Norman City Council approves special election, rejects survey for entertainment district

This article was corrected at 8:47 a.m. to reflect the proper spelling of Ward 8 resident and incoming councilmember Scott Dixon's name. 

The Norman City Council approved a special election for residents to vote on the tax increment financing districts, or TIFs, for the Rock Creek Entertainment District Project Plan during its Tuesday meeting.

Special election for UNP entertainment district

Norman city council considered a special election for Aug. 27 to allow residents to vote on the TIF districts for the proposed entertainment district project, giving residents the opportunity to voice their opinions on the project.

However, the state’s Local Development Act doesn’t require voter approval for a tax increment finance district to be established, so the vote would not be legally binding on the council.

If the council approves the TIF district, voters could request a referendum petition, ultimately leading to another vote from the residents that would challenge the council’s decision. 

In Oklahoma, a referendum petition for cities and counties can be filed no more than 30 days after the session that passed the bill for which the referendum is demanded. The applicant must submit their name and address associated with their voter registration record as well as three signatures.

According to the agenda, Ward 2 Councilmember Lauren Schueler, Ward 5 Councilmember Michael Nash and Ward 6 Councilmember Elizabeth Foreman requested the item to be added to the meeting agenda for council consideration. 

Nash and Schueler voted against making a review committee for the proposed entertainment in its Nov. 14 meeting. Foreman voted in favor of the committee.

Current Ward 8 Councilmember Matthew Peacock and community banker Joshua Hinkle will take the Wards 2 and 6 seats, respectively, in July after elections this spring. 

Peacock said in an interview with OU Daily in February he was undecided on his stance with the entertainment district. On the other hand, Hinkle said he supports the entertainment district during a candidate's forum in February.

The proposed 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 within a certain area to stimulate private investment in the 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.

Council's decision on special election

Ward 3 councilmember Bree Montoya said this is the most contentious issue in the community, and this item opens the door for public discussion and engagement.

"I tallied all my emails at about 3 o'clock this afternoon, and a ratio of 4-1 wants their voice to be heard," Montoya said.

Montoya made a motion to amend this item to make the August election legally binding to the TIF.

The first line of the resolution would call for a special election on Aug. 27 or the next permissible election.

The vote to approve the amended special election resolution passed 6-3, with Ward 1 Councilmember Austin Ball, Ward 8 Councilmember Peacock and Mayor Larry Heikkila against it.

Peacock said he stands by the analysis made for project, and the city cannot make a legally binding special election by resolution.

"I think law is the law, and the selection of the challenge is thrown out, rendering this whole effort," Peacock said. "I personally don't want to intentionally vote foul to your place."

Public comments on special election

Mayor Larry Heikkila said comments were going to be limited to a first-come-first-serve basis, meaning that not everyone who signed up was going to comment on the two items related to the proposed entertainment district.

The public wasn’t notified about this change before the meeting started.

Andrew Rosen, a Ward 6 resident, said the TIF proposal should be rejected because of the large amount of money that would go toward it. 

Rosen said the entertainment district is more related to the arena but the TIF district tends to get this elsewhere in the city.

“Not only does the city lose the sales tax that's going into the city coffers as that business moves into TIF, you've now got an empty space that's generating nothing for the city,” Rosen said.

Scott Martin, president and CEO of the Norman Chamber of Commerce, said the city has been working on this project since September, and the project could bring something special to Norman.

Pamela Post, a Ward 5 resident married to a police officer, said the council would rather invest money on a TIF than city officers.

"You're throwing away taxpayers money (and) tax incomes (the) city will need, not only to support a TIF or support a development area, but to support the rest of the city, as you all and certain members of the audience encourage poorly planned economic development," Post said.

Scott Dixon, a Ward 8 resident, said Norman residents had elections in February where all the candidates who won their respective seats were people that are in favor of the entertainment district.

"The entire citizenry of Norman had a chance. They had a vote. They were polled. They got to go and say 'No, we don't want the pro arena candidate,' or 'Yes, we do want the Pro arena,'" Dixon said. "Let's stop undoing the things that have already happened."

Russell Rice, who was a candidate for the Ward 2 seat in the spring elections, responded to Dixon and said he was in favor of the arena but without residents' money. 

Rice said he's in favor of hearing from the people, and that if councilmembers vote against the special vote, they will be voting against hearing residents' opinions.

He also said that many residents were in favor of the arena when it was first announced, but after it was announced the arena would be paid through the TIF, many were no longer in favor of it.

"What about the other areas? Campus Corner, downtown? The sales are going to get pulled over to the TIF area, and that's a lot," Rice said.

Anthony Francisco, the city finance director, said the $230 million is the cost of the basic project. He said TIF revenue wouldn't come until the facility is built.

"You have to increase the amount of the principal in what's called 'capitalized interest' to cover the interest rates or the interest cost over the first few years," Francisco said.

Ward 2 Councilmember Lauren Schueler, who is leaving office in July after declining to run again for her position, said there are a lot of issues that residents care about and that is unfair to not give residents more information on what is happening with this project.

"It is my understanding or recollection that in the original University North Park TIF, there were public forums before that vote, there were opportunities for members of the public to see the project plan, to voice their opinions about it," Schueler said. "To date, there have been no public forums on this."

Schueler said that those who are interested in applying for a referendum petition should get a lawyer and make sure they know what they are signing up for.

"I really appreciate the discussion about this. I'm sorry it has taken so long for more information," Schueler said.

Ward 5 Councilmember Michael Nash said that it would be a disservice to vote on a project with many residents against it.

Nash said councilmembers will vote to represent their residents, and putting this vote to the people should be seen as a kindness.

"We're giving OU Foundation an opportunity to get the people on board with this project because there are a lot of very positive aspects to it that could be to the benefit of the city, but it has to be sold to the people first," Nash said.

Holman said he received 41 emails in favor and nine against the special election.

While the amount of money for previous TIFs in Norman weren't as large as this current proposed TIF, Holman said those has been successful for the city.

Holman said he has seen a lot of people in favor of the project but against it being so far from OU campus.

"I have suggested three different options on campus for the arena, but I've also said that, if not on campus, the University North Park area is the only other place in the city," Holman said.

While he doesn't oppose the entertainment district or the arena, Holman said he still has a lot of reservation about the funding proposal.

Ward 6 Councilmember Elizabeth Foreman said every TIF idea should go to the residents.

"We need people on that guide that are going to listen to the people, and they're clearly people that are listening to you now," Foreman said. "I was happy to be one of the three to send this to the agenda. We'll see where the cards fall." 

Proposed survey on proposed entertainment district TIF

The city council considered a resolution to hire a qualified firm to conduct a survey to gauge community knowledge and thoughts on the proposed project and TIF district. 

According to the agenda, the estimate for the survey work would be $15,000 and is proposed to be appropriated from the general fund balance.

If approved, the results of the survey would have been presented to the council before its final consideration of the proposed project plan.

The council voted 4-4 to reject the adoption to conduct a survey. Ward 2 Councilmember Lauren Schueler, Ward 4 Councilmember Helen Grant, Ward 7 Councilmember Stephen Tyler Holman and Ward 8 Councilmember Matthew Peacock voted in favor.

Ward 1 Councilmember Austin Ball left the meeting before the vote due to a family emergency.

Mari Larson, Ward 6 resident, said she is concerned on the way survey would be written because it could make it easier to skew the results, whether intentional or unintentional.

Steven Ellis, Ward 4 resident, said he's in favor of the survey and the council should take their time to make it right.

"I don't think this is going to be a simple survey," Ellis said. "I think this will gives everyone time to sort of make their case."

Dan Munson, Ward 6 resident, said he's in favor of the survey but lacks the information to provide results on the survey.

"I still don't understand the funding. I don't understand the revenue of the arena," Munson said. "I just don't think anyone here knows that information."

Rob Norman, Ward 3 resident, said he wants more information and hard data, but a survey, in conjunction with an election, is a good idea.

Another Norman resident said that city's money should go toward the city and its residents' needs and not to this project.

"We have been through this once before ... and it has not worked out very well at all," the resident said.

Scott Martin, president and CEO of the Norman Chamber of Commerce, said many residents have expressed concerns on the integrity and process of this project.

Martin said there were elections during the spring, where people got the chance to cast their opinions in different ways and suggested the survey is not needed.

Cynthia Rogers, Ward 4 resident, said that many people won't be happy, no matter what the results of the survey shows.

Paul Wilson, Ward 1 resident, said it's too late for a survey to be done and would've liked to see the amendment for the deadline being set.

After a break, Ward 6 Councilmember Elizabeth Foreman and Ward 3 Councilmember Bree Montoya said they will be voting no on the proposed survey.

Ward 2 Councilmember Lauren Schueler said she's skeptical of who's going to write the questions and how many are going to be on the survey, so she would not be voting in favor of this item.

Ward 7 Councilmember Stephen Tyler Holman said surveys don't always show what the people want to hear.

"For me, $15,000 isn't a lot from trying to make $1 billion decision," Holman said.

Holman said he saw the final site plan on Friday when it was published for the upcoming planning commission meeting and had been waiting for months to see it. 

"I've given feedback to them about what I'd like to see it look like, as far as the site plan, and things have been getting changed without it," Holman said.

Proposed amendment for survey

Ward 8 Councilmember Matthew Peacock motioned to amend the resolution to make it so that council could get the results by July 16.

The earliest date the council could vote for the proposed entertainment district is July 23, according to the agenda.

Ward 2 Councilmember Lauren Schueler said the turnaround for a survey could be done within three to five weeks and that the time Peacock asked for would be enough to do it.

The council voted 6-3 to reject to set the July 16 deadline for the proposed survey, with Ward 1 Councilmember Austin Ball, Ward 8 Councilmember Matthew Peacock and Mayor Larry Heikkila voting in favor.

Ward 7 Councilmember Stephen Tyler Holman said his concern about not doing or putting a deadline to the survey doesn't build upon public feedback.

Holman said two questions are important for him, whether a resident supports a 25-year commitment to the entertainment district and whatever it may apply to NPS.

Ward 6 Councilmember Elizabeth Foreman said she's not sure the survey would capture the breadth and the depth of the issue and wanted to ask for a postponement.

"This was sort of tossed in as a backup to (the special election item), and I'm not feeling so very strongly about it," Foreman said.

Steve Ellis, a Norman resident, said five weeks is a very tight turnaround for an accurate survey.

"The idea that we could do it for three weeks makes me think that maybe we weren't going to do it very well," Ellis said. "If we're going to hire somebody to do this, let's do it right and let them tell us how long they need."

Marie Clarson, Ward 6 resident, said the survey could be skewed and doesn't think it's fair for the residents. Instead, Clarson said council should allow residents to vote.

Sean Rieger, a representative for OU Foundation, said he supports the motion to have the survey done in a perfect time and that the city has done a good work in working with this project.

Mark Campbell, Ward 2 resident, said he is in favor of postponing the survey and needs more time for opposition.

"There has been no presentation of this proposal in this chamber. We don't have a central library to research this plan," Campbell said.

Energy Incentive Program

In other business, the council unanimously approved an ordinance amending the permit fee schedule and adopting the residential code to establish an energy incentive program for residences achieving a Home Energy Rating System and Energy Rating Index, or HERS/ERI, score at least seven points lower than the residential energy code requirement.

The HERS/ERI program was developed to encourage energy-efficient building practices for new single-family residential development. Homes participating in the program are not required to initially pay the building permit fee portion of the permit since all remaining fees are paid at the time of issuance, according to the agenda.

Under the program, a building’s energy efficiency is measured on an index of zero, or no energy usage, to 100. Lower scores equate to a more energy-efficient building. 

The current HERS/ERI program allows for building permit fee reduction of up to 50% for homes achieving an index score of 57, with an additional 5% deduction for each point below this score. 

While Norman’s current benchmark is a 57 score, the state’s is a 64, according to Greg Clark, development services manager. He said the lower the score gets, the greater the percentage the potential savings would be. 

Because this program is set to expire on June 30, councilmembers were advised during the May 14 study session that, if they desired to continue the HERS/ERI program, they should adopt it permanently as an ordinance.

“Even the folks that aren't building in this program, they're still seeing those techniques that become a norm for the industry,” Clark said. 

With this adoption, the benchmark ERI will be seven points lower than the city’s adopted minimum score, meaning that if the city makes the new minimum ERI a 60, the program’s benchmark would be a 53 score, according to the agenda.

Miscellaneous public comment

Rob Norman, Ward 3 resident, address the council with concerns about turnpikes.

Norman said he heard the Oklahoma Turnpike Authority is not communicating or working with the city because of a prior resolution.

"There's no reason in the world that they can't talk to the city, that they can't work with the city. It's gaslight," Norman said.

Norman said that, back when the resolution was enacted, he warned the council to not waiver and was against the resolution.

Mark Campbell, Ward 2 resident, said the library was the "ultimate expression" of what Norman could aspire to and, now, the council is tossing that to the side.

"Insecure business leaders are always looking for the next big thing, desperately hoping it will make them feel whole. They will never feel whole," Campbell said.

This story was edited by Taylor Jones.