Norman City Council discussed a proposed ordinance that would create an application and evaluation process for proposed tax increment financing, or TIF, districts and the proposed 2026-27 capital improvement program budget during a special meeting Tuesday.
Proposed TIF ordinance
The news: Council discussed a proposed ordinance that would establish policies to guide the development and evaluation of future TIF districts.
The proposed ordinance would require city staff to analyze proposed TIF districts and complete an economic and risk analysis of the proposed districts. The city manager would be required to share the results of the analysis with the council before placing an item on an agenda to appoint an ad hoc stakeholder committee, according to a staff report.
The stakeholder committee would be composed of seven members representing businesses, residents and nonprofits within a 350-foot radius of the proposed project area.
After the stakeholder committee reviewed the risk analysis, the city’s economic development advisory board would review the analysis and determine if the proposed project would have a financial impact on any taxing jurisdiction and business activities within the proposed TIF district. The advisory board would also make a recommendation for council’s action regarding the proposed district.
Once the board’s review is completed, a statutory review committee would be appointed. This committee would be provided with the findings of the stakeholder committee and the economic development advisory board. Following a recommendation from the statutory review committee, the city’s planning commission would review the findings, followed by two public hearings, before a final determination from council.
The ordinance also seeks to outline a TIF district application process, requiring the applicant to provide documents intended to assist with the review process. The application fee would be equal to 1% of the proposed project costs of the proposed TIF district.
According to the staff report, the ordinance would also set a criteria for future uses of TIF funds after a district is completed, ensuring projects seeking TIF assistance meet city goals.
Council plans to discuss the ordinance further before its May 12 meeting.
What they’re saying: Kathryn Walker, assistant city attorney, said the goal of the ordinance is to give council all information possible about a proposed TIF so council can make a more informed decision.
“What this process is doing is not making the determination of whether it’s appropriate or not for council, but trying to give you all of the information and input that you can get, so you guys can make that decision,” Walker said.
Ward 5 Councilmember Trey Kirby asked who appoints members to the statutory review committee. Walker said council would appoint the committee chair.
“Typically, (the chair has) been the mayor, but it doesn’t have to be,” Walker said. “You guys can work that out, but it would be a formal appointment by the city council, like your other appointments.”
Rock Creek Entertainment District
The news: Council discussed the current state of the Rock Creek Entertainment District following an April meeting where council failed to consider an agenda item that would have helped determine if council has the authority to hold a public vote on the entertainment district.
The item would have authorized the city attorney to enter litigation to clarify if council has the authority to order an election on TIF district ordinances.
Ward 1 Councilmember David Gandesbery, the only council member who motioned for the item to be seen, explained his decision.
“When I asked for it to be an agenda item was to try to get some kind of clarification, especially with what I feel is deadline coming up pretty quickly, eventually there is going to be ground breaking,” Gandesbery said. “My goal was to have a conversation that night that would have possibly led to a vote that night to figure out yes or no, is that something we want to do.”
The discussion follows a March 6 letter sent to the city by Oklahomans for Responsible Economic Development stating its intent to sue the city and Cleveland county.
ORED’s letter claims the City of Norman and Cleveland County violated the Open Meetings Act when adopting and moving forward with the Rock Creek Entertainment District plan.
What they’re saying: Ward 5 Councilmember Trey Kirby asked City Attorney Rick Knighton what the risk was in seeking a declaratory judgment.
“The risk is you get an answer to that question,” Knighton said.
Kirby asked Rob Norman, ORED’s attorney, if ORED would file a lawsuit against the city and if he viewed a lawsuit as a way to seek an answer regarding the city’s authority to hold a public vote on TIF districts.
Norman said he does believe the lawsuit would help answer ORED’s question.
“I think what Mr. Knighton has given you, is there’s uncertainty. And Mr. Knighton has his opinions, I have my opinions, other people have their opinions, but it’s always good to try to get the question the people of Norman want answered in the least risky manner,” Norman said.
Norman said the failed agenda item would have helped get the question resolved.
“Council was offered a way to get the question resolved in front of a judge for once and for all, without regard to (Knighton’s) opinion and research, my opinion and research,” Norman said. “It wasn’t the optimal solution to us but we are pretty much okay with that.”
Ward 8 Councilmember Scott Dixon asked Norman why ORED hasn’t sued the city yet to initiate declaratory judgment.
“We wanted to collaboratively work it out first, and getting agenda items on with council like what we are talking about tonight, and kind of working with the city attorney and myself where he proposes a method that skips repeal, which is this big risk everyone talks about,” Norman said. “Its kind of, in a way, a settled solution to the dispute.”
Mayor Stephen Tyler Holman said the clock is ticking on the project.
“My desire has been for the public to be able to weigh in on the finance piece of this, having a petition with that many signatures dissolve into thin air, leaving unfinished business,” Holman said. “People are wanting action and I think that’s what we have been trying to do for several months is explore how we can get there, but the clock is definitely ticking on that.”
Holman said council will hold further discussions regarding the entertainment district.
Proposed capital improvement projects budget
The news: Jacob Huckabaa, city budget analyst, presented council with the proposed July 2026 to June 2027 capital improvement projects budget.
The capital sales tax fund is projected to gain $17,633,956 in revenue and has a proposed expenditure budget of $17,243,884, according to the presentation.
The city’s top three proposed capital sales tax expenditures include:
• Other projects and debt services at 32%
• Capital outlay at 28%
• Street maintenance at 21%
The city’s top three proposed recurring expenditures include:
• Capital outlay at $4,728,384
• Street maintenance projects at $3,450,000
• Stormwater projects at $2,400,000
The capital outlay expenditures comprises computer-related equipment, fleet and vehicle funds, public safety equipment, undesignated outlay and other equipment.
The proposed capital sales tax fund also includes recurring sidewalk projects totaling $500,000.
Council will consider the budget in June.
What they’re saying: Ward 4 Councilmember Helen Grant asked if the city allocates $500,000 to sidewalk projects every year or if the amount has gone up.
Huckabaa said the total sidewalk project number has been relatively consistent, with some additional money allocated in previous years due to council recommendations.
Dixon asked for clarification on the negative numbers in the presentation and said the numbers could create confusion among residents.
“You see a lot of people say, ‘Oh, we’re negative $9 million dollars,” Dixon said. “Well, we didn’t overspend $9 million. It’s just kind of a worst case scenario.”
Huckabaa said the city gets this figure by taking the previous fiscal year’s budget and factoring in all reserved bond project money, assuming all previously appropriated projects will “be spent down to zero.”
“That’s where we get this number, just to see which direction we’re heading,” Huckabaa said. “We’re still maintaining a pretty good base in capital funds, so not spending more than we have.”
City Manager Darrel Pyle said city staff can provide additional context to other presentations to avoid public confusion.
“Anytime there’s a picture that’s worth a thousand words, we’ll see if we can come up with a graphic that demonstrates what happens in the real world based on our capacity to deliver capital projects versus the timing of the funding,” Pyle said.
This story was edited by Audrey McClour.
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