‘People will remember’: Norman residents want public vote on arena and entertainment district financing plan

NORMAN, Okla. (KFOR) — Some Norman residents tell News 4 they plan on petitioning for a public vote after city council members approved a plan to fund part of an entertainment district with their tax dollars.

The plan was approved in the early hours of Wednesday morning following several hours of public comment and a presentation from developers of the project.

PREVIOUS COVERAGE: Norman City Council approves entertainment district project plan

The development would see retail, housing and office space, with the anchor of the project being a multi-purpose arena that would replace the University of Oklahoma’s Lloyd Noble Center.

The entertainment district would be located in between I-335, West Rock Creek Road, Max Westheimer Airport and West Tecumseh Road.

The project is valued at just over a billion dollars, and would see the creation of two tax increment finance districts to pay for the city’s contribution. OU would also contribute to the project.

The city’s portion of payment would be made up of sales tax and ad valorem tax from the districts, which could total up to $600 million up to a 25 year period or until the city’s payment amount is reached.

“I cannot support the TIF financing for this without some kind of public vote in the affirmative,” said Ward 7 Councilmember Stephen Holman during a discussion on the issue Wednesday morning.

Council members were ultimately split 5-4 on the decision, with a majority voting in favor to approve the district. Norman Mayor Larry Heikkila voted on the affirmative, who has voiced support for the project in the past.

“They’re volunteers who get to make $600 million decisions,” said Norman resident and OU economics professor, Cynthia Rogers.

Rogers questioned the sincerity of council members genuinely considering public comment on the issue, arguing that past council votes on the matter have had the same 5-4 split. News 4 noted multiple council members appearing to read off their reasoning for the vote during the meeting, but cannot confirm whether those comments were written before or during the meeting.

“I think people will remember,” said Rogers of the vote. “They won’t forget and they will be brought up if any of the people run again.”

Some council members voting for the plan said they would respect if the vote is handed over to Norman citizens instead.

“If I’m wrong, well then in February they can take action,” said Ward 1 Councilmember Austin Ball.

PREVIOUS COVERAGE: City of Norman set to vote on arena and entertainment district plan

Rogers says action is exactly what she, and organizers of a petitioning process under the non-profit Oklahomans for Responsible Economic Development, plan on doing over the next several weeks.

“It’s a very onerous process to put on residents,” said Rogers. “But if residents are mad enough and really want to vote enough they will come together and I have confidence.”

Rogers says the law requires petitioners to file a copy of it with the City Clerk. Petitioners then have 90 days to collect the amount of signatures from registered Norman voters. The percentage has to be equal to or greater than 25% of the number of votes from the previous mayoral election.

“I think the number is around 6,200 signatures collected,” said Rogers. “I’ve already committed to collecting 100 signatures.”

Rogers says she believes the petition will have enough support to reach a vote of the people and that dozens of people have already reached out to collect signatures.

News 4 reached out to the Norman Chamber of Commerce for comment on the petitioning but was redirected to a social media statement that doesn’t mention it.

News 4 also reached out the University of Oklahoma, requesting interviews with Director of Athletics Joe Castiglione and President Joseph Harroz, Jr. but was redirected to statements that did not mention the petitioning process.

Rogers said even if a petition and vote shoots the funding plan down, she believes it won’t be the end of trying to get Norman tax dollars to front some of the bill.

“I think the OU foundation and Oklahoma Athletics are looking out for their interests,” said Rogers. “Which is what they should do right, it’s natural and their interests will continue to be getting the public to pay for an arena. Will they come back with another plan, probably. Will that make it harder for the council to say yes, could be a different council by then.”

An agreement entered by the city in the plan would require the following:

• Provide the lesser of (1) an amount necessary to secure $230 million in principal to be used towards the construction of the arena, 1,200 space parking garage and necessary infrastructure, or (li) up to $600 million in Incremental Sales Tax and Incremental Ad Valorem Revenues, plus 100% of any Leverage Act (State matching funds) funds for the payment of project costs to the CC Trust as assistance in development financing.

• The amount of incremental tax revenue NTIFA can contribute is limited by the amount of increment generated.

• Review phasing plan and development plans and any material changes

• Development Plans include financing terms and requirements-NTIFA must ensure sufficient assurances that Project will be built at this review phase.

• Collect and account for incremental Sales Tax collections.

• No other source of city funding is at risk.

The landowner’s obligations under the agreement are as follows:

• Submit a Phasing Plan for review and approval (Budget, evidence of financing, collateral assurance, construction contracts, renderings and other things reasonably requested.)

• Submit Development Plans for each phase of the Mixed Use Project.

• Also provide any assurances or commitments necessary for CC Trust to secure Anchor Project financing.

• Construct the Mixed Use Project (office, multi-family housing, etc.) in accordance with phasing plan and development plan but no later than December 31, 2032.

• Dedicate up to 1,200 square feet for public art.

• Ensure property taxes are assessed and paid timely; PILOT payment for property that would otherwise be tax exempt.

• Sales and Use Tax reporting (including construction and sales tax reporting. This provides an obligation for the developer properties to require the materials used for the project to be delivered to the City of Norman. They will have to provide proof through receipts to make sure they’re receiving information necessary to track it.)

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