Meeting Summary
The special session focused on the University North Park TIF, specifically the progress of a Memorandum of Understanding (MOU) to end the TIF increment by June 30th, 2019. The goal is to return sales tax revenue to the general fund and avoid potential litigation. Discussions centered on reallocating remaining TIF funds for public infrastructure, economic development, and Norman Forward projects, particularly the Aquatic Center and Multi-Sport Facility, with a proposed location at UMP South.
Key Decisions & Votes
Adjournment to Executive Session
01:57:00The council voted to move into executive session to discuss the litigation aspects related to the University North Park TIF.
Financial Matters
University North Park TIF Sales Tax Revenue
Total sales tax generated within the TIF district since 2006.
Public Safety Sales Tax from TIF
Portion of TIF sales tax allocated to public safety.
Norman Forward Sales Tax from TIF
Portion of TIF sales tax allocated to Norman Forward projects.
Net Incremental Sales Tax
Sales tax after transfer adjustments, split 60/40 between project costs and general fund.
Ad Valorem Taxes
Property tax growth in the area, half goes to taxing jurisdictions, half to TIF projects.
Remaining Traffic and Roadway Improvements Allocation
Funds remaining from the original 11.55 million allocation for traffic improvements, with estimated projects costing around 5 million.
Conference Center/Cultural Facility Original Allocation
Original allocation for conference center and cultural facilities.
Cultural Facility Remaining Allocation (after Rock Creek Overpass reallocation)
Funds remaining for the cultural facility after 7.75 million was moved to the Rock Creek overpass.
Legacy Park Allocation
Original allocation for Legacy Park.
Legacy Park BID Contribution (TIF fund)
TIF fund contribution to Business Improvement District for park maintenance.
Lifestyle Center Original Allocation
Original allocation for the lifestyle center.
Economic Development Allocation
Funds allocated for economic development activities.
NEDC Land Purchase Security
Pledge of economic development revenues as security for land purchase and infrastructure loans.
Infrastructure Loan Payoff (TIF Authority)
Appropriation from economic development revenues to pay off infrastructure loan in 2017.
Estimated Available TIF Funds by June 30th
Estimated funds available for remaining project costs.
Remaining Authorized Project Costs
Total authorized project costs remaining.
Proposed Public Infrastructure Allocation (MOU)
Proposed allocation for remaining traffic and roadway improvements (I-35 Drive, Crossroads Boulevard, Tecumseh Road, Flood and 24th).
Proposed Economic Development Allocation (MOU)
Proposed allocation, with UMP agreeing to purchase 30 acres from NEDC for 3.4 million.
North Base Land Acquisition Cost (OU MoU)
Estimated acquisition costs for 14 acres at North Base, including demolition and road improvements.
UTC Site Acquisition Cost (MOU)
Estimated acquisition cost for the UTC site for the recreation facility.
Proposed Cultural Facility Allocation (MOU)
Proposed allocation for the recreation facility (Aquatic Center/Multi-Sport) at the UTC site, including acquisition and a school district contribution.
Norman Forward Construction Budget (Pool & Multi-Sport)
Existing Norman Forward budget for these facilities.
Additional Construction Supplement (MOU)
Additional funds from TIF for construction and equipment of Norman Forward facilities.
Proposed Town Center (Lifestyle Center) Allocation (MOU)
Proposed allocation for the Town Center, down from 8.25 million.
Budget Shortfall if TIF Increment Not Ended
Estimated annual shortfall if sales tax apportionment to general fund and capital fund is not stopped.
Legal Fees for Litigation
Estimated costs for legal defense if the city is sued.
Public Comments
Speakers overwhelmingly supported the construction of the indoor aquatic center and multi-sport facility, emphasizing the long delays and the urgent need for new facilities due to the aging OU pool. Many advocated for the UMP South location due to its advantages. Some citizens, including economics professors, expressed strong concerns about the financial terms of the proposed MOU, arguing that it gives away too many public protections, is too costly as 'insurance' against litigation, and that the city's legal position is stronger than presented.
Coming Up
Deadlines
- June 30th, 2019: Proposed end of TIF increment
- June 30th, 2026: Authorization to use lifestyle center funds expires
Watch For
- Ordinance adopting BID assessments for Legacy Park in July
- NEDC board meeting to approve land buyout this week
- Council consideration of design team for Senior Center at Reeves Park
Agenda Summary
Updating the progress of the Memorandum of Understanding regarding the University North Park TIF
City Attorney Kathryn Walker presented a detailed update on the history of the University North Park TIF, its various project components (traffic, conference center/cultural facility, Legacy Park, lifestyle center, economic development), and the ongoing negotiations for an MOU to end the TIF increment early. The presentation covered the financial implications, potential litigation risks if no agreement is reached, and proposed reallocations of remaining TIF funds to public infrastructure, economic development, and Norman Forward projects, including a multi-generational recreation complex at the UTC site.
Consideration of adjournment into executive session
A motion was made to adjourn into executive session to discuss the litigation aspects related to the University North Park TIF.