How is a new OKC amphitheater being funded? By selling its own private suites to investors

J.W. Roth wants Oklahoma City to know when it comes to building a 12,000-seat amphitheater, he is not messing around.

The Colorado entrepreneur and promoter is set to start construction next year on both the amphitheater in far west Oklahoma City and a second in Broken Arrow. With both projects, he is in the midst of an aggressive investment promotion tied to his unique approach of selling fireplace suites to investors.

The Oklahoma City location, announced in July, is part of an aggressive launch for Roth’s Notes Live. Roth owns smaller indoor music venues in Colorado Springs and Gainesville, Georgia, but the Notes Live amphitheaters represent a new business model based on sales of firepit suites and VIP suites.

Those sales, essentially, make the buyers investors in the amphitheaters. In addition to Oklahoma City and Broken Arrow, Roth has announced plans for venues in Dallas and Murfreesboro, Tennessee. Construction started on the company’s first amphitheater in July.

“I’m more than 120 days into the Colorado Springs project, and I’m into pouring concrete now and lots of it,” Roth said. “There are lines of cement trucks. I'm spending over a million dollars a week right now.”

The Colorado amphitheater is ahead of schedule and under budget with all of its firepits and sponsorships sold, Roth said. He promises similar success with the Oklahoma City amphitheater, which he said is on track to start construction in January with an opening by the summer 2025 concert tour season.

As of Friday, Notes Live reported 30% percent of suites are sold and that includes the sold-out front row suites.

The Colorado Springs amphitheater, in Roth’s hometown, is far smaller than the one he proposes in west Oklahoma City, seating only 8,000 with 90 firepits. The Oklahoma City venue, located near Mustang High School, will be the “most luxurious” of the company’s amphitheaters with 58 eight-person luxury suites, 144 four-person suites, and an owner’s club suite with lifetime access for 160 members.

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Prices for the various suites and memberships range between $125,000 and $650,000. Of the 202 suites, 87 have sold to investors who have bought into Roth's sales pitch.

“When we first started here, we had 1,000 (firepit) inquiries come in,” Roth said. “Right out of the gate, we had 40 to 50 sponsorship inquiries.”

Suite sales equal ownership, but with conditions

Each buyer is provided a prospectus with detailed contract terms, and one was provided to The Oklahoman. The prospectus shows firepit buyers not only own the firepit seating suites, but also will get $7 for each ticket sold for shows at the amphitheater. Depending on investment level and ticket use, buyers are told they can expect a targeted return of up to 19%.

The investment money will be used for construction of the amphitheater. Investors are members of the limited liability company that owns the property. The investment is transferable to heirs or through resale. The firepits and VIP suites, however, cannot be resold until all 202 are sold by Notes Live.

Roth said deposits are being held in escrow at Integrity Bank and Trust in Colorado Springs, and final payments won’t be due until 30 days before the first performance.

Public incentives are part of deals moving forward in Gainesville and Broken Arrow, but Roth said he won’t be seeking any public assistance for the Oklahoma City amphitheater. To secure the 12,500-seat amphitheater in Broken Arrow, the city agreed to create a $20 million sales tax increment financing district to pay for parking and infrastructure.

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Oklahoma City officials confirmed they already had plans funded to widen SW 15 at the Kilpatrick Turnpike, which is needed to accommodate traffic generated by the amphitheater. Roth said “ample parking” for 12,000 music fans has been secured with developers of the adjoining Mustang Creek Crossing shopping center.

Kimley-Horn, which is already working with the city on traffic and public transportation projects, is working with Notes Live on how to best manage traffic to and from the venue. Roth acknowledged the outdoor live music industry does not have a great track record responding to traffic.

“We are acutely focused on the customer experience and the impact on the local area,” Roth said. “We will not put assets on land where we cannot effectively and safely manage traffic. If people cannot get in and get out, the experience will lead them to not enjoy visiting our amphitheater.”

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Estimated annual economic impact tops $89 million

A report by Younger and Associates suggests the amphitheater will generate a significant economic impact for Oklahoma City that will include 680 jobs created with wages totaling $41.6 million in wages paid during construction and set-up, 754 direct and indirect jobs with $19.7 million in wages paid during full operation.

The report also forecasts annual impact from lodging will total $16.4 million, and local impact from visitor spending will total $72.8 million.

Roth said he does not believe the amphitheater will negatively impact other venues in Oklahoma City. Currently, the city’s only major outdoor amphitheater is located at the Oklahoma City Zoo. The 7,000-person zoo amphitheater, built in 1935, has reserved tiered orchestra seating and general admission lawn seating.

Roth said he is choosing markets he deems as being underserved by existing music venues and doesn’t believe they will be hurt by the Notes Live amphitheater.

“We are looking forward to enhancing the already vibrant arts and culture community here and collaborating with those who are already producing live music,” Roth said. “We stand by our promise of being a great neighbor, and that means an open-door policy for discussions.”

Roth said the Notes Live amphitheaters also are being spaced out to ensure they support concert tours without cannibalizing each market.

“Let’s say Van Morrison is playing Broken Arrow,” Roth said. “Two days later Van Morrison is playing Oklahoma City. And two days after that he is playing at my amphitheater in the DFW metroplex. Fifty percent of the way between Broken Arrow and Oklahoma City is my market.”

Natural gas drives amphitheater design and locations

Roth said Oklahoma City was an easy pick for his amphitheaters thanks to the predominance of natural gas.

“The big issue for me is natural gas — how far away is it?” Roth said. “With 120 firepit suites, I need a lot of gas. And with Colorado Springs I had to bring a lot of gas in. The amount of gas that was available to me was not enough, so I had to redo a lot of things there to bring in enough of natural gas.”

Easy access was another issue, and the location chosen in Oklahoma City is along an abandoned stretch of the Kilpatric Turnpike that is in close proximity to the toll road and Interstate 40. The site was chosen, Roth said, because the amphitheater can be designed to keep noise directed to the highway and at a volume no greater than what is produced by passing traffic. He said sound studies are being done by New York City-based LSTN Consultants.

The Oklahoma City amphitheater will offer upper and lower bowl seating and a general admission lawn. The eight-person suites will feature a natural gas-powered fire pit, while all 202 luxury suites include fully configurable seats with room for food and beverage. Roth said all of the suites will include high-end food and beverage service before and during the show.

The design addresses Oklahoma’s weather extremes. Roth said a subsurface “hydrochill and sand infill” cooling system designed by Play Safe Turf will bring down temperatures on hot days.

Roth said he knows some residents in west Oklahoma City may have concerns about the impact of the amphitheater, and he said town halls will be held as needed. He said his company will give back to the community.

“I have raised millions and millions of dollars for the community for nonprofits using my (indoor) facility in Colorado Springs,” Roth said. “A lot of times what happens is people become frightened of the unknown. And when that happens, there's really not a lot you can do other than to continue your process, maintain the character and integrity of your projects, and then let them experience what you do. I’m going to be a good neighbor.”

This article originally appeared on Oklahoman: Notes Live amphitheater construction in west OKC to start in 2024