TW: Stadium Trust Eyes Property

[DowntownNow]

As reported in the Tulsa World Sunday 02/15/09
http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20090215_11_A3_Someof347904&allcom=1#commentform

Stadium Trust eyes property
The Kaiser foundation offers to sell four sites at cost.

By P.J. LASSEK World Staff Writer
Published: 2/15/2009  2:49 AM
Last Modified: 2/15/2009  4:10 AM

Some of the properties the Tulsa Stadium Trust could use for complementary development around the downtown baseball stadium are being identified.

The trust recently learned it has the option to purchase four properties, at cost, on the west side of the stadium site that have been secured by the George Kaiser Family Foundation.

The trust is overseeing the $60 million ballpark endeavor, which includes a $39.2 million multiuse stadium and the purchase of adjacent land to be redeveloped into mixed uses to help increase property and sales tax revenues and spur further growth in the area.

The stadium, ONEOK Field, will be home to the city's Double-A baseball team, the Tulsa Drillers. During the team's off-season, the stadium will host a variety of non-baseball events.

The stadium will be in the historic Greenwood District, nestled against Interstate 244, bounded by Elgin Avenue and Archer Street, and abutting the backside of the businesses along Greenwood Avenue.

The trust is limited to acquiring land around the stadium and that is bounded by Detroit Avenue, the Burlington Northern Santa Fe Railroad and Interstate 244, unless it is given written consent from the City Council.

The total cost of the four properties obtained by the foundation is about $3.5 million.

The properties include the Oklahoma Workforce Building at 2 N. Elgin Ave., the former Hive nightclub at 216 N. Elgin Ave., the former Fleener Truck Tires at 23rd N. Detroit, and the 307 E. Brady St. building.

Ken Kevit, executive director for the Kasier Foundation, said that if the trust doesn't want to purchase the 307 E. Brady St. building, the foundation with the approval of the trust will redevelop it into an arts-related facility with lofts likely on the upper floor.

Levit said the foundation has been interested for some time in helping a movement to redevelop the Brady District into an arts and cultural area and has purchased other property there.

He said when the stadium project landed in the area, the foundation was asked to assist in acquiring land directly around the site.

When planning the ballpark project, stakeholders and Mayor Kathy Taylor said it was essential to have surrounding development that enhances the stadium and draws visitors to the area. That strategy has made stadiums in other cities successful, they said.

If the trust doesn't purchase the 307 E. Brady St. property, the cost for the other three sites would be about $2.3 million, officials said.

With the four foundation properties and sites owned by the Tulsa Development Authority, the trust has the ability to oversee redevelopment on about half the area surrounding the stadium.

The largest tract owned by the Tulsa Development Authority covers nearly two city blocks and is under contract by the Greenwood Development Corp. for mixed-use development. The corporation has a member on the trust.

During a Feb. 6 trust meeting, one of the members asked whether an effort would be made to acquire any more land and was told that the more money used to buy land, the less money there would be to develop the sites.

The $60 million project will be covered by $30 million in private donations, $25 million from a special downtown property assessment fee and $5 million from the Drillers' lease.

The trust will own the stadium and has signed a 30-year lease with the Drillers.

The city is the sole beneficiary of the trust.


Lots of problems with this story...

The properties that were the subject of this article were being purchased or were placed under option by the Kaiser Foundation months before Mayor Taylor publicly announced that the ballpark was moving from the East End to Greenwood.  It my mind there was an "insider trade" scheme going on as many of these property owners had no idea new development was coming to the area and they sold on the cheap.  Other properties and business owners surrounding the area were even threatened with condemnation if they did not sell for the benefit of the ballpark development (remember the fiasco created by the Donor's rep Pete Boylan? TW http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20080731_11_A1_hTheci336589&archive=yes )

Secondly, the Trust did not just recently find out about being able to purchase these properties at cost as was suggested in the article.  The TW has even reported in past articles that this would be the case.  This was known since at least July '08 (See TW article 07/13/08 Area Around Stadium Key, Aide Says)

Third, the building at 307 E. Brady St. has already been identified by the Kaiser Foundation as being one to rehabiliate into art space that will be leased on a donation basis for the Tulsa Living Arts so even that part is a lie. The Stadium Trust will not choose to purchase, the Foundation will provide it to Living Arts since that is already the deal...watch.

Not one thing to come out of the mouths of this Trust has been honest and upfront. These articles continue to make it sound like these donors are generous when there has been an agenda all along. And the Tulsa World being used (since I know PJ LAssek knows the issues surrounding this) as the cheerleading mouthpiece of the donors is a shame.

[DowntownNow]

Also keep in mind this statement regarding the FEbruary 6 Trust meeting as reported by the TW:

During a Feb. 6 trust meeting, one of the members asked whether an effort would be made to acquire any more land and was told that the more money used to buy land, the less money there would be to develop the sites.

The Trust now seems to be moving to develop the surrounding properties itself rather than marketing and co-ordinating with outside developers as it said it originally intended to do.  The purpose of this so-called "third leg" of public development was to help spur private sector redevelopment and investment in the downtown area but instead the IDL property owner's assessment monies are being spent to develop lucrative property in the surrounding prime real estate.  What incentive does this provide outside developers when the choice properties are being purchased, donated and developed by one group?

No one should think twice that the donors are being generous here.  The donors could have built the stadium with the $30mil they wanted to 'donate' and the $5mil from the lease without impact to the IDL property owners.  That would have been philanthropic and generous as stewards of the community.  Instead the intent has been to utilize public funds to build the ballpark and the donor funds to acquire and develop the prime commercial real estate surrounding it...now the question is for whose benefit?

First one that comes to mind is Kaiser's of the Kaiser Foundation and BOK.  The monies being lent to the Tulsa Community Foundation are not interest free and over the 30 year period will generate a significant amount of interest revenue for BOK.  Manhattan will undoubtedly benefit from the surrounding property development and construction and well as other members of the Chamber gang.

Greenwood Commumity may have already been conferred a benefit since the Trust was forced to pay them over $250,000 for their 'development efforts' for the previously proposed Greenwood project anounced late 2007.

Where is the benefit to the IDL property owners in the South and West End (let alone any 5 blocks away from the ballpark)?  I haven't seen one article yet suggesting property values have increased as a result of this development that is now underway.

[sgrizzle]

Don't read into the timing of when Kaiser bougt the properties. You'd be surprised if you knew how much north of the railroad tracks he owns, and not just near the stadium.

[DowntownNow]

Actually Grizzle, I'm not reading anything into it.  I've talked to the owners of properties that were purchased and those that were targeted.  Many had no idea what was going on at the time before they opted to sell, others said they would fight a forced purchase.

One person was negotiating a contract on the East End building where the Hive was, only to have it scooped out for a cash deal to close in weeks.

Another was baited that a deal on other substantial property he owns was conditional on the sucessful sale of one of the parcels.  

I have some inkling of what Kaiser owns down there...Mathews Warehouse, option on the Central Frieght location for a park area, the buildings located in this area.  Was optioning on other parcels in Brady but not sure where that stands.  Most of the rest is owned by TDA, Sharp, Wallace, Oliphant, Mayo, and now Snyder.

[sgrizzle]

I believe he's gone as far west as Boulder, maybe Cheyenne.

[DowntownNow]

I know which two parcels you are talking about Grizzle...and until I hear its a done deal, I'm not holding my breath.

[TheArtist]

Still curious as to what they are talking about on the redevelopment front? Are they using the money to actually build buildings? Or is it money to do basic infrastructure, sidewalks, plaza, fountains, etc. to assist outside developers on redevelopment costs and or create a pleasing public space around the ballpark and the developments?  

I just hope we see some movement on those properties, plans or potential developments, sometime this year. Any, "clever machinations" aside, its the immediate results that will be the deciding factor for many. They will either get praised for doing what was necessary, or condemned for making a mess of it. The clock is ticking...

[DowntownNow]

This was posted in the comments section of the article last night and got me thinking...

dog walker, tulsa (2/16/2009 12:10:40 AM)
These ridiculous comments are so ignorant. You people truly do not get it. The ball park is a good thing and these donors are doing something wonderful for the city.

If this was such a good thing, then why must the ballpark donors and Trust purchase and develop the surrounding property themselves? The idea behind this (that was so heavily promoted) was to provide the so-called "third leg" of public investment to drive private third party re-development of the downtown area. How does this accomplish that, when the prime real estate is being gobbled up under the guise of a Public Trust that controls who gets to and what is developed there?

I suppose if you want to fill in the undesired areas with second and third tier (if you're lucky) development, then congratulations to leaving only that to would-be developers...simply a slam in the face of promoting new, healthy and long term private investment in our downtown.

Not to mention the false promotion of needing downtown property owners to cough up a needed $25 million through assessment for the ballpark, when donors are simply serving up the remaining portion of funds to promote their ancillary development objectives.

The BOK Center was also supposed to encourage and spur new and continued economic growth and re-development but where is that?  Those restaurants that are within proximity are struggling, residential mixed use is just getting off the ground after struggles, there is no connectivity between the areas of public investment.

Where is all the promised re-development of those City lands that are under contract for marketing and promotion by Jones Lang LaSalle?  There has yet to be one credible redevelopment proposal since the process began and the RFP's submitted.  There are now 3 sites and no takers.  (Minus the possible but not yet under contract hotel across from the BOK).

Some will argue "what about the Mayo Hotel, the Mayo Building, Philtower, First Street Lofts, Atlas?"  The Mayo buildings were already in the development process and simply struggled for years to find the foothold they needed for financing.  The Philtower is located in the Core and took advantage of, not the BOK Center for its business plan, but the Core Business district.  The Atlas is also relying on the Core business district and not the BOK Center or Ballpark for its bulk of business.  The First Street Lofts are simply struggling to be completed with no definitive date in sight and after receiving Vision2025 public funding.  Kanbar's large portfolio of properties remain lil more occupied or re-developed than when the bought them.  

So what has all this public investment really provided for at this time?  Was a ballpark really necessary?  Or was it that public monies should have been spent on streetscaping, lighting, public/connective transports between districts, bridge improvements, and most importantly, tax incentives for re-development (to encourage third party developers) and proper due diligence and planning on a smaller IDL scale comparable to what is now happening with PlaniTulsa?

[Gold]

[TheArtist]

HA! if only. Its all part of a larger plan. Mwuhahahaahaa...[}:)]

[JCnOwasso]

You know, I liked the stadium idea.  I think a new stadium is a good idea.  But why can't anything happen in this town without a cloud of corruption?

I am not dumb, I realize that noone is going to put anything into something unless they are looking to receive a benefit.  But comeon, atleast make an effort to cover it up... or to put a spin on it.  It is like passing gas in a crowded room and saying... "yep, that was me and I had bean spouts".  for the love of god, point at bob and say it was his fault.

[sgrizzle]

quote:Originally posted by JCnOwasso

You know, I liked the stadium idea.  I think a new stadium is a good idea.  But why can't anything happen in this town without a cloud of corruption?

I am not dumb, I realize that noone is going to put anything into something unless they are looking to receive a benefit.  But comeon, atleast make an effort to cover it up... or to put a spin on it.  It is like passing gas in a crowded room and saying... "yep, that was me and I had bean spouts".  for the love of god, point at bob and say it was his fault.

So you think they are really looking at ROI on a $30M donation? These people make millions a day but they are spending months working out some hairballed plan to squeeze a couple of extra thousand in the real estate market?

[dsjeffries]

Opposing arguments:

quote:Originally posted by JCnOwasso

"I am not dumb"
...
"noone"
"comeon"
"atleast"

What is a noone? Like Peter Noone, the lead singer of Herman's Hermits?

[Renaissance]

They just want control.  They have the best interests of Tulsa at heart and are scared of what will happen in the area around the stadium if they relinquish control.

In my mind, this fear is unfounded and bullsh!t.  It's elitist and anti-growth.  I think they're being quite clear about their intentions--no secret conspiracies here, just an overt, public-private partnership to circumvent natural, entrepreneurial real estate development in that part of town after the ballpark arrives.

I would be more sympathetic if this were a totally private venture without public tax dollars involved.  But it's not.  Public tax dollars should be used to spur growth, not constrict its control.

[JCnOwasso]

quote:Originally posted by dsjeffries

Opposing arguments:

quote:Originally posted by JCnOwasso

"I am not dumb"
...
"noone"
"comeon"
"atleast"

What is a noone? Like Peter Noone, the lead singer of Herman's Hermits?

Many apologies... I will be sure to run my future posts past the spell check.

and grizzle... Yes.  And I am sure it is more than a couple thousand.  Regardless, rich people do not get rich because they just let a couple thousand slide here or there, they are rich because the squeeze the couple extra thousand out of a deal.  How much were these 4 properties originally?  They are unloading them to the trust for 3.5 million... if they acquisition them for 1.5, that is a 2million dollar profit.  Even if they originally got them for 3, that is still 500k.  

I am confused by the phrase "at cost" though.  Which cost are they talking about.  Original acquisition cost?  Who did they buy them from?  Another member of the trust?    

eh, who knows.  Perhaps I am dumb.