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

NORMAN, Okla. ( KFOR ) — A year after it was announced, Norman City Councilors prepare to vote on a financing plan that would either move forward or shut down plans to help fund a new arena and entertainment district.

Supporters of the project say it would create thousands of jobs, retail space, a hotel, office space and bring in new revenue through sales tax opportunities.

“You either get on board and invest or you get left behind,” said OU President Joseph Harroz Jr., during Tuesday’s public hearing.

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

University of Oklahoma officials have expressed the need for the arena to serve the community, and bolster its competitive presence in the Southeastern Conference (SEC).

“The game day experience would be something we haven’t seen before,” said OU Director of Athletics, Joe Castiglione.

The vote comes after several steps and two public hearings on the matter. The first hearing, September 3, gave residents a chance to ask questions about the plan and its potential impact. The second hearing, Tuesday night, allowed residents to voice support or disapproval of the plan.

More than 60 residents signed up prior to Tuesday’s meeting, with others also able to sign up before the meeting started.

The project would include a contribution from Norman taxpayers that could reach a $600 million cap. That would be paid out under a tax increment financing district (TIF), which would use sales tax and ad valorem tax revenue in the district. It would continue to be taxed until enough money is made to reach the city’s agreed upon contribution or for a 25-year period.

“We’re not breaking new ground in doing this TIF district we are following the template of success that others are taking,” said Harroz.

Opponents of the plan say they’re worried about their tax dollars being used to fund the project, arguing it could hurt small businesses; and that the arena should be OU’s responsibility.

“It is the worst possible public financing tool we could use and it’s been done for one reason, to avoid a vote of the people,” said resident Rob Norman during Tuesday’s hearing.

Other opponents argue a vote in favor of the district wouldn’t have the support needed because there hasn’t been a vote of the people.

“If we’re going to embark on a historically large project we’re going to need to have a historic amount of transparency and public support,” said Norman resident Alex Lanphere.

Construction on the arena must start January 1, 2026 and be completed by December 31, 2029 if the council approves it under an economic development agreement.

That agreement was discussed first in a separate special meeting Tuesday, before the hearing where councilors had a chance to ask questions about the city’s own obligations.

The agreement outlines the following obligations of the City of Norman:

• 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.)

Residents were nearly given the chance to vote after city councilors approved an election opportunity to help councilors decide on the proposal — but a Cleveland County district judge shut it down.

Regardless of the vote’s outcome, city leaders have stressed in the past that residents can protest the outcome and call for a referendum.

This is a developing story, stay with News 4 for updates.

For the latest news, weather, sports, and streaming video, head to KFOR.com Oklahoma City.