Oklahoma Natural Gas sets Owasso move for May

Journal Record, The (Oklahoma City), Nov 14, 2007 by Kirby Lee Davis

Oklahoma Natural Gas intends to move into a new 15,777-square- foot Owasso service station in May, officials said Tuesday.

Using designs by the Tulsa architectural firm Wilburn and Associates, Mycon General Contractors of McKinney, Texas, is building the facility on 10 acres along 66th Street North, just east of U.S. Highway 77, said ONG spokesman Don Sherry.

The subsidiary of Oneok Inc. will use the new Cherokee Industrial Park facility to replace a similar service station built in 1996 at 12250 E. 96th St. North in Owasso, an area that over the last four years has emerged as the retail hub of Tulsa's growing northern suburb.

That center's staff of 51 is working out of temporary space provided by the city of Owasso until the construction project is completed, said Sherry. Some employees also were temporarily relocated to Claremore as the walls are raised. The move allows Hunt Properties of Dallas to proceed with phase-three construction of the 550,000-square-foot Smith Farms Marketplace shopping center, which sought to expand on the city of Owasso land ONG had occupied.

"The whole idea in achieving this transaction was for us to be made whole," said Sherry. "We're glad to accommodate development on other property."

Discussions on how to arrange this went through several permutations through the summer. Sherry suggested the deal ended with a straightforward transaction where Hunt, as SF Shops Investors LP, paid Oneok $4.6 million for the 96th Street facility.

"The simplest explanation is that the $4.6 million represents payment for property and cost of constructing new building," he said.

Rickey Hayes, economic development director for the city of Owasso, said that building has already been demolished to allow Hunt to start groundwork. He expects phase-three construction of Smith Farms to begin in December for completion in the fall of 2008.

Smith Farms boasts Target, Hobby Lobby, Belk's, Best Buy and Old Navy as anchors. The latest expansion, which will include an estimated 150,000 square feet, will add a 105,000-square-foot free- standing JCPenney store, an Olive Garden Italian Restaurant and a Ross Dress for Less clothing store.

Sherry estimated the Cherokee Industrial Park land acquisition costs at $300,000.

"The balance goes toward new construction," he said.