In Norman, project will foster growth
BIG things are happening on the north side of Norman and more are planned. A sports, business and entertainment project on the drawing board has the potential to further transform the Interstate 35 corridor and benefit the city and the University of Oklahoma in the process.
University North Park is on the east side of the highway, north and south of Rock Creek Road. The southern piece, between Rock Creek and Robinson Street, is about 70 percent developed. Development of the project’s northern section, roughly 210 acres between Rock Creek and Tecumseh roads, is pending.
Plans call for construction of a 10,000-seat arena that would become the new home for OU men’s and women’s basketball games, which have been played for the past four decades at Lloyd Noble Center. An entertainment district would wrap around the site and include a hotel, recreational and restaurant venues, and commercial offices.
Construction of the arena and adjacent 2,600-space parking garage are estimated to cost $180 million. The University of Oklahoma Foundation has proposed that a master developer pay half, and the city of Norman use tax increment financing (TIF) to pay for the other half.
TIFs allow for the increased property taxes and new sales taxes that are generated by new development to be reinvested back into the area. They do not raise anybody’s taxes. Some voices in Norman oppose this proposal largely because they don’t believe in TIFs. Yet Oklahoma City has benefited from several TIF districts, and continues to do so, and we’re confident Norman would as well.
Two studies released in April made strong cases for this development.
Robert Dauffenbach, an economist at the University of Oklahoma, said that when fully developed, the area is projected to generate $12.6 million in annual property taxes and roughly $8.6 million in new annual city and county sales taxes.
Projections and reality don’t always mesh, of course. But Dauffenbach said this study was buoyed by recent results from the southern portion of University North Park. “I’ve never had a study where we had more factual basis for scoping out the parameters and the types of businesses,” he said.
A study by Jon Chaippe, director of research and economic analysis for the state Commerce Department, forecast that at least 1,750 jobs would be created. It’s location — so close to a major university — is “ideal,” Chaippe said.
The city of Norman approved a TIF in 2006 that has provided infrastructure for University North Park. Norman Public Schools, the Norman Chamber of Commerce and a group called “Yes UNP!” are among those who support the OU Foundation proposal for an amended TIF district. They want to see Norman continue to grow and flourish, and become more attractive to younger residents. They understand this project will help make that happen.
Guy Patton, president of the OU Foundation, says this project “is an investment … a way to do something special for the city of Norman and help the university.” Our hope is that Norman city leaders view it the same way and approve the development.