OU, Norman leaders speak on benefit of Rock Creek Entertainment District for Norman businesses

Several OU and Norman business leaders met near the future home of the Rock Creek Entertainment District to discuss the future economic impact of the district and the community petition against it Wednesday morning. 

Among those present include OU President Joseph Harroz Jr., Athletic Director Joe Castiglione, Mayor Larry Heikkila, Ward 6 Councilmember Joshua Hinkle, Ward 8 Councilmember Scott Dixon, Norman Chamber of Commerce President and CEO Scott Martin, Visit Norman President and CEO Dan Schemm and Norman Economic Development Coalition President and CEO Lawrence McKinney. 

Danny Lovell, president and CEO of The Rainier Companies, was present at the press conference. Lovell spoke in an interview with OU Daily on Tuesday about his belief in the district and its benefit for Norman. 

At the conference, Harroz, Heikkila and others unveiled a sign marking the location of the future OU basketball and gymnastics arena. Housing units, retail areas and corporate spaces will surround the arena. 

The $1.1 billion entertainment district was approved by Norman City Council in a vote of 5-4 around 1 a.m. on Sept. 18, after over seven hours of public comments. 

Shortly after, Norman residents filed a petition to turn the entertainment district decision to a citywide vote. Petitioners have until Oct. 18 to collect 6,098 signatures for the petition.

Joseph Harroz Jr. 

During the event, Harroz said when outlining the OU’s Lead On, University strategic plan the university realized that collaborative efforts between OU, the city and its residents is the best way to help improve Norman. 

According to Harroz, any progress to make the city and state healthier, improve economic prosperity and increase opportunity for citizens to advance their lives can only be made possible by working together on a common plan. 

Harroz recounted the year-long process of getting the tax increment financing district approved, starting by bringing the proposed project plan to the Parks and Recreation Board, the Greenbelt Commission, the statutory review committee for the TIF and the Norman Planning Commission, where he said all approved of the project plan.

“It wasn’t simply a city council vote that took place,” Harroz said. “We knew it was a long, arduous process, and we went through it. … It’s been looked at very closely. This is a remarkable and stunning opportunity, doing important big things is never easy.” 

Mayor Larry Heikkila

Following Harroz’s speech, Heikkila said the entertainment district is for the benefit of Norman residents. 

Heikkila said differences in opinion are expected when attempting to implement change, especially in Oklahoma. He added that the entertainment district is a necessary part of making Norman a more attractive city. 

“We visit places in Texas, we visit places all over the place that have places that you can sit down and eat, bring your dog, have your friends there,” Hekkila said. “We don’t have a place like that in this part of the world. We’re going to soon, and I look forward to it.” 

Heikkila said he doesn’t know what the city would do if the petition was approved and voters denied the entertainment district. The city will have a campaign to engage voters should the petition gain enough signatures, according to Heikkila. 

When asked what he would say to residents who have felt left out in the decision process for the project, Heikkila said residents have had several opportunities to express themselves. He added that he has received several text messages and emails regarding the entertainment district. 

“As (Harroz) mentioned, it’s gone through committee after committee after committee. They’ve had perfect voice in doing things.” Heikkila said. “They’ve been able to communicate. And so we’ve looked at everything. I’m not sure who those persons are.” 

Local business owners

Kenny Adams, owner of Street Cars Direct, said no sales taxes will be raised on residents to fund the project. 

Adams said the establishment of the entertainment district will attract new businesses to Norman and allow the city to grow. 

“We will attract new businesses and new people. … It will be an opportunity to backfill into other parts of our city once we create the positive business environment and increase visibility in Norman,” Adams said. “This project is a worthy investment in Norman. It’s an investment in our people, not just for now, but for generations to come.”

Kyle Allison, director of Allison’s FUN Inc., said he couldn’t be more excited about what the entertainment district will bring to Norman. According to Allison, the district will contribute additional money to Norman Forward, a city initiative to implement quality of life projects. 

“I see the amazing things we’re doing with Norman Forward. It’s going to contribute additional money to that, the amazing things we’re doing through our arts and our parks, money that’s going to be accumulated through the hotel (and) motel sales tax in the area,” Allison said. 

Jonathan Fowler, president of Fowler Holding Co., spoke about the necessity of change in Norman to foster growth. 

“I’ve seen so many people in this community, including my father (and) my grandfather, dream big and try and do great things for this community and for themselves, and today, I can see the benefits directly from that. And I can see the life that is provided for so many people, in my family and in our company and in our community,” Fowler said. “So when I see this project, and when I first heard of it, … it’s something that I was incredibly excited for. … What this project is going to do is truly amazing.”

Michael Dean, executive director of Sooner Station, a senior living community in University North Park, said the Rock Creek Entertainment District was one of the most studied projects to date. 

According to Dean, the entertainment district would give senior residents the opportunity to attend events and festivals that would provide a greater sense of community. He added the different housing options being developed will provide his associates with more housing options. 

David Nimmo, president and CEO of Chickasaw Nation Industries, thanked the OU Foundation for keeping the interest of OU students and Norman in mind. According to Nimmo, the foundation could have chosen to sell the land but instead chose to implement projects for the benefit of the community. 

“It’s not really helpful to just own land. They need resources to be built and developed in order to turn around and help the university, the students, the programs and all that the foundation is there to do,” Nimmo said. “They could have done an easy sale. They could have quickly turned this over, but they recognized that they had an opportunity to help the city of Norman.” 

Danny Lovell

Lovell told OU Daily in an interview on Tuesday that the largest impact will be the amount of revenue generated from a mixed-use district. 

“By creating a destination where people could spend more revenue, out-of-towners particularly, it’s adding to the tax base,” Lovell said. “I think that’s one of the big misnomers that’s being thrown around out there, is that this project is ‘taking money,’ but there is no money there. There’s no taxes being generated, literally no taxes.”

The district will be funded using two TIF districts, according to a FAQ document produced by the city of Norman. The first will be dedicated to sales tax and become effective on May 1. The second will be ad valorem, or property tax-based and become effective on Dec. 31, 2026. 

According to the city’s FAQ, 3% of sales tax collected in the TIF district would go to the general fund and capital fund and 1.125% would go to public safety, Norman Forward and public transportation. The rest will go to the entertainment district. 

Lovell told OU Daily the TIF could be viewed as a return on an investment. Of the $600 million investment factored into the district, Lovell said $230 million was the principal amount, plus costs. 

According to City Finance Director Anthony Francisco, the $600 million mark is when the apportionment of tax money to developers for costs would end. Francisco told OU Daily on Tuesday this apportionment could go one of two ways, when $600 million has been paid, or when the amount of total debt service is paid. 

Francisco said the difference between the $600 million and the $230 million is the interest cost over 25 years. The interest cost is unknown until developers close on their loan offers to finance $230 million, Francisco said. 

After those loans are decided, the city will then know how much it will have to pay out over 25 years, which Francisco said could be theoretically as little as $230 million, but could not exceed $600 million. According to Francisco, the city estimates that the cost will be about $540 million. 

Should the project go over $600 million, the developers would be responsible for the extra costs, according to Lovell. 

According to Lovell, the developers have followed process requirements set for them, which does not include large public engagement efforts. In total, Lovell said the project appeared before 83 appointed or elected officials, with 73 voting in favor of the project.

Petition

Following the approval, Norman residents filed a referendum petition that would turn the Rock Creek Entertainment District project plan over to a public vote on Feb. 11. 

Oklahomans for Responsible Economic Development, a nonprofit organization formed to give community members a say in economic development decisions for the city, is currently assisting in the petition process. 

“We’ve got petitions, … all this stuff will happen. It is going to be wonderful to be driving down I-35 (and) see the new whole area,” Heikkila said during the press conference. 

Heikkila told reporters that, in his experience, he has heard more residents speak in support of the entertainment district than he has from those who are against it.  

“When I talk to people downtown, when I’m walking around in restaurants or I’m doing all kinds of other stuff, I hear more support than I hear negative,” Heikkila said. 

According to Rob Norman, an attorney providing legal advice to ORED, petitioners will submit their signatures to the city clerk in 16 days to determine if there are enough valid signatures. If enough signatures are valid the city clerk will publish a notice then any legal challenges to the petition can be filed.

“So am I worried about a public vote? I’m not,” Lovell told OU Daily. “If it happens, it happens. We’ve talked to thousands of people that are supporting this project, and we believe greater Norman are supportive of this project.”

If the entertainment district goes into a public vote, Lovell said he would talk to “whoever we need to talk to” to help educate residents on why the project is good for the city. 

“My belief is that (people that oppose the district) haven’t dug in enough to really understand why this is a benefit for the city and for citizens,” Lovell said. “We’re happy to try to explain that to them and to help people understand. But we’re certainly not afraid of a public vote.”

This story was edited by Ana Barboza. Mary Ann Livingood copy edited this story.