Stadium District (formerly Producers Coop)

[yukong]

Partially true...

https://www.okc.gov/departments/plan...ms/brownfields

The City may pay for assessments and will assist in providing low interest loans...

"Financial Resources

- No cost environmental assessments for qualifying redevelopment projects in Oklahoma City
- Low interest environmental clean-up loan funds to aid redevelopment
- Grants to nonprofits for environmental clean-up to aid redevelopment"

My statement was "completely true." As I said...the city (like the state) will not pay for environmental clean-up. Period.

Assessments are not "clean-up." And Phase I assessments are not very expensive...and the city may, like the state, have staff that conducts those Phase I assessments. But in this case, assessments were done by the prospective buyers. A phase I was done some time ago. The city didn't pay for that. Also the Funk group was not a "nonprofit." I said the city wouldn't pay for a "private developer." And a "low interest loan" is not the same as the city "paying for it." The loan will have to be paid back. The State DEQ will also provide "low interest loans" if the money is available. The money for these loans comes from EPA grants, not state or city "appropriated" money. Currently, DEQ doesn't have the money to loan as it is all loaned out. I believe the city is in the same boat. So...bottom line...the environmental clean-up will be on the sellers or the prospective buyers. Not the taxpayers.

[Richard at Remax]

Coming from a residential real estate mindset, if I have a seller that knows something will be an issue, ie broken fence, windows, bad roof, ect, I try to get them to take care of it on the front end so by the time its one the market a) we won't have to worry about it and b) they will get a better price for the house, maybe even covering for the costs of doing said repairs.

This might be entirely unrealistic, but that being said I think the sellers of the Coop should thing about cleaning the whole site themselves, or at least pitch in to make it a more desirable deal, to make it more "move in ready." In doing that i think they will make it more desirable for a buyer and they might even get more for what they are asking. Just my two cents

[yukong]

in these types of environmental cases...sellers usually make accommodation for these costs in the asking price. However many of them...like this one...entail clean-up and then long term monitoring with re-openers if the monitoring shows more issues or no changes in the conditions. These things can take many years to complete. I'm involved in some that are over 20 years old. That's why sellers don't do the work first.

[OKCRT]

How many tons of soil will have to be removed? No telling how deep the contaminated soil goes. Some areas could be very deep while other areas could be just surface. I would imagine it's pretty significant since Funk pulled out,if in fact that was the deal breaker. Is it millions in cleanup or 10s of millions?

Then add in demolition costs to remove all those buildings on top of cleanup and that could total a pretty hefty price tag. That prop. may not be worth the asking price with the way it is. Maybe the seller should demo and cleanup and get top dollar for some prime land.

[G.Walker]

Wouldn't this site qualify for the Brownfield's Program? If so, developers can get funds from the City to help remediate the land:

https://www.okc.gov/departments/plan...ms/brownfields

[Paseofreak]

As well, Brownfield funds are available from EPA (for the time being). However, the grants are competitive. Only $70-80MM to go around. Limit is $200K for assessment and $200K for remediation. If granted, they would help, but would not likely go far on this site.

[yukong]

Wouldn't this site qualify for the Brownfield's Program? If so, developers can get funds from the City to help remediate the land:

https://www.okc.gov/departments/plan...ms/brownfields

Brownfield grants are only available to governmental entities and nonprofits. Private developers are only able to access low interest loans. And then only if those funds are available. Private developers are not eligible to receive grants. Privates must repay the money they receive. Brownfields will assist with Phase 1 assessments for Private developers. But that is negligible compared to the remediation costs.

[yukong]

As well, Brownfield funds are available from EPA (for the time being). However, the grants are competitive. Only $70-80MM to go around. Limit is $200K for assessment and $200K for remediation. If granted, they would help, but would not likely go far on this site.

Grants are not available to private developers. Only governmental entities and nonprofits. Private developers are only eligible to receive low interest loans...if funds are available.

[yukong]

How many tons of soil will have to be removed? No telling how deep the contaminated soil goes. Some areas could be very deep while other areas could be just surface. I would imagine it's pretty significant since Funk pulled out,if in fact that was the deal breaker. Is it millions in cleanup or 10s of millions?

Then add in demolition costs to remove all those buildings on top of cleanup and that could total a pretty hefty price tag. That prop. may not be worth the asking price with the way it is. Maybe the seller should demo and cleanup and get top dollar for some prime land.

The problem with this approach is that the cleanup could take years to complete. As I recall, one of the concerns was groundwater contamination. That can result in long-term treatment and monitoring. Sellers don't want to wait that long. Usually most sellers make concessions in the sale price for anticipated cleanup costs. I believe there are also old underground storage tanks. Those are problematic.

[catch22]

Maybe if the sellers did some demo work, and leave contamination remediation up to the buyers. A cleared, but contaminated site would be a much easier sell than a fully built out, contaminated site that needs a ton of demo work before contamination remediation can take place.

[okcfan2]

One factor is the land owner's (Producers Cooperative Oil Mill) need / sense of urgency to sell the property? It's one thing to try to get the highest price possible for a property while behind the scenes really needing to sell it and another to try to get the highest price possible because you don't really care if it sells anytime soon. Anyone know of the land owner's condition / need to sell the property? Their business should be coming back OK since its move to Altus because cotton prices have rebounded.

[OKC2017]

this site has SOOOOO much potential but it may be many, many years until something good happens with it.

[warreng88]

I've often thought the best solution for this area is for something to buy it, do the clean up and then sell it off in pieces. If they have the deep enough pockets for it, but can't develop the whole thing, make some money off of doing the hard work first.

[SoonerFP]

Steve Lackmeyer is reporting today on The Oklahoman website/app that there are plans filed with the OKC Planning Dept. indicating this will soon be demolished. Not more to the story than that for now...

[Pete]

Steve Lackmeyer is reporting today on The Oklahoman website/app that there are plans filed with the OKC Planning Dept. indicating this will soon be demolished. Not more to the story than that for now...

Yep, I'll have a story out very soon with details.

[kevin lee]

Didn't see that one coming.

[Pete]

Producers Coop under contract, all structures to be demolished

OKCTalk has learned that shortly after a purchase attempt by one local group failed, another quickly placed the largest available downtown tract under contract.

Sooner Investment has started preliminary engineering on the site which could include an extension of the Bricktown Canal and another canal inlet directly from the Oklahoma River.

Also, an application was filed with the city yesterday to demolish all structures on the site.

Sooner recently announced plans to develop a Warren Theater in Midwest City. They are also the developers of the massive 200-acre University Town Center in Norman as well as numerous other commercial projects in Oklahoma, Arizona and Florida.

The 37.75-acre Producer's Coop land became available when the company moved their cotton oil processing to Altus in 2015.

The owner of the Oklahoma City Energy soccer club, Bob Funk, had the property under contract for almost a year before pulling out of the deal, citing the inability to make the numbers work while including a new stadium for the Energy which has ambitions to one day join the Major League of Soccer, the top flight of the sport in the U.S. And Canada.

Sooner Investment brings extensive commercial development experience to the challenging parcel, as many existing structures must be removed, contaminated soil cleaned and road access improved.

The new Oklahoma City Boulevard runs directly north but currently does not have access to the property, although that is envisioned. Similarly, while the new convention center and Omni Hotel will be directly west on the other side of Shields, new roads would likely be built under Shields in addition to the only current access at SW 4th Street.

The coop is considered the last major piece of the downtown / Bricktown puzzle. At the same time, much new private investment is anticipated in the area west of the new MAPS3 Scissortail Park.

[HangryHippo]

Well, I for one can't wait for a downtown University North Park!

[Pete]

Sooner Investments does quality work.

I'm sure they'll do some sort of mixed use with hotels, housing and some retail, especially along the canal extensions.

This is a really good thing and they seem to be moving pretty fast.

[luke911]

Great article! Thanks for providing so much more information than that other article published first.

I'm excited to see ideas on what they want to do with the area. Being so tightly connected to the new CC area and south bricktown/canal it could really be a beautiful area.

[LocoAko]

Sooner Investments does quality work.

I'm sure they'll do some sort of mixed use with hotels, housing and some retail, especially along the canal extensions.

This is a really good thing and they seem to be moving pretty fast.

Great work, Pete -- thanks! I am really excited to at least see those buildings gone as they really are such an eyesore along I-40. Do you know how far along Sooner Investments is in having a concrete plan for the site beyond just demolition?

[SoonerFP]

It does sound great! Knew you'd be on the ball with this, Pete. Thanks for the extra info. I would think the area is in good hands with Sooner Investments.

[Anonymous.]

Canal extension? Please let this be the lower Bricktown we all deserved.

Perhaps this getting rolling will get Fred more inspired for the Lumberyard plot.

[oklip955]

Just wondering if anyone knew the history of this site. have they been there since the founding of OKC when a lot of cotton was grown in central Oklahoma?

[Pete]

The sheer cost of the land dictates density.

Lower Bricktown was bought from the city for a song, which is why most of it is still surface parking and small buildings.