Norman City Council held its first UNP entertainment district public hearing

Norman City Council held a public hearing to consider the Rock Creek entertainment district project plan at its special meeting Tuesday. 

This public hearing for the entertainment district was the first of two public hearings regarding the University North Park entertainment district, with a second planned for Sept. 17.

According to a staff report, the first public hearing is for questions and the second public hearing is for public opinions. Residents are only allowed to ask questions during this public hearing, not make stand-alone comments, according to Mayor Larry Heikkila. 

Castiglione told OU Daily he is positive about the planning process following Tuesday’s meeting, including the public discourse. He added OU has been open and collaborative between public meetings and small group meetings.  

“I look at it as healthy discourse, and at the end of the process, the city council needs to make their own decision and vote accordingly,” Castiglione said. “This is something we wanted to participate in (and) to continue to bring the facts forward for one reason: this is for the greater good of Norman, and that’s what we’re trying to help people understand.” 

Castiglione said OU will continue to engage with Norman regarding entertainment district plans, including at the Sept. 17 public hearing. 

“We pledge to be anywhere we can be, which could be helpful,” Castiglione. “If there are other needs or opportunities for us to be in front of people to talk more about the entire entertainment district, then we’ll do it. 

“It’s all part of the process to help people understand why this is an amazing opportunity for our community.”

10:48 p.m.

Council has voted to close the public hearing.

10:04 p.m.

O’Connor said 3,000 housing units weren’t considered but 500 housing units were.

“(The OU Foundation) are willing to commit to build 500 residential units,” O’Connor said. “That does not mean that they won’t build more, but they don’t want to be in default under the economic development agreement.”

“I just want to be careful about what we are promoting to the public and what’s being promised out there,” Holman said. 

Ward 2 Councilmember Matt Peacock asked if the city would be under legal risk if the developer devolved.

Emily Pomero, president of the Center for Economic Development Law, said she did not think the city would be liable if the developer devolved. 

9:24 p.m.

Lawrence McKinney, president of the Norman Economic Development Coalition, said Norman Public Schools’ CFO supports the entertainment district. 

Dan Schemm, president of VisitNorman, asked if business in downtown Norman thrived from a previous TIF district and how the area north of the Rock Creek Entertainment District may be impacted. 

Interim City Attorney Rick Knighton said NPS requested an economic assessment similar to the potential entertainment district. 

Ward 7 Councilmember Stephen Tyler Holman asked if the city is suffering from a lack of growth.

Pyle said the city is suffering from growth, citing a lack of housing units, and a demand for local services. 

“We are definitely feeling the impact of growth,” Pyle said.

Holman also asked if the entertainment district analysis accounts for development in others parts of Norman.

Pyle said the plan attempted to include broad impacts on the city and most revenue plans consist of educated guesses. 

Holman said the university advertised a space for 3,000 new residents at the entertainment district. He asked if that number was ever considered.

8:45 p.m.

Joe Castiglione, OU director of athletics, said the entertainment district was brought to the university following the announcement of OU’s move to the SEC.

He added he was initially skeptical of the plan and considered potential tax increases on Norman residents.

“Will any resident of Norman see an increase in their taxes because of this project,” Castiglione asked.

Pyle said there are no proposals in place to increase sales taxes.  

Hollye Hunt, chief government affairs officer at OU, asked if council has looked at how TIF districts in Tulsa and Oklahoma City have impacted their standards of living and economic activity. 

Pyle said Tulsa and Oklahoma City now collect a portion of the state’s sales tax for their communities. 

Kate Bierman, former Ward 1 Councilmember, said the entertainment district was originally $100 million seven years ago. 

“I cannot imagine what a $600 million dollar full sales tax diversion TIF would do to the city budget” Bierman said.

Rick Nagel, a member of the OU Board of Regents, said the process to consider the entertainment district is “fun.” He asked how much the entertainment district will actually cost. 

“I’m curious what the actual risk is to citizens to the extent this doesn’t work out,” Nagel said. “My understanding is that there is no risk of the project,” 

Pyle said the $600 million estimate is a maximum amount that exists in the agreement and the actual estimates range from $507-540 million over 25 years. 

8 p.m. 

Sean Burrage, vice president of executive affairs and chief of staff at OU, cited OU’s increasing rates of freshmen in his support for the entertainment district.

“Did you know the University of Oklahoma is counting on all of you to do the right thing so they can continue to grow and compete with other universities?” Burrage asked.

Marcus Bowman, deputy athletic director at OU, said the district is broader than an arena. 

“Has there ever been a time in Norman’s history where there was $800 million in private investment that was put into the city?” Bowman asked. 

City Manager Darrel Pyle said he is unaware of a Norman project that has garnered $800 million in private funding. 

Pyle said 11 acres in the development land are available to NPS, which would require an agreement between the OU Foundation and NPS.

Gregg Garn, interim dean of the College of Professional and Continuing Studies and former dean of the Jeannine Rainbolt College of Education, asked if any portion of the land will connect to the Norman Public School district. 

Greg Heiple, former Ward 1 councilmember, said the TIF prevents public input because it does not require a vote.

“Are you strong enough to stand up and say ‘no’ to the TIF and let the people vote?” Heiple asked. “If you let the people vote, we’re going to win.” 

6:30 p.m

Members of the public are wearing green pins on their shirts that say “No UNP TIF Arena” in protest against the Rock Creek Entertainment District. Members of Team Norman are in attendance in OU shirts to show support for the TIF. 

The city council chamber is completely full, and residents are overflowing in the back of city hall to attend the meeting. 

Cathy O’Connor, founder of the Coalign Group, is presenting the TIF plans. O’Connor said a TIF district can attract major investors, create new jobs and retain old jobs. 

According to O’Connor, the entertainment district could also reverse stagnation, retain and expand employment, preserve and enhance the tax base, and stimulate private commitments to invest and reinvest in Norman. 

O’Connor said staff has been working on an economic development agreement with University North Park, LLC. She said the city is seeking a final agreement before Sept. 17.

O’Connor said the entertainment district will include 500 housing units in addition to 177 medium-density housing units. 

CC Trust obligations require construction to begin no later than Jan. 1, 2026 and end no later than Dec. 31, 2029. 

Ward 6 resident Dan Munson, asked if the entertainment district would require additional public safety requirements, including police officers, firefighters and emergency medical services. 

Anthony Francisco, Norman finance director said the city will consider safety requirements as the plan moves forward. 

OU economics professor Cynthia Rogers said the city has budget constraints due to growing expenditures compared to revenue.

“How can the city maintain its level of public service if it gives up so much revenue growth for the next two decades?” Rogers asked. 

OU philosophy professor Stephen Ellis said more events could occur at the Lloyd Noble Center, citing the decreased size of the proposed arena.

“How are we going to get more at the smaller place?” Ellis asked. 

Francisco said the projections for the next 25 years are uncertain but the city is comfortable with its predictions.

“What we’re talking about here is an educated guess or a sophisticated guess of what’s going to be happening over the next 25 years if this development happens,” Francisco said. 

University North Park Entertainment District 

Introduced in September 2023, the $1 billion Rock Creek Entertainment District would include a basketball and volleyball arena to replace Lloyd Noble Center, a retail market, housing units and office spaces. 

The entertainment district would create two tax increment finance districts, or TIFs. A TIF is used to support redevelopment, infrastructure and community-improvement projects to stimulate private investment within a certain area in need of economic revitalization.

One TIF would be for sales or use tax, expected to be activated on May 1, 2025. The other would be an ad valorem increment district and expected to be activated on Dec. 31, 2026, to capture the property tax that would begin when the first-year properties in the project area are developed.

The total cost of construction would be $644,482,953, according to a district analysis by HVS Convention, a sports and entertainment facilities consulting firm. Around 40% of the costs for the district would be financed by OU and private sources, while OU would use around 25 percent of the event dates, according to the staff report.  

If approved, the entertainment district areas would open from 2027-29. 

The proposed arena would seat 8,000 people, which is less than Lloyd Noble Center’s 11,000 people. Around 1,650 seats would be premium seating options, according to the analysis. 

HVS Convention’s analysis projects the arena could host 146 events per stabilized year, including games, concerts, shows and meetings. The analysis also projects the arena will generate $51 million in revenue for the city and $37 million for the district per stabilized year. 

The arena would open on Nov. 1, 2027, with a stabilization period of three years, according to HVS Convention. 

HVS Convention notes the 180,000 sq ft. 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 notes around 45 percent of visitors would come from Norman, while 55 percent would come from tourists. HVS Convection 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. 

On Sunday, OU President Joseph Harroz Jr. wrote a column in the Norman Transcript advocating for the district plan’s approval. 

In his column, Harroz wrote the entertainment district is essential to Norman’s future. Harroz added the entertainment district would create a strong sense of community, and attract new business and residents, citing migration to the Sun Belt.

“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.