One of the crown jewels of the MAPS program is the Bricktown Entertainment Center, a retail and entertainment complex being built along an artificial canal. Bricktown’s anchor tenant is Bass Pro Shops, a Missouri-based sporting goods retailer. To get Bass Pro into Oklahoma City, local officials gave the company more than $17 million in subsidies using public funds. Under a 15-year lease, Bass Pro will pay the city approximately $6 per square foot per year for 110,000 square feet of retail space. Oklahoma City may not be New York or San Francisco, but that’s a below market rate by any standard.
The $17 million comes from three city tax funds—the MAPS operation and maintenance fund, a fund used to finance capital improvements for the city’s schools, and a third fund used to finance equipment for public safety agencies. City officials say the sales taxes generated by Bass Pro over the 15 years of the lease will cover this $17 million “loan”. But this claim covers up a key fact: most of Bass Pro’s sales will come from existing businesses forced to compete with the government-sponsored retailer. Oklahoma City’s own analyst said that 41% of Bass Pro’s expected sales will be “transfers,” meaning they’ll come at the expense of the city’s 65 existing sporting goods retailers (and that doesn’t include large discount stores like Wal-Mart). Thus, Oklahoma City residents and businesses are forcing a transfer of wealth from local merchants to a larger national merchant; what they’re not doing is promoting “economic development” or growing the economy in any substantial manner.
What’s especially galling here is that Oklahoma City officials could have supported a Bricktown development that would have used no taxpayer funds whatsoever. During the bidding process for Bricktown’s development rights, local businessman Moshe Tal submitted a proposal for a privately financed Bricktown Entertainment Center. The city rejected his offer, instead awarding the contract to developer Randy Hogan. Hogan then turned around and demanded the $17 million in taxpayer funds to get Bass Pro into his development.
Tal says Hogan got the contract because of political connections to local officials, including Oklahoma City Mayor Kirk Humphreys, who allegedly owned real estate holdings once managed by Hogan. Tal accuses dozens of city officials of “self-dealing” with one another to promote Hogan’s development—and the Bass Pro subsidy—to the detriment of the taxpayers
Bookmarks