Friday, October 25, 2024

Referendum Effort Almost Doubles Signatures Needed


This article provides a brief history of the referendum petition related to the proposed UNP arena district in Norman, Oklahoma. Link to project plan

City Council approved an ordinance creating the Rock Creek Entertainment TIF district by a vote of 5 to 4. There were two public hearings held two weeks apart. These were contentious for multiple reasons. The opposition to the ordinance led to the creation of the non-profit, Normans for Responsible Economic Development and a referendum petition effort that submitted 11,602 signatures to the City Clerk.


FIRST PUBLIC HEARING

The first hearing on September 3, 2024 was intended to be a question and answer format.  Residents were not aware that comments had to be made in a question format and some were deterred from commenting. 

Notably a group of OU students showed up two hours early for this meeting.



SECOND PUBLIC HEARING: 

The second hearing on September 17, 2024 was grossly one-sided.  OU Foundation and the Texas Development partners (Rainier) were given as much time as they wanted.  OU President Harroz was given time to make comments even though OU is not a party in the economic development contract. OU Foundation is the landowner and developer of record.

Subject matter experts were limited to 3 minute comments. Attorney Robert Norman, who sits on the University North Park TIF #2 committee and has knowledge of the contents of the ordinance and the development agreement, was given 3 minutes to make comments.  Dr. Cynthia Rogers (that's me), OU professor of Economics and subject matter expert on TIF, public finance, and local economic development was also limited to 3 minutes. 

OU STUDENTS WERE OFFERED PAYMENT TO OCCUPY COUNCIL CHAMBERS

Over 60 OU students attended the meeting, showing up early and taking seats in the City Council meeting room.  OU President Harroz pointed them out and a made a big deal about their attendance.

It was later discovered that those students were offered payment to show up and serve as props.  
When OU Daily asked students why they showed up (audio) none mentioned they were offered payment. OU Daily obtained a message sent by OU Sophomore, David Echols, which offered payment to students to attend the meeting.  Echols denied sending the message despite the evidence (OU Daily article).   

OU Daily's investigation discovered the source of the payment offer - Jayke Flaggert, an OU alumni, a former employee and current subcontractor for Norman Economic Development Coalition (Link to OU Daily article).   It is unclear who covered those payments.  NEDC, OU Foundation, OU Athletics, OU President's office have all denied knowledge of the payments. Link to OU Daily video

DEVELOPMENT AGREEMENT WAS NOT DISCUSSED 

The development agreement which creates the contractual obligations related to the TIF ordinance was released to the public a mere 4 days prior to the second public hearing.  There was little time to dig into the peculiar and vague language and there was not additional/separate public discussion on the actual contract.

COUNCIL APPROVED TIF ORDINANCE 

City Council approved the creation of the UNP Arena TIF with the minimum number of votes needed in a 5 to 4 vote. Voting for were Mayor Heikkila, council members Scott Dixon (Ward 8), Matt Peacock (Ward 2) , Joshua Hinkle (Ward 6), and Austin Ball (Ward 1).  Voting against were council members Bree Montoya (Ward 3), Michael Nash (Ward 5), Helen Grant (Ward 4), and 2025 mayoral candidate Stephen Tyler Holman (Ward 7).

OKLAHOMANS FOR RESPONSIBLE ECONOMIC DEVELOPMENT (ORED)

ORED is a grass roots, non profit organization formed by Norman residents who seek to provide residents with a voice in economic development matters.  Their first action was to organize a referendum petition allowing Norman residents to vote on the UNP Arena TIF ordinance.  ORED website

A referendum petition is built into the Local Development Act which enables the formation of TIF district in Oklahoma. It is the last recourse for voters if they do not agree with a legislative action.  A petition requires considerable effort and organization. There are specific requirements for the petition packets, including the wording of a gist statement summarizing the issue, the signature page, and a copy of the actual ordinance to be put up to vote. Once the packet is drafted, it is filed with the City Clerk who reviews it and then stamps the date it was filed.    

REFERENDUM PETITION SUCCESS

The referendum petition on the UNP Arena TIF ordinance was filed by three Norman residentsPamela Mccoy-Post, Paul Arcaroli and Richard Sondag, on Sept. 20. If successful, the petition would put the ordinance approving the UNP arena TIF to a public vote on February 11. The required number of valid signatures is 25% of the number of voters who cast a ballot in the most recent Mayoral election, which was 6,098 in this case.                                      

Over a hundred volunteers participated in the signature gathering process. Women in Action for All of Norman organized training events for volunteers to understand the legal requirements for collecting signatures. Volunteer notaries were available for notarizing signed petition packets.  Several businesses, including Stash, Green Feather, Alameda Market, B&B Liquor Market, supported the effort by having petitions on hand. Roots Salon allowed a tent to be in place daily for drive-up signature gathering. The location was moved to Yellow Dog Coffee's parking lot for better traffic Flow. Pink Pig and St. Stephens UMC allowed petition collection and notarizing on their premises.

Photo from OU Daily article  Link to OU Daily article

On October 15, 2024, ORED and petition volunteers submitted 11,602 signatures on the referendum petition. 

"Municipal Referendum Act and the Local Development Act required us to get 6098 signatures, I am happy to tell you that our official signatures we are submitting is 11,602," said Attorney Rob Norman. (Fox25news)

WHAT COMES NEXT?

The city clerk has 30 days to validate that enough signatures from registered voters in Norman were collected. 

Then there is a 10 day period for challenges.  There was a challenge by 3 former Norman mayors the last time residents filed sufficient signatures for a referendum petition on the UNP TIF #2 amended project plan. 

If the petition survives legal challenges, then voters will get to cast a ballot on Feb 11. Legal challenges could delay the vote to the April election.

Arena Referendum Offers Community Building Opportunity

This letter to the editor was published in the Norman Transcript, October 23, 2024.
link to lte

Arena referendum offers opportunity for community building

Norman’s experience with TIF targeting public spending in the University North Park district between Robinson and Tecumseh continues to divide our community. Norman has been here before. Lather, rinse, repeat.

A referendum petition is the voter’s goal line stance against controversial projects approved by council. All council votes on UNP TIF projects have been controversial.

The proposed UNP Arena TIF was approved by a 5 to 4 vote, the bare minimum needed. The original UNP TIF #2 for the Target anchored retail strip mall and the amended TIF #2 agreement which ended the TIF diversion to balance the city general fund also passed with only 5 council votes.

The referendum petition offers a chance for community dialogue and engagement that should have happened at the beginning of the process.

Do Norman voters want to spend up to $600 million tax dollars on an arena rather than other things? Do Norman voters want to pour more tax dollars into the UNP area which already benefited from TIF #2? Would other areas give a bigger band for public tax spending infusion? Do Norman voters trust a county authority to build, own, and operate an arena? What happens if the project goes belly-up before completion?

This is not the first Norman referendum on UNP TIF projects. In 2019, citizens collected enough valid signatures in to put the amended UNP TIF #2 agreement to a vote. In exchange for ending the TIF diversion which was needed to balance the city general fund, the developers were no longer required to completing the promised (and still not built) lifestyle center or refund its share of Legacy Park which was tied to lifestyle completion. Legal challenges prevented voters from getting to vote on the agreement.

A referendum petition is citizen’s only recourse when the process does not lead to a plan broadly acceptable to voters. Mayor Heikkila, OU Leadership, Norman Economic Development Coalition, and the UNP arena development partners have demonstrated a gross disrespect for citizen input and the petition process.

A referendum petition is the red zone for creating a TIF district. Gathering over 11,600 signatures is not an easy or cheap task. The level of community support for the petition demonstrates a strong and clear message about the TIF plan.

As Norman resident await signature validation, what will Norman business and OU leaders be doing? Will they pursue legal tactics to try to throw out the strong and clear desire to vote on the project? Will they, instead, participate in forums and townhalls with balanced discussions?

If the arena project is so good for Norman, make the case, engage the community, respect the process. Let’s brainstorm as a community on financing that makes sense and does not burden future city, county, and school budgets.

Above all, please be good neighbors.

Cynthia Rogers, Norman

Sunday, October 6, 2024

OU Arena Entertainment District is NOT $1 Billion Proposal

 Wow, wouldn't a $1 billion entertainment district be great for Norman?  Imagine the private investment, the new entertainment opportunities, the money rolling into Norman.  Overblown marketing plans are a far cry from the reality of the Arena TIF agreement.

The TIF district landowner (OU Foundation, UNP North, LLC), Texas development partners (Rainier), Norman Economic Development Coalition (Lawrence McKinney), the Norman Chamber of Commerce (Scott Martin), and Visit Norman (Dan Schemm) have been promoting a $1 billion district. 

The contractual agreement falls well short of this.  The development agreement outlines the legal obligation of taxpayers:  up to $600 million paid out for as long as 25 years to finance $230 million in costs for the anchor project (arena, parking structure and public infrastructure).  

The TIF district would take 100% of sales taxes and property taxes paid in the larger increment area for improvements made on land owned by OU Foundation.  Instead of tax revenues flowing to City, County and school budgets, they would go toward the costs of an arena and parking structure. 

What are OU Foundation and their development partners proposing to do?  Not a $1 billion project that has been presented as the maximum potential cost of a larger project in the area. 

OU Foundation proposes to facilitate" the construction of $650 million project on land that it owns.  The $650 million includes $230 million for the arena, parking structure, and public infrastructure paid for by TAXPAYERS. 

The private investment portion is only $420 million!

The entertainment district includes a boutique 8,000 seat arena (the smallest in the SEC), a 1,200-spot parking garage, a plaza, and 140,000 square feet of bars, restaurants, and retail. We are talking about a block and a half of downtown Norman or Campus Corner adjacent to an area. 

The proposed project plan adds up to $650 million, not $1 billion. 

Here's a graphic that Dan Munson created to illustrate.