Deal set for OKC parking garage
To build a parking garage for the MAPS 3 convention center and a luxury hotel, Oklahoma City is set to pay $14 million to acquire downtown prop- erty appraised in June for $6.7 million and relocate OG&E's control center.
The deal is for a square block near Chesapeake Energy Arena occupied by the "gold building," a 70-year-old landmark owned by OG&E. The building is notable for its gold aluminum siding.
The price "takes into consideration the cost to OG&E to relocate and reestablish the control center and the fair market value of the property," said Cathy O'Connor, president and chief executive officer of The Alliance for Economic Development of Oklahoma City.
"This is similar to some of the other global settlements we have entered into to acquire property for the convention center or park," she said.
The Oklahoma City Economic Development Trust is to consider the arrangement Monday, and the city council takes it up Tuesday morning at 8:30 a.m. at City Hall.
O'Connor said the sales price was the result of negotiations with OG&E.
The gold building is the control center for electric power generation, transmission and distribution systems for OG&E, Oklahoma's largest utility. The property includes a parking lot. The utility will relocate the control center to northeast Oklahoma City.
The parking garage will serve the new convention center, streetcar and downtown park, as well as the convention center hotel and Chesapeake Energy Arena, home of the NBA's Thunder.
The gold building is the only significant structure remaining in the 20-square-block area being redeveloped for the MAPS 3 upper park, the convention center and thehotel.
Parking is required to complete a deal with Omni Hotels & Resorts to build the 600-room hotel, which will serve as a headquarters hotel for conventions.
The city council approved an $85.4 million public subsidy for the $235.5 million hotel in July.
The convention center, park and streetcar are financed by the voterapproved 1-cent MAPS 3 sales tax. The OG&E property occupies a full city block between SW 3 and 4 streets, east of S Broadway to E.K. Gaylord Boulevard. It will have more than 300 feet of frontage on the new Oklahoma City Boulevard.
The 98,300-squarefoot gold building will be demolished after the deal closes. Closing tentatively is set for March 31, 2019.
Garage cost
To complete the deal for OG&E's property, Oklahoma City will divert $9 million from MAPS 3 and borrow $5 million, interestfree, from OG&E. Terms include:
• The Economic Development Trust will repay the $5 million loan in annual installments of $250,000 over 20 years.
• The city will extend Central Avenue at a cost of up to $120,000 to a site south of E Wilshire Boulevard where OG&E will relocate its gold building operations.
• The city will transfer three acres near NW 10 to OG&E for an electric substation. If the substation property appraises for more than $300,000, OG&E will pay the difference.
Plans are for the parking garage to have 865 spaces. A 435-foot-long enclosed skyway is to connect the garage to the convention center.
The city parking authority is to borrow about $26 million to build the garage which, including the land, is expected to have a price tag of about $40 million.