Council approves TIF phasing plan
A phasing plan for the proposed tax increment finance entertainment district in Norman will move forward — but with a caveat.
That caveat is that the TIF is either approved following a case now before the Oklahoma Supreme Court, or barring that, if it passes a proposed vote by Norman residents.
The matter was for the 'consideration of adoption, rejection, amendment, and/or postponement of the phasing plan required by Rock Creek Entertainment District economic development agreement.'
The EDA calls for the project 'to be completed in multiple phases to be determined and provided by the Developer Parties in a Phasing Plan.' That initial item was postponed by the council last month, but the city faced a legal protest by developers who threatened a lawsuit for breaching the agreement.
Tuesday's vote addresses that agreement with an amendment by Ward 4 Councilmember Helen Grant. Grant proposed an amendment to the item which would ' approve, disapprove or postpone the phasing plan contingent on 1) Judge Virgin's ruling being affirmed, or 2), the voters approve…if Judge Virgin's ruling is reversed.'
The motion regards the recent petition, signed by more than 10,000 Norman voters, which would have allowed city residents to have a chance to vote on the TIF district, which passed over the summer by a 5-4 ruling of the Norman City Council.
However, the petition was challenged by four Norman residents and developers who opposed the TIF being put before the voters. Their challenge, filed in Cleveland County District Court before District Judge Jeff Virgin, was upheld by Virgin, who declared the language of the petition calling for the vote was not properly written and voided the vote. That ruling was appealed by supporters of the petition, and the case now is before the Oklahoma Supreme Court.
The amendment to the item was approved 8-1 with Ward 1 Councilmember Austin Ball voting against it.
Following the amendment vote, several Norman residents spoke before the council in support of a public vote for the TIF, and skeptical of the entertainment district project. No one spoke in favor of the district.
Norman resident Steve Ellis thanked Grant for her amendment, saying he was 'happy with it,' but questioned language in the development as written, and worried that the taxpayers of Norman could be on the hook for unrealized returns on the project.
' …The phrase is, 'subject to market demand.'' He said. 'Does that phrase mean that if the demand never materializes, then the developers are excused from spending the dollar amount listed? That's what it seems to be saying.'
Attorney Rob Norman, who represents the petitioners in the case before the Oklahoma Supreme Court, argued on behalf of Grant's amendment.
'Council member Grant has articulated the no-brainer solution here for you. We can argue law till we're blue in the face,' Norman said. ' You have a fiduciary duty to do what councilmember Grant just moved you to do and wait until this referendum petition process is over.'
Following the public comments, Ward 7 Councilmember and Mayor-elect Stephen Tyler Holman expressed disappointment that the matter before the council had them in the horns of a dilemma. He didn't want to approve the phasing plan, or the TIF, but also didn't want the city to be sued for violating the agreement.
Holman noted that those who approved the original vote for the TIF, including Ward 1 Councilmember Austin Ball and Mayor Larry Heikkila, lost their seats in the last election, at least in part, due to approving the TIF. He chided those who filed the suit to bring it to court, and those who are fighting against having the TIF voted on by the public.
' I just want to be really clear about that, that nothing you have done has created a positive image of yourselves or this entire project,' Holman said. 'It has created animosity and negativity and resentment in this city that is going to last for years. We could have voted on this as a public three times by now and it would've been decided and done one way or the other.'
Holman voted along with the majority of the council for the amended resolution, which passed. Ward 5 Councilmember Michael Nash, who quizzed City Attorney Rick Knighton extensively before voting, casted the sole 'no' vote.
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