Development Oversight Committee for TIF District No. 2 Meeting

TIF #2 OVERSIGHT COMMITTEE MINUTES (UNIVERSITY NORTH PARK TIF) Executive Conference Room 201 WEST GRAY 1:30 P.M. January 16, 2018 The Tax Increment Financing District #2 – University North Park (“UNP TIF”) Oversight Committee met at 1:30 p.m. in the Municipal Building Study Session Room on the 16th day of January, 2018. PRESENT: Chair Fred Walden, Chris Dragg, Greg Burge, Dr. Nick Migliorino, Paula Price, and Ted Smith ABSENT: Members Janese Shepard and William Wilson OTHERS PRESENT: Jeff Bryant, City Attorney Anthony Francisco, Finance Director Clint Mercer, Chief Accountant Suzanne Krohmer, Budget Manager Sara Kaplan, Retail Marketing Coordinator Sereta Wilson, City Council Member Robert Castleberry, City Council Member Cynthia Rogers, Citizen Edda Miner, Citizen Alesha Leemaster, Citizen Item 1, being APPROVAL OF MINUTES FROM NOVEMBER 21, 2017 The meeting was called to order by Chair Walden at 1:33 pm. Walden declared a quorum and a motion was made by Member Dragg to approve the minutes with the amendment of Dr. Migliorino’s name having a “k” added, and was seconded by Member Burge. The motion was unanimously approved. Paula Price was welcomed to the Committee. ****** Item 2, being: FINANCIAL REPORTS Anthony Francisco gave the presentation. He explained the format of the monthly financial reports to Paula Price. He stated that due to the Average Annualized Growth Rate of Norman sales tax being TIF #2 Oversight Committee January 16, 2018 Page | 2 below 4.5%, the apportionment to the TIF Fund is more like 50% this fiscal year instead of the usual 60%. Because of this, the apportionment for December was $292,903.62 to the TIF Fund. Member Smith asked about the “over-apportionment” found in the TIF Fund, and if that had been taken out of the Fund yet. Francisco stated that it has not been taken out of the TIF Fund and moved to the General and Capital Projects Funds. Member Dragg asked if the “over-apportionment” of $5 million was going back into the General Fund. Francisco stated that about $4 million would go to the General Fund and about $1 million would go to the Capital Projects Fund. ***** Item 3, being: DISCUSSION REGARDING THE PROPOSED ARENA AND THE NEW DEVELOPMENTS ON THE NORTH END OF UNIVERSITY NORTH PARK City Attorney Bryant gave a handout for the update to the Committee. He gave background information on the development of the UNP TIF for new member Paula Price. He stated that the construction of the new entrances were well underway and will hopefully be completed by this spring. The Tecumseh entrances are still on hold due to continuing planning. Bryant stated that the proposed multi-purpose arena gives us the option to possibly draw some of the state championship games. Dr. Migliorino stated that the use of a multi-purpose arena for the schools would save them a significant amount of money, which they are currently paying to OU to use the Lloyd Noble Center for band concerts, graduations, etc. Bryant stated that the current projected cost of the arena alone is $165 million. The allotment of public funds for the arena that was presented to Council was just $65 million, so funding for the additional $100 million would have to be procured from the private sector. Member Smith asked what the $1.5 million reserve fund was for. Bryant stated that this was required as part of the 2013 financing deal, and would be available to pay off the 2013 Notes. Bryant stated that Garver Engineers is preparing the final design for Robinson Street west of I-35 and once that is complete we will be ready to bid that project hopefully as early as January of next year. Garver is also preparing a recommendation regarding the Tecumseh/Flood intersection. We are also currently waiting for Sooner Investments to try to find a partner to complete funding for the Lifestyle Center. The Cultural Facility will be Council’s call as to what it will include. City Council Member Castleberry stated that once the TIF collects the original $54.7 million, no more sales tax collections will be apportioned to this Fund. After this is reached, all of the collected funds will revert back to the General Fund. Member Smith asked if the proposed Cultural Center could be the Senior Citizen’s Center. Bryant stated that it could be, but he is unsure if that is where the Senior’s Advocacy Group would like to TIF #2 Oversight Committee January 16, 2018 Page | 3 be. City Council Member Castleberry stated that it could be a way to have a stand-alone Senior Citizen’s Center fully funded. Cynthia Rogers asked if there would be any independent analysis study done on the proposed arena, and if we could ask the OU Foundation to give us projections with the arena separated from the rest of the proposed development. City Council Member Castleberry stated that he thought it was broken out pretty well, but we do need more discussion. Member Smith asked if the Committee could request these types of studies. Bryant stated that the Committee could make recommendations to the Council, and that the City Manager already has plans to have an independent review done if we get to that point. Member Smith stated that event centers are key to growth of entertainment districts. City Council Member Castleberry stated that the study assumed the arena was the main part of the study and the study findings are not applicable if the arena is not there. City Council Member Castleberry stated that the University of Oklahoma owns the land, and they have stated that if the arena is not going to be part of the project then they will not develop housing in the area. ***** Item 4, being: UPDATE ON NEW BUSINESSES AND ONGOING PROJECTS i. ENTRYWAY SIGNS Discussion on the ongoing projects and entryway signs are included in item 3. ***** Item 5, being: MISCELLANEOUS COMMENTS Member Dragg asked if we have a rendering of what the AutoMax is going to look like. Bryant stated that we do not as of yet have a rendering. Chair Walden asked what business would be going in across from the Embassy Suites. Bryant stated that this will be another hotel. Member Dragg asked if there is a plan to make a road that goes all the way to the Rock Creek Bridge from the frontage road. Bryant stated that the I-35 corridor study will help us decide about this type of road, and he will see if he can find out any more information on the subject. ***** TIF #2 Oversight Committee January 16, 2018 Page | 4 The Committee adjourned at approximately 2:30 p.m.