I don't even know what the objective of the convention center or the hotel is any more. At first I thought it was to provide local citizens with a venue suitable for attracting and hosting events of interest to them, while at the same time being available to host a limited number of state, regional , and national conventions which would bring new dollars into the area, to be spent at local businesses and to help off-set construction and operating costs. That has morphed into 'forget the locals' and spend as much as necessary to get every last conventioneer to OKC regardless of how much money we lose in the process. I still have a hard time with the whole idea of publicizing the tax liability and privatizing the profit.

The hyperbole in your posts is beyond compare. I used to think that you took extreme stances just to move the conversation forward, but I've come to believe that you really do see the world in strictly black and white terms.

The hyperbole in your posts is beyond compare. I used to think that you took extreme stances just to move the conversation forward, but I've come to believe that you really do see the world in strictly black and white terms.

So what is the end game of the convention center and hotel? Is it to bring net new money to the City? Provide a venue for hosting the interests of locals? To ultimately use public tax dollars to boost revenue at private businesses catering to visitors? To raise the status of OKC in the national conscience? Instill Civic Pride in the citizenry?

Kerry, big civic projects don't have a single end-goal.

The goal is to create a facility that serves Oklahoma City. It's that simple. The definition of "to serve" in this context necessarily has wiggle room. It can include every single one of those end goals that you listed above and more and that doesn't detract from the viability of the facility.

That's not to say that I think we're going about this the right way, but hopefully a long list of end goals can be met at the end. The prioritization of those goals likely STILL isn't set because we have an incredibly wide array of options at our disposal and we're still wading through those to find out how we can get the best bang for our buck.

Kerry, big civic projects don't have a single end-goal.

The goal is to create a facility that serves Oklahoma City. It's that simple. The definition of "to serve" in this context necessarily has wiggle room. It can include every single one of those end goals that you listed above and more and that doesn't detract from the viability of the facility.

That's not to say that I think we're going about this the right way, but hopefully a long list of end goals can be met at the end. The prioritization of those goals likely STILL isn't set because we have an incredibly wide array of options at our disposal and we're still wading through those to find out how we can get the best bang for our buck.

Fair enough, and have no issue with having nice things for no other reason than just to have nice things which enhances our quality of life, but when people start talking about this as an economic engine then I have a problem with that, because this is a money loser for the people paying for it. If this facility (the hotel) produces economic winners then those entities should shoulder a majority of the costs.

Fair enough, and have no issue with having nice things for no other reason than just to have nice things which enhances our quality of life, but when people start talking about this as an economic engine then I have a problem with that, because this is a money loser for the people paying for it. If this facility (the hotel) produces economic winners then those entities should shoulder a majority of the costs.

Correct me if I'm wrong, but if the city provides $50M of a $200M hotel, then they own 25% of the profits of the hotel, yes?

Correct me if I'm wrong, but if the city provides $50M of a $200M hotel, then they own 25% of the profits of the hotel, yes?

Will that 25% ownership produce $50 million in profits? If we look at the vast majority of convention hotels around the country not only do they never make back their constructions costs, but they require on-going operating subsidies from local governments just to keep the doors open. Is the City going to deficit fund the hotel so downtown businesses can have more sales? If so, shouldn't we have a CC Hotel surcharge on downtown businesses to cover the cost of the subsidy?

Correct me if I'm wrong, but if the city provides $50M of a $200M hotel, then they own 25% of the profits of the hotel, yes?

Huh? That's not how subsidies like these work. It's not an investment in the hotel to where the taxpayers would actually partially own the hotel. These are giveaways and handouts used as "incentives."

Correct me if I'm wrong, but if the city provides $50M of a $200M hotel, then they own 25% of the profits of the hotel, yes?

This is not correct. City will probably be last on the waterfall. Private financing will get paid back first. My guess could also be wrong, but I'd say the scenario I've described is more likely even if the subsidy is structured as a loan. That said, OKC does seem to be holding its own in these negotiations compared to some other cities. I'm also shocked they haven't struck a deal with Clayco yet (whose last proposal was more reasonable).

I've empowered the TIF-naysayers myself just because I thought it would be a good political counterforce at a time that these deals were popping up. I wanted these deals to move forward, after being improved through some scrutiny - but I hope we aren't torpedoing our own success. We need to make these deals happen.

I think because OKC is willing to sacrifice on quality (all day seemingly), they are firmer on public subsidy. The cities that notably get screwed in negotiations, like St. Louis, are the other cities not named Chicago/NYC that still insist on a project of that caliber.

One of the reason I got into New Urbanism was the unsustainablity of the tax liability created by urban sprawl. Replacing that with an unsustainable tax liability in urban form is to miss the whole point of urban development - completely. If the answer is tax avoidance for building to the sidewalk, then you asked the wrong question.

Are you similarly pious when dealing with your own taxes, or do you just do it because you have to?

D you want this project done right, or not? We can probably have it either way.

Are you similarly pious when dealing with your own taxes, or do you just do it because you have to?

D you want this project done right, or not? We can probably have it either way.

It is really just this simple - a plot of ground can produce surplus tax revenue or insufficient tax revenue - when we take a plot of ground most capable of producing a surplus and turn it into a deficit that is a lose-lose because not only do we lose the surplus generation, but now we have to deficit fund it as well. We have been doing lose-lose for far to long on far too many plots of ground.

Louisville has a slick new proposal for a convention hotel - 30 stories, 600 rooms and 225 residential units
http://wave.images.worldnow.com/images/7963655_G.jpg
Images, details of Omni development unveiled - WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC (http://www.wbtv.com/story/29230957/images-details-of-omni-development-unveiled)

Louisville has a slick new proposal for a convention hotel - 30 stories, 600 rooms and 225 residential units
http://wave.images.worldnow.com/images/7963655_G.jpg
Images, details of Omni development unveiled - WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC (http://www.wbtv.com/story/29230957/images-details-of-omni-development-unveiled)


Would for sale units reduce the cost to the taxpayer?

We could add housing to the convention center as well, like one of the original theoretical designs. Were it on the east park, people would pay a premium to have their balconies look over the park. People attending conventions are usually in windowless rooms anyway, so all the views could be for sale or rent.

We could add housing to the convention center as well, like one of the original theoretical designs. Were it on the east park, people would pay a premium to have their balconies look over the park. People attending conventions are usually in windowless rooms anyway, so all the views could be for sale or rent.

Attached residential would certainly cut down on the operating subsidy. In some of the early 'vision' rendering the convention center itself had residential facing the street.

Louisville has a slick new proposal for a convention hotel - 30 stories, 600 rooms and 225 residential units
http://wave.images.worldnow.com/images/7963655_G.jpg
Images, details of Omni development unveiled - WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC (http://www.wbtv.com/story/29230957/images-details-of-omni-development-unveiled)

I believe a grocery store is also going to be a part of that development. I am pretty jealous they are getting something on this scale.

Louisville is very similar to OKC in size, GDP, and demographics. If something this ambitious can be built there it can be built here. This will be one to watch to see if it gets built as proposed or if it gets scaled down.

Louisville has a slick new proposal for a convention hotel - 30 stories, 600 rooms and 225 residential units
http://wave.images.worldnow.com/images/7963655_G.jpg
Images, details of Omni development unveiled - WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC (http://www.wbtv.com/story/29230957/images-details-of-omni-development-unveiled)

"Fischer said the project is a public-private partnership with Omni paying 52 percent ($150 million) of the development costs and the city and state providing 48 percent ($139 million), which includes a rebate of taxes generated by the project, $17 million for a parking garage to be constructed and owned by the Parking Authority of River City (PARC) and $17 million, the value of the land."

http://www.wave3.com/story/27773525/omni-hotel-development-grows-in-scale-will-become-louisvilles-3rd-tallest-building

139 million dollar subsidy. Are we willing to pay that much?

Interesting comment at the bottom of the link I posted...

"Wayne Tyler Sall · Top Commenter · Graduate Architect at Studio 3 Design

hooray..... a generic glass box......... so much better than the three historic buildings that were demolished to make way for it, especially the parking garage."

the convention hotel in OKC should be no less than this one. I factor OKC a bit ahead of Louisville actually, so I'm expecting ours to be 800+ rooms/35 floors and it'd be nice to also have the condos as well.

I hear rumors that the original CC site is back in play. Don't be surprised if it is eventually chosen. City leaders seem to really like that site.

:treadmill

get the lipstick ready, appears OKC wants that pig to look good 'again'.

I guess I don't get what OKC is trying to accomplish with the CC and hotel? Are we just trying to attract as many conventions as we can, or are we trying to bring more net revenue to the City, because those two items are vastly different. It seems to me that we hit diminishing returns real quick.

Good point!

You accomplish both goals over time if you're able to attract the type of regional & national conventions where the Central, East & West coasts meet in a central location. Dallas (central) is maxed out on conventions--she's about to burst.

As far as flights to WRWA, that should improve over time. If you can get to Dallas; you can get to OKC.

You continue to make our city more convention-friendly:


1. Invest in WRWA
2. Convention center & conference hotel
3. Travel: Air Flights, Street Car, Water Taxi
4. Continue to build CBD, Bricktown, Deep Deuce...
5. Clean & beautiful this city.


Position OKC to take advantage of the spillover of Metroplex convention business.

So then the big question is this: How can the City properly "sell" the citizens of OKC on the value of a new convention center? Though I am all for it, I have seen numerous polls that show that the idea of building a new convention center is not well received among our citizenry.

So then the big question is this: How can the City properly "sell" the citizens of OKC on the value of a new convention center? Though I am all for it, I have seen numerous polls that show that the idea of building a new convention center is not well received among our citizenry.

Doesn't really matter does it ?

So then the big question is this: How can the City properly "sell" the citizens of OKC on the value of a new convention center? Though I am all for it, I have seen numerous polls that show that the idea of building a new convention center is not well received among our citizenry.

If you've been to the Cox CC lately; you can observe that it doesn't 'cut the mustard' with cities like Fort Worth, Omaha & Tulsa let alone Nashville, Charlotte & Kansas City if we want to become even a solid tier III convention center--capable of handling some tier II type conventions, you'll need what is planned just to keep up.

If you want to maintain the 'status quo' (tier IV category) then the Cox CC should be adequate for now.

So then the big question is this: How can the City properly "sell" the citizens of OKC on the value of a new convention center? Though I am all for it, I have seen numerous polls that show that the idea of building a new convention center is not well received among our citizenry.

What value?

I'm not saying there is zero value, but what is the value and how is it derived? We should have more of that derivation and less of the crap that adds to the cost and bulk.

The people "selling" this "value" don't even know what it is, they're just sold either way.

So then the big question is this: How can the City properly "sell" the citizens of OKC on the value of a new convention center? Though I am all for it, I have seen numerous polls that show that the idea of building a new convention center is not well received among our citizenry.

There was even less support for the Chesapeake Arena. It almost sounded the same. I believe it went something like this, "why are we wasting money on a new arena when we have the Cox Center?" Today you cant find those opponents.

There was even less support for the Chesapeake Arena. It almost sounded the same. I believe it went something like this, "why are we wasting money on a new arena when we have the Cox Center?" Today you cant find those opponents.

Of course you can't, because the citizens have a MAJOR amenity attached to that arena. There will never be anything like the Thunder attached to the Convention Center.

I'm not saying we don't need a new one, and that we shouldn't build one, but it's an apples/oranges comparison.

Of course you can't, because the citizens have a MAJOR amenity attached to that arena. There will never be anything like the Thunder attached to the Convention Center.

I'm not saying we don't need a new one, and that we shouldn't build one, but it's an apples/oranges comparison.

The new arena opened in 2002 but the Thunder didn't arrive until 2008. During that interim period was anybody still saying the arena wasn't a good investment? During that period Tulsa did not yet have the BOK Center so OKC was starting to get a decent concert scene, something the city never had with the Myriad.

Of course you can't, because the citizens have a MAJOR amenity attached to that arena. There will never be anything like the Thunder attached to the Convention Center.

I'm not saying we don't need a new one, and that we shouldn't build one, but it's an apples/oranges comparison.

That was exactly the way the arena opponents thought at the time. My point exactly.

The new arena opened in 2002 but the Thunder didn't arrive until 2008. During that interim period was anybody still saying the arena wasn't a good investment? During that period Tulsa did not yet have the BOK Center so OKC was starting to get a decent concert scene, something the city never had with the Myriad.

Well the Hornets were playing to huge crowds from 2005-2007. I'm a little skeptical on that concert scene w/o seeing a compare and contrast of what the Myriad had for the 5 years pre Ford Center and first 5 years of the Ford Center.

Well the Hornets were playing to huge crowds from 2005-2007. I'm a little skeptical on that concert scene w/o seeing a compare and contrast of what the Myriad had for the 5 years pre Ford Center and first 5 years of the Ford Center.

IIRC, when SMG got the rights to the Ford, they pulled in some big names to the COX (Myriad) and Ford center, I remember seeing the Rolling Stones at the COX, but this was strictly due to the selection of SMG for the Ford. It seems like there was an influx for a few years of big name entertainment.

That was exactly the way the arena opponents thought at the time. My point exactly.

Gary, I just don't think it's a good point. Name a single major, nationally-renowned amenity attached to any convention center in the country and I'll still reject your argument because it's a single instance. Every major arena in a Top 50 MSA has a chance to hold a professional franchise, and all professional franchises are nationally renowned because of their coverage on national television. Furthermore, they provide first-class entertainment to the citizens regardless of the success of the team.

Again, not saying we don't need a new convention center and that it can't do great things for the city…but arguing that it has any chance to impact average OKC citizens on even a one-tenth the scale of the Ford Center is silly. It doesn't.

Well the Hornets were playing to huge crowds from 2005-2007. I'm a little skeptical on that concert scene w/o seeing a compare and contrast of what the Myriad had for the 5 years pre Ford Center and first 5 years of the Ford Center.

I go to a lot of "sold out" concerts at the Chesapeake Arena" Most recently was the Eagles. Bands who can fill up large arenas book in those venues. The Cox Center could not attract the quality of show that the Chesapeake does. On another note. All the hotels downtown tell me that they sell out during these shows. That means lots of outside $$$$ coming into okc.

I go to a lot of "sold out" concerts at the Chesapeake Arena" Most recently was the Eagles. Bands who can fill up large arenas book in those venues. The Cox Center could not attract the quality of show that the Chesapeake does. On another note. All the hotels downtown tell me that they sell out during these shows. That means lots of outside $$$$ coming into okc.

I don't have issue that bands who fill large arenas book these venues. The fact still remains that several large acts in recent memory do not come here. The Stones were in Dallas last week, Oklahoma not so much. There have been numerous acts that have chosen Tulsa over OKC, such as Springsteen some years ago. I just do not see the quality of acts on a consistent basis coming to OKC, and IMHO the Myriad was booking these acts prior to the Ford/Chesapeake being erected. That is why I would like to see a comparison of a 5 year run prior comparing the Myriad to the first 5 years of the new arena. I don't doubt that hotels make money, but I am of the opinion those hotels that were servicing the Myriad for shows held there did well also.

On another note. All the hotels downtown tell me that they sell out during these shows. That means lots of outside $$$$ coming into okc.

I wonder how much is actually 'outside $$$$ '. My brother goes to several concerts and he always gets a hotel room, and he lives here.

I wonder how much is actually 'outside $$$$ '. My brother goes to several concerts and he always gets a hotel room, and he lives here.

Both the Renaissance and Sheriton say they are people from outside of okc. With that being said I guess they could be from Norman or Edmond. Even if that is the case it is OKC collecting the tax. We have also considered a room but they are always full so it is uber there and back.

I don't have issue that bands who fill large arenas book these venues. The fact still remains that several large acts in recent memory do not come here. The Stones were in Dallas last week, Oklahoma not so much. There have been numerous acts that have chosen Tulsa over OKC, such as Springsteen some years ago. I just do not see the quality of acts on a consistent basis coming to OKC, and IMHO the Myriad was booking these acts prior to the Ford/Chesapeake being erected. That is why I would like to see a comparison of a 5 year run prior comparing the Myriad to the first 5 years of the new arena. I don't doubt that hotels make money, but I am of the opinion those hotels that were servicing the Myriad for shows held there did well also.

When the Myriad was the only venue then they would get every show who would come. As for the shows it all depend on what you prefer. I have seen the stones twice and would not go if they were her. Just not that big of a deal to me. A lot of the shows are also booked on the availability of the facility in regards to lining up with the bands tour. It either works or it does not. When it comes down to events I believe that Tulsa would trade them all for an NBA team. The same argument could be made to why OKC got one and not Tulsa.

I think the reason more big name concerts end up in Tulsa is because the Peake and the BOK center have the same promoter and since people in OKC don't have any qualms about driving to Tulsa for shows, they do what is easiest and book them in Tulsa. It seems to me OKC went through a short stint between the opening of the Ford Center and the construction of the BOK center where it was getting better concerts.

I think the reason more big name concerts end up in Tulsa is because the Peake and the BOK center have the same promoter and since people in OKC don't have any qualms about driving to Tulsa for shows, they do what is easiest and book them in Tulsa. It seems to me OKC went through a short stint between the opening of the Ford Center and the construction of the BOK center where it was getting better concerts.

Agree,

SMG (Spectator Management Group) operates both venues. Recall when Oklahoma City opened the Peake pre NBA Thunder franchise. OKC's arena was a hot item for concerts.

Ford Center makes list of top concert venues<BR>Magazine's ranking based on ticket sales | News OK (http://newsok.com/article/1938057)

Once the NBA entered our market; those sports & entertainment dollars dwindled along with the appetite for NCAA Division I collegiate basketball. The All Sports Association's annual All College Basketball tournament took a hit.

I don't agree that the sports and entertainment dollars dwindled, the dollars are still there and likely there's more since more jobs and people have been added to OKC since the arrival of the NBA. I would, however, state that people are making specific choices with their discretionary income since the choices are better than they were pre-NBA. Before the NBA, one had no choice but to go to Div I and All Sports Association events, today, there is 'better' options with the Thunder and people chose not to support Div 1 anymore.

I think this is normal for a city, actually. OKC was solely a minor league and collegiate city for so long, then in comes the NBA. Of course OKC will support the NBA, and because the product is so good (as in OKC has always had an elite team), then the fans see no reason to support the minor leagues/collegiate in the same way as they had before. Not less money but a conscious decision by many to only support the top tier of sport in OKC.

What the other teams/league need to figure out is how to bring back their support. Winning surely helps, as does anything that brings about media attention. This is where OKC is lacking IMO with the exception of the OU Sooners football team. This is what we need to change, not sit on our laurels blaming the NBA that OKC's other teams don't draw.

Ahead of the game: Economic downturn may help OKC convention center hotel plans

By: Brian Brus The Journal Record March 3, 2016

OKLAHOMA CITY – Oklahoma’s energy-driven economic downturn will have little effect on the development of a new downtown convention center and adjacent hotel, industry watchers said Thursday.

If anything, recession-like conditions may actually make the project a little more attractive, said Hank Wolpert, vice president of Denver-based Hospitality Real Estate Counselors.

“During a downturn, your construction costs may be a little bit lower and your labor pool will be a little larger, so you might be able to save 10 to 15 percent in the cost of the project,” Wolpert said.

Construction of the $285 million convention center will start in late 2017. It is slated to open in 2020 in conjunction with the completion of a 70-acre central park and modern streetcar route, which are also part of a larger package of projects worth $777 million under the MAPS 3 temporary sales tax.

After a delay in the site selection process a year ago, the city acquired most of the necessary property parcels for convention center construction between Robinson Avenue and Shields Boulevard and between SW Seventh and Fourth streets.

An adjacent hotel was not included in the original MAPS 3 promotional material before residents voted, but City Council members have since agreed that much of the convention center’s success will depend on how easily attendees can get to their rooms between events. Although council members Ed Shadid and Pete White have voiced concerns about whether the city should subsidize the hotel’s construction somehow, nothing has been formally discussed.

In September, City Hall pared down a list of bids to develop a hotel to four: Omni Hotels, which operates 60 properties in North America; Matthews Southwest, with projects including the Dallas Omni conference hotel; Marcus Hotels and Resorts, which owns or manages 20 properties in 11 states, including downtown’s Skirvin Hilton; and Mortenson, which has developed convention hotels in Boston and Denver.

Jeff Higley, editorial director at Hotel News Now magazine, said the hospitality industry takes a much longer perspective on economic factors, even though the region might be suffering as energy companies such as Devon and SandRidge lay off workers.

“Oil-producing areas have been hit a little harder – Houston, Oklahoma City, the Dakotas and Utica shale zone in western Pennsylvania and eastern Ohio. Hotels in those areas have definitely been affected,” Higley said. “But you’re looking at a five-year window of incubation before a hotel actually opens.”

Wolpert agreed.

“When you’re talking about a newly built property, by the time you go through planning, permitting, financing and construction, you’re probably talking about a significant period of time down the road,” he said. “Your city will rebound, and then you’ll want to be ahead of the game.”

Wolpert said from his office in Dallas that he’s too familiar with the impact of oil prices on the region, but those economic effects take place on a different level than tourism.

“You have to remember that with a major convention center with an adjacent hotel, you’re looking to attract several different markets: not just conventions, but gate shows and concerts as well,” he said.

I don't agree that the sports and entertainment dollars dwindled, the dollars are still there and likely there's more since more jobs and people have been added to OKC since the arrival of the NBA...

We added more jobs (quantity, not quality); however, of late we've lost some quality energy jobs which could affect the expenditures of discretionary income for sports entertainment. We've also added a quality minor league baseball franchise (Oklahoma City Dodgers) and two soccer franchises (established USL OKC Energy FC and NASL Rayo OKC); teams will go head-to-head in our metro market. During this time we've lost a non factor AHL OKC Barons' franchise which couldn't tap into those sports dollars because of the competing schedule with the NBA season which interlocked with that of the AHL.

As an avid ice hockey fan; Barons' disappointment wasn't my 'greatest friend.' Truly felt that our city could support both the NBA & AHL much like San Antonio which has a million more residents in their metro area; also, San Antonio doesn't have a major Top 10 collegiate football team (OU Sooners) drawing 85,000 fans consistently with a string of 92 sellouts and the Thunder with a sting of 229 sellouts which dates back to 2010 season; that's my take on dwelling sports entertainment dollars.

The sports entertainment dollars can only stretch so far. It's not a difficult choice to make when you have survival needs vs. sports entertainment or any kind of entertainment. Responsible family planning will protect that financial safety net during economic challenges.

Oklahoma City in a NUTSHELL...


We've compiled a list of entertainment districts, the key destinations, areas and trends as a guide to set you on your journey through OKC nightlife.

A whole new golden age for Oklahoma City? | News OK (http://newsok.com/article/3461103)

Oklahoma City in a NUTSHELL...



A whole new golden age for Oklahoma City? | News OK (http://newsok.com/article/3461103)


This article is almost six years old. Things have come a long way even in that time!

This article is almost six years old. Things have come a long way even in that time!

Oh so true, but those districts continue to strive & get better. . .

add in Film Row, a complete article on Automobile Alley this time, an article on Deep Deuce and the Asian district, Uptown 23rd, 39th Street LGBT district, SOSA (as the fledgling district taking the place of then AAlley/fledgling), Oklahoma Health Center, Riversports Park, Farmers Market, and the soon to come Core-2-Shore and Convention district - then OKC will be even more complete.

OMG, I have inspiration to at least list the titles of Oklahoma City's districts and hot spots (very impressive):

* Oklahoma City Central Business District
* Bricktown Entertainment District and Neighborhoods (Upper Bricktown, E Bricktown, Lower Bricktown, Canal & Fountain)
* Arts District (I would rename this the Oklahoma City Civic Center [or District], personally since the place-making for such a name already exists)
* Deep Deuce Historic Neighborhood
* MidTown District
* Automobile Alley Historic District and Residential Neighborhood
* SOSA Urban Neighborhood
* Film Row Historic District
* Core-2-Shore Park and Convention District
* Riversports Park
* Oklahoma Health Center (an "Innovation District")
* Uptown 23rd Street District
* Plaza District
* Paseo Arts District
* Asian District
* University 23rd
* 39th Street LGBT District and Neighborhood
* Capital Hill District and Neighborhood
* Stockyard's City
* Adventure District
* Nichols Hills Plaza
* Classen Curve + Triangle Retail District
* Oklahoma State Capitol Campus
* Western Avenue District
* Meridian Hospitality District
* Memorial (Road) Retail Super-Corridor
* Northwest (Expressway) Business District
** North Lincoln Avenue District
** Eastside 23rd Urban District
** Wheeler District, Park, and Neighborhood
** Farmers Market
** Central Classen Corridor
** Park Avenue Retail District

All of these are in various forms of development/completion but the * exist today and the city for the most part could begin to claim them as hotspots in promotion. The ** need further development but are well along the planning/construction to be added to the list.

Good times!

http://journalrecord.com/2016/05/17/paying-it-forward-proceeds-from-skirvin-deal-will-help-fund-convention-center-hotel-real-estate/

Paying it forward: Proceeds from Skirvin deal will help fund convention center hotel
By: Brian Brus The Journal Record May 17, 2016

OKLAHOMA CITY – About $7.4 million recovered from incentives to redevelop the historic Skirvin Hotel will go toward buying land for a new downtown hotel, the City Council decided Tuesday.

Council members, acting as trustees of the Oklahoma City Redevelopment Authority, unanimously agreed to transfer funds from the city’s Economic Development Fund to the Oklahoma City Urban Renewal Authority to acquire and prepare property at the northeast corner of SW Third Street and Robinson Avenue for private redevelopment. The funds can also be used to pay expenses related to the due diligence required to buy the property and for selection of a developer for the MAPS 3 convention center hotel.

“The site is very important to the development of downtown Oklahoma City,” said Cathy O’Connor, president of the Alliance for Economic Development of Oklahoma City. “It’s adjacent to the Chesapeake Arena; it’s across the street from the MAPS 3 park; and it’s across the street from the convention center site.”

City Manager Jim Couch said in a document to council members the parcel in question has been described by the Park and Convention Center design teams as iconic.

O’Connor said that over the next two months the Alliance will narrow down the list of hotel developers and provide more details for their proposals.

O’Connor was unable to answer Councilman Ed Shadid’s questions about whether developers would want the city involved in land acquisition.

“What we’re assuming at this point is that we will buy the land and lease it to them through a long-term ground lease, similar to the way we did the Skirvin so that we would earn revenues from that ground lease over time,” she said.

The city purchased the Skirvin in 2002 after a 15-year vacancy. The City Council then transferred the property to the Oklahoma City Redevelopment Authority, which sold it to development group Skirvin Partners LLC and agreed to roll about $22 million of public assistance back into development. The deal also called for those funds to be repaid as loans and lease payments.

Projections prepared in 2007 forecast lease and interest revenues between $2.8 million and $4.7 million by March this year. The actual revenues generated so far are in excess of $8 million. But about $700,000 of that money was used to repay a federal Brownfield Loan on the project.

Since the hotel reopened, the financial performance has exceeded expectations, O’Connor said, producing $2.5 million in sales taxes and $880,000 in ad valorem.

“What we’re assuming at this point is that we will buy the land and lease it to them through a long-term ground lease, similar to the way we did the Skirvin so that we would earn revenues from that ground lease over time,” she said.

So, the site that has been proposed is bound by SW 3rd, SW 4th, Broadway and Robinson. If I remember correctly, that is the site of an old exit ramp from the old I-40. Does the state own that parcel and OKC has to purchase it from them? I feel like there are a few parcels that need to be purchased for the hotel spot, but I wouldn't think it would add up to $7.4MM.

The state owns the majority of the block; there are three privately-owned parcels that take up the western edge of the block fronting Robinson. Those parcels will have to be purchased from their respective owners.

12583

Those 3 parcels are $7.4 million?

Well, there's also the state owned portion of the block. Is there any reason to believe that the city will be able to acquire it on the cheap?

I'm sure the state has to get what is fair market value for anything they sale, as they are doing so on behalf of taxpayers / citizens.

I'm also sure the city has already negotiated what everyone feels is a fair price.

Those 3 parcels are $7.4 million?

Pretty much my thought. I could see that being the case if the exit ramp area was a private owner, but since it is the state, they can't ask for too much or too little. It would surprise me if the cost to purchase the entire block costs more than $4 million.

Pretty much my thought. I could see that being the case if the exit ramp area was a private owner, but since it is the state, they can't ask for too much or too little. It would surprise me if the cost to purchase the entire block costs more than $4 million.

Agree,

Besides the state will benefit from those parcels being developed.

Brand matters: Name on convention center hotel could make a difference

By: Brian Brus The Journal Record May 26, 2016

OKLAHOMA CITY – A recent hotel market report suggests that the success of a new convention center hotel in downtown Oklahoma City might rest on its brand name.

One-third of respondents in a survey by Meetings and Conventions magazine said brand affiliation is extremely important in selecting a hotel for an event, and another 50 percent said it was somewhat important.

When asked which factors were most influential in establishing brand loyalty, 88 percent cited past experience, 76 percent cited the quality of meeting space and 73 percent cited room quality.

“Having a convention center attached to a nearby hotel would definitely make the difference for some people to even choose the city. The brand of the hotel will be just as important,” magazine editor-in-chief Loren Edelstein said. “For some, it matters quite a bit.”

After Oklahoma City voters approved a MAPS 3 package of development projects worth $777 million in 2009, the City Council concluded that the new convention center component of the plan would need to be supported by an adjoining hotel. Years of discussion about the buildings’ size and site followed, and in late 2015 City Hall pared down a list of hotel developers to four.

Those companies are Omni Hotels, which operates 60 properties in North America; Matthews Southwest, with projects including the Dallas Omni conference hotel; Marcus Hotels and Resorts, which owns or manages 20 properties, including downtown’s Skirvin Hilton; and Mortenson, which has developed convention hotels in Boston and Denver.

City Council members have argued over the degree to which taxpayers should incentivize hotel development, with Councilman Ed Shadid the most stringent opponent of expanding the MAPS 3 program beyond its original scope. The majority, however, agree that an investment is necessary for the hotel site at Robinson Avenue and Oklahoma City Boulevard, just south of Chesapeake Energy Arena and north of the $252 million convention center. This month, they approved $7.4 million to purchase the property for oversight by the Urban Renewal Authority.

The question is familiar to the industry. In Nashville, Tennessee, for example, the city government provided $128 million in incentives for Omni to build a signature hotel for its new convention center. And in Omaha, Nebraska, ground was recently broken for a Marcus-operated hotel to anchor the Capitol District. City leaders a year earlier released a market study that concluded Omaha needed to at least offer incentives to convention groups in the form of hotel room rebates or subsidies.

“Omaha has lost conventions due to its inability to offer competitive incentive packages. Given that Omaha is in direct competition with cities which are able to offer incentives, it will likely need to do the same in order to draw new and/or repeat business in the future,” researchers wrote.

But those big brand names are also more likely to draw repeat customers, helping to ensure their success in the long run. According to the Meetings and Conventions report, only 12 percent of respondents said they are willing to consider a new or lesser-known hotel brand, while 75 percent said they were on the fence. And 87 percent said they’re concerned that industry consolidation will dilute brand differentiation.

“When people are selecting a destination, they might have a prior relationship with one of the major chains or a certain national sales contact they’re used to working with, and that’s going to sway the particular property they choose,” Edelstein said.

Said study:

http://www.meetings-conventions.com/News/Research/hotel-brands-research-meeting-planners/

http://www.meetings-conventions.com/News/Research/Research-statistics-hotel-brands/