Meeting Summary
The City Council held a study session to review updates on the University North Park project, including revised master plans, feasibility studies for an entertainment district and arena, and economic impact analyses. Discussions focused on proposed TIF amendments to provide immediate relief to the city's general fund, maximize returns to taxing jurisdictions, and finance the $119.2 million project, which includes a $195 million arena and parking structure. No formal decisions were made during this session.
Financial Matters
Overall Project Investment
The University North Park project is a significant investment in the city of Norman.
Proposed TIF Allocation Change (FY2019-2023)
A proposed change in sales tax increment allocation where 80% goes to the city's general fund and 20% to the project, providing immediate relief to the city's budget.
Projected Influx to City General Fund (TIF 2 End)
An estimated influx of revenue to the city's general fund upon the termination of TIF 2 in 2031.
Norman Forward Sales Tax Generation
Projected sales tax generation for Norman Forward funds from the project build-out.
Impact on Norman Public Schools
Direct flow of TIF allocation funds to Norman Public Schools, not reduced by the state aid formula.
Impact on Cleveland County
Projected revenue to Cleveland County through the new project and an additional amount upon TIF 2 termination.
Assistance and Development Financing for Entertainment District
Proposed financing to make the entertainment district, arena, and parking garage happen.
Road Improvements, Contingency, and Administrative Costs
Additional costs for necessary road improvements, contingency, and administration related to the project.
Carryover Project Costs from 2006 Plan
Remaining project costs from the original 2006 project plan, including traffic/roads, lifestyle center, and economic development.
Total Project Cost Budget
The overall budget for the amended University North Park project.
Arena and Parking Structure Project Cost
Estimated total cost for the arena and associated parking structure.
Conceptual Arena Funding Plan
Funding sources for the arena, including TIF, developer contributions, arena economics, and fundraising, with 41% public and 59% private funding.
Arena Debt Service
Annual debt service for a 30-year bond at 4.5% interest for the arena.
Arena Operating Income
Projected operating income for the arena, growing from an initial amount to a stabilized figure in the fifth year of operations.
Economic Impact (CSL)
Projected total spending, job support, and tax revenues over a 30-year period from the arena and ancillary development.
Economic Impact (Dauphin Bach)
Total estimated tax revenues (sales and property tax) after a ten-year development period.
Economic Impact (Chafee - Retail Jobs)
Estimated sales and property tax impacts associated with 650 projected retail jobs.
Economic Impact (Chafee - High-Tech/Office/Manufacturing Jobs)
Estimated sales and property tax impacts associated with 1,100 projected high-tech, office, and manufacturing jobs.
OU Foundation Loan Commitment
Agreement by the OU Foundation to provide a bridge loan for immediate financing of the Senior Center, should Norman Forward revenues be insufficient.
Coming Up
Watch For
- Review Committee to discuss the amended project structure.
- Project Planning Commission to consider amendments and conformance with the master plan.
- Two public hearings and a vote on an ordinance for the project.
- City to conduct an independent economic analysis if the council decides to advance the project.
- Approval of the lease for the property on the north base (related to Senior Center financing).
Agenda Summary
Opening Remarks by OU Foundation
Guy Patton provided historical context of the University North Park project, its funding of public uses, and the evolution of the master plan, introducing the evening's presentations.
Proposed University North Park Project Plan Amendments
Emily Pomeroy presented proposed amendments to the project plan, including TIF allocation changes (80% to city for FY2019-2023), maximizing returns to taxing jurisdictions, and a project cost budget of $119.2 million, incorporating an arena and parking garage.
Callison RTKL Master Plan Updates
Jeff Gunning presented updates and enhancements to the master plan, including the relocation of the Expo Center and senior living, adjustments to multifamily housing, and the introduction of a 'new urbanist community' residential concept.
CSL Entertainment District Feasibility Study Updates
Jay Linhart presented findings from a feasibility study for the arena, covering market demand, building program, estimated costs ($195 million for arena and parking), a conceptual funding plan (41% public, 59% private), and projected economic impacts.
Dr. Dauphin Bach Economic Impact Analysis
Bob Dauphin Bach presented an analysis focused on the tax revenues, specifically sales and property taxes, expected from the University North Park development, projecting $21.1 million after a 10-year development period.
Oklahoma Department of Commerce Economic Impact Analysis
John Chafee supplemented Dr. Dauphin Bach's report by providing an economic impact analysis of job creation, focusing on 650 retail jobs and 1,100 high-tech/office/manufacturing jobs, and their associated sales and property tax impacts.
Council Questions and Discussion
Council members raised questions regarding the methodology of economic analyses, project success rates, environmental concerns (Bishop Creek Watershed, green space), and the financing commitment for the Senior Center.