Will City Council get a proper economic impact for UNP Arena 2.0?

 October 21, 2023

Today's Episode of "Can We Believe the Arena-Entertainment District Hype?" 

In 2018 City Council hired HVS to conduct an analysis of the studies concerning the proposed UNP Arena project.  The studies included the UNP Master Plan Update by CallisonRTKL, the feasibility study by Convention, Sports & Leisure (CSL), Dr. Dauffenbach's impact projections of UNP property and sales tax revenues, My critique of Budget Supplement (Alternative assumptions using Dauffenbach's method), and Economic and Fiscal impacts estimates by OK Department of Commerce. 

The astounding conclusion was that NONE of these studies provided estimates of net new economic activity (Economic impact) or how the TIF would affect city finances (fiscal impact).   My analysis was meant to highlight this very point. 

HVS also provided a blue print of what a proper impact study would include.  The city declined to hire HVS to do the analysis needed to properly vet the study.  The backroom "Grand Bargain" discussions did not sit well. 

What is different this time? What evidence do we need to vet a $200 million tax expenditure?

(1) Data-driven analysis of how similar projects have worked out.  

(2) A comprehensive economic and fiscal impact analysis that estimates revenues without the relocation of the arena and with the relocation.  

See highlights of the HVS analysis in the comments below. 

In 2018, the then city council hired a firm without any vested interest in the project, HVS. 
https://arenadigest.com/2018/06/19/proposed-ou-arena-projections-review/

City Council Minutes, June 26, 2018 where HVS analysis was presented. chrome-www.normanok.gov/sites/default/files/documents/2020-12/2018-06-26_city_council_conference_minutes.pdf

HVS presentation is included in conference agenda (pages 28-58) chrome-https://www.normanok.gov/sites/default/files/documents/2020-06/2018-06-26_city_council_conference_agenda.pdf