A major horse show expected to have a $40 million impact on the city’s economy next year is back on track, weeks after its organizers questioned a decision to come here because of a controversial annexation plan.

City and county leaders on Wednesday announced a compromise that would delay annexing the Tulsa County fairgrounds until Jan. 1, 2009, exempting the Arabian Horse Association’s shows from higher sales taxes there.

The proposal, which still must be approved by city and county officials, means the U.S. National Arabian and Half-Arabian Championship Horse Show, a 10-day event that could draw up to 100,000 people, will be safe in Tulsa through 2010, officials said.

Factor in hotels, supplies to build stables for 2,000 horses, gasoline, food and florists, the show is estimated to have a $40 million impact on the local economy, officials estimate