Shoppers question 1% infrastructure fee at Adams Creek Town Center in Broken Arrow

A recent Facebook post from a resident came to our attention concerning a 1% "infrastructure fee” appearing on purchases made at businesses within the new Adams Creek Town Center development. The resident understandably had questions about what the fee was, how long it would be collected, and whether the City of Broken Arrow had imposed it.

I have also seen several comments suggesting that the City created this fee or is somehow receiving the money.

First and foremost, the 1% Adams Creek Town Center infrastructure fee is not a fee or tax imposed by the City of Broken Arrow. The City does not collect it and receives none of the proceeds.

Because of the questions being raised, I asked our City Attorney, Finance staff and Economic Development staff to review the matter so that we could provide accurate information to our residents.

Here is what we have determined.

The developer of Adams Creek Town Center, PDG-Broken Arrow, LLC, privately established what is called the “Adams Creek District Infrastructure Fee.” In May 2025, the developer recorded a legal declaration against the property establishing an obligation equal to 1% of gross sales for businesses occupying property within the development.

The declaration states that the purpose of the fee is to assist in making the development and construction of the shopping center and related improvements financially feasible. It further states that the fee is intended to operate as rent or additional rent associated with the businesses occupying the development and specifically provides that it is not a tax.

This is therefore a private contractual and property matter between the developer/property owner and the businesses that occupy or lease space within Adams Creek Town Center.

Just as importantly, this fee was not established by the City of Broken Arrow’s Economic Development Agreement with the developer. Our staff has reviewed the agreement, its amendments and the project file and found no provision establishing or providing for this 1% infrastructure fee.

The developer did not ask the City to impose the fee, and the City did not approve, adopt or authorize it as a municipal fee or tax. The developer established the arrangement privately through the recorded declaration governing its property. No City Council action or vote of the citizens created this fee.

There has also been some understandable confusion because the 1% amount is appearing separately on receipts at some Adams Creek Town Center businesses.

The underlying obligation is imposed upon businesses occupying the development as part of the developer’s private arrangement with them. It appears that some individual businesses have chosen to separately identify or pass that cost along to their customers at the point of sale rather than absorb it as part of their operating or occupancy costs. How an individual retailer handles that private expense is a decision of that business. The City has no role in that private business’s decision or in collecting those funds.

We also checked with the developer of Hackberry Market regarding the question of whether a similar fee exists there. We have confirmed that Hackberry Market does not have a district infrastructure fee similar to the one established at Adams Creek Town Center.

I certainly understand why residents would have questions when they see an additional 1% charge on a receipt, particularly when it is described as an “infrastructure fee.” That terminology can understandably create the impression that it is a governmental charge. Hopefully, this information clarifies the situation.

Again, the most important point is this: the Adams Creek 1% infrastructure fee is a private fee established by the developer. It is not a City of Broken Arrow tax or fee, the City did not impose it, and the City does not receive the money.

“The Adams Creek developer and the City of Broken Arrow entered into an Incentive agreement for limited sales tax sharing, not an increase in sales tax, for the development. Separately, an Adams Creek District Infrastructure Fee of 1% was agreed to between the developer and their tenants. The combination of these financial agreements was necessary to make this $70 million project economically feasible. Funds provided by this support were used to construct the project.

We are thrilled to bring Adams Creek Town Center to Broken Arrow, including but not limited to $57 million in new retail sales, 445+ permanent jobs, $5.4 million in new payroll, and over 500 construction jobs.

Once complete, Adams Creek Town Center will provide the City of Broken Arrow with new retail options, while bolstering the local economy with $1.41b in gross taxable sales over the course of the Tax Incentive Financing, an estimated $876,800 in annual city sales tax revenue from the TIF, and $2.86m directly to the City annually upon expiration of the TIF. In addition, an estimated $477,800 per year in ad valorem revenue will benefit local and county institutions every year, including Tulsa Community College, Tulsa Tech, the Tulsa City-County Health Dept, Broken Arrow Public Schools, and the Tulsa City-County Library.”