Summary

Why did our city commit to buy the land at the NE corner of I-35/15th for almost $4 million?  They have voted unanimously to put a $37 million library/YMCA there at the best corner for commerce currently.  The city of Edmond only receives and operates on taxes from sales tax dollars.  Why would the city take away one of the most valuable corners we have for sales tax dollars to put a library/YMCA that generates $0 tax dollars when our current library is 4 miles from this location and our YMCA is roughly 2 ½ miles from this location.  In addition, they will be changing the traffic flow to one-way frontage roads along I-35 and creating Texas turnarounds at the 15th street and 2nd street exits, which is not included in the $37 million.  

The library has data that says library usage is down 13.5% in the last 5 years while digital checkouts are up significantly. (This information was provided by an Edmond Library librarian in February 2023)  Approximately 11% of our population uses our library.  Since the library building will be split with another YMCA, data shows for every 100,000 people in a city, you have 1 YMCA.  Our city has approximately 95,000 people and we already have 2 YMCA”s.  Knowing this data, Edmond deserves to know what data the council used to make their decisions.

Included in that same vote for the $37 million library was also the $10 million for another parking garage downtown.  There is already a parking garage (currently being built as of this writing) within approximately two blocks of the site.  What data did the council use to decide our downtown needs 2 parking garages?

Again, in that same vote as the library and the parking garage is yet another project worth $44 million.  This project will demolish the  Edmond Community Center, demolish the Public Works building that is only 23 years old, build a building for a traffic court, and a new City Council chambers.  The city says it will house all the city offices in this new building, but that is FALSE.  Several offices will continue to be up at Covell and i35.   

So our city council voted to spend $81 million on these projects.  Actually, that isn’t true either.  The vote to approve this project is a vote to spend, depending on the interest rate they receive (because YES, they are borrowing the money)  over $110 million.  Councilwoman Mugg stated at the March 13, 2023 council meeting  Edmond City Council (Shortened Link)  that the council will only spend $37 mil on the library, that is it, no more.  Well, that project alone will actually cost the city over $50 million with the interest on the loan.  (Councilwoman Mugg also stated here that she thinks the community's concerns will be addressed in the plan.  The council voted to spend the citizens' money without knowing the whole plan.)

The loan is actually being funded by a separate part of the city, our utilities department. This $81 million will be borrowed from the emergency fund of our utilities department.  This is the department in charge of our power grid.  It is normal for the utility department to invest its emergency fund, but this money is supposed to be invested in extremely secure, low risk investments.  If there were an emergency in the next 15 years (the length of the loan/bond), our utilities department would sell this bond to recoup our emergency fund. In this case, if the federal interest rates stay as they are now or rise, these bonds/loans would be sold for a loss, or less than its value due to the low interest rate of 4.3% (which is what the council expected to get).  

Our investments need to be secure to protect the citizens' money.  What the council voted on will take $81 million away from our emergency fund and put that money at a high risk for loss. This is a similar reason the SVB (Silicon Valley Bank) and others have collapsed.  They hedged their bets and lost.  The higher the interest rates go the worse shape Edmond will be in.  

Lastly, the city will never recoup its $81 million (~$110 million with interest actually).  Remember, sales tax is the only way the city of Edmond receives money.  None of these projects will produce income.  

Edmond City Council (Full Meeting)