October 4, 2023
Today's episode of "Can you believe the UNP Arena hype?"
There are facts and there are narratives about facts. It is important to know the difference.
Fact: an empty field along the fast growing interstate did not need public subsidy to create a power retail shopping center anchored by Target - which was moving there with or without the TIF. Even the consultants at the time noted that the area would develop without TIF.
Fact: not a single INCH of the promised high end retail/lifestyle center has been built. Not an INCH. Neighbors you can revisit the promises - "lifestyle" center was the promise not what we got - an dressed up strip mall with a bunch of stores relocating from the rest of Norman.
Fact: retail growth, hotels and restaurants in the UNP area is undeniable. The real issue is whether there has been NET growth in Norman as a whole because of the UNP TIF tax diversion. Did the UNP growth come at the expense of growth in other shopping areas - Ed Noble parkway? See graph in the comments below which suggest that UNP growth cannibalized growth in the rest of Norman.
Fact: it is hard to trick markets. We see growth in SE Norman along Classen and Highway 9 - in undeveloped land without a TIF. Retail follows market demand.
Fact: TIF funds are not free money. These are taxes that are diverted from the General fund. At one point the UNP was siphoning about 10% of the general fund. If we divert 10% of funds to get 7% of GF tax revenues - is that a positive payoff?
Fact: When we divert general fund revenues, we can't do other things - increase police force, keep up with bridge/road maintenance, etc.
Fact: there is no evidence that relocating where OU Basketball and gymnastics competitions are played will lead to NET new spending sufficient to generate a return on the investment to TAXPAYERS. When the City of Lincoln Nebraska paid to build a new off campus arena with entertainment area, they did not see a change in their growth trend in taxable sales from bars/restaurants, hotels, or car rentals.
Should Norman do it again? is the better question. And should taxpayers get to vote on a cost that is bigger than the 15 year Norman Forward program?
[Response to Chip Minty's column in the Norman Transcript]
https://www.normantranscript.com/opinion/guest-column-can-norman-do-it-again/article_b152fa92-6208-11ee-9dd2-37c7d0a0125b.html?fbclid=IwAR3iMGjK-lQOPqzZcdIlC9Irux0mFleKCrGl4KX9XmM86qYeTOo3NMxRSvc
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