in the absence of consent of Congress."

Does this provision prevent the municipality from assessing the cost of improvements against the property held in trust by the U.S. Government for the benefit of the tribe?

Any other ideas for financing these improvements by requiring the expense be borne by the benefiting property, at least in part?

Thanks
Kim Spady

Kim, These types of issues are interesting that, for me, have really required looking at the issue from a different perspective: how to solidify a revenue stream to support necessary financing to accomplish the improvement. Although you may not be able to "assess" property over which the City or public trust has no jurisdiction, the purpose of the assessment district is to provide a revenue stream from which to finance the improvement. Along those same lines, if you can reach a long term agreement that locks in a similar revenue stream with the tribe, or US Agency, or other entity that is not subject to assessment, but that is benefitting from the district, then a lending institution may be willing to advance financing costs based on both the property that you can assess within the district as well as income that is projected through those agreements. Hope this idea is helpful. Jeff Bryant Jeff H Bryant Director of Legal Services Associate General Counsel jbryant@omag.org<mailto:jbryant@omag.org> [OMAG Small Logo Smooth] 3650 S. Boulevard Edmond, Oklahoma 73013 Phone: 405-657-1419 Fax: 405-657-1401 www.omag.org<https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0> From: Oama <oama-bounces@lists.imla.org> On Behalf Of Kimberlee Spady Sent: Monday, May 25, 2020 9:59 PM To: 'OAMA luistserv' <OAMA@lists.imla.org> Subject: [Oama] Improvement District -- Other Options? Municipality needs to construct improvements to wastewater system (under DEQ Consent Order). One of the largest users of the system, and one of the properties that will benefit most from the improvements, is a casino located on trust property. 11 OS 39-104 says the district shall include, for the purposes of assessment, all property benefitted by the improvements except religious properties and any property "of the United States, or any agency, instrumentality or corporation thereof, in the absence of consent of Congress." Does this provision prevent the municipality from assessing the cost of improvements against the property held in trust by the U.S. Government for the benefit of the tribe? Any other ideas for financing these improvements by requiring the expense be borne by the benefiting property, at least in part? Thanks Kim Spady