Oklahoma City is considering $200,000 in incentives to close a deal with an English oil-field equipment company expected to have a $2.6 million local payroll by 2016.
The Oklahoma City Economic Development Trust meets Tuesday and is expected to recommend the city council approve the incentive for Centek, an English company that makes wellbore casing parts. The company plans to open a manufacturing plant near SW 36 and MacArthur Boulevard.
Centek is expected to bring 60 to 100 jobs to the city over the next few years, Cathy O'Connor, chairman of the trust and president of the Alliance for Economic Development of Oklahoma City, wrote in a trust memo. In the company's first year here, the average salary is expected to be about $42,000.
Centek was attracted to Oklahoma City because of its deep ties to the energy industry and proximity to companies that would buy its goods, said Brent Bryant, the city's economic development project manager.
“With a lot of their work going to Oklahoma and Texas, it was an awesome place for them to move,” Bryant said.
The city would pay the money after Centek locates here and creates the jobs, O'Connor said. The money would come from a $75 million incentive fund included in the city's 2007 general obligation bond
“It's designed to provide incentive to companies who are making a decision to locate in Oklahoma City. They have to be choosing Oklahoma City over another location, typically,” O'Connor said.
Centek is also eligible for an incentive from the state's Quality Jobs incentive program but has not yet applied for help, state Commerce Department spokesman Dustin Pyeatt said.
The Quality Jobs program allows companies to receive up to 5 percent of their taxable payroll in
Though the $200,000 may seem small for a company expected to have a nearly $54 million local economic impact over the next four years, the incentive helps Oklahoma City brand itself as business-friendly to Centek and helps pay for a portion of the company's costs to come here, said Robin Roberts Krieger, the Greater Oklahoma City Chamber's executive vice president for economic development.
The chamber negotiated the deal, and the incentive was a “deal-closer,” Roberts Krieger said.
The incentive wasn't a make-or-break part of the deal, but gave Centek assurances that it has a good partner in the city and sends a message to other companies that Oklahoma City could potentially do the same for them, she said.
Roberts Krieger stressed that the incentive is only a part of what makes the deal good for both the city and Centek.
“Incentives cannot make a bad deal good. Incentives can take a good deal and land it for your community,” she said.
Efforts to reach Centek officials for comment Monday were unsuccessful.