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Moore City Council approves $5 million sales tax note for street improvements

Moore City Council members approved borrowing $5 million from BancFirst for street improvements. The loan will be repaid over five years from sales tax generated by a Sam’s Club set to open in 2015.
By Josh Wallace, Staff Writer Modified: July 23, 2014 at 6:00 pm •  Published: July 22, 2014
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A Sam’s Club scheduled to open next year in Moore is expected to generate enough revenue to finance a $5 million sales tax note approved this week by the Moore City Council.

City Manager Steve Eddy said the money will be spent primarily on street improvements, including projects planned for SW 4 and Telephone Road and for SW 19 and Broadway Street, near where the Sam’s Club is being built.

Bid requests were sent to 17 banks across the state. The two lowest bids were from RCB Bank, with an interest rate of 1.745 percent, and BancFirst, offering 1.78 percent.

Chris Cochran, a financial adviser from Bosc Inc., said the difference between the two bids was about $6,500, and recommended RCB be awarded the contract.

Despite RCB being the lowest bid, Mayor Glenn Lewis questioned whether it has a local presence in the city. Lewis recommended the council award the bid to BancFirst, which has two branches in Moore.

The council approved the motion 6-1, with Councilman Mark Hamm the only dissenter.

Cochran said the note will be repaid in five years, with the city to make a $100,000 interest payment the first year. The city would then pay about $1.3 million a year for the next four years.

Eddy said the revenue to repay the note would come from sales tax generated by the new Sam’s Club. He said the projected sales tax collection from the store’s first year is $2.8 million.

Council members also discussed awarding a bid to Silver Star Construction for public works maintenance. Eddy described the existing contract with the company as “a very good relationship.”

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