Leaders from the City of Norman, Cleveland County and OU on Wednesday revealed conceptual renderings of the proposed entertainment district for the University North Park area and addressed questions regarding funding, construction and feasibility a week before a critical next step in the venture they tout as transformative.
The plan will go to the city’s Planning Commission on June 13 before making its way to the Norman City Council, which will determine the project’s fate.
The $1 billion entertainment district, announced in September 2023, would include an arena to succeed Lloyd Noble Center as the home of OU basketball and women’s gymnastics programs as well as a district for businesses and residences. A statutory review committee approved the Rock Creek Entertainment District Project Plan on May 23.
Danny Lovell, the CEO of Rainier Companies, a real estate firm and development partner on the project, said the arena’s total cost would be $330 million, with $230 million proposed to come from public funding and $100 million from OU. The estimated amount the city would pay for the broader entertainment district is $600 million. However, Lovell said $540 million is probably what would be needed from the city.
Lovell said in an interview with OU Daily following Wednesday’s meeting that 80%, or $800 million, of the total $1 billion project is what the investment company is helping fund.
However, Lovell said who those investors will be won’t be clear until after the project potentially is approved by the city council.
“Firms have a long history of putting these deals together and so we’re confident that we will find those investors, but we don’t have a project or a plan to go raise that capital,” Lovell said.
OU President Joseph Harroz Jr. said he’s optimistic the Planning Commission will pass the project and send it on to a final vote to the council.
“This has been taking place now for a year and a half, all together, not divided, but unified around a common goal, and that is improving the lives of the people of this city and by extension, the state as a whole,” said Harroz, who in an exclusive interview with the OU Daily in April threatened to work with other cities on such a project if Norman doesn’t approve it.
Harroz said Wednesday that the arena’s purpose goes beyond solely the university with 76% of its use going toward non-OU events.
With this investment in the city, ahead of OU joining the Southeastern Conference, many things are converging at the moment, Harroz said, and while some might be anxious about the district he believes this is a good opportunity for both the city and the university.
“This is what progress looks like,” Harroz said Wednesday. “Hopefully, a month or two later in front of the city council, … all of that hard work will pay off.”
Project funding
Rendering of an event day at the proposed University North Park entertainment district.
The plan would divide the district into two tax increment financing districts, or TIFs. A TIF is used to support the redevelopment, infrastructure and community-improvement projects within a certain area to stimulate private investment in the area in need of economic revitalization.
One TIF would be for sales or use tax and would be activated on May 1, 2025. The other would be an ad valorem increment district expected to be activated on Dec. 31, 2026. This TIF is designed to capture the property tax beginning when the first-year properties in the project area are developed.
OU athletic director Joe Castiglione said the university would put in $25 million up front and $75 million over a 25-year period. He also said the venue could start hosting OU teams in 2026 or 2027.
OU athletics director Joe Castiglione on funding.
During the May 23 review meeting, City Attorney Kathryn Walker said the developer is receiving what’s called an assistance in development financing, which, according to Walker, means that the city is not pledging any revenue in advance but rather pledging revenue as it comes in.
“The only contribution (from OU Foundation) into the project is the land itself, said Guy Patton, president and CEO of the OU Foundation, after the Wednesday meeting. “The rest of this is an investment. We’re partnering with the developer to create investments that have returns.”
Asked about OU’s contribution, Harroz said Wednesday the university’s primary contribution would be to pay rent in the arena.
“When we look at (the arena), 24% of its occupancy will be with the athletic teams,” Harroz said. “Part of that will be that agreement to help provide an initial anchor for the arena.”
Public sentiments
Mayor Larry Heikkila said the city is not going in blind with this project and said he’s looking forward to the challenge of getting this project done.
Mayor Larry Heikkila on proposed entertainment district.
Heikkila said he’s confident the project will be approved by the city council, which seats new councilmembers in Wards 2, 6 and 8 in July, after elections this spring in which candidates’ stances on the arena figured prominently.
More broadly, he said while there are going to be people against the plan, he thinks residents should put their trust in city officials. He cited indications of support through surveys, the Norman Economic Development Corporation and his own conversations with residents.
Mayor Larry Heikkila on proposed entertainment district.
In materials shared Wednesday, officials said the project would generate 5,000 new jobs and accommodate around 3,000 residents.
Scott Martin, president and CEO of Norman Chamber of Commerce said during the meeting the city competes daily with other communities in the state and highlighted that the new jobs and housing opportunities would be significant for the city.
Dan Schemm, Visit Norman executive director, said during Wednesday’s meeting, that other communities are growing and that this project is an opportunity for the city to invest in itself.
“We’re the third largest city in the state and it’s time we start acting like it,” Schemm said.
Schemm said that the arena is not the only exciting part of this project, but to look at the larger picture with the entertainment district, which he said will attract new visitors to the community, which he said aligns with Visit Norman’s mission.
Castiglione said retailers, hoteliers, medical industries, restaurants and other businesses have reached out to be a part of the district.
“The new entertainment zone will do wonders for the City of Norman and Cleveland County…” Castiglione said in a statement that cited retail, housing and job growth. “This project will also bring in new events to Norman and will serve as a beacon of possibilities for our city and community.”
After Wednesday’s meeting, when asked how the city as a whole would be affected by business and community engagement being moved to the University North Park area, Martin told OU Daily that while some businesses may leave their current locations in Norman to be in the new district, he thinks others would fill their old spots.
“It provides opportunities for either existing businesses to grow and expand … And it opens up opportunities for additional new businesses to scale,” Martin said.
Target, which was originally located on Main Street, moved to the University North Park area in October 2006 through the TIF No. 2 district project created in 2004. After this move, Hobby Lobby took the place where Target used to be, opening a space for a new store that later became the Sprouts Farmers Market.
Athletics
Wednesday’s united public push by officials comes weeks before OU joins the Southeastern Conference in July. Castiglione said the athletic department is excited about the move and the opportunities it’ll bring to the university and the city.
“Things are going to happen because of this move. We’ve said it’s transformative and likewise this entertainment district and for us,” Castiglione said. “The synergy of an arena with an entertainment district is a game changer for our program.”
Castiglione said the project would help in recruiting as well as bringing more people to the Norman community.
Attendance has been a regular challenge at Lloyd Noble Center, the nearly 50-year-old venue just south of campus that hosts OU’s basketball and women’s gymnastics teams. The new venue proposed to be in the University North Park area would be about 5.6 miles from campus.
OU athletics director Joe Castiglione on transportation
Castiglione said officials would have to create a shuttle system to get students without transportation to the games.
“There’s also going to be a lot of improvements made over a period of time that include a transportation system all around the city,” Castiglione said.
Castiglione said transportation for the proposed district is part of the project plans but also the walkability of the district and how people can get through it.
This story was edited by Daniel Homrok. Avery Avery copy edited this story.
