Drillers Downtown Press Conference Today

[jne]

City, Drillers agree to downtown stadium

by: P.J. Lassek WORLD STAFF WRITER
1/22/2008  12:00 AM

Related stories: Calling for a change-up

Drillers noncommittal despite Jenks TIF



Mayor Kathy Taylor and Driller's owner Chuck Lamson will announce today that they have entered into an exclusive agreement to negotiated a deal to bring the baseball team downtown.

The location for a city-owned stadium is in the East Village, the recent site of two previously announced projects that fell through -- a Wal-Mart Supercenter and prior to that a privately-owned baseball stadium.

The exclusive agreement legally binds Lamson to negotiate only with Tulsa until May 30 at which time a definitive agreement must be reached.

The agreement prevents Lamson from further talks with Jenks developers, with whom he signed a non-binding agreement last fall for a proposed baseball stadium in a riverfront development.

Taylor said the land in the East Village area that was under a purchase option for the Wal-Mart Supercenter has been signed over to the city. She said private funding is being used to finance those option prices. She didn't release the amount.

"We had to have an exclusive agreement with Chuck to tie up the land, but we had to tie up the land before we announced the exclusive agreement because we didn't want people speculating on property and then us having to pay more for it like we saw with the BOK Center," she said.

Taylor said that part of the negotiation with Lamson will be to fully explore public and private funding mechanisms. "We're going to be looking at a broad variety of funding mechanisms. What we won't be looking at is any thing that would adversely affect street funding," she said.

In addition to the private funding, the public funding options being explored include a "defined term increase" in the city's current 5-percent hotel-motel tax and a perhaps collection of state sales tax through a legislative amendment to the Leverage Act as it deals with Tax Increment Financing Districts.

Because the city has no construction drawings, Taylor said that at this point the city doesn't know how much a stadium would cost. She did say that she and several councilors have traveled out of state to look at other ballparks and know their basic costs.

But, she said, "to announce what our stadium is going to cost would be a real ballpark figure."

She said the city also is looking at additional land it owns around the stadium that could increase in value and allow the city to ultimately sell it to help fund the package.

Taylor said when looking at ballparks that have been revitalization engines for downtowns, "part of the attraction is the outdoor space outside of the stadium where events like concerts and art fairs can be held that bring people outside even when baseball isn't being played."

The stadium would be a public facility even though it would be home of the Drillers like the BOK Center is home to the Talons arena football and Oilers hockey teams, she said.

[FOTD]

Once again I will ask, "is this governments function? Should taxpayers, especially those that can least afford it, be forced into this future suck hole?"

Socialism..... but it's a ballpark estimation.

[dsjeffries]

Thank the Gods who oversee downtown!
[^]

Lamson: "We might be going to Jenks....JINX!" []

[swake]

This is beyond weak.

Jeasuss Freakin' Christ on a stick, this was the best they can do? The City of Tulsa and The Drillers have signed an agreement to have exclusive rights to negotiate for the next four months? What? Really?

Never mind that the Drillers know exactly what The River District is offering and have no need to negotiate there. I would bet money that The River District has set a date of June 1st for the Drillers to agree to move to Jenks or not based on their construction schedule. The Drillers have in reality agreed to nothing but look good in giving The city of Tulsa a last chance.  

The most outrageous part is that the City of Tulsa is just now going to explore ways to fund this? Now? With stunning ideas like a change in state law, that would cost the state sales tax revenue? HA, not gonna happen and certainly not going to happen in 120 days.  Or an increase in the hotel tax. Correct me if I'm wrong but an increase in the hotel tax would still take a vote of the people, and the hotel industry is certainly going to fund a fight against that (just like they did "Tulsa Time") and the likely vote is "no" anyway. And that's even if you can cobble together a plan, get it through the council and then hold a vote in less than 120 days, which I doubt. Sale of land nearby? That land has been for sale for years and years with no takers at fire sale prices. That's a dream and even if the land were to sell there's no way it will bring the kind of money needed for a stadium.

There's nothing to write a TIF on, and that's the way to get this done and it just not possible here. I certainly don't see the people passing a tax in a vote. You might get $5-6 million in naming rights. That leaves you $30+ million in real money short of what is needed with no real idea of how to get it.

120 freakin' days. I give up.

[safetyguy]

Another example of the cart before the horse....

Things need to be thought through a little more Kathy Taylor. How can you not have a major thing like funding figured out already?? Shouldn't that be the first thing.

Morons...

[Renaissance]

quote:Originally posted by swake



This is beyond weak.

Jeasuss Freakin' Christ on a stick, this was the best they can do? The City of Tulsa and The Drillers have signed an agreement to have exclusive rights to negotiate for the next four months? What? Really?

Never mind that the Drillers know exactly what The River District is offering and have no need to negotiate there. I would bet money that The River District has set a date of June 1st for the Drillers to agree to move to Jenks or not based on their construction schedule. The Drillers have in reality agreed to nothing but look good in giving The city of Tulsa a last chance.  

The most outrageous part is that the City of Tulsa is just now going to explore ways to fund this? Now? With stunning ideas like a change in state law, that would cost the state sales tax revenue? HA, not gonna happen and certainly not going to happen in 120 days.  Or an increase in the hotel tax. Correct me if I'm wrong but an increase in the hotel tax would still take a vote of the people, and the hotel industry is certainly going to fund a fight against that (just like they did "Tulsa Time") and the likely vote is "no" anyway. And that's even if you can cobble together a plan, get it through the council and then hold a vote in less than 120 days, which I doubt. Sale of land nearby? That land has been for sale for years and years with no takers at fire sale prices. That's a dream and even if the land were to sell there's no way it will bring the kind of money needed for a stadium.

There's nothing to write a TIF on, and that's the way to get this done and it just not possible here. I certainly don't see the people passing a tax in a vote. You might get $5-6 million in naming rights. That leaves you $30+ million in real money short of what is needed with no real idea of how to get it.

120 freakin' days. I give up.

Underwhelming, but maybe we're not quite reading between the lines here?  What I see is that the City has managed to cut Bill White and his failed Wal-Mart dreams out of the picture for the Nordam land.  

Thus, one possibility will be the re-emergence of Global Development.  This puts the City in their corner, protects them from further land speculation, and gives them the kind of security that is necessary to even begin securing financing.  Even if it's not Global, it gives good protection to whoever decides that their moment is now.

Speaking of financing, notice that the Fed cut the prime rate by 0.75% today?  You know that that means, right?  Money is a hell of a lot cheaper than it was last Friday.  If there was ever a 120-day period to secure financing and get a deal done, NOW is the time to do it.  Don't be surprised to see BOK brought into the deal.

[inteller]

If KK even THINKS about putting up a tax to a vote she will expose deep fractures within the city.  I have a sneaky suspicion she will set up this town for a midtown versus everyone else vote....because no way in hell will south Tulsa pass this one when Jenks would be closer and not cost them a dime.

One only needs to look back at how the downtown library vote turned out to see the direction any ball park vote will go.

[Renaissance]

There is no possible way this will go to a popular vote, city or county, unless the Mayor suddenly hates having any sway.  It might pass, but it would cost her every cent of political capital for the rest of her term.  So forget sales tax or municipal bonds.  Think state funding or TIF.

[swake]

quote:Originally posted by Floyd

There is no possible way this will go to a popular vote, city or county, unless the Mayor suddenly hates having any sway.  It might pass, but it would cost her every cent of political capital for the rest of her term.  So forget sales tax or municipal bonds.  Think state funding or TIF.

A TIF on what? To have a TIF you have to have an "I"ncremental increase in taxes. There's no place where that is going to assuredly happen in the vicinity of the stadium. You can't hope for it, the city is going to be borrowing money with the TIF so it has to be very solid.

State funding? Sure, that's going to happen. You people really need to start to realize that state government is the enemy of Tulsa and should be treated as such. The state certainly treats Tulsa in this manner. Tulsa will get nothing except derision for going hat in hand to the state asking for stadium funding. Let's recall how that five year plan to widen I-44 that started in 1986 is going? It will probably not be done in 2016. The state had to be shamed in to accepting The OSU Medical Center as a $160 million gift. The state is NOT our friend and will not be helping.

A hotel tax should be a no-brainer, but we have too many blogger types and people like "Inteller" for that to be an option.

[spoonbill]

This is troubling.  
This is what is known as a political Hail-Mary.  

The mistake was making the announcement at this point.  
Not wise.  
Agreement to negotiate = desperation.
Now we know who's holding what cards.

She has now given up all possibility of asking for additional tax money, and there is very little chance a TIF program will fly in that area to pay for anything.  

This announcement has put her in a very poor position for negotiation.  Meanwhile, the Jenks development has no intentions to scrap their plans for the stadium.  The Drillers are welcome to commit at a later date.  They are actually happy about this.

I have to give Chuck Lamson my best golf-clap.  This was brilliant on his part, allowing her to back into a corner.  He is in the perfect position.  No matter what happens he gets what he wants.  Go ahead Chuck, roll the dice, you win either way!

Clap!
Clap!
Clap!

Aguh!  Who is our city PR consultant, and why haven't they been fired!

[inteller]

quote:Originally posted by Floyd

There is no possible way this will go to a popular vote, city or county, unless the Mayor suddenly hates having any sway.  It might pass, but it would cost her every cent of political capital for the rest of her term.  So forget sales tax or municipal bonds.  Think state funding or TIF.

state funding?  Oh yes the entire state will enjoy funding a little downtown yuppy hangout.  I have a feeling you won't be getting the support of the farmers out in Mayes or Cimmaron counties.  The state would PAY for something to stay inside Oklahoma when they can have it for free?  Makes ZERO sense.

As long as it took Jenks to cobble together a TIF, I don't see KK doing it in 4 months.  Hell just finding an unwitting developer will take that long.

[TulsaSooner]

quote:Originally posted by swake
A TIF on what? To have a TIF you have to have an "I"ncremental increase in taxes. There's no place where that is going to assuredly happen in the vicinity of the stadium. You can't hope for it, the city is going to be borrowing money with the TIF so it has to be very solid.

Tulsa Hills has a TIF and there was ABSOLUTELY nothing there before the shopping center that's being built.

[Renaissance]

quote:Originally posted by swake

quote:Originally posted by Floyd

There is no possible way this will go to a popular vote, city or county, unless the Mayor suddenly hates having any sway.  It might pass, but it would cost her every cent of political capital for the rest of her term.  So forget sales tax or municipal bonds.  Think state funding or TIF.

A TIF on what? To have a TIF you have to have an "I"ncremental increase in taxes. There's no place where that is going to assuredly happen in the vicinity of the stadium. You can't hope for it, the city is going to be borrowing money with the TIF so it has to be very solid.

State funding? Sure, that's going to happen. You people really need to start to realize that state government is the enemy of Tulsa and should be treated as such. The state certainly treats Tulsa in this manner. Tulsa will get nothing except derision for going hat in hand to the state asking for stadium funding. Let's recall how that five year plan to widen I-44 that started in 1986 is going? It will probably not be done in 2016. The state had to be shamed in to accepting The OSU Medical Center as a $160 million gift. The state is NOT our friend and will not be helping.

A hotel tax should be a no-brainer, but we have too many blogger types and people like "Inteller" for that to be an option.

The hypothetical East Village TIF would require partnership with a private developer.  The "I"ncremental increase comes from the private part of the partnership.  The City and the developer would enter into an agreement to build an East Village very similar to the plan proposed by Global Development.  City of Tulsa would be responsible for site cleanup and stadium construction.  The Private Developer would be responsible for creating mixed-use commercial development around the stadium.  City of Tulsa funds their part through borrowing against the TIF, precisely as Jenks will do.  The "I"ncremental increase comes from the private part of the partnership.

Skeptical that we'll be able to find a developer to help out?  I was too, for a second.  But then I noticed that we have a little angel making this happen, did you?  

quote: Taylor said the land in the East Village area that was under a purchase option for the Wal-Mart Supercenter has been signed over to the city. She said private funding is being used to finance those option prices. She didn't release the amount.

Somebody is providing the seed money for this deal to happen.  That "somebody" is either a philanthropist (e.g. Kaiser), an interested developer (e.g. Global), or a combination of the two (e.g. Kanbar).  Will be interesting to find out who.

[Renaissance]

quote:Originally posted by inteller

quote:Originally posted by Floyd

There is no possible way this will go to a popular vote, city or county, unless the Mayor suddenly hates having any sway.  It might pass, but it would cost her every cent of political capital for the rest of her term.  So forget sales tax or municipal bonds.  Think state funding or TIF.

state funding?  Oh yes the entire state will enjoy funding a little downtown yuppy hangout.  I have a feeling you won't be getting the support of the farmers out in Mayes or Cimmaron counties.  The state would PAY for something to stay inside Oklahoma when they can have it for free?  Makes ZERO sense.

As long as it took Jenks to cobble together a TIF, I don't see KK doing it in 4 months.  Hell just finding an unwitting developer will take that long.

I misspoke.  By state funding, I meant a change in state law allowing a higher hotel tax.

[inteller]

quote:Originally posted by Floyd

quote:Originally posted by swake

quote:Originally posted by Floyd

There is no possible way this will go to a popular vote, city or county, unless the Mayor suddenly hates having any sway.  It might pass, but it would cost her every cent of political capital for the rest of her term.  So forget sales tax or municipal bonds.  Think state funding or TIF.

A TIF on what? To have a TIF you have to have an "I"ncremental increase in taxes. There's no place where that is going to assuredly happen in the vicinity of the stadium. You can't hope for it, the city is going to be borrowing money with the TIF so it has to be very solid.

State funding? Sure, that's going to happen. You people really need to start to realize that state government is the enemy of Tulsa and should be treated as such. The state certainly treats Tulsa in this manner. Tulsa will get nothing except derision for going hat in hand to the state asking for stadium funding. Let's recall how that five year plan to widen I-44 that started in 1986 is going? It will probably not be done in 2016. The state had to be shamed in to accepting The OSU Medical Center as a $160 million gift. The state is NOT our friend and will not be helping.

A hotel tax should be a no-brainer, but we have too many blogger types and people like "Inteller" for that to be an option.

The hypothetical East Village TIF would require partnership with a private developer.  The "I"ncremental increase comes from the private part of the partnership.  The City and the developer would enter into an agreement to build an East Village very similar to the plan proposed by Global Development.  City of Tulsa would be responsible for site cleanup and stadium construction.  The Private Developer would be responsible for creating mixed-use commercial development around the stadium.  City of Tulsa funds their part through borrowing against the TIF, precisely as Jenks will do.  The "I"ncremental increase comes from the private part of the partnership.

Skeptical that we'll be able to find a developer to help out?  I was too, for a second.  But then I noticed that we have a little angel making this happen, did you?  

quote: Taylor said the land in the East Village area that was under a purchase option for the Wal-Mart Supercenter has been signed over to the city. She said private funding is being used to finance those option prices. She didn't release the amount.

Somebody is providing the seed money for this deal to happen.  That "somebody" is either a philanthropist (e.g. Kaiser), an interested developer (e.g. Global), or a combination of the two (e.g. Kanbar).  Will be interesting to find out who.

Ah, I see the road to Kaiserville continues to be built.  I have an idea, maybe Kathy, Kanbar, and Kaiser can all go in together to build the stadium.  Then we can have Driller baseball at KKK stadium. [}:)]