The first of two public hearings for the proposed Arena entertainment district in northwest Norman is scheduled for September 3. Incredibly, the actual project details beyond an arena and parking structure have not been clearly defined. The ask is for up to $600 MILLION tax expenditure to repay the financing costs of $230 MILLION for the arena and public infrastructure.
What will City taxpayers get for that huge 25-year spending project?
The TIF Project plan details taxpayer legal obligations via establishing the TIF increment district, and the diversion of tax revenues collected in the increment district to the TIF fund for authorized TIF projects (up to $600 MILLION).
What is included in the development? The Arena project plan gives only the vaguest of details about what is planned.
"The project includes the development of a multi-purpose arena to be used by the University Oklahoma basketball and gymnastics teams and the venue for high school and other sports activities as well as concerts and other performances. The development also includes commercial, and retail uses with restaurants and bars and a public festival plaza street, a public parking garage, as we as over 1000 residential units." https://www.normanok.gov/sites/default/files/documents/2024-08/project_plan_entertainment_district.pdf
What are the Texas developers, OU Foundation, and OU legally required to do to get the $600 Million in financial assistance?
The developer obligations are established in the Economic Development Agreement? The EDA has not been released to the public presumably because it is still being negotiated.
Will OU be locked into a 25-year lease??
Will the Texas Developer be locked into building at least 750 apartment units? What if only 500 get built, will the arena costs still be covered?
Will OU be locked into providing some up front $ to cover part of the $330 million arena+parking costs?
Will OU Foundation be on the hook for part of the costs?
What is the minimum retail needed to get repayment of the arena costs? The Hunden partner's analysis projected 240,000 square feet of retail/restaurants but the lastest city-funded analysis by HVS only projected 120,000 square feet.
Who will OWN the arena? Private? Public? If public when will "the public" get the deed?
Who will borrow the money to build the arena?
The bottom line is that the project plan sets out taxpayer costs/payments but NOT developer commitments.
You wouldn't agree to house mortgage without knowing what house you are buying. This is a similar situation, folks
Also notice the 3-2 NO vote by the UNP TIF oversight Board does not seem to be included with the agenda or project plan documents. Oversight? Intentional?
Don't Yum Center my Norman!
The Yum! Center provides a useful cautionary tale about how mega projects centered around university sports can fail. Getting STIF[ed]
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