Boardwalk at Bricktown / Dream Hotel

[Rover]

It becomes super confusing when threads on specific projects are dragged into tangents and it isn't clear who is talking about what. There are specific threads for the COOP site, Okana, etc.

[Shortsyeararound]

Exactly! I was looking for info on the thread subject and everything I hadn’t read was about the Coop and Okana. Let’s get it straightened back out and on track.

[Pete]

Details emerge on $736M mixed-use development in downtown OKC
By: Kathryn McNutt//The Journal Record//August 1, 2023

OKLAHOMA CITY – Construction should begin next summer on a $736 million urban infill project that will include more than 900 apartments, a hotel, multiple commercial spaces and plenty of public parking – all on three-quarters of one block.

The developer and Joanna McSpadden, the city’s economic development program manager, presented details of The Boardwalk at Bricktown to the Oklahoma City Council on Tuesday. The council will vote Aug. 15 on a $200 million tax increment finance incentive for the project.

“We’ve been working on this for about a year,” McSpadden said. “This is a project that will change our skyline and bring new energy to Bricktown.”

The project site at the southwest corner of Bricktown lies within one of the new downtown TIF districts approved four months ago.

“The density and verticality, coupled with inflation and higher borrowing costs, are going to make this project incredibly difficult and expensive to accomplish,” McSpadden told the council. “Without substantial help, it won’t happen.”

The proposed package would provide 90% of the ad valorem tax generated by the development over the 25-year life of the TIF with a cap at $200 million, as well as reimbursement of sales tax and use tax generated during construction capped at $5.5 million. She said the developer plans to apply for Leverage Act funding, which potentially could match that $5.5 million with state funds.

“We are not taking on any debt or providing any funding upfront,” McSpadden said, noting the incentive is funded entirely from taxes generated by the project, and the developer would receive the funds only if the project is completed and begins operation.

The development is estimated to cost more than $736 million, but the incentives are based on $550 million, which is the total less the hotel and related components. The project lies in the no-subsidy zone under an agreement with Omni Oklahoma City Hotel that prohibits tax incentives for any other hotel for 15 years.

Developer Scot Matteson, managing partner and CEO of Matteson Capital, has developed properties in California, Colorado, Texas, Florida and Italy that include high-rise condos, resorts, office buildings and 17 million square feet on 10 city blocks in Miami, which he said is just winding down after 15 years.

The Bricktown project build is expected to begin next summer with the first phase completed in about two years, followed by two more phases that could take up to six years to finish.

“We’re very bullish on Oklahoma City. We think you have all the core ingredients to match those in LA and other larger cities that have accomplished these developments,” said Joanne Carras, financial adviser to Matteson Capital.

“It’s only 4 acres but it’s 2 million square feet,” Carras said. “This is four times the size of your convention center. We’re just going vertical instead of horizontal.”

Three apartment towers will provide 924 units, and a Hyatt Dream Hotel will offer 348 rooms. In addition to the parking for those residents and guests, the development will include 890 public parking spaces, five restaurants, rooftop bars and entertainment venues.

Carras said the project will bring 1,800 new jobs to Oklahoma City – half of them permanent jobs and half long-term construction and design jobs.

The development will include 132 units of workforce housing and a 2,000-square-foot workforce development center in partnership with the nonprofit Aspiring Anew Generation. Carras said workforce training will be available to the entire community.

In other locations with the program, residents generally exit the housing after two years to make way for others to come in, Carras said. The rent will be about $1,800 per month for a two-bedroom apartment, based on U.S. Housing and Urban Development figures.

The other apartments will lease at market rate comparable to The First Residences at First National, she said. Two-bedroom apartments there begin at about $3,900 per month.

[Pete]

Details emerge on $736M mixed-use development in downtown OKC
By: Kathryn McNutt//The Journal Record//August 1, 2023

OKLAHOMA CITY – Construction should begin next summer on a $736 million urban infill project that will include more than 900 apartments, a hotel, multiple commercial spaces and plenty of public parking – all on three-quarters of one block.

The developer and Joanna McSpadden, the city’s economic development program manager, presented details of The Boardwalk at Bricktown to the Oklahoma City Council on Tuesday. The council will vote Aug. 15 on a $200 million tax increment finance incentive for the project.

“We’ve been working on this for about a year,” McSpadden said. “This is a project that will change our skyline and bring new energy to Bricktown.”

The project site at the southwest corner of Bricktown lies within one of the new downtown TIF districts approved four months ago.

“The density and verticality, coupled with inflation and higher borrowing costs, are going to make this project incredibly difficult and expensive to accomplish,” McSpadden told the council. “Without substantial help, it won’t happen.”

The proposed package would provide 90% of the ad valorem tax generated by the development over the 25-year life of the TIF with a cap at $200 million, as well as reimbursement of sales tax and use tax generated during construction capped at $5.5 million. She said the developer plans to apply for Leverage Act funding, which potentially could match that $5.5 million with state funds.

“We are not taking on any debt or providing any funding upfront,” McSpadden said, noting the incentive is funded entirely from taxes generated by the project, and the developer would receive the funds only if the project is completed and begins operation.

The development is estimated to cost more than $736 million, but the incentives are based on $550 million, which is the total less the hotel and related components. The project lies in the no-subsidy zone under an agreement with Omni Oklahoma City Hotel that prohibits tax incentives for any other hotel for 15 years.

Developer Scot Matteson, managing partner and CEO of Matteson Capital, has developed properties in California, Colorado, Texas, Florida and Italy that include high-rise condos, resorts, office buildings and 17 million square feet on 10 city blocks in Miami, which he said is just winding down after 15 years.

The Bricktown project build is expected to begin next summer with the first phase completed in about two years, followed by two more phases that could take up to six years to finish.

“We’re very bullish on Oklahoma City. We think you have all the core ingredients to match those in LA and other larger cities that have accomplished these developments,” said Joanne Carras, financial adviser to Matteson Capital.

“It’s only 4 acres but it’s 2 million square feet,” Carras said. “This is four times the size of your convention center. We’re just going vertical instead of horizontal.”

Three apartment towers will provide 924 units, and a Hyatt Dream Hotel will offer 348 rooms. In addition to the parking for those residents and guests, the development will include 890 public parking spaces, five restaurants, rooftop bars and entertainment venues.

Carras said the project will bring 1,800 new jobs to Oklahoma City – half of them permanent jobs and half long-term construction and design jobs.

The development will include 132 units of workforce housing and a 2,000-square-foot workforce development center in partnership with the nonprofit Aspiring Anew Generation. Carras said workforce training will be available to the entire community.

In other locations with the program, residents generally exit the housing after two years to make way for others to come in, Carras said. The rent will be about $1,800 per month for a two-bedroom apartment, based on U.S. Housing and Urban Development figures.

The other apartments will lease at market rate comparable to The First Residences at First National, she said. Two-bedroom apartments there begin at about $3,900 per month.

[jdross1982]

Excited to see this come out of the ground. They are correct, this will inject significant energy into Bricktown and Downtown.

[Jake]

Between this, OKANA, the new arena, and dozens of other projects there's so much going on in this city!

[Anonymous.]

Sounds like this is ready to go. Likely will see true design in a couple weeks. I was mind blown when I saw $1800 for a 2 bedroom, before realizing that is for the workforce program. I really wish they would do some for sale units in at least one of the towers. $3900 per month for 2 bedrooms is not an easy sell right now. I believe The First is around 3/5 full on the apartments with comparable rates (although it has only been just over a year since open).

[warreng88]

Sounds like this is ready to go. Likely will see true design in a couple weeks. I was mind blown when I saw $1800 for a 2 bedroom, before realizing that is for the workforce program. I really wish they would do some for sale units in at least one of the towers. $3900 per month for 2 bedrooms is not an easy sell right now. I believe The First is around 3/5 full on the apartments with comparable rates (although it has only been just over a year since open).

Yeah, when I dug into a few weeks ago, FNC was at about 2/3 full and the price per sf is about the same. Will be a little bit of a different market being in bricktown versus middle of downtown, but not by much.

[G.Walker]

Still don't understand why they haven't presented detailed renderings. Looks like this will pass on August 15th for TIF without renderings. Which means we probably won't see any detailed renderings until they go back to the Planning Commission. So that could be early next year, if they don't plan to break ground until next summer, SMH.

[LocoAko]

Still don't understand why they haven't presented detailed renderings. Looks like this will pass on August 15th for TIF without renderings. Which means we probably won't see any detailed renderings until they go back to the Planning Commission. So that could be early next year, if they don't plan to break ground until next summer, SMH.

I don't know the typical process here, but it strikes me as weird that the Council would approve $200M in TIF awards without seeing detailed renderings of what is actually being proposed. Unless that's been shared internally. They're not the Planning Commission, of course, but I'd still think the Council would want to know the design of what they're approving the money for.

[Pete]

Before they can do anything, they would need design approval.

I suspect we'll see detailed renderings before the end of the year.

[BoulderSooner]

I don't know the typical process here, but it strikes me as weird that the Council would approve $200M in TIF awards without seeing detailed renderings of what is actually being proposed. Unless that's been shared internally. They're not the Planning Commission, of course, but I'd still think the Council would want to know the design of what they're approving the money for.

that is very very normal .. in the process ..

the planning commission also (depending on existing zoning ) will not see detailed renderings ..

the Dowtown design review committee would see detailed renderings ..

[Midtowner]

A $200MM TIF package. Jeez.. I can't remember reading about a development in OKC happening without our schools paying for a big chunk of the development. We want to whine about insufficient money for education, but we want to pass out free ad valorem money to developers.. we probably can't have it both ways.

[BoulderSooner]

A $200MM TIF package. Jeez.. I can't remember reading about a development in OKC happening without our schools paying for a big chunk of the development. We want to whine about insufficient money for education, but we want to pass out free ad valorem money to developers.. we probably can't have it both ways.

the empty lot and this new development will give the same amount of money to schools for the next 25 years ..

with out the TIF this will stay as an empty parking lot (as it has for the last 25 years ..

[Pete]

the empty lot and this new development will give the same amount of money to schools for the next 25 years ..

with out the TIF this will stay as an empty parking lot (as it has for the last 25 years ..

This is not true.

Downtown properties appreciate greatly over 25 years, even if there is no new construction.

[BoulderSooner]

This is not true.

Downtown properties appreciate greatly over 25 years, even if there is no new construction.

point taken ..

[OKCisOK4me]

If this goes through, hello downtown grocery store?

[Teo9969]

There is a very real possibility that these guys don't make a ton of money if they struggle to get tenants in the first 10 years. Obviously if they get to 85% capacity in the first several years and maintain that for several decades they'll be fine.

It sucks we won't be able to hold their feet to the fire on the Hotel, but that seems likely to be the bigger money maker.

[TheTravellers]

A $200MM TIF package. Jeez.. I can't remember reading about a development in OKC happening without our schools paying for a big chunk of the development. We want to whine about insufficient money for education, but we want to pass out free ad valorem money to developers.. we probably can't have it both ways.

If "we" really had any say in the matter, I suspect not as much free money would go to developers, but "we" aren't giving out free money, it's "them" that are making the decisions for "us".

[Midtowner]

If "we" really had any say in the matter, I suspect not as much free money would go to developers, but "we" aren't giving out free money, it's "them" that are making the decisions for "us".

"We" elect people who hire "them," so if "we" don't like it, "we" could do a better job electing people who didn't approve every single TIF application that came across their desk.

[BoulderSooner]

"We" elect people who hire "them," so if "we" don't like it, "we" could do a better job electing people who didn't approve every single TIF application that came across their desk.

if every TIF ask was approved OU would have had an OGE hq building with apt towers just west of the Myriad gardens ..

[Pete]

if every TIF ask was approved OU would have had an OGE hq building with apt towers just west of the Myriad gardens ..

There was never any sort of formal vote on the TIF for that project.

They withdrew and that was the end of it.

[TheTravellers]

"We" elect people who hire "them," so if "we" don't like it, "we" could do a better job electing people who didn't approve every single TIF application that came across their desk.

Who really hires Cathy O'Connor, and her ilk that are constantly shoveling TIF requests through? Is it really the city council, because that's all that "we" elect, and Cooper's my councilperson and I believe he doesn't rubber-stamp every TIF request (along with JoBeth Hamon, I believe).

[Shortsyeararound]

If the FNC is 2/3 rented at $3900/ave and these when built will cost around the same, where are all these renters going to come from? Salaries are not increasing that much and even if you have roommates splitting the cost with just rent alone is 2000k per person. We pay 1400 to rent a 4bd/2bth/3car home in a solid neighborhood. 4000k for an apt in OKC seems a little off the rails when comparing to other larger cities. Don’t get me wrong, I love this development, I just worry that it will never fill up.

[chssooner]

If the FNC is 2/3 rented at $3900/ave and these when built will cost around the same, where are all these renters going to come from? Salaries are not increasing that much and even if you have roommates splitting the cost with just rent alone is 2000k per person. We pay 1400 to rent a 4bd/2bth/3car home in a solid neighborhood. 4000k for an apt in OKC seems a little off the rails when comparing to other larger cities. Don’t get me wrong, I love this development, I just worry that it will never fill up.

There are a lot more wealthy people in OKC than you realize. Just saying. See all the engineering jobs near or at Tinker. They all pay very well. And a lot live downtown.