Record-setting tax increment financing sought for Bricktown towers project

A California developer proposing to build multiple towers in Lower Bricktown is asking for a record $200 million in tax increment financing for the project.

Scot Matteson, CEO of Matteson Capital, is working with Lower Bricktown developer Randy Hogan to build 924 apartments, 80,000-square-feet of retail, restaurants and entertainment, and a parking garage at the northwest corner of Reno and Oklahoma Avenues. The proposed assistance would be paid based on the garage, apartment towers, restaurants, retail and entertainment totaling $550 million.

The total development cost will top $700 million with the addition of a 348-room Hyatt Dream Hotel, which is not included as part of the tax increment financing request.

The hotel will start construction six months after the garage and two “twin” 28-story apartment towers. A third apartment tower is a part of the master plan for the development but won’t be built until after the first two towers are leased, Matteson said.

Joanna McSpadden, the city’s economic development programs manager, said the proposed tax increment financing arrangement would work like a rebate where the developer would get back 90% of annual property taxes after they are paid to the county. The developer also is asking for $5.5 million in construction-related use tax increment that would require submission of invoices to be reviewed by the city.

More: Could Oklahoma City's Lower Bricktown soon see four new high-rise towers?

Matteson’s development experience dates back 40 years with projects including The Residences at Little Nell and other residential projects in Aspen, Colorado, the Icon Hotel in Houston, the Saphire Tower developments in San Diego and Miami, and a 5,000-acre master plan in Tuscany, Italy, that included a hotel, villas, a winery and culinary school.

Thursday’s presentation will be made to representatives of the county, city, the city-county health department, the Metropolitan Library System, Metro Tech, Oklahoma City and Crooked Oak public schools. Their recommendation is then to be reviewed by the Oklahoma City Economic Development Trust and then will be voted on by the city council after two public hearings.

A final contract would then need to be submitted again to the Economic Development Trust and city council. Matteson hopes to start construction this winter should the agreement be approved.

This article originally appeared on Oklahoman: Record-high $200 million tax increment financing sought for OKC towers