Several OU and Norman business leaders met Wednesday morning near the future home of the Rock Creek Entertainment District to discuss the district’s future economic impact and the community’s petition to oppose it.
Among those in attendance were OU President Joseph Haros Jr., Athletic Director Joe Castiglione, Mayor Larry Heikkila, 6th Ward Councilman Joshua Hinkle, 8th Ward Councilman Scott Dixon, and the Norman Chamber of Commerce. Chamber President and CEO Scott Martin, Visit Norman President and CEO Dan Shem, and Norman Economic Development Coalition President and CEO Lawrence McKinney.
Danny Lovell, president and CEO of Rainier Companies, attended the press conference. Lovell talked about his belief in the district and its benefits to Norman in an interview with OU Daily on Tuesday.
At the meeting, Haroz, Heikkila and others unveiled signs marking the location of future OU basketball and gymnastics fields. Residential units, retail areas, and corporate space will surround the arena.
The $1.1 billion entertainment district was approved by the Norman City Council on a 5-4 vote around 1 a.m. on Sept. 18 after more than seven hours of public comment.
Shortly after, Norman residents filed a petition to move the red light district decision to a citywide vote. Petitioners need to collect 6,098 signatures by October 18th.
joseph harros jr.
During the event, Professor Harross outlined OU’s university strategic plan, “Lead On,” and said the university recognizes that a collaborative effort between OU, the city, and residents is the best way to help improve Norman. He said he did.
Progress toward making our city and state healthier, improving economic prosperity, and increasing opportunities for our citizens to improve their lives will only be possible by working together on a common plan, Haroz said.
Mr. Harros said the project would last for one year, starting with submitting the proposed project plan to the Parks and Recreation Commission, Greenbelt Commission, TIF Statutory Review Committee and Norman Planning Commission, and ending with approval by the Tax Increment Financing District. He talked about the process in detail. Everyone approved the project plan.
“It wasn’t just a city council vote,” Haros said. “We knew it was going to be a long and difficult process, but we got through it. … It’s been very scrutinized. This is a great opportunity that deserves attention, but the big thing that’s important is It’s never easy to accomplish.”
Mayor Larry Heikkila
After Mr. Harros’s speech, Mr. Heikkila said that the red-light district was for the benefit of the Norman population.
Heikkila said he expects disagreements, especially when trying to implement change in Oklahoma. He added that an entertainment district is essential to making Norman a more attractive city.
“We go to all the places in Texas, places where there’s a place where you can sit down and eat, bring your dog, bring your friends,” Hekila said. “There’s no place like it in this part of the world. It’s coming soon and we’re looking forward to it.”
Heikkila said he doesn’t know what the city will do if the petition is approved and voters reject the idea of building an entertainment district. If the petition gathers enough signatures, the city will launch a campaign to engage voters, Heikkila said.
Asked what he would say to residents who feel left out in the project decision-making process, Heikkila said residents have been given several opportunities to express their opinions. He added that he had received several text messages and emails about the red light district.
“As (Haroz) said, this issue has gone through committee after committee. They had a complete say in how things were done,” Heikkila said. “They were able to communicate. So we looked into everything. We don’t know who those people are.”
local business owners
Kenny Adams, owner of Street Cars Direct, said there will be no sales tax increase for residents to fund the project.
Adams said the creation of the entertainment district will attract new businesses to Norman and allow the city to grow.
“We’re going to bring in new businesses and new people. … If we create a positive business environment and raise Norman’s profile, it’s an opportunity to backfill other parts of the city,” Adams said. “This project is a worthwhile investment for Norman. It’s an investment in our people, not just now, but for generations to come.”
Kyle Allison, director of Allison’s FUN Inc., said he couldn’t be more excited about what the entertainment district will bring to Norman. Allison said the district will contribute additional funds to Norman Forward, the city’s initiative to implement quality-of-life projects.
“I see the great things we’re doing with Norman Forward. The great things we’re doing through the arts and parks, and the money that’s being accumulated through hotel (and) motel sales taxes in the area. and so on, which will contribute to additional funding,” Allison said.
Jonathan Fowler, president of Fowler Holding Company, spoke about the need to bring changes to Norman to foster growth.
“I have seen so many people in this community, including my father (and) grandfather, who have big dreams and are trying to do great things for this community and themselves. And today, I I can see firsthand the benefits that come from it, and I see the livelihoods of so many people, including my family, my business, and my community,” Fowler said. Ta. “So when I saw this project and heard it for the first time, I was incredibly excited. …What this project is going to do is really amazing.”
Michael Dean, executive director of Sooner Station, a senior living community at University North Park, said the Rock Creek Entertainment District is one of the most studied projects ever. Ta.
Dean said the entertainment district will give seniors the opportunity to participate in events and festivals that will create a greater sense of community. He added that the various housing options under development will provide even more housing options for employees.
David Nimmo, president and CEO of Chickasaw Nation Industries, thanked the OU Foundation for keeping OU students and Norman’s interests in mind. Nimmo said the foundation could have chosen to sell the land, but instead chose to implement the project for the benefit of the community.
“Just owning the land doesn’t help much. We need to build and develop resources to turn around and support our university, our students, our programs, and everything our foundation does,” Nimmo said. said. “They could have easily sold. They could have turned this around right away, but they recognized an opportunity to help the city of Norman.”
danny label
Lovell said in an interview with OU Daily on Tuesday that the biggest impact will be on the amount of revenue generated from the mixed-use district.
“It increases the tax base by creating a destination where people, especially out-of-towners, can spend more of their income,” Lovell said. “One of the big misconceptions out there is that this project ‘costs money,’ and there’s no money. There’s no tax, literally no tax.”
The district will be funded using two TIF districts, according to an FAQ document prepared by the City of Norman. The first is for sales tax only and will go into effect on May 1st. The second is based on ad valorem or property taxes and will take effect on December 31, 2026.
According to the city’s FAQ, 3% of sales taxes collected in TIF districts will go to the general fund and capital fund, and 1.125% will go to public safety, Norman Forward and transit. The rest go to the red light district.
Lovell told OU Daily that TIF can be considered a return on investment. Lovell said that of the $600 million investment built into the district, $230 million is principal and fees.
Anthony Francisco, the city’s finance director, said the tax allocation to developers will end at the $600 million mark. Francisco told OU Daily on Tuesday that the distribution could go one of two ways, either when the $600 million is paid or when the total debt service is paid. He said it was sexual.
Francisco said the difference between $600 million and $230 million is the interest cost over 25 years. Francisco said interest rates will not be known until the developer closes applications for the $230 million loan.
Once these loans are finalized, the city will know how much it will have to pay out over 25 years, but Francisco said it could theoretically be as low as $230 million, but $600 million. He said it could not be more than that. The city estimates the cost will be about $540 million, Francisco said.
If the size of the project exceeds $600 million, the developer will incur additional costs, Lovell said.
Lovell said developers are following set process requirements, but this does not include extensive public engagement efforts. Lovell said the project appeared before a total of 83 appointed or elected officials, and 73 voted in favor of the project.
petition
Following this approval, Norman residents filed a referendum petition to put the Rock Creek Entertainment District plan up for public vote on February 11th.
Oklahomans for Responsible Economic Development, a nonprofit organization created to give local residents a voice in the city’s economic development decisions, is currently assisting with the petition process.
“We’ve got petitions, but… all this stuff is going to happen. It’s going to be great to drive down I-35 (and) see the whole new area. “Yes,” Heikkila said at a press conference.
Heikkila told reporters that in his experience, he has heard more residents support the red-light district than oppose it.
“When I’m talking to people downtown, walking around in restaurants, and everything else, I’m hearing more support than negative feedback,” Heikkila said.
Rob Norman, an attorney providing legal advice to ORED, said the petitioners have 16 days to submit their signatures to city officials to determine whether there are enough valid signatures. If there are enough valid signatures, city staff can issue a notice and file a legal challenge to the petition.
“So am I worried about the people’s vote? I’m not,” Lovell told OU Daily. “If it happens, it happens. We’ve talked to thousands of people who are supporting this project, and we believe Greater Norman supports this project.”
If the entertainment district goes to a public vote, Lovell said he plans to speak to “anyone who needs to speak” to help residents understand why the project is good for the city.
“My view is that (those who oppose the district) don’t fully understand why this is in the interest of the city and its citizens,” Lovell said. But we are never afraid of the people’s vote. ”
This article was edited by Ana Barboza. Mary Ann Livingwood Copy edited this article.
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