NORMAN — A coalition of Norman civic, business and education leaders announced they are committed to launching a $1 billion district that will include a new arena for University of Oklahoma athletics, a hotel, offices, shops, restaurants, bars, entertainment and housing “for thousands.”
The coalition, dubbed “Team Norman,” pledged the development will not tap into city or county general funds or require a tax increase. Their presentation indicated 80% of the $1 billion will be privately funded, with the remaining 20% to be publicly funded.
In an interview with The Oklahoman, Norman Mayor Larry Heikkila said the use of tax increment financing and potentially revenue bonds will be used as part of the 20% public funding.
“It’s got to be part of the discussion,” Heikkila said. “I’m not big on bonds because that adds to your tax load.”
How the new entertainment district in Norman could be funded
A tax increment finance district, also known as a TIF, allows a city, town or county to use tax money generated by a new development to pay for public improvements in the development area. Some TIF districts are set up where bonds are issued to be paid off by the rising ad valorem taxes while others act as rebates.
University of Oklahoma President Joe Harroz Jr. was among those supporting the development, which would include a replacement for the Lloyd Noble Center. He said the university would not participate in the development cost but would agree to pay rent for the arena and other venues.
Heikkila confirmed those revenues would be used to support the use of revenue bonds, which are paid from increased revenues from a development.
More:Norman, OU coalition to announce plans for $1 billion entertainment district
Lawrence McKinney, president of the Norman Economic Development Coalition, started Wednesday’s presentation, which included warnings about the city’s housing shortage, the need to attract new residents and businesses to prevent stagnation, and the desire to create a district that responds to residents’ desire for neighborhoods that are walkable, safe, green and welcoming to an economically diverse population.
The development will front Interstate 35 and will be at Rock Creek Road and 24th Avenue NW near the University North Park district.
Plans include new arena for events, OU basketball games
The proposed development will include the multi-purpose performance venue that will be designed to host many types of events from concerts and shows to OU basketball games and women’s gymnastics competitions. Adjacent to the performance venue will be an outdoor plaza.
The proposal unveiled Wednesday comes out five years after a prior effort, one that requested tax increment financing from the city, was withdrawn by the OU Foundation after it ran into opposition at City Hall.
The plans unveiled Wednesday followed months of planning and involvement of dozens of Norman residents.
“It is rare to have such a collaborative effort to produce a master plan, combining resources and assets to create a unique mixed-use development unlike any in Oklahoma — or the nation, for that matter,” McKinney said. “Once developed, this entertainment district will be a focal point for all of Central Oklahoma.”
