City of Muskogee

PROJECT PURPOSE

The City of Muskogee is requesting matching funding for water and sewer infrastructure that will be used as an incentive for retail development and expansion in the southwest quadrant of the city. This will immediately impact thousands of residents who live in a historically older and economically disadvantaged part of the city, not to mention residents of the entire city as well as the entire region. There are identified locations for this retail development, but improved water and sewer infrastructure is necessary for future economic expansion in this underserved area of the city. Retail development is urgently needed to increase city sales tax revenue. The city has committed $125,000 of ARPA funding toward recruitment of retail and grocery outlet(s) in this underserved part of town and is requesting an additional $125,000 in matching funds for water and sewer infrastructure. The recruitment and development of businesses in this sector will help the economic recovery of Muskogee as our city was adversely impacted by the pandemic as evidenced by a significant loss of major retailers and small businesses. This project would also provide access to health care essentials in an area of town that currently lacks any grocery or drug store locations.

EVIDENCE

Recent research from the Brookings Institute has demonstrated that small, rural cities in the United States have suffered greatly from the pandemic: ?The COVID-19 small business crisis is prolonged and uneven, inflicting a disproportionate toll on micro-businesses in underserved communities that are the lifeblood of their local economies.? In Muskogee, the pandemic has had significant, adverse effects on our local economy as we face challenges ranging from job and population loss, not to mention access to jobs, services, and transportation options. With 53% of revenue generated by sales tax, the COVID crisis has caused a funding crisis for Muskogee also.

POPULATION DESCRIPTION

The pandemic led directly led to the residents of Muskogee suffering the closure of several major retailers and numerous small businesses, making access to basic commodities a challenge. Also, these closures will continue to negatively impact sales tax revenues for the city for years to come. As such, there is a critical need to incentivize new economic development for our vulnerable population. Muskogee is the largest city (36,878) and seat for rural Muskogee County (67,000), designated as a StrikeZone by the USDA because of its high poverty rate (24.6%) and its many economic disparities and challenges. Muskogee is a poor, diverse and rural population that has been disproportionately impacted by the pandemic due to restricted access to health services and socioeconomic challenges resulting from inadequate infrastructure, limited economic development opportunities, inconsistent broadband access, and access to employment. In addition to chronic poverty, other vulnerable populations include the elderly, children, and minorities. Despite these challenges, Muskogee remains a regional hub with residents from six surrounding counties traveling there daily for employment, services, and entertainment. A commitment to developing water and sewer to attract new business would benefit the people of Muskogee and the larger region.

PERFORMANCE MEASURING

Project performance for the expansion of water and sewer infrastructure for retail businesses will initially be measured by the completion of the project according to schedule and within the established budget.

ONGOING INVESTMENT AMOUNT

$

ONGOING INVESTMENT DESCRIPTION

None

ONGOING INVESTMENT REQUIRED

One-time project will not need continued funding