Developer: Agreement close for Norman entertainment project

NORMAN An economic development agreement with the City of Norman for the entertainment district in University North Park is almost complete, the project’s lead developer says.

The Development Oversight Committee for TIF District 2 met last week to discuss plans for the $1 billion entertainment district near Interstate 35 and Rock Creek Road. Traffic plans and impacts are still being considered and city finance staff told the committee that the economic development agreement for the project had not been reached.

Dallas-based Rainier Companies CEO Danny Lovell, lead developer on the project, said as of Monday, they’re on the verge of an agreement.

“I think the city is used to having specific development plans on specific pieces of dirt, and this is obviously much larger, more complicated, involves multiple landowners and a vision over a long period of time,” Lovell said. “But I'm confident now that there was a meeting last week with the development team and the city to kind of bridge the gap on some items that were left outstanding. I'm confident if they're not all agreed on now, then they will be shortly.”

The project spans approximately 240 acres, which includes about 90 acres of land owned by the OU Foundation, 60 acres controlled by the Norman Economic Development Coalition and 88 acres owned by others.

Lovell said he couldn’t discuss specific details in the agreement, but one of the general discussion points was how to hold the developer accountable.

“Obviously we're used to being held accountable for development plans, however, they're not always encompassing land that other people own,” Lovell said. “I think there's multiple points within there that were being refined and really talked through, and that was, I'll just say, one of the concepts that I think were discussed, written and agreed on now that everybody kind of understands.”

How is a $1 billion entertainment district possible in Norman?

Lovell also spoke on the apprehension expressed by some who are reluctant to support the district. One of the main concerns from some Norman city residents, planning commissioners and city councilmembers is that the district could cannibalize retail and dining in other areas of the city. Lovell anticipates the district will bring new activity, and he supports his projection based on his last business deal in Norman.

Rainier Companies in 2019 purchased University Town Center, a class-A shopping center with more than 400,000 square feet of retail that accounts for 7.5% of Norman’s tax revenue, according to the city’s finance department.

“Back in 2005 when that was built, the occupancy in Norman for retail retailers was 96% and it didn't dip until 2019 when it dropped to 95%,” Lovell said. “That told us that not only were they bringing retailers from outside of the city that weren't currently there, but anybody that did move around or expand was backfilled by somebody else.”

Lovell said his company purchased University Town Center because the state’s third-largest city became a super-regional shopping destination and reaps the benefit of being 20 minutes from Oklahoma City.

When a retailer opens an Oklahoma City store and then looks to expand further into the state, Lovell said they likely choose a north, south or western metro-area location, but aside from growth near Interstate 240 in the last decade, options are limited.

“That's become the place that retailers want to be if they're going to have a southern Oklahoma City store because there's access to (Interstate 35) for shoppers, as well as a lot of tourism around sporting events and other community events within Norman,” Lovell said.

As an Oklahoma native who went to school at the University of Oklahoma and Oklahoma Christian University, Lovell said the entertainment district is a passion project. He said many up-and-coming arena projects are in major cities like Los Angeles or Washington, D.C., and it’s rare to have a project of this magnitude in a town of 120,000 people, which is only possible with a catalyst.

“Norman couldn't sustain a $1 billion project with 120,000 people. There's not enough volume or revenue, right? So, what we've got here is the state's flagship university, its need for an arena, and Norman's need for a community event center, and the city has the ability to leverage that into a large and walkable mixed-use district,” Lovell said. “It’s a unique set of circumstances that just doesn't happen in a lot of places.”

When the project went before Norman Planning Commission last month, multiple residents said they weren’t opposed to a large entertainment district in town, they just want OU to pay for their arena.

Lovell said he understands that, but the public-private partnership with OU is what could give Norman the ability to generate tax revenue that they would otherwise not be able to.

“In our estimation, we couldn't build what we're talking about building, or what we envisioned to build without a large anchor,” Lovell said.

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