'We can't go backward.' OKC Chamber study says new arena vital to maintain trajectory

As Oklahoma City nears the December vote, advocates of a plan to build a new NBA arena hope to show area business owners how the proposal could boost the city as a whole.

Since the OKC Thunder came to town in 2008, Oklahoma City metro’s gross domestic product has grown by 41%, which significantly outpaced other similar-sized metropolitan areas that do not have an NBA team, supporters say.

"We’ve really appreciated the growth in what we’ve experienced over the years," said Eric Long, a research economist for the Greater Oklahoma City Chamber of Commerce. "And by no means are we attributing all of that growth to the arena or the Thunder itself, but it's a piece of the bigger puzzle. And when you look at the improvements of the quality of life since then, it really presents us a unique opportunity to maintain that trajectory."

On Wednesday, an economic impact study of a new arena proposal in downtown Oklahoma City was announced during a forum hosted by the Greater Oklahoma City Chamber of Commerce.

Analyses from the study were based on staff operations of the current arena, data shared by the Thunder and OKC Blue, and spending from visitors that take place inside and outside of the arena. Conducted by Applied Economics out of Phoenix, Arizona, the study also examined annual tax revenue from sales activity at Paycom Center, downtown Oklahoma City's current NBA arena.

According to the study, Paycom Center generates a direct economic benefit of $590 million and supports more than 3,000 jobs in Oklahoma City. The study also assessed the potential effect of the new arena's construction, which could generate upwards of $1.3 billion during construction and support more than 10,000 jobs.

Related: Greater Oklahoma City Chamber launches NBA arena campaign ahead of December vote

Chris Semrau, general manager at Paycom Center, and Ed Lynn, franchise owner in Oklahoma of Buffalo Wild Wings, said the current arena is lacking in many of the experience-enhancing fan amenities found at other NBA arenas elsewhere throughout the United States. Semrau also said the facility lacks loading docks and other infrastructure stipulated by many of the larger acts touring the region.

"It's more about what other arenas have that we don't," Semrau said. "I think that what this is about is, how do we position ourselves better and more competitively for the future? It doesn't mean what we have today doesn't work. It just means there's a whole other level to unlock out there that's necessary if we have expectations to truly be competitive in the future."

Lynn, whose popular Buffalo Wild Wings restaurant on Northwest Expressway is heavily sports-centric, said the Thunder is a unifying force for the metro, and that the arena drives increased business from NBA fans for the entire city community, not only downtown.

"I was here in Oklahoma City, I lived through the '80s and graduated from college," Lynn said. "It was bleak here. You can't even imagine how much it's changed as a city, how much pride there is in this community that we didn't have before."

"Now we've got something real in our hands, that we've got to make another commitment," Lynn continued. "I don't think about what's it's going to do to us to build the arena. I think, what happens to us if we don't? We can't go backward. It would be devastating as a community, not just with money, but just our identity, how we see ourselves."

Cost, timeline, and more: 6 things to know about OKC's proposed new Thunder arena

Arena proposal going to voters in December

Oklahoma City residents will vote on Dec. 12 on whether to approve the new arena proposal, expected to be built at a minimum cost of $900 million. Supporters argue the construction of a new arena would maintain the Oklahoma City Thunder's presence in the city long-term, drive economic growth and continue increasing the city's international brand.

Most of the project’s cost would be funded through a one-cent sales tax set to begin in 2028 and last six years, replacing the sales tax now funding MAPS 4. If the proposal is approved, planners expect the new arena to open in time for the Thunder's 2029-2030 NBA season.

The Greater Oklahoma City Chamber of Commerce, which is running the pro-arena Keep OKC Big League campaign, has been promoting different initiatives on behalf of the city since 1910, when it coordinated an effort that saw voters make Oklahoma City the state's capital.

Buy Your Own Arena group voices oppostion

Not everyone, however, agrees with the Chamber's assessment. Buy Your Own Arena, spearheaded by the political advocacy nonprofit Oklahoma Progress Now, is voicing opposition to the arena proposal. Nick Singer, director of communications for Oklahoma Progress Now, told The Oklahoman "very little actual economic evidence" showed the proposal as a positive for the metro community.

“These are going to be thousands of incredibly part-time, lower-wage jobs," Singer said. “And I don’t mean to disparage those types of jobs, but if we’re going to spend this much money, I think we need a fair deal, a better deal. It’s just not good economic development or use of taxpayer dollars.”

Critics of the new arena proposal argue it's a subsidy overwhelmingly shouldered by Oklahoma City residents and not the Thunder's wealthy ownership, who have pledged to contribute $50 million dollars (or about 5% of the minimum proposed construction cost) toward the venue's build.

"If the ownership group was putting in more real resources, if the private sector was putting in more real resources, that leaves Oklahoma City taxpayer dollars to pay school teachers, provide better health and human services or infrastructure," said Dr. Greg Burge, an economics professor at the University of Oklahoma. "The NBA is not the only thing that carries an economic multiplier for communities."

Related: How much is OKC's identity worth? NBA arena plans spark debate among local leaders

Advocates see wider impact on OKC than just NBA

Tyler Moore, manager for the Keep OKC Big League campaign, admitted that discussion about the Thunder has overwhelmed discourse about the arena, and hoped that the new economic impact study could remind people of the other benefits of a new arena besides the NBA team's presence.

“We don’t want the campaign to only be about the Thunder,” Moore said. “I think this study will allow us to message that a little more going forward. This economic impact study takes a look at other ways the arena is important to the city: The trade shows, the concerts and all of the other ways that the venue is used outside of basketball.”

In addition, the economist Long pointed out that sales tax is also paid by arena-goers who don't live in Oklahoma City, and argued that the tax burden is more spread out than it might appear on the surface. He also pointed to the special election on Dec. 12 as a positive sign of residents being able to decide where their tax dollars can be allocated.

"I think that everyone recognizes that there’s a lot of responsibility whenever it’s suggested we use public money for a project like this," Long said. "But I know that the residents who live here really have seen how the public and private partnership of following through on the things that you say you’re going to do, in a wise and fiscal manner, can be beneficial. This is a vote of the people being able to express a desire to have an amenity like this in Oklahoma City."

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This article originally appeared on Oklahoman: OKC Chamber: New NBA arena key to Oklahoma City's growth trajectory