Mayor David Holt announces plans to build new downtown arena, keep Thunder in OKC past 2050 – KOCO Oklahoma City

Mayor David Holt on Tuesday announced the city’s plan to build a new arena that the Oklahoma City Thunder would commit to playing in for decades.| RELATED VIDEO ABOVE | Holt: OKC needs to have conversation about replacing Paycom Center for Thunder to remainA news release states that a plan has been finalized to build a new downtown arena that would keep the Thunder in Oklahoma City beyond 2050.The plan comes after 14 months of public discussion and talks between city and Thunder leaders and is conditional on the passage by Oklahoma City voters on Dec. 12 of a temporary one-cent sales tax that would not raise taxes. The temporary tax would start after the conclusion of MAPS 4 and would not increase Oklahoma City’s current sales tax rate, according to the news release.Holt and City Manager Craig Freeman will bring the plan’s elements to the OKC City Council on Sept. 26 and officially refer it to Oklahoma City residents for consideration.A simple majority of the city council is required to call for the Dec. 12 election, the news release states. Then, a simple majority of voters on Dec. 12 would be required for passage.The release adds that Holt and Freeman also will present a letter of intent signed by Oklahoma City Thunder Chairman Clay Bennett that would commit the NBA team to play 25 in the new arena if the December vote passes and related legal documents are completed.Below is a look at the plan’s major elements.To retain major league professional sports, world-class concerts and other major events that drive economic growth and define the city’s quality of life, Oklahoma City will construct a new publicly-owned downtown arena, the fourth in City history.The Thunder commit to play their home games in OKC for 25 years in the new arena, provided the voters approve the funding for a new arena and related legal documents are completed. This commitment preserves Oklahoma City’s big league status for another generation, maintaining the economic impact and other benefits the City has enjoyed since the Thunder’s arrival in 2008.The Thunder will continue playing at Paycom Center while the new arena is designed and constructed, bringing the team’s entire commitment to a length of time that will last beyond 2050. The total commitment is twice the length of the original commitment made in 2008.The project cost for the new arena will be a minimum of $900 million. The project will be funded primarily through three funding sources:A temporary one-cent sales tax lasting 72 months that will begin after the expiration of the current MAPS 4 one-cent sales tax. The current sales tax rate in Oklahoma City will remain the same as it is today and there will be no tax increase. The method of using sales tax shares the overall tax burden with the many visitors who enjoy events at Oklahoma City’s downtown arena, as it is generally estimated that approximately a quarter of all sales tax in Oklahoma City is paid by non-OKC residents. At least $70 million from MAPS 4 that was previously earmarked for OKC’s downtown arena.A $50 million contribution by the owners of the Oklahoma City Thunder toward the publicly owned arena. All three of Oklahoma City’s previous downtown arenas have been paid for entirely by taxpayers. The $50 million contribution committed by the owners of the Oklahoma City Thunder to the new arena is a first in City history. The City and the Thunder agree that their intent is to open the arena in time for the 2029-2030 NBA season, if not sooner.Holt also released the following statement in the news release.”As this very public discussion played out over the last year, the people of Oklahoma City have overwhelmingly expressed to me two desires – 1) keep the Thunder for as long as possible, and 2) don’t raise taxes if it can be avoided. We have accomplished those two priorities with this plan, and it is truly a win-win for all of us,” said Mayor Holt. “Perhaps the most important aspect of the deal is the length – this is twice the commitment we received in 2008 and will keep the Thunder here beyond 2050. My children will be my age when this agreement ends. For a generation, we will retain the economic impact and quality-of-life benefits we have enjoyed as a big-league City. It is an investment that pays for itself many times over. With this new arena, we will also continue the aspirational investments in ourselves that our residents have made for a century. We will construct an arena worthy of America’s 20th-largest City, leaving a legacy to future generations. “It is also worth noting that the team ownership’s $50 million contribution is a first in City history, and that commitment to this community is deeply appreciated. I commend and thank Clay Bennett and the entire Thunder organization for their collaboration during this process. I also want to thank the City Council, many of whom have reached out to me many times over the past year to contribute feedback to this process. That feedback – as well as that of the public – has certainly been incorporated. I want to also thank the City Manager and his team for their incredibly hard work to this point. Now, I look forward to presenting this win-win to our residents for their vote on December 12.”For 15 years, the Thunder has been honored to help lead the transformation of Oklahoma City and enhance the tremendous pride our citizens have in their community,” said Oklahoma City Thunder Chairman Clay Bennett. “We now have an opportunity to build on that progress, advance our status as a true big-league City, continue to grow our economy and secure the long-term future of the Thunder. We look forward to continuing our partnership with Mayor Holt, members of the City Council, and the forward-thinking business and civic leaders in our community. 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