Norman City Council approved a resolution declaring a certain structure as dilapidated and directing the removal of the structure and approved a lease agreement for an emergency overnight shelter at its meeting Tuesday.
Ward 1 Councilmember Austin Ball and Ward 5 Councilmember Michael Nash were not in attendance.
Removal of dilapidated structures
The news: Council held a public hearing and approved a resolution declaring the structures at 1000 N Interstate Drive as dilapidated and directing for the removal of the structure.
According to a staff report, the structures are dilapidated and have become detrimental to the health, safety or welfare of the general public as defined by city codes and Oklahoma State Statutes.
According to another staff report, the building is in a “state of decay” due to mold, fecal matter, trash, debris and the interior demolition that has left the second floor open.
The structures, formerly a Sheraton Hotel, Holiday Inn Hotel and The Norman Hotel, closed in late 2016 or early 2017 and have since been non-operational.
According to the police records summary, 145 incidents have been reported at these locations since 2016. Among those, 31 criminal offenses have been filed including larceny, breaking and entering, drug equipment violations, trespassing and vandalism of property.
According to the resolution, the owners, Premier Hospitality Management Inc., are directed to complete the demolition and removal of the structures on or before July 31.
Assistant city attorney Anthony Purinton gave a presentation of city staff’s findings from the past 10 years. Purinton said he does not remember the last time an item like this was brought before council.
“We strive so incredibly hard towards compliance,” Purinton said. “We consider this a last resort.”
According to Purinton’s presentation, the city has already ordered that gas and electric be disconnected, declared the structure unfit for habitation, sent an unsafe structure letter and developed a task list with the owner.
Purinton said the structure was also leaning to the side in 2019 due to rusted and deteriorated steel beams caused by water damage. The city ordered the repair of the columns in 2020.
According to Purinton, the operators have struggled to secure financing for the structure for almost 10 years.
Sean Rieger, representative for the building’s owner, said there have been recent improvements to the structure, including a new roof that is a few years old.
Rieger encouraged council to give the building’s owners a month to “work through” the issue with city staff.
“Every time (council) has brought someone to this podium for condemnation, you have let them go back and try to work through it,” Rieger said.
According to Rieger’s presentation, a financing term sheet for about $15 million was signed on May 9 and all municipal code violation notices were addressed by the end of May. Another financing term sheet was signed on June 9 with a loan of up to $18 million.
Rieger proposed postponing condemnation and requiring check-ins every 60 days to show progress being made at the site.
Rieger said if removal is postponed, a licensed agreement has been signed to open a Marriott Bonvoy hotel at the site in 2027.
What they’re saying: Mayor Larry Heikkila said the one issue he has is a lack of trust between the city and the building’s owner.
“What are we going to do if after 30 days you said ‘30 days more?’” Heikkila said. “To go right back into condemnation and redo this whole thing, to me seems a waste of time.”
Heikkila asked how the owner will guarantee that it will complete the project for the city.
Rieger said the owner will make an agreement with city staff to show that the project owners can meet benchmarks and timeframes.
“If we miss those time frames, it’s over,” Rieger said. “We’re happy to put ourselves through that accountability. We understand the trust issue.”
Ward 4 Councilmember Helen Grant rhetorically asked Rieger how he does not see the structure as a nuisance property based on pictures in the presentation.
“You’re asking us to trust that somebody won’t die in the time it takes you to fix (the second floor),” Grant said.
Grant believes that if the city ordered for the building’s removal, the city would pay for it.
“I just think it’s a money sink for the city,” Grant said.
Ward 7 Councilmember and Mayor-elect Stephen Tyler Holman said he thought it would have been an easier path for the owners to level the property and build something more modern, considering the structure has little historical value.
Holman asked why the owner wants to repair the building after years of inaction.
“I don’t know,” Rieger said. “But I made the intentional decision tonight to not litigate the past.”
Ward 6 Councilmember Joshua Hinkle said he is concerned about the amount of money the city spent on this project.
“We’re not just talking about us having to pay for a building to be demolished, we’re talking about the time that we’ve spent for your client to not maintain a property that we have actively been trying to work with them on for 10 years,” Hinkle said. “I’m all about second chances but 10 years is a lot of chances.”
The vote: A motion was made to postpone the vote until July 15 to ensure that the city is protected in the bond language.
The motion failed in a 3-4 vote. Holman, Hinkle and Heikkila voted in favor. Ward 2 Councilmember Matthew Peacock, Ward 3 Councilmember Bree Montoya, Grant and Ward 8 Councilmember Scott Dixon voted against the motion.
Council returned to the original language and approved the resolution in a 6-1 vote, motioning for the structure to be demolished. Hinkle voted against the resolution.
Emergency overnight shelter
The news: Council approved a contract lease agreement with City Care Inc. for the operation of an emergency overnight shelter.
According to a staff report, the city has hired a provider to operate the city’s emergency overnight shelter at 109 W Gray since October 2022. In January, City Care Inc. took over as the operator of the facility and a new contract is necessary to continue shelter operation for the 2025-26 fiscal year.
The report states the program budget amounts to a monthly budget of $67,437.65 for a total annual operation cost of $809,251.77, about a 7% increase from last year’s budget due to increases in linen services and program supply costs, according to the report.
The current available amount in the program budget is $752,400 and an additional appropriation of $56,851.77 was approved in the lease agreement.
What they’re saying: Peacock asked if there were any material changes between the previous contract and the proposed one.
Purinton said a line item that stated “reimbursable expenses should not include food” was removed because those expenses were usually approved on previous contracts.
During public comment, eight people urged council to vote in favor of the contract.
Ward 6 resident Ella Crenshaw said it is “crazy” that council keeps voting on extending the lease since a permanent location cannot be determined.
“At the same time, it’s great that you all have the opportunity to continue to affirm your support for some of the most vulnerable members of our community,” Crenshaw said.
The vote: Council adopted the contract in a 6-1 vote. Heikkila voted against adopting the contract.
This story was edited by Natalie Armour and Ana Barboza.
