Norman City Council held a public budget hearing and approved a mosque expansion and tax increment financing district ordinance during its regular meeting Tuesday night.
Data centers
The news: Council discussed a potential yearlong moratorium that would halt construction of any data centers in Norman during its conference meeting.
What they’re saying: Council members expressed concern about a data center being constructed without council approval or through loopholes in zoning laws.
City Attorney Rick Knighton said areas zoned for heavy industrial use can be built on without council approval. Knighton recommended council update city code to require data centers to have special zoning before passing a moratorium.
“If it’s not currently one of the uses specifically prohibited in that industrial category, if somebody came in today and said, ‘This is what I’m doing,’ or planning to get a permit, they have the ability to do that as a matter of right,” Knighton said.
Knighton said Norman does not have infrastructure to support a data center.
“Data centers require a lot of water, they require a lot of electricity and they require some level of IT service. Which there really isn’t anywhere in the city where all those three things exist,” Knighton said.
Knighton noted the City of Stillwater’s franchise fee agreement with OG&E.
In November 2024, Stillwater voters approved the development of up to six data centers and an initiative allowing OG&E to provide electric services to the centers, per reporting by KFOR. According to its website, the City of Stillwater will receive approximately $2.25 million in franchise fee revenue per construction phase each year from any operational data center.
Mayor Stephen Tyler Holman questioned if a data center in Norman would create tax revenue for the city, and if franchise fees from OG&E, an Oklahoma-based electric company, would benefit the community enough to consider a data center.
If the city had a franchise fee agreement with OG&E, Norman would receive franchise fees from OG&E based on a percentage of the company’s gross revenue from electricity sales, according to the city’s website. In March 2024, Norman voters rejected a 25-year franchise agreement between the city and OG&E for a second time.
“If it doesn’t generate any jobs and doesn’t generate any tax revenue for us, the franchise fee thing might be the only thing that might be in consideration,” Holman said.
Council will consider the moratorium June 9.
Fiscal year 2026-27 budget
The news: Council held the second public hearing for the proposed fiscal year 2026-27 budget.
Projected total revenue is $301,702,050, while projected expenditures total $302,005,449 according to a presentation.
Clint Mercer, Norman’s finance director, told OU Daily Wednesday the city is working to address rising insurance costs in the proposed budget. Mercer said in order to balance insurance funds, officials pulled about $3 million from elsewhere in the budget, including the general and capital funds.
"We're still exploring what we can do to curb these costs in the insurance fund and/or raise the premiums so these subsidies are not needed," Mercer said.
In January 2025, Anthony Francisco, former city finance director, said Norman’s expenditures were growing faster than its revenue and the city would experience a negative fund balance if the trend persisted, which is illegal according to Oklahoma state law.
What they’re saying: Dan Munson, Ward 7, voiced concern about revenue from the Rock Creek Entertainment District.
“We don’t have enough revenue coming in to tackle some of the important projects that we need for the city. Our revenue estimates show an increase of $121,000 and that’s for capital revenue. So that’s not very much year over year, so what this tells me is the city is not optimistic about the financial lift that we’re going to receive from the $1.2 billion entertainment district,” Munson said. “That’s really concerning to me. This is year one of the project. We were promised a huge financial lift. The budget does not indicate a huge financial lift. That’s a problem.”
Cynthia Rogers, Ward 4, suggested the city find new sources of revenue.
“One thing you can absolutely do that doesn’t require the vote of the people, is you can look at impact fees, … The last study said we were leaving money on the table that we could easily grab each year to shore out the budget,” Rogers said. “I think we should absolutely think about that as a way of diversifying our revenues, helping to support the budget.”
Holman said the budget’s healthcare and insurance costs are rising. He encouraged citizens to contact federal representatives regarding these costs.
“General healthcare and insurance as a whole are two major issues that municipal government is experiencing right now financially,” Holman said.
Council will consider the budget June 9.
Mosque expansion
The news: Council voted to expand the Islamic Society of Norman’s mosque.
The expansion will build additional parking and a youth center south of the mosque that will include recreational spaces and classrooms, according to a staff report.
The mosque, at 420 E. Lindsey St., opened in February 2012 as a replacement for a house that originally held the congregation.
A fundraising page for the project states the current building does not have enough parking or space.
“We have men praying in the shoe area every Friday because there is no longer room in the masjid,” the fundraiser reads. “... We need a safe recreational space for the youth and children.”
The society submitted an additional request to close a utility easement, a type of zoning that allows companies to maintain utility facilities, to build the expansion.
According to the staff report, OG&E expressed concern to the city regarding the easement closure. An email from OG&E’s right-of-way agent states the company does not know if it wants to retain its rights to the easement.
OG&E can object the closure request when it goes to district court, according to the staff report.
What they’re saying: Ward 7 Councilmember Kimberly Blodgett said she loves having the mosque in her ward.
“I fully support this,” Blodgett said. “... I look forward to driving by and seeing the kids playing outside.”
Blake Woods, a local priest, said he supports the expansion.
“Moments like this are never just about buildings and parking lots. They become opportunities to ask what kind of city we want to be together. I believe Norman is at its best when we choose neighborliness over suspicion and shared flourishing over fear,” Woods said. “I think we should be honest that in the world we are living in right now, Muslim communities are often asked to carry burdens of mistrust that other religious communities simply are not.”
The vote: Council unanimously approved the mosque expansion and easement closure.
Apartment, parking garage development
The news: Council approved a rezoning for a west Norman development that will include 15 apartment units and a commercial unit spread across two buildings, according to a staff report.
According to Sean Rieger, attorney for the applicant, the project will convert the current office building, at 1130 Rambling Oaks Drive, into housing and create a second building to allow for more housing units and a parking garage.
What they’re saying: Ward 4 Councilmember Helen Grant asked if the apartments will be market rate.
Rieger said it's hard for new construction to be affordable without public financing.
Holman said he would like to see more development conversions throughout Norman.
“I think this is absolutely what we need to see more of in Norman,” Holman said. “(I) hope to see it in many, many other areas throughout Norman. Drive around, there's tons of single story strip malls that can be added onto.”
The vote: Council unanimously approved the rezoning.
TIF district ordinance
The news: Council approved an ordinance that will create procedures for the creation and implementation of future tax increment finance districts, according to a staff report.
The ordinance will require city staff to complete an economic and risk analysis of proposed TIF districts, according to the report.
Four city bodies, including a stakeholder committee and the city’s planning commission, would review the analysis findings, followed by two public hearings and a final determination from council.
The ordinance will also require TIF district applicants to pay an application fee equal to 1% of the proposed project costs and will set project criteria for the use of TIF funds after a district is created, according to the staff report.
What they’re saying: Marguerite Larson, Ward 6, said the ordinance should be brought to a public vote.
“It should be a decision that is made by the community, and not a decision that is solely made by the council …” Larson said. “I am requesting that you go back to the drawing board.”
The vote: Council approved the ordinance 6-2 with Ward 6 Councilmember Joshua Hinkle and Ward 1 Councilmember David Gandesbery voting against.
This story was edited by Reagan Rozzi and Audrey McClour.
