Editor's note: This article was updated at 8:22 a.m. on Sept. 18 to include quotes from OU President Joseph Harroz Jr. and OU Athletics Director Joe Castiglione from an OU Daily interview after the meeting. This article was updated at 10:18 a.m. on Sept. 18 to reflect that James Howard is owner and partner at The Baked Bear, not Chase Howard. This article was updated at 3:27 p.m. on Sept. 18 to include quotes from Ward 6 Councilmember Joshua Hinkle.
At 1:10 a.m. on Wednesday morning, the Norman City Council voted to approve the University North Park entertainment district 5-4. Ward 3 Councilmember Bree Montoya, Ward 4 Councilmember Helen Grant, Ward 5 Councilmember Michael Nash and Ward 7 Councilmember Stephen Tyler Holman voted against the development.
Ward 1 Councilmember Austin Ball, Ward 2 Councilmember Matt Peacock, Ward 6 Councilmember Joshua Hinkle, Ward 8 Councilmember Scott Dixon and Mayor Larry Heikkila voted for the development.
Hinkle was the only person on council to not voice the reasoning for his decision at the meeting.
In a text message to OU Daily on Wednesday, Hinkle wrote that the project is a dynamic public-private partnership that brings the city, county and university together.
"I had some comments prepared last night, but the majority of what I was going to say would have been redundant," Hinkle wrote. "I wasn’t bringing any new ideas to the discussion at that point, as all my points had been covered."
Council held a public hearing to consider approving the $1 billion University North Park entertainment district project plan at its special meeting. Tuesday's public hearing was the second of two regarding the University North Park entertainment district. The first public hearing was held on Sept. 3.
According to the meeting agenda, Tuesday's public hearing is for public opinions on the project plans, while the first was for information.
Around 65 OU students were in the audience at the start of the meeting. Around half of the students said they attended the meeting to learn more about the district and the other half said they attended to support it. Most arrived an hour early and sat in the main section of the room.
Council chambers were full with an overflow area sectioned off in the lobby. Members of OU’s administration were in attendance, including OU President Joseph Harroz Jr., Athletics Director Joe Castiglione and men’s basketball coach Porter Moser.
After the project was approved, Harroz said the UNP entertainment district represents progress for the city and symbolizes community.
“This is a watershed moment for the city of Norman and the university,” Harroz said. “The option really isn’t to stand still as a city, it’s either to move forward or backwards. It’s a breakthrough moment that shows what we can do together.”
Harroz said the OU students in attendance understand the goals of the project and OU’s ambition.
“I am pleasantly surprised and shocked at how many students are here,” Harroz said. “I think they’re here because they understand what we’re trying to communicate.
Following the project’s approval, Harroz said the entertainment district will become a vital part of Norman’s history.
“(The meeting) ended in something that I believe is going to go down in the history books of the city of Norman and for the University of Oklahoma as a watershed moment,” Harroz said. “It’s a great moment, not just for OU and the city, but for the state of Oklahoma.”
After the meeting, Castiglione said the university will move forward to the next phases of the project, adding that it has been focused on approving the project.
“Now that we’ve moved that forward, we’ll continue to do the education process as need, manage what comes our way, and simultaneously try to move to those next steps, whatever they may be,” Castiglione said.
The meeting began with a public hearing. Once that hearing closed, council members began discussing the entertainment district’s project plan and tax increment finance district’s committee.
Mayor Larry Heikkila said over 60 people signed up to speak at tonight’s meeting. Heikkila asked speakers to treat others with respect.
University North Park entertainment district plan
Council members are now asking questions of various representatives associated with the project before considering approving and adopting the UNP entertainment district plan.
1:41 a.m.
Council is adjourned.
1:38 a.m.
Council approved the preliminary plat 8-1. Ward 5 Councilmember Michael Nash voted against.
1:37 a.m.
Council approved the zoning 8-1. Ward 5 Councilmember Michael Nash voted against.
1:20 a.m.
Council is considering zoning for the UNP entertainment district.
1:17 a.m.
Council is considering the economic development agreement, agenda item three, for the UNP entertainment district.
Council approved the agreement 6-3. Council members Michael Nash, Bree Montoya and Helen Grant voted against the contract.
1:13 a.m.
Ward 1 Councilmember Austin Ball said the district will provide 5,000 guaranteed jobs. Ward 7 Councilmember Stephen Tyler Holman asked city staff if that was correct.
Emily Pomeroy, president of the Center for Economic Development Law, said the project does not guarantee 5,000 jobs.
1:02 a.m.
Ward 2 Councilmember Matt Peacock said the financing structure of UNP is the opposite of the UNP south development. He added developers would not receive tax money if they did not follow through with plans, and the city would not experience financial risk.
“I don’t think TIFs are inherently evil,” Peacock said. “Any success in Norman is positive.”
Peacock said Oklahoma City would not exist in its current state without economic development similar to the proposed entertainment district.
12:36 a.m.
Ward 3 Councilmember Bree Montoya said she wants to partner with OU but she does not approve of the funding.
“This is so large that I can’t stand behind this,” Montoya said.
Holman said council members are paid $100 per month to make $1 billion decisions. He added Norman has accomplished and will continue to accomplish multiple projects citywide, including the Norman Forward initiative.
“I just want to note that in the last 10 years, Norman has really done quite a lot of investment that really should not be discounted by folks who are in support of this,” Holman said. “This does not mean you have to discount all three great things Norman has already done.
“Our community, with this project, could be better. This could be a lot of money,” Holman said. “But I also don’t think Norman will shrivel up without it.”
Holman said he wants to allow Norman residents to vote on the TIF funding, adding he will vote against the TIF district on Tuesday.
Ward 4 Councilmember Helen Grant said they will not vote to approve the TIF district because Ward 4 residents do not want it, according to feedback they’ve received from business owners.
Ward 8 Councilmember Scott Dixon said he spoke with Norman Public Schools Superintendent Nick Migliorino. According to Dixon, Migliorino said the district would not “crush the budget.” He added he met with the Cleveland County Assessor, who did not dissuade him from approving the plans.
“I understand this is not a perfect project, but man, it’s a great one,” Dixon said.
Ward 1 Councilmember Austin Ball said his constituents are overall in favor of the district. Ball said he asked himself if the entertainment district would leave Norman a better place for his children. He’s decided that the district would.
“Will this make a better Norman? Will it give them a city they’re proud of?” Ball said. “I think the answer is yes.”
Ball said America is not a democracy, but a constitutional republic. He said constituents who disagree with his decision can vote for his future opponents during the Ward 1 council seat election in February.
Ward 5 Councilmember Michael Nash said council needs to handle public spending carefully. He said the 100% of sales tax used in the TIF district would take funds that could be spent elsewhere. He added the district could still be reconsidered in the future if rejected.
12:21 a.m.
Ward 5 Councilmember Michael Nash said he is uncertain council has enough materials to make an informed decision.
12:08 a.m.
Interim City Attorney Rick Knighton said Norman residents could create an initiative for a referendum if council either rejects or approves the project, which could allow Normanites to vote on the UNP entertainment district.
11:01 p.m.
Ward 2 Councilmember Matt Peacock asked Sean Rieger, attorney for the applicant, if Norman has ever voted the project down before, if the city would be at risk and if taxes would be raised.
Rieger said the city has not voted it down. He added it would not be at risk, nor would it raise taxes.
In response to a question from Ward 1 Councilmember Austin Ball, Anthony Francisco, city finance director, said no additional sales or property taxes would occur upon approval.
Ward 6 Councilmember Joshua Hinkle asked Rieger how much cannibalization of businesses may occur.
Rieger said the project would contribute “very little” cannibalization. Danny Lovell, CEO of Rainier Companies, said he does not estimate cannibalization, with a 1.2% change to retail square footage in Norman.
“We do not believe there will be any cannibalization due to the difference in tenants that are coming into this location,” Lovell said.
Hinkle asked how the tax structure would benefit outside the district.
City Manager Darrel Pyle said the UNP entertainment district would create tax revenue streams and create paychecks that could reinvest in the city.
David Floyd, attorney from Floyd & Driver, PLLC and representative of Cleveland County, said debt from the project would only fall to the county trust. He added the trust could not increase taxes on Norman residents.
Ward 7 Councilmember Stephen Tyler Holman asked what instances the city would be under to warrant legal risk.
Emily Pomeroy, president of the Center for Economic Development Law, said the city would be at risk if payments weren’t being met.
Holman said council received the final, legally-binding agreement on Friday that could last up to 25 years.
Interim City Attorney Rick Knighton said there weren’t any prior economic development agreements for UNP TIF.
“It does not mean that at some future point in time the circumstances change, that the parties can't come back to the table and negotiate,” Knighton said.
During the meeting, OU Daily obtained a flyer being handed out to some residents advocating for residents to begin petitioning for a citywide vote.
According to the flyer, residents would have 30 days to collect 6,200 signatures. The flyer also asked for donations toward Oklahomans for Responsible Economic Development, a registered nonprofit corporation “created by Norman neighbors.”
“Our mission is to support economic development that puts community first,” the flyer read.
A flyer OU Daily obtained during the Norman City Council meeting on Sept. 17.
Council member questions
10:51 p.m.
Ward 4 Councilmember Helen Grant asked Sean Rieger, attorney for the applicant, if 1,143 surface spaces include parking and housing or just retail.
Rieger said the residential area has its own parking, but he does not know how it would be operated.
Grant asked Rieger how many units would be rentable. Rieger said he does not know and will become known as they further develop the project.
Danny Lovell, CEO of Rainier Companies, responded, noting rent on the properties is estimated from $1,350-$2,150. He added he believes the units would be affordable for Norman residents, and did not know the price of a townhome.
Public hearing
Council is holding a public hearing and taking comments from the public on the UNP TIF district.
10:26 p.m.
Richard McKown, chair of the AIM Norman Housing Subcommittee, said he is speaking in his capacity as chair. He said real estate must consider young women, which he cited as a driving force behind the real estate market.
“In order to make that kind of investment, (the district) needs to be in a place people want to be,” McKown said.
Walker Wambsganss, an OU senior and business owner, said he is not convinced of arguments against the district.
“These two TIFs, this project plan, are a vital component into playing into the city's culture,” Wambsganss said. “My mind goes green, not for money, not for opportunity, not for my own personal benefit, but because it signals good for the citizens of this city.”
Wambsganss is a member of the JCPenney Leadership Program at OU and interned at TrailRunner International in strategic communications.
Jeanette Coker, Ward 4, said she hopes council members focus on the businesses and families of their wards.
“Is this the top priority for your ward? Or are there other more pressing needs for your businesses or for things that will enhance your family life?” Coker said.
Rick Sondag, Ward 5, said he wants to let Norman residents vote on the district.
“Now I'm not here to say that this is going to be a bad thing. Building this stuff, it might be a really great thing,” Sondag said. “The greatest benefit that could be extended to all of us is to hear all of our voices.”
Cory Salazar, Ward 4, said he does not understand the project area and does not want Norman residents to fund it.
“I don't think a smaller arena across campus is really going to bring people (and) students to games,” Salazar said.
Evan Dunn, owner of uThrones, said he does not oppose the arena, but does oppose the finances.
“This is a strip mall for an arena,” Dunn said.
Porter Moser, head coach for OU men’s basketball, said three students who supported the project impressed him. He added the project goes beyond basketball and supports Norman’s future.
“They were prepared, they had their facts on all the finances, and they impressed me as a citizen of Norman,” Moser said. “What you don't see now you're going to see later. This is absolutely vital for our community.”
James Howard, owner and partner at The Baked Bear, said he is not afraid of competition.
“Let’s not get myopic and think only about who’s paying for what, but think about what happens in the future,” Howard said.
10 p.m.
Trey Bates, co-owner of HeyDay Entertainment, which was founded in 2007, said he and his wife want the council to check the economic aspect of the district. He added he wanted to serve his community by attracting people to Norman.
“Please exercise your responsibility to make sure there are good controls to keep the level playing field,” Bates said.
McK Williams, OU associate assistant director for ticketing and advancement services, asked council to approve the project.
“It's important to note that this isn't just about an arena, but also about the entire entertainment district that can transform Norman in a positive way,” Williams said.
Tracey Williamson from Ward 5 said the arena would be the smallest in the SEC.
“This, to me, just looks like more of the same thing that everybody does. It's not special, it's not shiny and new,” Williamson said. “With what I know athletics makes, why on earth are the taxpayers putting the bill for this in any way, shape or form? This is not a once-in-a-lifetime thing.”
Cynthia Rogers, an OU economics professor, said the project would cost 10 times the amount of Norman Forward, a 15-year, voter-approved project. She said it will take money from public schools and non-TIF areas.
“This is a lot of money. It's a lot of public spending,” Rogers said. “If it's not 100% new stuff, you are robbing school funding to build an arena.”
Paul Wilson, Ward 1, said the arena would provide an area for older residents, adding Campus Corner is suited for younger adults and students.
“We do have downtown, but that's one option,” Wilson said. “I definitely support this.”
Resident Bob Post said the project is too ambitious for the nine members of council to vote on. He added the district will increase traffic on 24th Avenue Northwest.
“I'm not necessarily against an arena, I just don't like this much city money going towards it,” Post said.
9:25 p.m.
Council has returned to the public hearing.
Alison Petrone, former Ward 3 council member, said she supports the arena but not the TIF. She cited a series of instances where council had to cut services, adding Norman needs to address its pressing budget concerns.
“Our fund balance has been shrinking, and we need to take some serious steps to reverse that,” Petrone said.
Pamela Post from Ward 5 asked if any of the project’s votes dealt with financing the district.
“I don’t get this TIF, I don’t understand it,” Post said. “Go back, rework the numbers, get OU to the table to say, ‘We’ll put in more funding.’”
Robert Mark Campbell from Ward 4 said OU should not use Norman as a financial source.
“This agenda item is incredibly simple: Norman is not a fiduciary for OU. OU is not a financial client of Norman,” Campbell said. “OU is asking us to put their interests above ours.”
Becca Opheim, OU assistant athletic director of digital strategy and revenue innovation, asked council to approve the district.
Russell Rice, Ward 2 resident, said he is not anti-arena, but he is anti-TIF. Rice said he will participate in gathering petition signatures for the next month if council approves the project.
Tracy Bates, co-owner of HeyDay Entertainment, said the arena project is “beautiful,” but wants Norman to create parameters to protect local businesses.
“Please ask the right questions moving forward to minimalize the unintended consequences, as much as possible,” Bates said.
Jayke Flaggert, recent OU alum and owner of the Flaggert & Associates Consulting Team, said he wants a future for Norman he and other young students can live and prosper in.
“Two weeks ago, students filled this chamber. Tonight they filled it again,” Flaggert said. “Why? Because this project matters. … Council, when you tally the support for this project in your mind, I ask you to humbly add another 65 in favor.”
Dan Nolan, a retired Norman High School history teacher, said Norman residents should vote on the project, citing decreasing levels of democracy worldwide.
“We deserve a vote for one of the most expensive things that the citizens of Norman could ever put together,” Nolan said.
Ben Plummer from Ward 4 said the project represents corporate welfare. He added he wants to gather petitioners to dispute the project.
“It's remarkable to me the level of entitlement to come to a city and demand 100%. This is unprecedented,” Plummer said. “I would like to see a public vote on the issue.”
Casey Vineyard, partner at SportsTalk Media, said her business is on the east side of Norman, but she supports the project. She said the project will stimulate financial growth.
“This project, without question, will help our business grow. It will create new clients, new partnerships and new experiences for our team and their families,” Vineyard said. “For far too long, Norman has been the laughing stock of the state and the region, getting passed over time and time again for projects that could have had significant economic impact for our city.”
Dillon Stanley, OU assistant director for advancement growth and strategy, said the project will retain Norman residents while creating economic growth.
“This development means an opportunity for growth, a once in a lifetime opportunity for our community,” Stanley said.
Caleb McGee, Ward 4, said he does not support the district or the arena, adding OU already has an arena.
“Why are we going to spend $600 million to build a smaller arena than the one that we already have away from campus?” McGee said.
9:13 p.m.
Council has adjourned for a 10-minute break.
9 p.m.
Kenny Adams, owner of Street Cars Direct, said the project provides opportunities for growth and will attract new residents.
“This project’s a win for Norman. It's being created on attractive land that otherwise generates $0 in revenue for the city or county,” Adams said.
Trey Kirby, owner of Kirby Land and Cattle, said he does not have an opinion on the vote. He added he wants Norman to stop dividing its residents.
“Does it hurt to take just a smidge more time and make sure everybody's on board before we make such a big decision for our team?” Kirby said.
Greg Burge, chair of the OU Department of Economics, said he approves of the arena, but not the TIF. He added the vote should go to Norman residents.
“Something this controversial should not be held outside of the will of the people,” Burge said.
Kyle Allison, former Ward 8 council member, said he supports the entertainment district.
“We can also make a difference here in Norman with our small businesses, our entrepreneurs, and reach out to them and see how they can be involved in a TIF,” Allison said.
Stephen Ellis, OU philosophy professor, said financial decisions always have positive and negative aspects. He added council should not pick which developers are hired.
“If we're going to let the market determine this, let's do that. But choosing your favorites is an unjust way to go,” Ellis said. “As the economics professors have been telling you, this is a huge problem for Norman's budget going forward.”
According to Ellis, the return on investment is negative over a 25-year period.
8:38 p.m.
Dan Schemm, President of VisitNorman, said the project will generate revenue for the city.
“Our neighbors are all investing in themselves. We're the third largest city, it’s time we do the same thing.“
Hollye Hunt, chief government affairs officer for OU, said families in Norman are looking for this kind of development to continue enjoying the city.
“My family is looking for this kind of development, just to continue to enjoy our city, enjoy our community in this urban, cool development that we could have in the city of Norman,” Hunt said.
Scott Martin, president and CEO of the Norman Chamber of Commerce, said he wants Norman’s children to have futures in the city.
“It's personal, much like many of you and Miss Hunt who just spoke before me, we have kids,” Martin said. “We want them to have job opportunities when they graduate from Norman Public Schools or the university. We want them to stay here.”
Shelley Cox, owner of Cayman’s Clothiers on Main Street, said business owners move depending on what will benefit their business. She added she is concerned with a lack of competition in Norman’s market and asked council to approve the district.
“When people don't feel that they have options, they leave our community,” Cox said. “That's my big concern as a brick-and-mortar retailer.”
Paul Bell, dean emeritus of the OU College of Arts and Sciences, said the TIF does not require a vote of the people, bypassing Norman residents.
“Let the people of Norman vote on this,” Bell said.
Marcus Bowman, OU deputy athletic director, said nothing lets the Norman area prosper more than the partnership between Norman and OU. He added OU’s move to the SEC creates an economic drive for the city.
“For three years, we've been preparing for (the SEC), and it's here now. All eyes will be on Norman this weekend,” Bowman said. “This is the opportunity for us to do something that's really going to move us economically.”
On Saturday, OU football will play the University of Tennessee in its first SEC game. ESPN’s College Gameday will be broadcasting its show from OU’s campus.
Sean Burrage, OU vice president of executive affairs, said only the council will make votes tonight. He added the project would never be perfect, but council should still vote to approve it.
“Don't let perfect be the enemy of really good,” Burrage said.
Robert Castleberry, former Ward 3 council member, said the project will create a 6% rate of return.
“There is no risk,” Castleberry. “We have an area that is generating no property tax.”
8:25 p.m.
Alex Lanphere, an engineer from Oklahoma Gas & Electric, said the city still struggles with addressing homelessness and the inoperable Norman Public Library Central.
“I'm also worried about local businesses having their traffic cannibalized due to new fancy businesses popping up in the TIF district,” Lanphere said.
Mohammad Farzaneh, co-owner of Home Creations, urged the city to approve the entertainment district.
“If this project is going to be another 25 years still sitting out there, I prefer to have something on it, some economic projects or entertainment,” Mohammad Farzaneh said.
Jalal Farzaneh, Mohammad’s brother and co-owner of Home Creations, said Norman needs more art and entertainment and asked council to approve the district.
“We don't have places for art, culture, entertainment, sports, and you have seen how important it is for us,” Jalal Farzaneh said. “I humbly ask every one of you to vote for this project.”
The Farzaneh family is the namesake for Farzaneh Hall, located on OU’s Norman campus.
Greg Heiple, former Ward 1 council member, said his concerns lay with the TIF district. Heiple asked council if general funds would be diverted to a private entity. These funds would be taken from city items like public safety, according to Heiple.
“If you say ‘yes’ to this vote, what you're saying is that they are going to place all that money in a malignant TIF tumor that can never, ever be used again for public safety,” Heiple said.
8:04 p.m.
Dan Munson from Ward 6 said he is uncertain if the developers can maintain the area, showing pictures of potholes across southern UNP.
“Are we going to expect the same type of maintenance on this new property?” Munson said.
Rob Norman from Ward 3 said he voted for the project while on the UNP TIF committee but against the funding, citing a distrust in TIFs.
“It is the worst possible public financing tool we could use, and it's been done for one reason, and that's to avoid a vote of the people,” Norman said.
K.J. Kindler, OU women’s gymnastics head coach, said the SEC landscape is completely different from the Big 12. Kindler said the television exposure for gymnastics is large, and attendance for the games is on the rise.
Kindler said given the attendance at Lloyd Noble Center for gymnastic meets, OU would be able to call the arena a “sell-out,” and the tickets would be harder to get.
“This is a huge opportunity for exposure, not just for the University of Oklahoma, Oklahoma athletics, but for the city of Norman,” Kindler said.
Jennie Baranczyk, OU women’s basketball head coach, said in her experience of hosting tournaments, businesses weren’t ready for the crowds and hotels were sold out. Baranczyk pointed to the success of women’s sports — and the national championships OU’s women’s gymnastics and softball teams have earned — saying they partially add to the “elite” environment of Norman.
“In the past year, there have been record-setting arenas all across the country, not just in women's basketball,” Baranczyk said. “Women's sports in general are at an all-time high right now, and it's time to invest.”
Gregg Garn, interim dean of the OU College of Professional and Continuing Studies, said he has invested in Norman for years, and three of his children have attended Norman Public Schools. He added the project will support NPS.
“By the end of this opportunity, by the end of this TIF, it doubles valuation for the school district,” Garn said. “That is a tremendous opportunity that doesn't come along very often.”
OU President Joseph Harroz Jr., Athletics Director Joe Castiglione address council
Joe Castiglione, OU athletics director, said OU has been collaborative and open in the development process.
According to Castiglione, the decision to join the Southeastern Conference was influenced by improving Norman.
“It was a unified decision made by a university leadership put our entire institution in a position to be successful, and by extension, a way to help our community grow,” Castiglione said.
Castiglione said the UNP entertainment district is for the greater good of Norman.
“This council can demonstrate the true leadership in seizing perhaps a once-in-a-lifetime opportunity, this transformative opportunity that gets us from one place to a better future,” Castiglione said. “This is for the betterment of Norman and Cleveland County, this great community. It’s within reach.”
Castiglione said the arena would give OU players improved accommodations for games.
“But also for us to have a state-of-the-art place for competition, for our coaches or athletes to feel like they're the best environment and gives us the best chance to win.”
OU President Joseph Harroz Jr. asked the OU students in the audience to stand for recognition. The students were met with applause from the crowd.
While arguing for the district, Harroz cited the university’s founding, which required Norman to dedicate 40 acres for OU’s creation and required Cleveland County funding.
“The university wouldn't exist unless those two conditions were met, and it took a year to get that done,” Harroz said. “We've got to go ahead or go back, we can't stand still.”
Harroz said the university and Norman operate in tandem for each other’s benefit.
“The reality was the university and the city could not go forward unless we move together,” Harroz said. “The university can't flourish without the city, and the city can't flourish without the university.”
Harroz said the city must act according to its history. He added the city will not grow if it does not invest in the community.
“Those days of the city and the university working together created remarkable prosperity, a unique prosperity, and it grew us into the third largest city (in Oklahoma),” Harroz said. “But we know we've not reached our potential. The only way is to do that together and to look at the unique financing tools that are available. We cannot grow without investment.”
Harroz said being a successful university requires developing alongside a city. He added that multiple cities in the Sun Belt have worked closely with universities, which he cites as the key to financial prosperity for both parties.
“The only question not answered right now is, ‘Will we create the environment where people want to be, where businesses want to be, where students want to stay,' not just come to school, but then stay after,” Harroz said. “I guarantee you, everyone else has figured this formula out in the Sun Belt, you either get on board and invest or you get left behind.
“We have stood in the position of arrogance before, and we will not do that again.”
Presentation
Cathy O’Connor, CEO of the Coalign Group, is presenting the details of the tax increment finance districts.
Sean Rieger, an attorney at Rieger Sadler Joyce, LLC, said the entertainment district will change Norman and culminate over a year's worth of work.
“What a great crowd, what a great moment, what a great experience,” Rieger said. We're here for a project that will change our community forever.”
Rieger said he can not remember a crowd at city hall as large as tonight’s meeting.
Rieger said of all members of bodies vested by city statute, 46 voted in favor of the plan, while one voted against it. Bodies include the Parks Board, Greenbelt Commission, Statutory TIF Review Committee and the Planning Commission. He added these members, along with members from libraries and Norman Public Schools, listened to project details for months.
Rieger said the plan would divide the overall project area into three sections, including urban residential, high-density residential and commercial areas.
According to Rieger, the urban residential area allows for street-owned business but does not allow retail spaces.
Rieger said multiple bioswales, a vegetated channel for managing stormwater runoff, are at multiple parking areas.
“I'm not aware of a project certainly that has this many bioswales sprinkled in all of those parking lots across the entirety of the project,” Rieger said.
The arena would be the first part of the project developed in the TIF, which would be developed within a year-and-a-half of approval, according to Rieger. Rieger added the first phase of the project also includes the arena, the entertainment district, some residential units and parking spaces.
“The first thing out of the ground will be the arena,” Rieger said. “It will go vertical quickly.”
Rieger said Rieger Sadler Joyce, LLC, overhauled parking plans to emphasize entertainment plans. According to Rieger, the project would include walkable spaces throughout the district.
Rieger said Norman should approve the plans to better Norman’s future.
“It is time for Norman to reengage with private enterprise and public-private partnerships in a positive way,” Rieger said.
Danny Lovell, CEO of Rainier Companies, a Dallas-based private real estate developer on the project, said the project team consisted of Lincoln Property Company, Arcadis, Legends and Gensler.
Lovell said he grew up in Oklahoma, adding he is passionate about the UNP entertainment district. According to Lovell, the retail space is not “big bucks retail.”
“This is a carefully curated food and beverage pedestrian walkway that we have created that works seamlessly as a live, work, play environment,” Lovell said. “You could put this entire shopping center, this 140,000 square feet, into Target.”
Lovell said the city could close the festival street for all events, not necessarily OU ones. Office spaces will be built during phase two and consist of two three-story buildings, according to Lovell.
The project will also include a public art project on the intersection of 28th Avenue and Rock Creek Road in partnership with the Norman Arts Council.
The proposed arena would have between 170 and 180 days of events per year, with 41 being for OU events, according to Lovell.
Project developers request $230 million of public funding for the $330 million arena, while OU and other investors would pay $100 million. He added the TIFs will still pay around 5% towards sales tax, including the public safety sales tax, Norman Forward projects, and Norman public transit.
According to Lovell, the project qualifies for state Leverage Act funds for an up to 1:1 deduction from what is required by the city. He said this would save the city $61 million.
“Bond investors believe these numbers, our investors believe this number,” Lovell said. “If we're wrong, it's on the developers and the landowners to come up with the capital to repay $203 million of funds.”
Lovell said without the project, these taxes would not be paid. He added the project poses no risks to residents, nor would it increase taxes on residents.
“If TIFs were negative, they wouldn’t be utilized,” Lovell said. “The city is not in it alone, you have partners.”
Background
Introduced in September 2023, the entertainment district is a $1.1 billion proposed district designed for the University North Park tax increment finance district. It includes plans to build a retail market, 500 housing units, office space and an arena for OU basketball and gymnastics.
The entertainment district project plan would create two tax increment finance districts. A TIF is used to attract private investment to areas in need of economic development by supporting infrastructure and community projects.
One TIF would be for sales or use tax and would be activated on May 1. The second would be an ad valorem increment district, which captures property tax beginning in the first year projects in an area are developed, and would be activated on Dec. 31, 2026.
According to an analysis by HVS Convention, Sports & Entertainment Facilities consulting, construction costs total $644,482,953. Around 40% of the costs would be funded by OU and private sources, while OU would use around 25% of the event dates for the arena, according to the agenda packet. If approved, the entertainment district areas would open from 2027-29, with OU’s first season in the arena being 2027-28.
According to the analysis, the arena would host OU basketball and volleyball games, as well as concerts, shows and meetings. The arena would hold 8,000 seats, which is less than Lloyd Noble Center’s 11,000 seats. The analysis notes around 1,650 would be premium seats.
In a stabilized year, the arena could hold 146 events, according to HVS. HVS projects the arena would generate $51 million in revenue for the city per year and $37 million for the district per stabilized year. The analysis notes stabilization would occur in 2030, three years after construction is complete.
Lloyd Noble Center would become a practice facility if the new arena is approved, according to the city.
HVS notes the 180,000 square feet of office space would hold 690 employees and include 148,000 square feet of leasable space. According to the analysis, 138,380 square feet is expected to be occupied in a stable year.
The office space would be constructed from 2028-29.
The Norman retail market would include 140,000 square feet of retail stores and business. Businesses would be “high-end,” with higher rents than market average, according to the analysis.
The analysis estimates around 45% of visitors would come from Norman, while 55% would come from tourists. HVS also projects the retail market would generate $22 million in net new sales.
According to the analysis, the arena and retail spaces would open in late 2027.
Both OU President Joseph Harroz Jr. and OU Athletics Director Joe Castiglione have showed support for the Rock Creek Entertainment District.
On Sept. 1, Harroz wrote a column in the Norman Transcript advocating for the project’s approval.
Harroz wrote the entertainment district is essential to Norman’s future, adding it would create a strong sense of community, and attract new business and residents.
“This is our opportunity to define who we are and what we aspire to become,” Harroz wrote. “Do we seize this moment and choose the path of investment, growth, and improved quality of life? Or do we remain complacent and atrophy, watching as other cities leap ahead?”
In April, Harroz threatened to build the entertainment district outside of Norman if rejected.
Following the first public hearing on Sept. 3, Castiglione told OU Daily the university would engage in community discussions to convince the public of the district’s approval.
“This is for the greater good of Norman, and that's what we're trying to help people understand,” Castiglione said.
Some have been critical of the financing plan for the entertainment district, which some business owners worried about cannibalization and revenue loss downtown and on Campus Corner. As city tax dollars in the proposed TIF will be diverted to the entertainment district, some worry about the loss of city general funds.
This story was edited by Peggy Dodd.
