Who controls downtown real estate - Lackmeyer article

[metro]

The downtown conspiracy, for real
Daily Oklahoman
By Steve Lackmeyer
Main Street


Think of downtown Dallas, and the big name is Ross Perot. In downtown Fort Worth, the Bass brothers reign supreme.
But who is lording over downtown Oklahoma City?

That's the question posed by Steve Mason as I was talking with him Monday about a busy weekend in downtown Oklahoma City — even though, for the most part, it was pretty much routine.

I had planned to meet a couple of people at Coffee Slingers, the new coffee shop in the 1015 N Broadway building renovated by Mason. But Broadway was closed, and filled with hundreds of people in gowns and tuxedos.

The explanation: The street between Mason's renovated properties and the new home of the Oklahoma City Community Foundation was eyed as a great spot for the Starlight Ball, a fundraiser for the Children's Medical Research Foundation. The night included a fashion show and cocktails on Broadway, dinner on the second floor of Mason's building, and dancing on the third floor.

Count right there what Mason would call three "spheres of influence” downtown:

•Mason.

•The Children's Medical Foundation (in the adjoining Oklahoma Health Center).

•The Oklahoma City Community Foundation.

In Mason's mind, there is no single entity — no Perot, no Bass brothers — to dictate what's next for downtown Oklahoma City. Instead, more than two dozen serious players, and more than a million metro taxpayers, are in a loose confederation making downtown a vibrant place to live, work and play.

In this new equation, Mason achieves a lot more along Automobile Alley, thanks to the Red Prime Steakhouse, opened by Keith and Heather Paul in an old Buick dealership renovated by Rand Elliott, and to the efforts of veteran Broadway developers Chris and Meg Salyer, Nicholas Preftakes and Mark Ruffin.

These folks, in turn, end up creating something that's bigger as a whole than its pieces by combining with the work done by housing developers in the Flat Iron, including Anthony McDermid, Bert Belanger, Ron Bradsaw, Rick Garrett, Bill Canfield and Grant Humphreys. Go one step further, and all this work is magnified again by Bricktown, where names include Marsh Pitman, Randy Hogan, Jim Brewer, French Hickman, Jeff Moore, Jeff Brown, Don Karchmer, Jim Tolbert, and an array of restaurant and shop owners.

Keep going, and you'll hit the arts district with the Oklahoma City Museum of Art, the Oklahoma City National Memorial, the American Choral Directors Association, Myriad Gardens and Stage Center, and then MidTown, with Greg Banta and St. Anthony Hospital.

Complete the circle back at the Oklahoma Health Center, which is reaching new heights, thanks to the Presbyterian Health Center, the University of Oklahoma and Stanton L. Young.

Then go to the core, where Devon Energy is about to build a new skyscraper and Richard Tanenbaum has successfully converted aging office buildings into housing.

The final sphere is made up by city leaders and taxpayers, who Mason notes kicked off much of this in 1993 with passage of the Metropolitan Area Projects initiative and have continued their support of downtown improvements including streetscapes, signage, landscaping and, next, improvements to the Ford Center. They've also approved a tax increment financing district that assists some of these developments.

City leaders can also take credit for the Murrah district loans, which helped much of north downtown recover after the 1995 bombing, and the business improvement district, which through Downtown Oklahoma City Inc. has provided marketing, upkeep and support for special events. Urban design committees have raised the standards for how buildings look, while the Oklahoma City Urban Renewal Authority has tackled development of many of the tougher and controversial properties.

One can trace back the concept of "spheres of influence” to the spread of communism in the 1950s. But this is too disorganized to be a conspiracy, and it's safe to say quite a few of these people have never met each other. But the spheres of downtown Oklahoma City, it appears, will just keep on growing.

[jsenter]

Banta, McDermid.

[metro]

Banta controls Midtown real estate.

Just curious, why do you think McDermid controls it more than other developers??


My answer would be the silent Rick Dowell, he is a real downtown player that owns lots of downtown real estate and most people don't know it. Unfortunately, he doesn't do a whole lot with it besides sit on it. He is a very smart economics/finance man and is waiting for the right time. He is slowly renovating Dowell Center in the heart of the CBD. He's also fixing to landscape/develop something over on NW 5th and Walker (hush hush still). I'd be willing to say, as far as number of properties in downtown, Dowell takes this prize.

[soonerfan21]

McDermid doesn't even come close to controlling downtown - he is a minor player. How many of his projects have not been realized?

[metro]

McDermid doesn't even come close to controlling downtown - he is a minor player. How many of his projects have not been realized?

I agree with you that he's a minor player (although one of my favs). In all fairness, many of his projects haven't been realized because of Urban Renewal aka OCURA. Their decision making process is well...rather hard to determine.

[Kerry]

But this is too disorganized to be a conspiracy, and it's safe to say quite a few of these people have never met each other. But the spheres of downtown Oklahoma City, it appears, will just keep on growing.

This says it all for me. The real problem is that we don't have a single visionary leader with the resources to make big changes. We don't have a Donald Trump type person that makes money by developing properties. We have succesful business leaders downtown but they are not in the real estate development business. Devon's new building will be a nice enhancment to the skyline and I look forward to it, but once their building is done they will go back to being an energy company. Maybe by bringing in the Hines Company to build the Devon tower we might get a little more exposure. Hines built and owns several of the tallest buildings here in Atlanta. Maybe the Devon project will encourage them to build a speculative building in OKC.

[Pete]

I'm hoping that Milbank (owners of FNC) will become a bigger player once they get that project rolling. They are the largest out-of-state owner/developer and real estate is their sole business.

I've always thought Anthony McDermid (and his partners) had the most potential of all the locals. He is a true visionary and seems willing to take some chances. It's just a crying shame that OCURA screwed him over for The Hill and I hope that doesn't deter him too much.

There are others as well (like Grant Humphries) but they lack the resources to do anything truly big at this point. With the tight lending market, I think we'll need some really powerful player(s) to make anything happen on a large scale.

[Pete]

One other thought...

As the article mentioned, guys like Perot and the Bass Brothers made their fortunes in business then turned to real estate and reshaped their respective cities.

Very, very similar to what Aubrey McClendon seems to be doing, but unfortunately for downtown advocates, he (and CHK) are concentrating on other parts of the city.

It would be great to see someone like Tom Ward or Larry Nichols do the same sorts of things, just in the central core. Perhaps as their respective businesses mature (both are in high growth phases) they might turn their attention to development.

[tuck]

I have to say, being from Fort Worth, the Bass Brothers are very clearly the major players. IMO, we are where Fort Worth was 10-12 years ago as far as downtown development. I also think that Tom Ward / Sandridge will step up within the next 5 years and take the lead. He could then put himself in a "control" position.

[Pete]

It's interesting to me that Bob Funk made a lot of noise about a huge development in Bricktown but then completely backed off when he couldn't get a sweetheart deal from the city.

He's the type of guy that could really step up but considering he just built a new corporate HQ way out in the suburbs, I question any real commitment to downtown beyond a profit motive.


Core to Shore will provide the opportunity for someone to step up, as they are going to need lots of private development to complement the convention center and park space.

[metro]

Funk seems to be all bark, no bite.

[bornhere]

The real problem is that we don't have a single visionary leader with the resources to make big changes.

I don't consider that a problem. This city has spent most of its existence under the thumb of two or three 'big players,' and that's part of the reason we lagged behind for so long. Their legacy continues with us today. What worries me now is the reemergence of self-styled 'big players.'

We absolutely don't need our own version of Donald Trump.

[jsenter]

These big corporate executives aren't going to do anything but line their pockets.

[mturner]

Here Here!

[Kerry]

I don't consider that a problem. This city has spent most of its existence under the thumb of two or three 'big players,' and that's part of the reason we lagged behind for so long. Their legacy continues with us today. What worries me now is the reemergence of self-styled 'big players.'

True but the people in control before were not champions of a vibrant downtown OKC. They spent thier time and effort developing suburban office parks and shopping centers. We do need our own version of Donald Trump that can bring vision to fruition and create a thriving 3rd generation of downtown OKC.

P.S. Why are some of you guys so opposed to making a profit in business?

[flintysooner]

Roy Oliver used to own several downtown buildings.

[bornhere]

When a handful of people get control of the process, their ideas become reality whether they make sense or not. If their vision is simply to enrich themselves at everyone else's expense, that's what happens because no one has sufficient power to head them off. Or even if it's a well-intended but simply bad idea, it happens anyway.

You've probably heard the story that Ed Gaylord wanted the Bricktown Ballpark built at the fairgrounds. Ron Norick had to go meet with him and talk him into going along with the plan to put it in Bricktown.

If MAPS had been proposed a decade earlier than it was, or maybe even five years earlier, the ballpark would have been at the fairgrounds and there would have been no discussion.

I also recall when the 'downtown vision' people at the county's industrial trust thought county employees needed a new parking garage, but decided they needed it three or four blocks from the courthouse and immediately adjacent to the First National Center.

I don't want OKC to ever again have someone so powerful that the entire city has to pirouette on his or her whim.

[floater]

I don't want OKC to ever again have someone so powerful that the entire city has to pirouette on his or her whim.

I think that was the sentiment of the article. The fact that no one person controls downtown, is IMO, a very good thing. Real, organic, success has many fathers.

[Pete]

I agree that the old boys didn't necessarily act in the best interest of the overall community but I don't worry too much about that sort of thing becoming once again pervasive.

In the information age, you really can't get away with all those under-the-table dealings and inside deals. I'm sure it still goes on but not nearly on the same scale.

However, I do think that one or two wealthy investor/developers could have a big impact on downtown, as there are still some very large un- and under-developed areas. In fact, if you go more than a few blocks from the heart of the CBD in any direction, there are lots of vacant parcels and run-down buildings.

I suspect if a couple of big boys jumped in with splashy plans, you'd see a lot of smaller types follow suit, as property is still hardly scarce or expensive.

[bornhere]

That's why I like what Banta (and Bob Moore, I guess) are doing in Midtown. Not as splashy, no celebrity steering committee, but a lot of stuff being rehabilitated and renovated. I suspect that once all the dust has settled, I'll feel a lot more comfortable hanging out in Midtown than I will in the Core to Shore area.

[metro]

Roy Oliver used to own several downtown buildings.

True, but he was a minor player. I don't think he contributed much to the two buildings he owned. I imagine they were just a "sweet flip" as I believe he bought them from or sold them to Clay Bennett. Roy Oliver also owned an upscale used car dealership near Edmond. I think Rick Dowell and Tom Ward are/will be the bigger downtown players.

[metro]

That's why I like what Banta (and Bob Moore, I guess) are doing in Midtown. Not as splashy, no celebrity steering committee, but a lot of stuff being rehabilitated and renovated. I suspect that once all the dust has settled, I'll feel a lot more comfortable hanging out in Midtown than I will in the Core to Shore area.

Bob Howard is financing him, not Bob Moore.

[kevinpate]

I'm not much of a betting man anymore, but if I were to revert, I'd lay my chips down with metro's chips.