November 9, 2023
Today's episode of "Can you believe the Arena-Entertainment district hype?"
The proposal is to build a less than 8,000 seat arena with premium box seating with a private club. This would enhance the game viewing experience - and lead to higher ticket prices.
It is inconsistent to argue that we need to prepare for the SEC fans which are claimed to travel farther and longer by building a SMALLER facility than what we currently have.
OU's 8,000 seat arena in the UNP would be the smallest in the SEC by some 1,500 seats (vs. Auburn).
It isn't clear that a brand new, smaller arena would be more cost effective than renovating Lloyd Noble, where parking infrastructure and road access is already in place.
Rupp Arena is going to be renovated b/c this is more cost effective than building a new facility. Why are things different here in Norman?
Team Rupp is fundraising to pay for the upgrades - selling arena club memberships to the fan base and boosters. Why isn't TEAM Norman doing this sort of fund raising?
Rupp Arena is getting $60m in the form of STATE tax credits to finance its upgrades.
From the City's bottom line perspective, building and operating a multi-use area is RISKY and UNPROVEN investment. Tax payers pay up front for vague promises of return on investment in terms of net increase in tax revenues.
Neighbors, don't be fooled by estimates of gross activity related to an arena-entertainment district (Feasibility studies). Any prudent business owner knows you have to account for direct costs as well as opportunities to use funds for other purposes.
Strong Towns points out that the city has to run things like a business. If arenas made business sense, then private companies would build and operate them. It is a big red flag that the CITY is being asked to build and operate a mixed use area, not private investors.
In contrast, UT has agreed to be an anchor tenant of a new multi-use arena that will be build, owned, and operated by a private investment group. The Austin economy can support such a venue.
There is a reason the OU is pushing for TIF vs. a sales tax (Norman Forward, MAPS approach). TIF can be approved by 5 council persons. Norman Forward was approved at the ballot box as a quality of life program.
It is a red flag that OU wants to avoid a public vote on a venue that is being marketed as a "quality of life" deal.
There will be nothing unique or new about the UNP arena-entertainment district.
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