Some readers ask why approval of a proposed new NBA arena in OKC is being rushed ... others onboard
A new NBA arena for the Oklahoma City Thunder is expected to cost about $900 million. With the Oklahoma City Thunder agreeing to a 25-year commitment and a new arena proposal plan finalized, people are talking about how the project will be funded and whether a new arena is needed.
The Oklahoman's Viewpoints readers are sharing their opinions. Here are some of their letters:
Will OKC Council give underserved zip codes priority for jobs?
Here are the questions I have for the Oklahoma City Council:
Will the city of Oklahoma City do right by service and hospitality workers at the new arena? Will they require contractors to pay family supporting wages? Will they require contractors to allow workers the right to join a union without interference and harassment? Will the council work to make sure underserved zip codes have priority for these family supporting union jobs?
Oklahoma City has an opportunity. It is past time for the working class to benefit from projects they fund with their tax dollars. Taxpayers did the work that rebuilt downtown. The workers in Oklahoma City deserve a fair shot.
— Tim O'Connor, Oklahoma City, president of Central Oklahoma Labor Federation
Fan loves OKC Thunder but questions club owner investment
I am writing regarding Mayor David Holt’s proposal for Oklahoma City taxpayers to foot the bill for at least 94.7% of the cost of a new downtown arena for the Thunder.
More: Is OKC's new NBA arena bringing a new tax? How is MAPS 4 involved? What to know
First, everyone loves the Thunder, so mentioning that I am a fan is almost redundant. I attended games, plural, last season. I caught COVID at that amazing Dubs game, but I’m still glad I went. And I have a dedicated drawer for purchased Thunder apparel that’s about to see a lot of traffic.
But as a citizen, I am stunned that Mayor Holt’s long-awaited arena proposal includes such a paltry investment from Professional Basketball Club LLC, the ownership group that will profit directly from additional revenue the Thunder can certainly generate with a new arena. PBC’s proposed contribution of barely 5% of the projected arena cost is, frankly, appalling.
And when I see the ownership group trying to brand their $50 million contribution to a $950 million project as a “donation” — when the project will benefit them above all! — I become downright insulted. That’s no donation. It’s a business investment that will make the ownership group money.
Ask yourself why, when Oklahoma City's community needs are legion, Professional Basketball Club LLC has agreed to “donate” what amounts to a crummy tip while sticking taxpayers with the full bill for their latest business venture.
— Chad Friesen, Oklahoma City
A new arena for the Thunder? How about voters get part ownership?
Here are questions that might help us make a decision on whether a new arena is needed:
What was originally paid for the Thunder? $350,000,000 in 2006.
What is the value of the Thunder today? $1.875 billion — over 5 times what was paid for the Seattle SuperSonics team.
How many people will the Thunder arena seat? 18,203.
Is the Paycom Center filled to capacity for Thunder games? No. The average attendance for 2022-23 was 15,534 — 85.3% of capacity.
What is the average seating of pro basketball arenas? 18,790.
Is it true that Oklahoma City subsidizes the current arena at $5 million a year to cover losses? Is it true that every arena with a similar population continues to lose millions?
While it has been clearly implied that the Thunder may move if we don’t pay for a new arena, do we simply allow ourselves to be extorted by the threat?
YOU decide.
What is the average price of a ticket to see the Thunder? Seatgeek says the average ticket price per game in 2022-23 was $80. [According to the OKC Thunder organization, non-courtside seats (97% of the building) start at $12 and go to $298, depending on location.]
How many years have we been told that our city is “working on a homeless solution?” We are not supposed to demand results to the homeless problem. Yet, we are supposed to fork over in excess of $1,400 each to build billionaires a new arena. Can you name ONE billion-dollar construction project in any city that did not double in cost by the time it was finished? Can you name ONE pro arena that doesn’t have to be subsidized by the taxpayer?
I understand how our mayor and many of the Oklahoma City Council members are raving fans and supporters of the new arena. They (probably) get free tickets to every game.
Suppose I came to you as a well-liked and reasonably well-off person driving a 2020 Ford Edge, fully paid for and running very well, and said that I really needed to drive a Bentley and that if only 188 of you would agree to commit $1,400, I could secure the $263,000 model. Now, of course, that isn’t going to pay the maintenance, but we will talk about how you can pay that later. I let you ride in it for only $100 on certain days. You will be pleased to know that the mayor and city council will be allowed to ride for free (not all at the same time, of course). I’m guessing the words you might say probably shouldn’t be in print.
If we want to provide the wealthy and the well-off a $1 billion arena, why don’t we ask for a small piece of ownership of the Thunder and all concession money. Ask yourself, if roles were reversed so that the Thunder owners and friends were asked to invest $1 billion in your high-quality, profitable business, would they ask for some ownership?
― Jack L. Werner, Oklahoma City
OKC City Council should not rush arena decision
Below are questions and comments I sent to the Oklahoma City Council, city manager and Mayor David Holt regarding the proposal for an increase in sales tax to fund a new arena for the OKC Thunder organization.
Answers to these and many other questions need to be answered before this even goes to the council for a vote. I'm asking the council to delay any action on this proposal for a couple of months. After all, it took a year to get to this point, so why be in such a rush now?
1. Why such a hurry to get to a vote without time for proper vetting? The cost of the city paying for an election rather than tagging it onto a state vote is mere pennies compared to the proposal.
2. There is a minimum of $900 million. Is there a maximum or is the city giving the Thunder an open checkbook that could leave the taxpayers holding the bag? Many of these Taj Mahal arenas in other major league cities have seen cost balloon to more than twice the original cost. Any controls on this?
3. If there is a downturn in the economy and the sales tax won’t service the bonds, what then? Do we make like the federal government and borrow even more money to pay the interest. If not, does the mayor have a plan on what services to cut to make payments on the bond debt?
4. Was there any consideration given to a different tax, say an income tax with the first $75,000 of gross income tax free, the next $200,000 taxed at a rate of 1%; $275,000 to $1 million, 2%; and $1 million up 5%? This is a win-win. The poor don't have to pay anything, while the basketball players and the owners who stand to profit from it will pay a little bit for their plaything.
5. Exactly what is wrong with Paycom Center? It’s not exactly a dump.
6. Why wasn’t the city council included during the negotiation phase? This was done behind closed doors and was about as transparent as a piece of black plastic. Now, it’s presented to the council for approval without allowing proper time for them to visit with their constituents.
7. Why keep telling the big lie that it will not be a tax increase? Unlike with the MAPS projects, this is not an extension of an existing tax but a new tax, thus it is a tax increase.
8. The Thunder says it will stay 25 years if we build them a new arena. Is that a veiled threat to move if we don’t? This is nothing short of blackmail. Does the council want to be held hostage until the ransom is paid? Also, will this promise to stay be put into the form of a legally binding contract? If so, what is the penalty if they leave early? If they leave early, they should pay the entire cost of the arena minus the significant 5.5% they contributed. If not in a legal agreement, the council would be fools to approve a vote.
9. It’s my understanding the city will own the arena. Will it retain the naming rights, or will this be just one more gift of taxpayers’ money to the Thunder owners? This should be kept by the city to be used for maintenance or to service the bonds.
10. Can someone please tell me why the city is defined by whether it has an NBA team or not? I have lived most of my 82 years in Oklahoma City. I did spend some time in Los Angeles, another “Big League City,” but couldn’t wait to get back. Friendly people, low cost of living, clean air and water, low crime and many other attributes that make this a great city. Seems the mayor should be selling this rather than, "Come here. We have an NBA team."
11. Since when is 5.5% a significant portion of the total? Seems a very insignificant portion to me.
— Terry McFall, Oklahoma City
Instead of an arena, why not focus on better roads?
Mr. Mayor and Oklahoma City: Do we need a new basketball arena or roads? When are we going to fix our roads! Let's take the next WHOLE penny to fix our roads. For once, no new projects, except roads. The WHOLE penny! No rail system or new other project, besides roads. No new parks, new homeless shelters or any other.
Oh, by the way, the closed schools could become homeless shelters. They have cafeterias, restrooms, classrooms for bedding into quarters, divided for four single or queen-size beds. Here again ― roads. Nothing else. One penny (tax).
— Steve Chrisman, Oklahoma City
More comments …
Thunder should partner with OKC to fight homelessness
If you plan to vote Dec. 12, please join me in encouraging the Oklahoma City Thunder to become a full partner in reducing homelessness in our city. Why would any privately held company commit to such a challenging task? Because the Thunder brand is about civic pride. Their local philanthropic activities have rightfully been cited as one reason for voters to support the new arena. Based on a successful model in Milwaukee, the city council of Oklahoma City has recently approved a broadly supported resolution creating a framework for such a public-private partnership here.
By teaming up with this proud “Big-League City” to fight homelessness, the Thunder would help rebuild lives, promote unity and broadcast to the world the Oklahoma standard of serving those in need.
— Connie Matheny, Oklahoma City
Is proposed arena for OKC Thunder really necessary?
As Lee Corso of College Football Gameday says frequently, “Not so fast my friend!”
Let me begin by saying I love sports and specifically the Thunder, but, before we spend $900 million for a new arena, let’s consider some information.
MAPS 1, 2, 3 and so far, 4 have accomplished good things for our community, although they have focused primarily on the downtown area. MAPS was never intended to be a semi-permanent tax, going on indefinitely. AND, it was intended for projects that benefited the whole community, not private owners.
There are so many infrastructure needs for the maintenance and growth of a city that is so widespread. Extending the 1% tax to build another arena takes away resources that could be used to improve the lives of all in OKC, as well as visitors. The streets that lead to our many attractions, including the zoo, Remington Park, the Western Heritage Museum, and the Softball Hall of Fame are in terrible shape for visitors to travel, as are streets throughout the city that our citizens travel daily to and from work.
First, we built the Myriad/Cox Center. Then we built the “Peak,” now the Paycom Center. Is the Paycom not compatible with other NBA arenas? The average NBA arena seats 18,790. The Paycom Center seats 18,203. The 2022 NBA champion Golden State Warriors arena seats 18,064. To date, we the public do not know how many seats are to be included in the new arena or the location. The Paycom appears to be on par with markets much larger. We have renovated the Paycom twice with another renovation planned and it is a great experience for fans at all levels of affordability!
Quoting Dr. Travis Roach, chair of the Department of Economics of the University of Central Oklahoma, “Paying for a new Thunder arena won’t pay for itself in new economic impact.” He goes on to say, “In other cities who built arenas in the 2020’s public expenditures are typically only 40% of the total project cost. This is vastly different than the proposed 95% share that OKC taxpayers will pay.”
On balance, the Thunder has been and is good for OKC, and the city fanbase and community has been good for the Thunder! Having the best city service, police, fire, medical, infrastructure, streets, parks and facilities in America is more important to many than having the best arena in the NBA.
― Glenn Sharp, Oklahoma City
... Another point of view
Do we really want to step back into the 1980s?
In 1980, Oklahoma City was nothing more than an oversized cow town in the middle of the country that thousands passed through every year on their way to someplace else. Hicksville, USA.
Today, OKC is recognized as a real city that has more to offer its citizens than Wednesday night church services, Friday night high school football games and the weekend rodeo. The reality is that the revenue and national respect OKC now receives is because of the forward-thinking of several mayors who pushed the MAPS program which was opposed by many and the professional basketball team we have.
The entire state benefits in one way or another. It’s called quality of life. It’s what brings business and quality jobs to everyone, not just those who live in the city. One might make an argument regarding funding sharing of the building cost for the new stadium, however, OKC is still a small market. It’s not Dallas or Houston. We don’t have that clout yet, but we have the foundation to get it.
I have no desire to kill the stadium deal over cost-sharing that is not going to cost me any more than I am already paying in taxes and risk reverting back to the 1980s.
— James Mitchell, Oklahoma City
This article originally appeared on Oklahoman: Proposal for new NBA arena in OKC has readers talking, and questioning
