“If this isn’t approved by the city council for whatever reason, then we’re going to be looking at other (cities).”
— OU Daily (@OUDaily) April 2, 2024
Joseph Harroz Jr. says OU could look elsewhere to build its proposed arena and entertainment district: https://t.co/22N8xE6qIy
https://www.oudaily.com/news/joseph-harroz-entertainment-district-nil-dei-intercollegiate-athletics/article_7d877730-f13f-11ee-afca-4b7bf6bfb248.html
OU President Joseph Harroz Jr. sat down with OU Daily editors Tuesday afternoon to discuss Norman's proposed entertainment district, transition to the Southeastern Conference and commitment to diversity, equity and inclusion.
In his Evans Hall office, Harroz told OU Daily that if Norman City Council does not approve the proposed $1 billion entertainment district that would feature a new arena for OU athletics, then the university, alongside donors, would look to other cities to build an arena for which its basketball and women's gymnastics teams would be anchor tenants and possibly the entertainment district as a whole.
"I'm very hopeful and do everything I can to keep it here in Norman," Harroz said. "But if this isn't approved by the city council for whatever reason, then we're going to be looking at other (cities), Oklahoma City, Moore, surrounding areas and figure out where is there a group that wants to do this."
The Norman Planning Commission will meet on April 11 to possibly discuss and move forward development plans for the entertainment district, which was first proposed in September and would feature an 80/20 split of private donors and public financing through a tax increment finance district in the area.
Harroz compared the entertainment district to the arena overwhelmingly approved by voters in Oklahoma City in December. There, an approximately $900 million arena to house the Oklahoma City Thunder is being primarily financed by a citywide penny tax starting in 2028 with a smaller investment from private donors. The Thunder is contributing about $50 million, about 5.5%, and the city is offering about $70 million, about 7.7%, in MAPS 4 funds
Harroz said the proposed entertainment district in Norman is the complete reverse. On Facebook, Ward 8 Councilmember Matthew Peacock said he's seen several versions of proposed details, more than the public as a sitting council member, regarding the district and will take any detail regarding the district as a potential until the applicant has a concrete proposal.
The applicant, University North Park LLC, for the entertainment district development has asked that the item be postponed from the Planning Commission's deadline at its December, January and February meetings. At the last meeting, it was postponed to April 11.
Ward 7 Councilmember Stephen Tyler Holman told OU Daily that in his experience being on city council for the past 11 years, he has not seen something be postponed that many times, saying typically applicants have a plan when going to the commission or ask for postponement only once.
Norman City Council adopted a resolution in November creating a TIF review committee. The statutory review committee will meet Friday morning.
Harroz told OU Daily at the OU Board of Regents meeting in March that collaboration, especially to the caliber of the entertainment district, takes time and he was proud of how the group, made of university, city and private sector leaders, have created this plan. A full project plan for the entertainment district has not been released as of Tuesday.
"I know, it's a big ask," Harroz told OU Daily in March. "I really think that the future of Norman depends on it, and I don't think that's an overstatement. And so we need to get it right the first time. Obviously, we tried this a number of years back. I think it's different this time. … I'm optimistic. It's not certain, but I'm optimistic."
On Tuesday, Harroz was more direct, saying Norman has invested in OU in the past and needs to invest in it again.
"I was going back and reading over the history of the University of Oklahoma, and it was fascinating to read back in 1891, a territorial Legislature put (the university) together, and the city of Norman and Cleveland County stepped up in a huge way. They had to invest in (the university), and not with a TIF, but real money.
"There are places like in Nebraska where there's an actual dedicated tax for athletics there. We don't do any of that. I think this is really reasonable. We want to be an amazing partner and I hope it's here, but if not, then we'll have to look at Plan B."
According to the Nebraska Department of Revenue, political subdivisions in Nebraska can apply for state assistance to help finance certain sports arenas, including arenas between 3,000 to 7,000 seat capacity in an enclosed and temperature-controlled space.
Arenas created through this system can have up to 70% on state sales tax for events held within the arenas, ticket sales and retailers located within 600 yards of the facility.
The proposed arena in University North Park would be a roughly 8,000-seat venue and would be the centerpiece of the southern piece of the entertainment district development.