TIF loan sought for construction of garage at First National Center

The first proposal for tax increment financing assistance for redevelopment of First National Center will be presented next week with construction set to start in September on converting part of the complex into a parking garage.

The parking is part of a $230 million redevelopment that would convert the original 1931 Art Deco tower into housing and a hotel, while the 1957 and 1972 additions built to the east of the tower will be converted into a garage with retail on the ground floor.

The Oklahoma City Economic Development Trust will consider a request for a $15.9 million loan to be issued to Brooks and his partner Charlie Nicholas that would be issued within 180 days of completion of the garage.

That money would be used to pay off a new market tax credits leverage loan to be used for the initial construction.

The need for public assistance has been anticipated for months at City Hall as the troubled landmark was closed during receivership and determined to need extensive renovations. The Oklahoma City Council in February 2016 created a $45 million tax increment financing district to eliminate delays in the project proceeding.

“Since the creation of the TIF district, city staff has been working with the developer in supporting the redevelopment efforts,” Brent Bryant said.

“This agreement will provide a mechanism for them to obtain a new markets leverage loan to support the first component of the project. This will enable them to get financing.

“We are not co-signing. We’re just pledging to provide them a loan near or after completion of the garage that will be paid back by the increment the project will generate.”

First National is widely consider the historic jewel of the downtown skyline.

The 1931 Art Deco tower was home to First National Bank, the economic bedrock of the community until it failed in 1985, one of many banks lost during the 1980s oil bust.

The successor bank to First National abandoned the landmark in 1992.

A series of sales to outof-state owners led to unpaid utility bills, fleeing tenants and overall neglect.