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The Bartlesville Development Authority (BDA) approved a pilot proposal offering job creation incentives directly to relocating new ConocoPhillips (COP) employees to the Bartlesville area on Wednesday morning.

BDA President David Wood said ConocoPhillips agreed to acquire Midland, Texas based Concho Resources in October 2020. Shortly thereafter, Wood said the BDA reached out to COP to see if there was a potential for significant transfer of employees to Bartlesville, and if so, if there was something BDA might do to maximize the number of inbound individuals and families to select the Bartlesville area as their residence versus Owasso and Tulsa.

Wood said the pilot program would take monies that the BDA would traditionally gives the employer and provide it to the employee in the event that they buy a house or build a house in Bartlesville. He said the BDA typically provides $10,000 for a job for a high-end quality job.

As a result of COP’s Concho acquisition, the Bartlesville facility anticipates 20 to 25 professional employees and their families to relocate for employment in Bartlesville in 2021. Historically, Wood said COP has not requested local job-creation incentives and there is no company request associated with this project.

Relocating COP/Concho employees will be offered:

• $10,000 cash assistance for the purchase of a primary residence within the City of Bartlesville.
• $20,000 cash assistance for new construction of a primary residence within the City of Bartlesville.
• $10,000 cash assistance for new construction of a primary residence outside the city limits but within the Bartlesville School District.

Bartlesville is currently experiencing an acute shortage of available homes. While building lots exist, there has been no interest from developers to construct speculative homes – at least at a scale that would ameliorate the problem.

BDA Trustee Chris Batchelder he loves the pilot program and thinks it's a great idea for a great community. Batchelder said there is potential to attract corporate citizens. He said it might also cause developers or builders to site as they're considering whether or not to put new housing up in the community and attract new people to the community.

Trustee Gayle Lester agreed with Batchelder's sentiments. Lester said the program incentives people to live in the Bartlesville School district, to be in the community and to be close to work. She said the program is timely and a great idea.

Ex-Officio BDA Member Jim Curd said Bartlesville does have a shortage in housing, inventory and lots, however, the program will give people the opportunity to look at the community in-depth. He said the program will help motivate people to move here. He said the program is a great use of money.

Typically, the BDA offers Bartlesville primary industry employers $10,000 per job per new employee meeting the average manufacturing wage. As the employer is the beneficiary, the community bears this cost regardless of where these employees choose to reside.

• Under this proposal, the traditional job creation assistance of $10,000 per job would guarantee the economic benefits of residency.
• While recognizing the doubling of assistance for new construction within the city limits, these funds not only assure the capture of an inbound revenue stream, but directly bolster the available housing stock. Further, sales taxes on a new home constructed in Bartlesville will produce a one-time sales tax boost of approximately $3,400 against the $20,000 of cash incentive.
• New construction outside the city limits, but within the Bartlesville School District, guarantees that Bartlesville’s merchants will receive the overwhelming portion of new retail spending, with the City of Bartlesville as the beneficiary of the 3.4-percent sales taxes.
• In all cases, Bartlesville Public Schools would receive the benefit of property taxes. In most cases, the City and Washington County would similarly receive property tax.

Around 2013 it became apparent that Bartlesville was losing a substantial number of new, professional-level employees to surrounding communities – most notably Owasso. As a result, Wood said the economic benefits associated with these new jobs in the form of sales tax and property tax was occurring in other taxing jurisdictions. In short, he said Bartlesville was heavily incentivizing new jobs but missing out on the associated revenue these jobs produce.

BDA commissioned professional market research and determined the absence of retail attractions (national brand stores, bars, restaurants, nightlife) was the primary cause, followed by the low availability of higher-end rental housing.  Wood said this led BDA to expand its mission and engage retail attraction, resulting in the construction of Silver Lake Village, the redevelopment of Eastland, Kmart, and the attraction of other individual brands.

Generally, the job creation cost is the same as traditionally offered – the difference is merely the beneficiary (employee vs. employer). In many respects, the returns on the public investment is more likely as the recipient must live in the local taxing jurisdiction. For this reason, Wood said this may prove to be the preferred use of job creation incentives.

Nevertheless, as a new, pilot program, Wood said the following conditions are recommended for this, and future, qualifications:

• Employer must be a “primary industry” eg. deriving >50% of revenue from outside of Bartlesville
• Employer must be pursuing recruitment of ten (10) or more employees under a specific opportunity (not one-off employment growth expectations).
• Inbound jobs must be “Quality Jobs” qualified under State guidelines.
• From inception, program is valid for one year.
• Cash is only disbursed at real estate closing (primary residence of inbound employee).