Norman Residents Pushing for Referendum on Revised TIF plan


On November 26, 2019, the Norman City Council voted 5-4 to approve an amended project plan for the University North Park Tax Increment District.

The impetus for the changes was a City budget shortfall.  Like virtually all cities in Oklahoma, the City of Norman relies on sales tax revenues to fund general services.  The UNP TIF diverts about $4 million per year from the general fund to the UNP project fund.

In the hopes of stopping the sales tax diversion, the City of Norman embarked on negotiations with the private partners, University Town Center, LLC and University of Oklahoma Foundation.  At the same time the City of Norman passes a budget that assumed the tax diversion would end as of June 30, 2019.

The Amended plan reduces authorized spending which returns the increment diversion and addresses the Budget situation.  However, the settlement is very one-sided, obligating a lot of future tax revenue for little benefit.   The new contract removes the cap on spending for the remaining planned roadways and cultural facility components.  This leaves the City open to further "disputed claims" and litigation threats.    

Five OU Economics professors (including myself) wrote a letter to City Council recommending that the Plan be rejected.
UTC and OU Foundation were given a sweetheart deal.  UTC is off the hook for completing the lifestyle center, intended to create a retail environment to draw in shoppers to Norman.  The new contract removes the clawback penalty which UTC would owe if it failed to build the lifestyle center. To date, UTC has not build a single inch in the designated lifestyle center area.  This is up to a $8.3 million benefit to UTC.

The new plan also creates $5 million in incentives to cover costs to build "new to Norman" entertainment uses.  These do not require performance standards, private spending above the $5 million, or analysis of potential cannibalization. In fact, the City Manager is authorized to write the check without City Council oversight.

Finally, the Plan shifts the costs of remaining planned roadways from UTC to taxpayers.  This is a $5 million benefit to UTC.

Residents are pushing back by trying to get a referendum on the ballot for citizens to vote on the new plan.  The deadline for turning this in is December 23. 

For information about the petition see  https://shareok.org/handle/11244/321407?fbclid=IwAR2xwHHuig73ybOYRiFBTXsdH0sKaSOjC2xhdCev_qFkncmTU-NO7sEosBw