A notice of default to the city of Norman has been filed regarding the Rock Creek Entertainment District project.
According to the notice, which was filed on April 24, if the Norman Tax Increment Finance Authority does not approve the phasing plan by May 24, the city could be sued.
“Should action not be taken on May 20th, the agreement may go into default; remedies provided for default can be dependent on what is decided in court and may include termination of the agreement and/or damages and/or equitable relief,” City Attorney Rick Knighton wrote in an email to OU Daily on Thursday.
A notice of default is a formal legal document filed with a court or public record office to indicate that a party has failed to meet its obligations under contract.
On April 22, Norman City Council postponed voting on the phasing plan for the Rock Creek Entertainment District to May 20. During the meeting, Knighton told council that they would likely receive a notice of default after postponing the vote.
“If you postpone this item until May 20, … I would anticipate you will get a notice of default contract that would give you until the 24th,” Knighton said. “So if you were to come back on the 20th and consider the matter, then that would not result in default in this contract.”
Knighton said considering the phasing plan is a separate issue from the petition case.
“I understand there is some concern about the pending issue with regard to the referendum petition. My comment on that would be that’s a totally separate issue. … It’s not going to impact how that case gets resolved,” Knighton said.
Mayor Larry Heikkila, Ward 1 Councilmember Austin Ball, Ward 8 Councilmember Scott Dixon and Ward 6 Councilmember Joshua Hinkle voted against the postponement. Ward 7 Councilmember and Mayor-elect Stephen Tyler Holman, Ward 2 Councilmember Matt Peacock, Ward 3 Councilmember Bree Montoya, Ward 4 Councilmember Helen Grant and Ward 5 Councilmember Michael Nash voted in favor of the postponement.
The phasing plan outlines the development timeframe and investment amounts for the different parts of the project. Anticipated investments total over $622 million, though costs may vary by up to 15%, according to a city staff report.
According to the plan, the $325 million venue is proposed to be built from Nov. 1, 2026, to Dec. 31, 2029. Additional expected infrastructure costs total over $39 million.
Background
On Sept. 20, three Norman residents filed a petition to turn the district to a public vote. Petitioners collected 11,602 signatures in 30 days, of which 10,689 were certified by City Clerk Brenda Hall, exceeding the 6,098 required.
In November, David Nimmo, former president and CEO of Chickasaw Nation Industries; Kyle Allison, director of Allison’s FUN Inc.; Vernon McKown, CEO of Ideal Homes & Neighborhoods; and Dan Quinn, former Ward 8 council member and a real estate agent for Dillard Cies, filed a suit contesting the explanation, or gist, of the petition.
On Feb. 21, Cleveland County Judge Jeff Virgin ruled that the gist contained in the petition was insufficient and that it did not comply with an Oklahoma Statute requiring a referendum petition to summarize the nature of the proposed referendum vote in a manner that can be understood by those who do not practice law.
On April 28, Norman residents filed a brief with the Oklahoma Supreme Court appealing for the reversal of Virgin’s ruling.
This story was edited by Ismael Lele. Mary Ann Livingood copy edited this story.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.oudaily.com ’
