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City Council Meeting

September 18, 2024 City Council Meeting

September 18, 2024 Norman, OK
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Meeting Summary

TL;DR

The Norman City Council held a special session to address the Rock Creek Entertainment District project. After extensive presentations and public comment, the council approved the project plan ordinance (5-4), the economic development agreement (6-3), the rezoning ordinance (8-1), and the preliminary plat (8-1). The project involves a large-scale mixed-use development, including an 8,000-seat arena, to be funded through a Tax Increment Financing (Tiff) district.

Key Decisions & Votes

Open Public Hearing for Rock Creek Entertainment District Project Plan

00:11:00

Motion to open the second public hearing for the Rock Creek Entertainment District project plan and its proposed increment districts.

Approved

Rock Creek Entertainment District Project Plan Ordinance

03:55:00

Ordinance approving and adopting the project plan, designating project area and increment districts, setting effective dates, and authorizing administration. Passed by a vote of 5 to 4.

Adopted

Economic Development Agreement for Rock Creek Entertainment District

04:10:00

Contract between the City, Norman Tax Increment Finance Authority, UNP North LLC, and Cleveland County Recreational and Entertainment Facilities Authority for the economic development agreement. Passed by a vote of 6 to 3.

Approved

Rezoning Ordinance for Rock Creek Entertainment District

04:25:00

Ordinance rezoning the property from PUD to PUD for the Rock Creek Entertainment District. Passed by a vote of 8 to 1.

Adopted

Preliminary Plat for University North Park Entertainment District

04:30:00

Approval of the preliminary plat for the University North Park Entertainment District. Passed by a vote of 8 to 1.

Approved

Financial Matters

Rock Creek Entertainment District Tiff Districts

Proposed Tiff districts (Increment District #4 - sales tax, #5 - ad valorem) for up to 25 years. Anticipated total investment over $1 billion. Public funding request for $230 million principal. OU and developers contributing $100 million capital for the $330 million public asset (arena, parking, infrastructure). Over 2/3 of Tiff revenue from Cleveland County and other taxing authorities (ad valorem tax). Less than 1/3 from city sales tax. Dedicated sales taxes (Public Safety, Norman Forward, Public Transit) will still be paid. Estimated Norman sales tax contribution $51 million (after state leverage act funds). Estimated $54 million dedicated sales tax will come to the city from the project. Total project costs are up to $600 million, primarily in assistance and development financing.

$230 million

City of Norman general fund impact

Consultants estimate a $1.2 million annual loss to the general fund in the second year of stabilization, growing by 3% annually. City staff noted this would be a budgetary decision to manage.

$1.2 million

Cleveland County Sheriff's Office budget

A speaker mentioned that the Sheriff's Office had to lay off employees and sell assets to make budget.

Public Comments

72 citizens spoke

A significant number of citizens spoke for and against the Rock Creek Entertainment District project. Supporters highlighted economic growth, job creation (estimated 5,000), housing (estimated 3,000 residents), increased tourism, quality of life improvements, and the opportunity for Norman to compete with other cities. They emphasized the project's private funding (80% private, $1.1 billion total investment), the lack of financial risk to the city, and the potential for state leverage act funds. Opponents raised concerns about the $600 million Tiff financing, potential negative impact on the city's general fund (estimated $1.2 million annual loss), cannibalization of existing businesses, lack of affordable housing guarantees, and the project being too large without a public vote. Many called for a public vote via referendum or bond issue, citing historical divisions and the size of the public investment.

Economic growth and competitiveness Job creation and housing Quality of life and entertainment options No new taxes / zero financial risk to city State leverage act funds Tiff financing mechanism Impact on general fund / cannibalization Need for a public vote / democracy Affordable housing / living wages Traffic impact Impact on public schools OU Foundation's role and funding

Coming Up

Watch For

  • Potential referendum petition for a public vote on the Tiff project.

Announcements

  • Modifications to usual procedures for public comment due to high speaker turnout, combining public comment for items 1, 2, and 3, and then for 4 and 5.
  • Each speaker will have up to three minutes to speak with no yielding of time.

Agenda Summary

Public hearing for the Rock Creek Entertainment District project plan and its proposed increment districts

Second public hearing for consideration of approval, rejection, amendment, and/or postponement of the Rock Creek Entertainment District project plan, including sales tax increment district #4 and ad valorem increment district #5.

Public hearing opened and closed unanimously

An ordinance approving and adopting The Rock Creek Entertainment District project plan

Designating and adopting project area and increment district bounds, setting effective dates, adopting certain findings, authorizing the city and Norman Tax Increment Finance Authority (NTIFA) to carry out and administer the plan, and ratifying Review Committee and Planning Commission actions.

Adopted

Contract by and between the City of Norman, the Norman Tax Increment Finance Authority, UNP North LLC, and the Cleveland County Recreational and Entertainment Facilities Authority for an economic development agreement for the Rock Creek Entertainment District

Approval of the Economic Development Agreement (EDA) outlining the terms and obligations for the project.

Approved

An ordinance rezoning property generally located east of I-35 between Corporate Center Drive and Rock Creek Road from PUD (Planned Unit Development) District to PUD (Planned Unit Development) District

Rezoning the project area to allow for the proposed mixed-use development.

Adopted

Preliminary plat for the University North Park Entertainment District

Approval of the preliminary plat for the development located at the northwest corner of 24th Avenue NW and West Rock Creek Road.

Approved