Editor's note: This story is featured in OU Daily's Back to School Guide, which will be available in print in mid-August.
Correction: This story was edited at 2:12 p.m. on Aug. 2, 2024 to reflect the proper pronouns of Ward 4 Councilmember Helen Grant.
In September, Norman and OU leaders proposed the University North Park arena and entertainment district project, a $1 billion project that would bring new housing, retail and an arena.
Now, almost a year after its initial proposal, the Rock Creek Entertainment District Project Plan is left in the hands of the Norman City Council, which will consider whether to approve or reject a tax increment financing district, or TIF, to provide the necessary funding for the proposed project.
The earliest possible day the city council could make a final decision is July 23. However, as the details of the project crawl through the city government, many say a delay is inevitable.
The Rock Creek Entertainment District Project Plan would divide the district into two TIFs. A TIF is used to support redevelopment, infrastructure and community-improvement projects to stimulate private investment within a certain area in need of economic revitalization.
The proposed entertainment district would host concerts and events as well as OU basketball games and women’s gymnastic meets. It would also include a hotel, family and residential areas, retail spaces and offices.
It’s ‘in a holding pattern’
Since September, the project has been debated among community members and brought to city council’s attention numerous times. Now, with two new councilmembers elected in the spring elections, doubts still persist.
Norman Mayor Larry Heikkila has been involved with the planning and review of the project, as seen in his presence in the June 5 Coalition of Leaders and his position in the statutory review committee.
“(I’m) very confident in being able to get this not only passed but generally accepted,” Heikkila said during the Coalition of Leaders. “There’s always going to be naysayers. There’s always going to be some kind of resistance to this amount of money because we’re doing something that’s new to Norman but not new in Oklahoma.”
During the elections, the topic of the proposed entertainment district was prominent with both candidates, Ward 6 Councilmember Joshua Hinkle and Ward 8 Councilmember Scott Dixon, standing in favor of the arena.
Ward 4 Councilmember Helen Grant wrote to OU Daily that they have been in contact with several Ward 4 residents, including former and current professors; small and property business owners; service and retail workers; and more who have said they want to pull the plug on the project.
“Their reasons may vary, for example, Downtown and Campus Corner property and business owners worry about cannibalization, lost revenues and rents, while retired professors and some of the other categories listed worry about impacts to the general fund and using this money on an arena and parking garage when there are other projects they would prioritize publicly funding over this one,” Grant wrote.
As it is written, Grant believes the project is a bad deal for the city, and they will not support it.
“I do not feel confident about the information received thus far. I have kept pushing for affordable housing, workforce housing, home ownership opportunities, living wage jobs, a transportation plan and more, and none of that has come to fruition. No where are any of those and other details written down, much less agreed upon,” Grant wrote.
On June 12, in a city council meeting full of residents and city leaders both opposing and in favor of the project, Norman’s city council discussed and approved a non legally-binding special election, giving residents the opportunity to voice their opinions on the proposed district when it isn’t required by state law.
The request for an Aug. 27 special election was made by Former Ward 2 and Ward 6 Councilmembers Lauren Schueler and Elizabeth Foreman alongside Ward 5 Councilmember Michael Nash passed 6-3, with Heikkila, Ward 1 Councilmember Austin Ball and then Ward 8 Councilmember Matthew Peacock voting against it.
On July 10, OU Daily received documents confirming two former Norman mayors Dick Reynolds and Bill Nations filed a lawsuit against the special elections stating that the Norman City Charter requires all special elections be called by ordinances, yet the Norman City Council called the special election by resolution. The next day, a judge granted a temporary restraining order to the elections.
On July 12, Ward 5 Councilmember Michael Nash wrote in a post on Facebook that it was unfortunate the elections would be put on hold, but it would give residents more time to get the details so they can cast informed votes.
“Until (that) is resolved, the TIF will not progress to Council,” Nash wrote on the post. “Depending on the extent of modifications that may be made, it may have to go backward in the process to go back before committees. Ultimately, the project is in a holding pattern until these negotiations are complete.”
After a special city council meeting on July 16, Ward 7 Councilmember Stephen Tyler Holman wrote in a text message to OU Daily that he cannot comment on the pending legal matter, but city legal staff should have an update within the next couple days to share publicly. Holman also wrote he does not see an election happening any time soon on this issue as it stands currently.
“We still don’t know what the final proposal is or will be so we really don’t know what the public would be voting on exactly as far as financing,” Holman wrote. “I still believe the only real way to decide this very contentious and controversial proposal is to let the voters decide once and for all. I will continue supporting any effort that makes that possible.”
During a July 16 TIF Development Oversight Committee meeting, City Finance Director Anthony Francisco said there were several sticking points he found that raised questions about the project.
His first point was that an obligation is needed to do a specific and defined project, for instance, knowing how much retail space is in a given area and who exactly is leading that project. Secondly, the project needs a specific assigned developer to whom the finances from the TIF go, and lastly, there needs to be a way to make sure what the developer promises to do within the TIF gets done.
Scott Martin, president and CEO of Norman Chamber of Commerce, said during a June 5 meeting between OU and city leaders that the city competes daily with other communities in the state and highlighted that the new jobs and housing opportunities would be significant for the city.
When asked how the city as a whole would be affected by business and community engagement being moved to the University North Park area, Martin told OU Daily that while some businesses may leave their current locations in Norman to be in the new district, he thinks others would fill their old spots.
Dan Schemm, Visit Norman executive director, said during the June 5 meeting that other communities are growing and that the project is an opportunity for the city to invest in itself. He also said the project would attract new visitors to the community.
“We’re the third largest city in the state, and it’s time we start acting like it,” Schemm said in the meeting.
The amount of money the city would fund and the possible negative impact has brought mixed opinions for many residents, with many calling for the city council to reject it.
However, many Norman and OU leaders have shown support towards the project, especially after OU joined the Southeastern Conference on July 1.
OU Athletics Director Joe Castiglione said in the Coalition of Leaders meeting that retailers, hoteliers, medical industries, restaurants and other businesses have reached out to be a part of the district.
"The new entertainment zone will do wonders for the City of Norman and Cleveland County," Castiglione said in a statement that cited the plan for retail, housing and job growth. "This project will also bring in new events to Norman and will serve as a beacon of possibilities for our city and community."
In mid-July, OU Daily reached out to OU and Martin to discuss the similar Instagram posts used to promote the arena. Each were asked questions about the promotion and media collaboration costs. Both responded saying no costs were incurred promoting the arena and entertainment district. Only Martin confirmed a collaborative promotion of the project between OU, the city and the Norman Chamber of Commerce, which he wrote began Sept. 9 when it was first announced.
Counting costs
When first proposed, leaders announced 80% of the project would be funded by OU and private donors while 20% would be funded by the city.
During the June 5 meeting, Castiglione said the university would put in $25 million up front and $75 million over a 25-year period. He also said the venue could start hosting OU teams in 2027 or 2028.
Danny Lovell, the CEO of Rainier Companies, a real estate firm and development partner on the project, said during the meeting that the arena’s total cost would be $330 million, with $230 million proposed to come from public funding and $100 million from OU. The estimated amount the city would pay for the broader entertainment district is $600 million. However, Lovell said $540 million is probably what would be needed from the city.
Following the meeting, Lovell told OU Daily that 80%, or $800 million, of the total $1 billion project is what the investment company is helping fund. However, Lovell said who those investors will be won’t be clear until after the project is potentially approved by the city council.
“Firms have a long history of putting these deals together, so we're confident that we will find those investors, but we don't have a project or a plan to go raise that capital,” Lovell said.
During the June 15 Planning Commission meeting, Cathy O’Connor, president of the Coalign Group which was hired by the city to evaluate revenue, said the estimated project costs are:
• Multi family unit: $291 million
• Single family units: $68 million
• Offices spaces: $172 million
• Retail: $137.7 million
• Hotel: $50 million
• Parking garage: $27.5 million
• Weather museum: $81 million
• Festival plaza: $3.8 million
• Service parking: $17 million
• Arena: $230 million
• Total: $1.1 billion
OU Economics Professor Cynthia Rogers, who has been vocal in many city council meetings on the subject, wrote to OU Daily that these were upfront costs and that the claims about the $1 billion dollar project are very confusing and “somewhat deceptive.”
“It is inappropriate to mix upfront costs with potential future values based on 100% completion of the project. Counting COSTS of construction as a benefit is a bit of a magic trick as well,” Rogers wrote.
The proposed plan would create two TIF districts, one TIF would be for sales or use tax, expected to be activated on May 1, 2025. The other would be an ad valorem increment district and expected to be activated on Dec. 31, 2026, to capture the property tax that would begin when the first-year properties in the project area are developed.
Francisco wrote in an email to OU Daily regarding understanding how TIF districts work:
“A common misunderstanding is that there is some sort of special tax that is levied or applied in TIF Districts; there isn’t. It is just that the taxes that are collected at the same rate as taxes are collected outside of the TIF District are deposited, or accounted for, in the TIF Fund instead of the ‘regular’ funds.”
In the final TIF review committee meeting on May 23, former City Attorney Kathryn Walker said that under the financing plan, the developer is receiving what’s called an assistance in development financing, meaning that the city is not pledging any revenue in advance but rather pledging revenue as it comes in.
Neither the city nor the Norman Tax Increment Finance Authority intend to authorize or issue any public debt to finance any of the costs of the project.
Walker said the budget amount represents what is necessary to finance the $230 million for the performance venue and infrastructure costs. Under the proposal, $600 million is the maximum amount of the project cost, and Walker said it won’t exceed that amount.
The issue many residents have with the project is that the city would be financing most part of the arena. During the Coalition of Leaders meeting on June 5, OU President Joseph Harroz Jr. said the arena would be used 76% of the time for non-OU events.
Rogers wrote that the OU Foundation, which currently owns the over 100 acres of land where the proposed district would be, or the OU athletics department should finance it instead of the city.
While some people claim that the arena would “pay for itself” as it would attract new activity, logic suggests the contrary.
“Moving where OU plays some sports does not create new activity. Any ‘new’ things could already be held at Lloyd Noble (concerts, etc.) Why doesn’t OU use Lloyd Noble for concerts and family shows, etc.?,” Rogers wrote. “The yet to be developed land in the proposed TIF district will develop naturally without a new arena.”
The proposed entertainment district could also create an easy way on and off the highway where I-35 and Rock Creek Road intersect, a new shuttle system from the main campus to the district and new housing and job opportunities, as announced during the May 23 statutory review committee.
Grant wrote the city council has hired consulting firm HVS to perform a study on both TIF districts and its impact on the city’s general fund. They wrote they wanted to wait for the firm’s findings to give an informed opinion about the project.
During the June 5 meeting, Harroz said he was very confident about the project and the positive impact it would have on both the university and the city.
“This has been taking place now for a year and a half, all together, not divided, but unified around a common goal, and that is improving the lives of the people of this city and by extension, the state as a whole,” said Harroz, who in an exclusive interview with the OU Daily in April threatened to work with other cities on such a project if Norman doesn’t approve it.
Rogers wrote that, in the best case, the project would not break the city budget, and the principal will get paid off quickly, lowering its total cost. However, in the worst case scenario, she wrote the project never gets completed, and the city would have to pay for a partially built asset.
Rogers wrote she hopes the public gets to decide whether the city should invest in the project.
“Do I think this will get approved? (I don’t know.) I hope not for the sake of Norman’s future. We could build something unique and special instead of another arena with a bar/restaurant strip next to it,” Rogers wrote.
This story was edited by Taylor Jones. Avery Avery, Riley McDaniel, Matthew Moore and Chelsea Rose copy edited this story.
