University North Park Updates
Here's an interesting article from The Norman Transcript.
The Norman Transcript - Conference Center or Rock Creek overpass?
Transcript Staff Writer
Norman city councilmembers are considering trading potential ownership of the Embassy Suites' conference center at University North Park for $15 million, for improved access in the form of a Rock Creek Road overpass.
The matter was discussed in Tuesday's council study session, which also included a University North Park Tax Increment Financing District No. 2 quarterly report and a proposal for UNP TIF bond financing.
Hotelier John Q. Hammons posed the Rock Creek Road overpass project vs. the conference center ownership in an e-mail dated Feb. 25 to Mayor Cindy Rosenthal.
"In recent discussions with the UNP developer, I learned that there is a possibility of another access point by building a bridge overpass near Rock Creek Road. This is a very good idea; and while we support the overpass wholeheartedly, the proposed funding mechanism to push the expense back onto the landowners simply is not right. That idea I cannot support," Hammons wrote.
He proposed an alternative solution.
"As you know, the City committed to purchase the conference center for $15 million as part of the TIF. I understand that there is a shortfall of over $6 million for the bridge construction. We propose that, in lieu of purchasing the conference center, the City use those funds to (1) ensure the needed bridge is constructed and (2) that the lifestyle center be built to the highest standards possible so the quality of the development will be consistent."
The Rock Creek Road overpass would be a $13.6 million project, connecting east and west, but would not be an interchange. The Oklahoma Department of Transportation has committed $4 million to the project, with the Association of Central Oklahoma Governments or ACOG offering potential funding of $1.07 million through the federal SAFE TEA program.
That would leave $7.75 million that could potentially be funded with TIF revenues in lieu of the conference center purchase, along with $780,000 in possible recoupment fees to surrounding owners.
UNP Realty Investments LLC, a wholly owned subsidiary of the University of Oklahoma Foundation, would fund a note secured by TIF incremental revenues along with the first TIF No. 2 financing.
The TIF funds authorized for purchase of the conference center may be redirected per a clause in the UNP TIF Project Plan.
"To the extent such fund has not been so utilized by Jan. 1, 2021, or to the extent such a conference center, museums or other similar cultural projects are funded through other sources, the funding authorization may be reallocated to other project costs," reads the TIF project plan.
The conference center and hotel are planned to open about Oct. 1.
Rosenthal noted the timing on the Rock Creek Road overpass is driven by the ODOT schedule for its $108 million Interstate 35 widening project from four to six lanes from Indian Hills Road on the north to State Highway 9 on the south. The widening is expected to begin in late 2008.
Council also was asked to consider $29.1 million for the first financing for the UNP TIF projects. The traffic and initial project activity would be $13.4 million; Legacy Park construction, $5.1 million; UNP enhanced landscaping, $750,000; and the Rock Creek overpass funding, $7.75 million. Capitalized interest would be $1.275 million, with issuance costs at $769,149, bringing the total to about $29.1 million in a draw down note financed by the OU Foundation.
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