Amid Thunder buy-in concerns, OKC City Council votes to put NBA arena on December ballot

In a tense, heavily packed meeting, the Oklahoma City Council voted to send a proposal to build a new NBA arena to the ballot. Voters will decide Dec. 12.

Oklahoma City Mayor David Holt and City Manager Craig Freeman officially presented the plan to the council Tuesday morning. The resolution to set a special election required a simple majority approval from the city council, which passed it 7-2, and the December vote will need a simple majority from voters.

The new arena, expected to be built at a minimum cost of $900 million, would be largely funded by a temporary one-cent sales tax, set to begin after the similar MAPS 4 penny tax ends in 2028, and last for six years. The city hopes to open the new arena ahead of the 2029-30 NBA season.

Those who oppose the arena argue the NBA team should contribute more funding to the project to be on par with similar ventures around the United States, and others say the planning process lacked transparency and ample time for feedback.

Holt, one of the most visible and vocal advocates for the new arena since he began publicly calling for it in 2022, signed the letter of intent with the OKC Thunder Tuesday afternoon. The mayor's comments echoed the sentiments of other leaders who showed up to the Tuesday meeting voicing support for the arena, arguing that the Thunder's presence and support of nonprofit initiatives was vital to the local economy's growth.

"I just think that when it comes to the concerts, major league sports, quality of life, the economic impact and growth, the international brand, the economic ability to help all people ... and the philanthropy, the fact that we can do all that without a tax increase I think is a win-win," Holt said.

"But the people get to decide," Holt said. "I think that's the most beautiful thing of all."

More: Is OKC's new NBA arena bringing a new tax? How is MAPS 4 involved? What to know

What is the OKC Thunder's role in the new NBA arena plans?

If voters approve the new arena, the Thunder has agreed to play in Paycom Center until it is built, and then play in the new arena for 25 years. The city will own and operate the venue, while the Thunder is expected to pay to lease it during its term.

Among the conditions in the proposal's terms are that the Thunder would not be responsible for cost overruns unless the team requests changes that would raise the budget after the design is finalized.

The team ownership also has agreed to contribute $50 million to the new arena, which Holt has lauded as significant given taxpayers have solely funded Oklahoma City's previous arenas.

“On behalf of the Thunder organization, I want to commend Mayor Holt and members of the City Council and express our deep gratitude for their leadership,” OKC Thunder Chairman Clay Bennett said in a statement. “This is a vital step for the future of Oklahoma City and an opportunity to continue to build on the tremendous growth our city has enjoyed.”

More: OKC Thunder 'commends' Mayor David Holt's call for new arena

Opposition to the arena: 'We are not a piggy bank for vanity projects'

Opponents say the team should be putting up more than 5%, arguing that taxpayers would be subsidizing a $1 billion venue that the Thunder's wealthy ownership could afford to finance themselves at the expense of the city's other needs.

After the city council voted Tuesday, a group of concerned citizens, led by the nonprofit Oklahoma Progress Now, gathered on the east steps of City Hall in protest of the proposal.

“The citizens of OKC need to demand Mayor Holt negotiate for us taxpayers, not billionaires,” said Nabilah Rawdah, executive director of Oklahoma Progress Now. “We are not a piggy bank for vanity projects. OKC has real problems to solve like affordable housing, public transportation and infrastructure. Asking the taxpayers of OKC to subsidize 95% of the project for the benefit of a privately owned asset shows a complete lack of fiscal responsibility by Mayor Holt.”

Related: Some readers are asking why approval of a proposed new NBA arena in OKC is being rushed

City council members show opposition: 'The math is not mathing'

Holt and Councilmembers Bradley Carter, James Cooper, Barbara Peck, Todd Stone, Matt Hinkle and Mark Stonecipher all voted to approve the letter of intent and to send the proposal to the ballot.

But City Councilmembers JoBeth Hamon and Nikki Nice, who represent Wards 6 and 7 respectively, voted against the arena proposal Tuesday, saying that councilmembers had been left in the dark when it came to negotiations and that not enough time had been given for community input before the council was asked to approve it.

Hamon also voiced concern that the new arena's construction would divert attention and funding away from the city further tackling solutions to its own issues, like reducing homelessness and providing youth better options and services.

“I heard a lot of arguments and points from folks about essentially what I hear as ‘trickle-down’ benefits,” Hamon said. “(The Thunder) donate to nonprofits, they do XYZ here and there. But what if we didn’t need nonprofits to help homeless kids because they have homes? What if we didn’t need nonprofits to build parks and sports recreational centers for kids because we did that with our public dollars?

“I don’t think the Thunder are the only thing that makes this city great,” she added.

Nice, who reiterated that she has long been a fan of the NBA team, argued that the proposal as presented Tuesday was not fiscally responsible. She also objected to the team's ownership contributing so little to financing the arena's construction when many residents in her ward could not afford to attend games at the current arena.

“I hope that in future dealings and conversations that we have better communication about how we move forward with these types of ventures because the math is not mathing as far as 95% (public) and 5% (private) is concerned,” Nice said. “72 months is a long time for people to have to pay for something that they may never get to experience.”

More: OKC Council expected to learn details of NBA arena plan, but some are voicing concerns

Holt said he and Freeman advocated as much as they could for other options on behalf of the city during negotiations with the Thunder, but that ultimately these were the terms to which both the team’s owners and city officials agreed.

“We can’t make the team do anything that it does not consider within its interests, and so we need the voters of Oklahoma City to decide if the offer is worth it,” Holt told The Oklahoman. “I think it’s imperative that the voters get the opportunity to make that decision, but the only card we have to play is walking away from the table.”

Community benefits package overwhelmingly supported

As part of the discussion, Ward 2 City Councilperson James Cooper presented a community benefits package resolution to add to the arena proposal, which was modeled after a successful venture in Milwaukee. It passed 8-1.

The hope is that the package would improve wages for arena workers and could use apprenticeship programs and workforce intermediaries to boost areas of the city hit hard by unemployment. It also opens up the opportunity to study and evaluate the use of a labor peace agreement at the new arena.

Cooper's resolution saw overwhelming support from city councilmembers and the mayor, and was praised by both supporters and dissenters of the broader arena proposal Tuesday.

Only one city official, Councilman Mark Stonecipher for Ward 8, voted against the package. He could not be reached for comment by press time Tuesday.

More: OKC Council could leverage NBA arena project to add workforce benefits, like Milwaukee did

The council meeting was lengthy, with various civic leaders and representatives from organizations providing comments of either support or disapproval of the arena proposal.

Several officials for local nonprofits and business organizations spoke in favor of the new arena, thanking the Thunder for their philanthropic initiatives in the community. Others cast doubt on why local residents should have to subsidize the new arena, but no one disputed the prominence the Thunder has given the city since the team arrived in 2008.

“I know that is currently part of the arguments: Why would we choose an arena over our vulnerable population who won’t ever be able to enjoy this big beautiful new thing?” said Jenny Nguyen, vice president of the Asian District Cultural Association. “And to be frank, I can bet that 0% of my first-generation business owners and people that live there have gone to a Thunder game or even an event center, but I can guarantee you that 100% of them have felt the effect of having OKC Thunder here.”

This article originally appeared on Oklahoman: New NBA arena headed to Dec. ballot as OKC council approves proposal