CS&L Arena District Studies

The Evolution of the UNP Arena/entertainment District. Note comparisons between the 2015 County Study and the 19 slide 2018 "study" for the City.

2018 (May) CS&L Arena Feasibility Study for City and UNP Link

2017 - Center for Economic Development Law presentation on proposed UNP Arena TIF at 10/10 study session Link to packet

2017 - CarlsonRTKL Master Plan for UNP (North) Arena-Entertainment District Presentation Link

2015 - Cleveland County Arena Feasibility study Link
- This mentions using the .25% county jail tax to fund the arena
- Also suggests extending the UNP Tax Increment Finance District to fund the Arena
- The initial plan did not have a parking garage.

UNP Studies, Reviews, Study Session Materials!

Independent Review of Studies by HVS Consulting Link

Presentation of Benchmark Projections: concerns about assumptions in Dauffenbach's report

1.  Rogers' presentation to the University North Park TIF #2 Oversight Committee Slides


Community Study Session materials.  Community members held an information and discussion session on 6/5/18

1. My slides provide an overview of the questions that the UNP Arena-entertainment district studies have addressed.     (Link to slides)

2. Greg Jungman, Norman Resident and former Ward 4 city council member, discusses the risks associated with the UNP project.  (link to slides)

3. Prof. Cindy Simon Rosenthal's comments about TIF policy and procedures. (link to slides)

Presentations and Reports associated with the proposed UNP North Arena Entertainment District.

1. RTKL Mast plan outlines how the North and the rest of the South UNP area could be developed. There are two parts, a 29 page power point slide show (link to slides) and a spreadsheet which served the basis of Dauffenbach's projections. (Done for City and OU Foundation )

2. Convention Sports & Leisure conducted a feasibility study (link to slides) to see if an arena would be financially sustainable, assuming a $90 million subsidy. (paid for by OU Foundation)

3. Dr. Robert Dauffenbach used a spreadsheet to project sales and advalorem taxes that might be generated IN the University North Park area. (Link to report) (prepared at request of OU Foundation)

4. I reviewed Dauffenbach's projections, and provided projections using different input assumptions, including the possibility of cannibalization.  My benchmark projections show how small changes in assumptions and focus can lead to big difference in projected budget impact. (Link to my report) (prepared by request of City Council member Castleberry as a service to the community)

I have provided a spreadsheet file which makes it easy to make projections with different input assumptions. There is a separate spreadsheet for each tax component.  Change the input values in RED and see the projections in BLUE.  (Link to Excel file)

5. Emily Pomeroy at the Center for Economic Development Law serves as a TIF lawyer for the City of Norman. She has assisted in putting together a funding plan such that the earning that go to the UNP TIF fund should be adequate to cover public financing costs. She has offered her professional opinion regarding the potential economic benefits of the proposed project.  (Link to letter)


For historical perspective:

Dr. Lex Holmes' projections for the original University North Park area development (now referred to as UNP south). (Link to Holmes' report)

UNP TIF Links to Documents

University North Park TIF #2, Proposed Arena/Entertainment TIF, Norman Forward projects

UPDATED to include possible combining of Norman Forward quality of life projects in the negotiations to end the TIF.

TIF Oversight Committee - Link

TIF #2 Oversight Committee Minutes from 2010 forward Link

           1/16/18 minutes: City Attorney states senior center could qualify as cultural center link

2019 (May 14) City negotiates how to end the UNP TIF and considers possible sites for Norman Forward projects in the UNP.   Link to City Presentation  and comments Link to comments

2018 (May 28) Statutory Review Committee special meeting. agenda

2018 (April 27) Review of recommendations of UNP TIF Statutory Review Committee approving senior center as cultural facility in UNP TIF area  Link to file

2018 (April 13) Statutory Review Committee special meeting. agenda


2017 - Center for Economic Development Law presentation on proposed UNP Arena TIF at 10/10 study session Link to packet

2017 - CarlsonRTKL Master Plan for UNP (North) Arena-Entertainment District Presentation Link

2017 (Oct) - City Council study session minutes, RTKL Master Plan presentation Link

2017 (Sept) - TIF #2 Oversight Committee gets RTKL Master Plan presentation Link

2017 - Accounting error - money "found" in TIF account that belongs in general fund Link

2017 - Includes master operating agreement (2006), TIF Agreement # 5, IMMY Incentive, Link

2017 - Garver contract for Tecumseh Link

2016-2017 TIF #2 Committee annual report Link

2015 - Cleveland County Arena Feasibility study Link

2013 - Legacy Park Agreement Link

2010 - Article on TIF developments/load for land purchase Link

2010 - City discusses TIF agreement Link

2009 - Press Release about first financing for UNP TIF Link

2009 - City Council Special Meeting to discuss Cannibalization Study Link

2008 - City Council study session with quarterly update Link

2008 - TIF gets released from $15 million conference center commitment in trade for spending $8.25 million on I35/Rock Creek Overpass, freeing up $8.75 million, council leaves in fund Link

2008 - Retail Sales Cannibalization Study Link to Study

2008? - Original UNP development plan update link to presentation

2006 NewsOK Article - Dan Batchelor makes TIF promises Link

2005 - Early deliberation about the UNP TIF Link

Community Forum 6-5-2018

Community Study Session materials.

My slides that are a mashup of the studies that have been provided.    https://drive.google.com/open?id=1npOaxgMi6jNr9dNYwrtWmKg2Ov6J1YgS

Greg Jungman (Norman Resident and former Ward 4 city council member)  https://drive.google.com/file/d/1bpGWS7QDszt0s8aHnzVt10uGgu2yivTr/view?usp=sharing

Prof. Cindy Simon Rosenthal's comments about TIF policy and procedures. https://drive.google.com/open?id=1SD7yKO_LxR_45H9yVlU72B9ne5zoRwTo

 Issue # 1 - Double counting of spending!

The new sales for eating/entertainment are based on square footage and historic UNP data. The new residents to the district are assumed to spend so much per year as well. By including both of these separately, Dr. D assumes that the New TIF district residents are NOT eating/entertaining in the TIF district. Also, existing Norman are not shifting spending from the Rest of Norman to the TIF.

Thus, the assumption is that the new spending is 100% by non-Norman residents or increased spending by existing Norman residents!

Imagine - every new TIF district residents only serves Non-Norman residents!  

Update from City Of Norman FYE 2018 Budget:



  NOTE the uncommitted funds:
  $8.75 million for Cultural Facilities and other infrastructure
  $8.25 million for Lifestyle Center
  $8.25 million for Economic Development

Questions:  Can an expo center qualify as a cultural facility? Is an expo center more of a cultural facility than a senior and wellness center? 

The connection between the original UNP development and the proposed development for the north is important.

Some interesting developments. (See Minutes from TIF #2 Oversight Committee, 2/20/2018)

1.  Carmax to move into the UNP North area.  Agreed upon by Target Corpoation, UNP, LLC, the developer of the sought half; and UTC, LLC, the developer for the North half of the University North Park development. Car dealerships were restricted in certain areas but not the whole development.

2. Terra Apartments should be open for occupancy over the next month. They, in fact, are. https://www.apartments.com/terra-at-university-north-park-norman-ok/0k2xqr2/

3. 16 businesses have closed during the tenure of the TIF.  Chair Walden claims this is a good track record. [Is it? Is this better than the rest of Norman?]

Things coming forward:

Resolution to use the $8.75 million in the TIF #2 fund for cultural center for senior and cultural center to be located roughly near the YMCA and 2 other new Norman Forward projects.  This will be discussed 3/27/18 TIF #2 Oversight Committee. Council already approved the resolution. It needs to move to the TIF Review committee now. [But maybe it does not if it falls within the minor change category.]

The City Manager, Steve Lewis, continues to allow the use of the City Logo on a PR page for the arena-entertainment district facebook page.  Council has done nothing to stop this.

This article discusses the impacts of neutral sites for the final 4 games in Women's NCAA basketball games. 

Neutral sites have adverse impacts on attendance. This is important for considering building infrastructure with the intent of hosting NCAA basketball events. 

http://www.excellesports.com/news/womens-ncaa-tournament-attendance-neutral-sites/

NCAA Basketball Attendance declines continue to be a challenge.

The desire to increase revenue generating potential of college basketball is not new.
The playing field, however, is changing. Technology is part of the challenge.

https://www.coloradoan.com/story/sports/csu/2018/01/19/why-csu-mountain-west-basketball-attendance-plummeting/1048090001/

The NCAA Division I teams have seen a gradual but steady decline the past five full seasons, with average attendance of 4,633 last year, a 6 percent decline, and a 13 percent decline from 10 years ago.

There are likely several issues at play here, including an increase in televised and streamed games.

The challenges that Men's College Basketball face in Oklahoma are numerous. Competition with the Thunder NBA team is just one challenge.

Here is a quote from an article from AthleticBusiness.com from June 2012.

"The arrival of the NBA's Thunder in Oklahoma City is believed to be one contributor to what the Tulsa World in March termed an attendance "crisis" among the state's major college men's programs. In recent years, Oklahoma and Oklahoma State have both witnessed double-digit percentage declines in attendance, and Tulsa University's arena was more than half empty for most games last season. "People only have so much money to spend on basketball, so what game do you want to take your son to? Probably a Thunder game," former TU player Jason Parker told World sportswriter Bill Haisten. "I've been to three TU games this year, and I've been to three Thunder games. The Thunder games are always a great show, no matter where my seat is. That building is electric."

Have things improved since 2012? Maybe the Thunder novelty effect has worn off?

https://www.athleticbusiness.com/college/men-s-college-basketball-programs-facing-attendance-declines.html

Roger Noll, Standford Economist, has been studying arenas for a long time.
He cautions against football arenas which have too few events and supplemental uses.
Basketball arenas are more promising IF you can get 300 or so events a year.

For Norman, we need to consider a plan which would leave the city with 2 large arenas plus 2 fair grounds type facilities (county fair grounds and the proposed new expo center in the UNP North plan).

https://l.facebook.com/l.php?u=http%3A%2F%2Fwww.econtalk.org%2Farchives%2F2012%2F08%2Froger_noll_on_t.html&h=ATO9WMtay3vPbOKh2BXnRxsTottY1mBmznEvSFsF2sezsYZHqjSGP0PHnm-HueLdZyTThwZY3ot2U7JULuZ37jy59ceEWOKnJQDyig

What can we learn from Lincoln's Arena Deal?

Interesting article on the Pinnacle Bank Arena which hosts U. of Nebraska Basketball team. What can we learn from it?

Project Overview:

The $190 million arena is part of a $344 million total redevelopment project, which includes purchasing existing railyard and lumber yard.

Public Financing

(1)  Voters approved $25 million general obligation bond

(2)  New Occupational taxes implemented to pay off the debt for the project

a.     4% tax on hotels and rental cars

b.     2% tax on restaurants and bars

There are 3 partners:

(1) Joint public agency (JPA) oversees the arena and the West Haymarket district

      -    Revenue from advertising, pouring rights, suite and premium seat sales, naming rights

-       Naming rights: $450,000 a year for 25 years ($11.25 million total) but discounted to $6,731,958 for accelerated payment.

(2) Arena – separate operator – covers operating expenses

      -     Revenues from festival parking lot, and share of revenues from basketball games

(3) University of Nebraska-Lincoln (Audit document)

Rental agreement:  $750,000 /year initial rent adjusted for inflation

Credits for share of ticket sales, $300,000 lost concessions adjusted for inflated

Net Rent was $312,000 in 2017

Revenues: Received $315,000 for share of premium seat sales in 2017

Sources:

Lincoln documents - https://lincoln.ne.gov/city/finance/account/jpa.htm

Audit - https://lincoln.ne.gov/city/finance/account/pdf/2017-08-31-JPA-Audit.pdf

Naming rights: http://journalstar.com/news/local/consultant-sues-over-commission-paid-for-arena-naming-rights/article_7f3a349c-7f36-527c-a3e9-09b05b395868.html

Watchdog article: https://www.watchdog.org/nebraska/beutler-acknowledges-arena-is

-losing-money-lincoln-newspaper-doesn-t/article_ae89f43c-3206-582e-a7e0-0baebf694bc0.html