34 minute read
economy
Gaming plays key role in local economy CASINOS
The new Osage Casino north of downtown Tulsa is home to 1,500 electronic games. STEPHEN PINGRY /Tulsa World file
Three tribes’ flagship casinos continue to expand to offer more gaming, amenities
By Lenzy Krehbiel-Burton For the Tulsa World
With three tribes’ flagship casinos in the immediate Tulsa metropolitan area, slot machines and blackjack continue to play a key role in the region’s economy.
Cherokee Nation’s Hard Rock Hotel & Casino Tulsa in Catoosa has about 2,600 electronic games and 454 guest rooms. The property’s most recent expansion, completed in February, added 65,000 square feet to accommodate 450 electronic and table games, a new poker room, a 7,000-square-foot multipurpose center, additional space for VIPs and Track 5, a two-story live music venue with a 1,200-square-foot dance floor.
In fiscal year 2018 alone, the Cherokee Nation and its business arm, Cherokee Nation Businesses, had a $2.16 billion economic impact on northeastern Oklahoma, including supporting 3,542 jobs just in Tulsa County.
Thirty-seven percent of Cherokee Nation Businesses’ gaming profits are automatically reinvested into tribal programs and services, including college scholarships, housing and health care.
Gaming is also fiscally and physically facilitating the tribe’s language preservation efforts. Along with a multimillion-dollar investment to offer classes through Rogers State University Public Television, the former Tahlequah casino is in the process of being converted into a language facility that will house the Cherokee Nation’s immersion school, translation department and adult-level Cherokee Language Master Apprentice Program.
“We’re going to quadruple our language programs,” Principal Chief Chuck Hoskin Jr. said at the InterTribal Council of the Five Civilized Tribes’ general session. “We’re already seeing the planning take root in our language departments. It’ll be the Durbin Feeling Language Center, and we’re pretty proud of that.
“We’re going to spread this language all over the world.”
A roulette ball spins around a roulette table at the Hard Rock Hotel & Casino Tulsa in Catoosa. IAN MAU LE/Tulsa World file
Hard Rock Hotel & Casino Tulsa 777 W. Cherokee St., Catoosa hardrockcasinotulsa.com
Tulsa-area casinos Osage Casino 951 W. 36th St. North osagecasino.com River Spirit Casino Resort 8330 Riverside Parkway riverspirittulsa.com
A dealer deals a game of blackjack inside the River Spirit Casino Resort in Tulsa. JOHN CLAN TON/Tulsa World file
The rest of the proceeds are put toward gaming fees, job development programs and operating expenses, including paying out $197.7 million in payroll and benefits in fiscal year 2018 alone. That figure was calculated before the tribe raised its minimum wage from $9.50 per hour to $11 in 2019.
The gaming footprint on Tulsa’s northwest side is continuing to grow, as well.
The largest of Osage Casinos’ seven properties, Osage Casino Tulsa, 951 W. 36th St. North, covers 247,000 square feet. Thanks to a 2018 $160 million renovation project, the casino is home to 1,500 electronic games, 16 table games, 141 hotel rooms, the 2,000-seat Skyline Event Center, meeting space and a full-service microbrewery, Nine Band Brewing Co.
Another round of expansion is currently underway, as construction on a second hotel tower started in July. The $28 million project is scheduled to be completed this summer, adding 145 rooms.
The largest external revenue source for the Osage Nation, gaming provides about $40 million annually for tribal programs and services, including a health benefit plan for all Osage citizens and Daposka Ahnkondapi, the Osage Nation’s elementary immersion school in Pawhuska.
Meanwhile, even with the temporary closure of its flagship property due to the Arkansas River’s recordbreaking spring floods, Muscogee (Creek) Nation’s gaming revenue increased 5.7% in 2019, according to the financial report released by the tribe in late January.
The largest of the Muscogee (Creek) Nation’s nine casinos, River Spirit Casino Resort employs about 1,600 people, plus an additional 200 workers at Ruth’s Chris Steak House and Margaritaville.
That increase helped make it possible for the tribe to provide financial assistance for 1,732 college students in late 2019, including 39 doctoral candidates.
“Education empowers all citizens to pursue a better quality of life,” Principal Chief David Hill said during his State of the Nation address. “We owe it to our children to provide the tools to achieve these goals.”
Oil and gas production continue rise ENERGY
Oil and natural gas production in Oklahoma rose in 2019. TULSA WORLD FILE
By Corey Jones Tulsa World
Oil and natural gas production in Oklahoma continued its rise in 2019, despite a precipitous dive in the number of drilling operations since late 2018, perhaps foretelling a production plateau or decline.
State oil production rose 62% from 2013-2018 and projects at 71% if extended to 2019 based on estimates for that year from the U.S. Energy Information Association. Gas production climbed 48% across those six years and projects to 56% in 2019, again based off EIA estimates.
There were about 145 drilling rigs in November 2018 in Oklahoma, steadily falling until the past three months of hovering in the low 50s — a 64% drop.
Secretary of Energy and Environment Ken Wagner is encouraged the decline finally leveled off, appearing to signal the bottom has been reached.
Wagner said he is unsure whether fossil fuel production in Oklahoma will continue its upward trend in 2020 but said he believes it has a strong future. He said gas is likely to be stable in the near term while oil might dip at some point because of the loss in rigs.
Oklahoma ranks third in the U.S. in marketed gas production and fourth in crude oil production. Revenue generated from the increased gross production tax resulted in the second largest such collection in state history in Fiscal Year 2019 at $1.153 billion.
“We are cautiously hopeful,” Wagner said.
Alternatively, David Le Norman, chair of the Petroleum Alliance of Oklahoma, has been sounding the alarm for months during a “dramatic drop” in natural gas prices.
Oil has somewhat recovered
Oklahoma ranks third in the U.S. in marketed gas production and fourth in crude oil production. JOHN CLANTON/Tulsa World file
and is stable in the $50 per barrel range, he said. He described gas as mired in a protracted decline, plummeting in price from a recent peak of $4.09 per million Btu in November 2018 to $2.22 per million Btu in December 2019.
Le Norman said so much focus is given to oil that people don’t always realize that it only comprises about 25% to 30% of Oklahoma’s production.
He pointed to SandRidge Energy, which in early February announced plans to cut half its remaining workforce from the 120 employees at the company’s Oklahoma City headquarters.
“Unfortunately, I don’t think that’s the end of what we’re going to see here with other companies,” Le Norman said.
Wagner and Le Norman noted that Oklahoma bore the greatest share of a nationwide drop in rigs, indicative of lower gas prices relative to oil. The heavy gas mix coming out of Oklahoma wells can’t compete economically at the moment compared to oil-rich ones in Texas, New Mexico and North Dakota.
Wagner said a lack of market reaction to the recent U.S.-Iran conflict and the attack on Saudi Arabia oil in 2018 demonstrates a fossil fuel supply abundance worldwide.
“We see that (Oklahoma) production hasn’t leveled off or declined because the new completion methods and technologies has made production so much more efficient,” Wagner said. “You’re not having to drill as often to get the same amount of production, but I think common sense would tell you that if you have this significant decrease in drilling then you’re probably not going to see an increase in production over time. Whether that means it’s a decrease or
just a lack of an increase I think is still an open question.”
The country is producing at historically high levels and EIA’s annual outlook for 2020 projects the U.S. to become a net energy exporter on an annual basis by this year.
The EIA outlook also notes that renewables are the fastest-growing source of power generation because of ongoing declines in capital costs for solar and wind that are supported by federal tax credits and higher state-level renewables targets.
Wagner said Oklahoma doesn’t receive credit for helping drive down U.S. emissions, reductions fueled by the state’s low energy cost and mix of renewables with gas. He said Oklahoma sends out 28% more power than it consumes and that its mix is cleaner than what those states otherwise would use.
Wagner said Oklahoma’s gas exports are “hugely important” to the long-term viability of the state’s hydrocarbon industry, as well as to lower emissions worldwide.
The U.S.-Mexico-Canada (USMC) trade deal — President Donald Trump’s replacement for NAFTA — might be a boon for Oklahoma’s gas fortunes in a global market, Le Norman said.
He said he hopes the West Texas Permian Basin gas goes south to Mexico, thereby freeing up gas that’s backed up in the U.S. system to the benefit of Oklahoma. He said more pipelines from the Marcellus Shale Play to the East Coast and terminals to transport to western Europe would open up competition with monopolies there.
“That’s why I feel good about the future,” Le Norman said, suggesting the industry’s outlook will be better in the second half of 2021. “We’ve just got to survive this interim.”
Corey Jones 918-581-8359 corey.jones@tulsaworld.com Twitter: @JonesingToWrite
When Steven Watts, CEO of Rose Rock Development Partners, took on renovating two 100-year-old buildings in downtown Tulsa into multi-family residential units, he knew it would take some finesse and creativity.The challenge was to preserve the historical architecture while adding modern amenities that young professionals desire when looking to live in the heart of downtown Tulsa. Oklahoma Natural Gas, a division of ONE Gas, has delivered natural gas across the state since 1906. ONE Gas, headquartered in Tulsa, reliably serves more than 2 million customers in Oklahoma, Kansas and Texas. As the largest natural gas distributor in Oklahoma, Oklahoma Natural Gas serves residential, commercial, industrial and transportation customers who are attracted to the affordability, reliability and efficiency of natural gas.
Watts used federal and state historic renovation tax credits to defer renovation costs on the 10-story Reunion Building, 9 E. 4th Street, built in 1917, and the 13-story Adams Building, 403 S. Cheyenne Ave., built in 1928. Both projects include space for retail and residential units.
Additional challenges arose with the buildings’outdated electrical systems. So,Watts began evaluating the best energy options to power appliances without an expensive electrical upgrade. Each residential unit features a furnace, water heater and cooking range powered by natural gas.
“We started talking with Oklahoma Natural Gas and learned about their multi-family incentive program which offers developers substantial reimbursements to help offset the cost of natural gas installation, piping and venting to units ,”Watts said.“We were able to use their incentive program for both developments to keep our installation costs low, which ultimately benefits our tenants.” Incorporating natural gas equipment into a home or commercial development can quickly translate into significant cost savings.
The Energy Solutions Center estimates households that use natural gas for heating, cooking and clothes drying can potentially save an average of $544 per year compared to homes using electricity for those appliances.
“We’re in the solutions business and no two projects are the same,” said Emily Reh, manager of Market Development for ONE Gas.“The Adams Building presented our team with an opportunity to bring creative energy solutions to the developer while supp orting economic development in our state.”
Creativity was key when the Oklahoma Natural Gas team prepared to install the 64 natural gas meters needed to power the Adams apartment units.The building, recognizable for its intricate terra cotta façade, had only one option for meter placement: a narrow alleyway. “It wasn’t an easy task to modernize a 100-year-old building,”Watts said.“The Oklahoma Natural Gas engineering team identified a really creative way to install our piping and venting in a compact environment.”
For convenience and even greater reliability,Watts also chose natural gas backup generators for both developments.
“With a natural gas generator, there’s no need to worry about refilling fuel, like with a diesel generator,”Watts said.“It gives you peace of mind knowing there’s already a fuel source to support our residents during an emergency.”
Watts noted that having one main contact made working with Oklahoma Natural Gas efficient and rewarding.
“It was nice having one person to call if we had a question or issue. In my experience, it’s unique to work with a utility with such a customer-focused approach,”said Watts.
Customer service paired with incentive programs and energy-efficiency rebates are just a few of the ways Oklahoma Natural Gas aims to make it easy to do business with the company.
“Our vision is to provide exceptional value to our customers,”said Reh.“It’s part of our ongoing commitment to make our communities better places to live and provide natural gas for a better tomorrow.”
ONE Gas 15 E.Fifth St.,Tulsa, OK 74103 • 918-947-7000 • onegas.com
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Fresh take on Coldwell Banker Select logo reflects home, company, values
Tulsa affiliate embraces companyrebranding forfirsttime in 42 years
Coldwell Banker Select in Tulsa is enthusiastically going all in on the company’s first rebranding in 42 years.
“The new logo better reflects who we are as a company and it will launch us into the new decade as the innovative, creative organization we are,”said Bryan Sheppard,president and chiefexecutive officer for Coldwell Banker Select in Tulsa.
The star in the new logo, called the“CB North Star,”is symbolic in representing that Coldwell Banker Select Realtors are the stars ofthe real estate world. it out over months and announced in September that all affiliates could begin using the new branding in January.
Coldwell Banker’s home office is giving all affiliates two years to implement the new branding in yard signs, marketing materials, office signage and more.But Coldwell Banker Select in Tulsa didn’t want to wait.
“We decided we wanted to embrace it. We love the new look.We love what it stands for and we wanted to just go all in and make this an opportunity to tell our story,”he said.
The company provides agents the training, technology, coaching and marketing needed to help their clients successfully navigate what can be a complicated process ofbuying and selling a home.
The star in the new branding also represents the proverbial North Star.
“In the same way travelers have utilized the North Star for thousands ofyears, Coldwell Banker Select has been guiding people home for the last 45 years in Oklahoma,”Sheppard said.“The North Star was the original GPS.”
The Coldwell Banker home office announced in the spring they would be building a new logo.They tested Coldwell Banker Select has been a strong and respected real estate brand in Tulsa for more than 45 years.
“We don’t just understand homes, but we understand what home is all about,” Sheppard said.“It’s not just the four walls and the roofover your head but it’s about the community as well.Giving back is one ofour core defining values.”
Coldwell Banker Select spends a lot of time on finding ways to give back to the community.Agents are encouraged to use their individual voices to support causes close to their hearts.And agents and the company use social media to uplift one another.
“It goes back to us being all-stars in caring for each other and our community,”he said.
Coldwell Banker Select generated about $1.5 billion in sales in Oklahoma in 2019.
The Tulsa-based real estate company has around 650 agents in the Tulsa area and 150 in Oklahoma City area, with offices in Tahlequah,Pryor,Chouteau,Claremore and Owasso.
In the past decade, Coldwell Banker Select has helped nearly 75,000 families buy or sell a home in Tulsa and Oklahoma City.
“We highly value having educated agents who know the market and the ever-changing landscape,”Sheppard said.“Rules change every year and contracts change every year.To have our agents know what’s going on means everything.”
These shared values and a strong adherence to ethics are why the Coldwell Banker Select chose to partner with the national company, which was founded in San Francisco more than 114 years ago.
“Coldwell Banker actually created the Code of Ethics that the National Association of Realtors uses to this day,” Sheppard said.“We’ve always been innovators. We’ve always been leaders in ethics. And that’s still who we are.”
For more information about Coldwell Banker’s rebrand, visit cbselect.com.
Coldwell Banker Select 16 offices and 500+ agents throughout Oklahoma 918-496-3333 • cbselect.com
cbselect.com
MidAmericaIndustrialParkcelebrating60years ofsuccess,serving80companies,4,500+employees
It has been called an “industrial utopia.”It is the third-largest industrial park in the United States and in the top 10 globally. It is located in the heart of the largest concentration of corporate wealth in the United States serving Northeastern Oklahoma and Northwestern Arkansas. It is the MidAmerica Industrial Park celebrating 60 years of success, serving 80 companies and over 4,500 employees. Home to Google’s secondlargest data center in the world and the third-largest agri-nutrition plant operated by Dupont.
How? MidAmerica is highly sustainable. Located within the boundaries of the Cherokee Nation (the nation’s largest tribe), off-the-chart ad valorem tax base that supports K-12 education and the benefits of doing business with MidAmerica as a Public Trust creates the perfect storm of resources, pro-business environment and life amenities. An industrial Park with benefits like easy access to water, power, training, workforce and minimal zoning and permitting requirements.
History proves that MidAmerica is not only here to stay, but here to grow. Looking forward, MidAmerica is f ocused on building infrastructure and amenities that will support corporate growth and expansion. MidAmerica’s $2020 is the icing on the cake with a $40 million incentive designed to attract new companies.
MidAmerica’s Armin Road and Igloo Valley development have 1,000 acres that can be customized to fit virtually any corporate need. These developments have all utilities, roads, and environmental complete making them shovel-ready, buy today build tomorrow.
MidAmerica’s water and wastewater treatment facilities services to industrial customers with plenty of capacity to accommodate future growth.
Grand River Dam Authority is adjacent to the park providing 1,900 megawatts of reliable electricity via hydro, wind, coal and natural gas at highly competitive rates.
With land, water and power readily available, the Park’s“sense of place”is now more important than ever as a key to success. Demographics of all ages are drawn to the amenities of a big city but want the affordability, lifestyle and convenience of a community. MidAmerica is making this a reality with their newest initiative,T he District.
The District, a 162-acre development that incorporates retail, residential, parks and trails near the Park, is set to open this year.The new development is a fusion of walkable retail areas and residential living combined with a natural environment that offers wideopen spaces and outdoor activity. It includes 32,000 square feet of retail space, a 100-unit multi-story living complex, 100 residential homes, 10 acres of parks and outdoor spaces, with connectivity via walking and biking trail systems.
Finally, to prepare for growth, MidAmerica partners on multiple fronts with area technical schools and universities. Recently the Park invested over $3 million in career centers and state-of-the-art STEM labs in18 area school districts.Additionally, MidAmerica partners with Northeast Technology Center and Rogers State University to create a new“Center of Excellence”combining technology, training and opportunity. Implementing proven best practices in workforce development, these are just a few examples ofMAIPs focus on training.
With these priorities in mind — resources, quality of life, workforce development — David Stewart, chief administrative officer believes that MAIP is on a trajectory to be one of the most innovative and pro-business environments in the nation for corporate growth.“Our resources, quality of life, and workforce development initiatives will fuel MidAmerica’s growth for another 60 years.”
MidAmerica Industrial Park Located between Tulsa, Oklahoma, and Fayetteville/Bentonville, Arkansas Toll-free 1-888-627-3500 • In Oklahoma, call 918-825-3500 maip.com
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If you’ve ever looked around your home office and felt like you were drowning in paper, you’re not alone.
Nearly every aspect of life these days involves documentation, and most of those documents contain information that isn’t intended for public consumption.
Whether you’re part of a large corporation, running a small business, or simply managing a household, one concern is a constant: what to do with all that paper.
Randy Gwartney and his company, Shredders Inc., can make it disappear.
Gwartney has owned the company — started by George Elliott in 1973, as Shredders by George — since 1978. In May 1999, a move from a 2,500-square-foot warehouse in east Tulsa to a 20,000-square-foot office and warehouse in west Tulsa brought with it a new name, Shredders Inc., and a new business component, a paper recycling company called Tulsa Fiber Sales LLC.
With Y2K looming, and HIPAA –the Health Information Portability and Accountability Act –in its infancy, demand for confidential shredding was soaring, Gwartney said. Not only was identity theft on the rise, but the Federal Trade Commission was passing a bevy of new rules and regulations to protect consumers’ privacy and reduce the risk of fraud.
Shredders offers a variety of services. tulsaworld.com Sunda y, Februar y 23, 2020 O19
With offsite shredding, a driver who has passed a background check picks up confidential papers and takes them in an enclosed, locked truck to Shredders’ west Tulsa facility, Gwartney said.The documents are unloaded and weighed, then placed in line to be shredded and formed into bales for recycling.
Shredders sends a certification of destruction with every invoice after jobs are completed.
Onsite shredding has become a very popular service, Gwartney said, adding that he bought his first mobile shredding truck in 2004.
With onsite shredding, a driver in a mobile shredding truck shreds confidential papers in the customer’s parking lot while the customer witnesses the shredding.
For smaller jobs, the company’s walkin service might be most appropriate. Business or personal confidential records can be taken to Shredders’ secure warehouse at 635 W. 41st St. between 8 a.m. and 5 p.m. Monday through Friday.
Gwartney said an employee will unload the documents and escort the customer through the warehouse to watch the documents as they are shredded. Walk-in service costs 10 cents per pound, with a $15 minimum.
All shredded materials are formed into bales weighing between 1,200 and 1,500 pounds that are then sold to paper mills for recycling, he said.
Most mills with which Shredders works are “deinking mills,” where the ink is extracted from the paper before it is combined with other fibers to make tissue paper, paper towels, napkins and toilet paper, Gwartney said. Some mills may make insulation for housing and roofing materials.
Not all paper products contain confidential information, of course, and Gwartney said Shredders provides a dropoff site for customers who want simply to recycle paper and cardboard. The company provides carts and will even buy large quantities of nonconfidential papers in some cases.
And it’s not just about paper, he said. The company can also shred hard drives, computers, cassettes, DVDs, VHS tapes and CDs, as well as pop bottle caps, uniforms with patches or emblems and even fishing reels.
With tax season upon us, Shredders has teamed up with the Better Business Bureau to offer free shred days to the public. Consumers can take two boxes or bags of confidential papers to be shredded for free. Additional amounts will be shredded at a rate of 10 cents per pound.
The first free shredding event of2020 is slated from 1 to 3 p.m.on Saturday, April 18, at Shredders’facility at 635 W.41st St.
Another free shredding event is planned for the same hours and location on Saturday, Oct. 17.
For more information, visit shreddersinc.net.
Shredders Inc. 635 W.41st St.,Tulsa, OK 74107 918-446-8386 • shreddersinc.net
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Melton Truck Lines looks forward to new growth spurt Only drawback is there aren’t enough drivers to fill the need
Melton Truck Lines is starting 2020 offwith optimism that the company will continue to grow and the coming year will see a much improved freight environment.
The Tulsa-based flatbed carrier is closing in on the goal with some 1,400 trucks delivering steel, building materials and commercial HVAC equipment for Melton across the continental U.S. “We’ve always grown organically.We don’t try to overreact and add a bunch oftrucks when freight is really strong or pull them offthe road when freight slows.We are just slow and steady and we understand that we go through cycles,”he said.
Ragan said he expects Melton to grow about 5 ½ percent this year to 1,500 trucks on the road.
“One area ofthe economy that really started lagging as the year progressed in 2019 was manufacturing,”said Robert Ragan, executive vice president and chieffinancial officer ofMelton Truck Lines.“A lot ofthat was related to strained trade relations whether it’s China, or in our case, Mexico.”
The largest part ofMelton’s business is cross-border activity with Mexico.The company moves more flatbed loads in and out ofMexico than any other carrier in the U.S.
Any time there is uncertainty in trade relations, it is not good for business and it makes people less likely to spend capital and invest, he said.
However, the newly signed trade agreement with Mexico has lent some confidence among investors and should help Melton in regards to their Mexico operations.
In general, Ragan said he also has seen an uptick in manufacturing after lagging throughout last year.He believes this uptick will provide good news for the company’s growth. “One ofour biggest issues will be to find drivers to fill those trucks,”he said.“This country has a shortage ofskilled labor and truck drivers are certainly included in that.The pool ofqualified safe drivers continues to dwindle.”
It is even more difficult when the economy is good to find drivers because they have other choices and often select jobs that keep them home rather than on the road. those on our trucks because we don’t want to see people get hurt.” one focused on the driver have saved the company millions ofdollars. Robert Ragan, executive vice president and chief financial officer of Melton Truck Lines, expects the company to grow to 1,500 trucks on the road this year.
Melton offsets that by paying drivers well.The yearly salary for a Melton driver is approaching $70,000. Despite the company’s excellent safety record, liability insurance premiums keep rising at a tremendous pace.
Another headwind Melton has to navigate is the skyrocketing cost of liability insurance.
Ragan said Melton has a strong safety record and invests millions ofdollars each year in safety technology, whether it’s f or onboard cameras, anti-rollover stability devices and collision mitigation systems.
“They’re not cheap but they’re worth it.They prevent accidents,”he said.“We feel a moral obligation to society to put He attributes the higher costs to “outrageous jury verdicts”that have been awarded in some accidents.Those costs are shared by the entire industry regardless ofa carrier’s safety record.
“So the litigious nature ofour industry is impacting everyone’s premiums regardless ofhow safe and responsible you are, which is really frustrating,” Ragan said.
He noted that the cameras facing forward from the windshield as well as “It will show what happened and you know the truth.There’s no better defense than the camera,”Ragan said.
Despite challenges, he expects 2020 to improve as it progresses.
“I think 2020 will continue to trend upward e ven though we ended 2019 a little soft,”Ragan said.
Melton Truck Lines serves the United States, Canada and Mexico. Its terminals are located in Tulsa; Laredo,Texas; Birmingham, Alabama; Dallas and El Paso,Texas. For more information about Melton Truck Lines, visit meltontruck.com.
Melton Truck Lines 808 N.161st East Ave.,Tulsa, OK 74116 918-234-8000 • meltontruck.com
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Taxes coming in, jobs being made, while prices for marijuana decrease
By Anna Codutti Tulsa World
As Oklahoma led the way in lawsuits targeting the opioid crisis, patients in the state found an alternative to the prescription pills being pumped by big pharma into all corners of the country. Medical marijuana was legalized through a state question that received 57% support from voters in 2018.
Patients with a physician’s recommendation received the first licenses to buy, consume and even cultivate their own cannabis in fall 2018, and since then, about 250,000 patients have been licensed by the Oklahoma Medical Marijuana Authority. More than 9,000 businesses have been licensed, including more than 2,000 dispensaries; however, that number exceeds the amount of actual retail medical marijuana business storefronts.
Per-gram prices were as high as $20-$35 during the first days cannabis was on dispensary shelves, and the market took months to stabilize, with many retail shops now offering grams for $10-$18.
“Prices have started going down just within the past three or four months,” said Danna Malone, owner of Ye Olde Apothecary Shoppe dispensary in south Tulsa. Malone said the fall harvest of outdoor grows helped increase supply, as well as more growers getting into the business and creating competition, which affects prices.
Even though her store has been targeted three times by thieves, Malone says she has
Strains of medical marijuana are displayed at a Tulsa dispensary. IAN MAULE/Tulsa World file
Tax revenue Excise tax 2018: $70,769 2019: $24,156,269 January 2020: $3,271,492 State, local sales taxes 2018: $171,116 2019: $30,594,902 January 2020: $4,348,719
taken money out of her own pocket to help patients who still have problems with pricing.
“We also have a compassionate care fund available for cancer patients looking for (highTHC potency concentrate) at cost,” she said. “If somebody has a need, we prefer they come talk to us instead of breaking into our dispensary.”
Malone’s business outgrew its first location within two months and, after moving to a larger site farther south, the dispensary celebrated nearly $1 million in sales last year.
Retail sales across the state surpassed $345 million in 2019, and $62.6 million in taxes has been collected since sales started in 2018, according to the Oklahoma Tax Commission. When calculating tax revenue for medical marijuana in Oklahoma, it’s important to note that state and local sales taxes are collected, in addition to the 7% excise tax. In Tulsa County, revenue from the excise tax and state and local sales tax totaled nearly $12 million since 2018.
The medical marijuana industry supports 9,412 jobs across Oklahoma, according to a 2020 report from the cannabis-information site Leafly, putting the state at No. 9 for cannabis-related employment.
New legislation in the session after State Question 788 was passed changed how businesses comply with the state law. Dispensaries are now mandated to get a certificate of compliance from a city or county, though not all local governments have zoning regulations for medical marijuana. Some municipalities have enacted local legislation that puts additional restrictions on medical marijuana businesses and patients, in some cases drawing lawsuits.
Among other law changes: Doctors are prohibited from seeing patients inside retail dispensaries, but video consultations are available from services including PrestoDoctor or NuggMD. Waste disposal and lab testing licenses were established by OMMA in the past year.
Oklahoma Compliance Testing Lab in Tulsa started operations in summer 2019 with three employees but now employs 12 staff members. Owner Wendy Stacy said it was more important to hire local talent in the science field than to look for employees experienced in cannabis testing.
Stacy said potency, terpene content and possible contaminants are among tests available for licensed patients, as well as growers and processors, and it’s important because cannabis is being used for medical purposes. “Nowhere does it say a higher THC number makes a better medicine,” Stacy said. “Terpenes have a huge effect medicinally. It’s not the psychotropic effect so much as the smell (of the cannabis) that can make a difference with what you’re treating.”
Marijuana businesses also have to register with the Oklahoma Bureau of Narcotics and Dangerous Drugs. The bureau has licensed 4,757 growers, processors and dispensaries, but 770 businesses opted not to renew their license for a second year, said spokesman Mark Woodward.
“There’s a lot of discrimination going on, even though we are a medical state. It’s still kind of taboo with some people, and I think that’s a shame,” Stacy said. “Israel is the world leader in cannabis research, but the U.S. should be more active. It’s not a miracle drug that cures everything, but it has a huge impact on how we treat patients who are sick.”
Anna Codutti 918-581-8481 anna.codutti @tulsaworld.com Twitter: @annacodutti
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Saint Francis Health System’s vast campus in Tulsa helps support the largest employee base in the area. Tuls a Worl d f il e
Top 10 Tulsa-area employers account for nearly 10% of jobs
From Staff Reports
Employing an estimated 2,250 people in the Tulsa area in 2019, QuikTrip moved up from the 23rd largest Tulsa employer in 2010 to eighth in 2019.
The top 10 employers in the Tulsa Metropolitan Statistical Area in 2019, as listed in the Tulsa County Comprehensive Annual Report, account for nearly 10% of the MSA’s employment.
Three health centers, led by Saint Francis Health System at No. 1, are in the top 10, along with two educational systems — Tulsa Public Schools and Union Public Schools.
To arrive at its list, Tulsa County used broad estimates based on data from the Tulsa Regional Chamber.
American Airlines, which announced in 2019 the addition of nearly 600 jobs at its maintenance base in Tulsa, tied for fourth in the rankings. Tied for eighth was Tulsabased QuikTrip, which last year completed a $39.5 million distribution center.
Tulsa Regional Chamber started an economic development program called Tulsa’s Future in the mid2000s.
Now in its third phase (2016-20) and covering a 16-county region, the program has overseen the creation of 69,296 jobs and almost $4 billion in capital investment. (It didn’t use capital investment as a metric until Phase II.)
Keeping that commercial engine churning takes a lot of customized handholding. That involves getting plenty of face time at
Walmart is one of the largest employers in the Tulsa metropolitan area. MIKE SIMONS/Tulsa World file
places such as out-of-country exhibitions and out-ofstate main offices.
“We try to be as aggressive as we can to A, stay in front of these companies, and to B, if they are not headquartered here, to see them where they may be,” said Mike Neal, president and CEO of the Tulsa Regional Chamber.
Closer to home, the chamber works with the city of Tulsa to create regular engagement with local business leaders and state, federal and tribal leaders to assist with their needs. “I want to emphasize the collaboration that happens with our local communities,” said Bill Murphy, senior vice president of economic development for the chamber.
“We are a regional chamber. We are a regional economic development program. But we rely on
Tulsa MSA top employers* Saint Francis Health System 1 8,250 3 Wal-Mart/Sam’s Club 2 (tie) 6,750 1 Tulsa Public Schools 2 (tie) 6,750 2 Hillcrest Health System 4 (tie) 5,250 6 American Airlines maintenance base 4 (tie) 5,250 4 Ascension St. John 4 (tie) 5,250 5 City of Tulsa 7 3,750 7 Tulsa County 8 (tie) 2,250 13 QuikTrip 8 (tie) 2,250 23 Union Public Schools 8 (tie) 2,250 14 2019 2019 2010 ranking estimate ranking
* broad estimates based on data from Tulsa Regional Chamber
Sources: Tulsa County Comprehensive Annual Financial Report, Tulsa Regional Chamber Tulsa World
the relationships we have with our local development professionals.”
When the Tulsa Regional Chamber courts economic development, it’s less about pitching woo and more about exchanging vows.
So to speak. “What we tell these companies when we recruit them is that we’re not looking to date you; we’re looking to marry you,” Neal said. “When we land a project, we say this is a marriage. We’ll be together through thick and thin. If you have problems, we’re here for you. If we have problems, we hope you’re here for us.”
Many local firms have shown they’re here for the long haul, a fact reflected in the numbers. Spending on economic development
The Tulsa Regional Chamber spends about $4 million a year on economic development, with 80% of those funds coming from the private sector and the balance from public sector partners, Neal said. While new businesses often generate more headlines, 80% to 85% of jobs come from existing companies through retention and expansion, he said.
“It is far more affordable to take care of the businesses that you have,” Neal said.
With its anchor hospital on a hill in south Tulsa, 60-year-old Saint Francis has stayed atop the heap by remaining relevant.
Bettering the 2019 estimates, the Catholic nonprofit, as of January, had 10,409 employees and an annual payroll of $731 million, said Jake Henry Jr., president and CEO of Saint Francis Health System since 2002.
Saint Francis opened a new eight-story patient tower and emergency center in Tulsa in 2014 and paid off all debt in 2015.
“In this very changing landscape of health care in America, it’s important to be fiscally viable,” Henry said.
Warren Clinic, the physician arm of Saint Francis, has grown from 329 primary care doctors and specialists to 412 in the past three years, he said. “That alone is a significant boost to the economy,” Henry said. “With every physician we recruit, it’s not uncommon for us to have an advanced practitioner that we assign to aid that position, as well as office personnel. We’re in the process of building new offices for those folks.” Saint Francis also is the only major hospital with ownership based in Tulsa. “Because we’re locally owned and locally governed and our board of directors and board of trustees are all local folk, it lets us make decisions quickly, then move quickly to implement those decisions,” Henry said.
“Very much what we do here is ground roots up. By all of us living in our communities, we’re able to know what those needs are.”
