Last Updated on December 12, 2023, 11:03 PM | Published: December 12, 2023
OKLAHOMA CITY (Free Press) — The Oklahoma City Thunder will continue to call OKC home for the next 25 years after voters overwhelmingly approved an extension on a temporary 1% sales tax Tuesday. The Thunder currently play in the PayCom arena in downtown Oklahoma City.
According to the unofficial election results, OKC voters approved the only question on the ballot with a substantial margin, garnering 71% in favor and 29% of the total votes.
“Today was OKC versus the world, and we won,” said Mayor David Holt during a victory speech. “Tonight, we told the nation, we told the world that OKC is and shall remain a big-league-city.”
Future of The Thunder in OKC
The Thunder is currently under a temporary three-year lease with the city, however, their 25-year commitment to stay in OKC will commence upon the completion of the new arena.
The project is estimated to cost a minimum of $900 million dollars, which will be mostly publicly-funded through a six-year continuation of the existing penny sales tax that currently supports the MAPS 4 program. As a result, there will be no extra tax hike, but an extension, to fund the new arena.
The Thunder ownership’s group will contribute $50 million, roughly 5% towards the project. Apart from extending the one-cent sales tax, $70 million in MAPS 4 funds that were initially designated for the PayCom Center will be reallocated to the new facility.
As part of the deal, the City Council adopted a community benefits resolution mandating the city manager, Craig Freeman, to engage in negotiations with the new arena operator for the utilization of workforce intermediary programs. These programs will focus on recruitment, training and providing other assistance to workers in impacted communities.
The resolution requires the new arena operator to pay a minimum of $15 per hour to both full-time and part-time employees. Additionally, a working group will be established to assess the implementation of labor peace agreements at the new arena. The idea for this worker-friendly resolution stems from Milwaukee’s community benefits package, which was integrated into the construction of their new arena.
What’s next?
The upcoming arena will be located downtown, however an exact location is yet to be decided. The arena is set to open for the 2029-2030 NBA season.
In order for the arena to be done within that time-frame, the tax will be used towards a short-term bank loan. The loan will allow work to begin before sales tax collections begin in 2028.
According to Holt, all borrowing costs are included into the funds generated by the sales tax.
The final terms of the lease between the Thunder and OKC are still to be decided.
The Thunder will continue to play in the current arena until the new arena is completed. The fate of the PayCom Center, once the new arena is finalized, still remains undecided.
“Thanks to the voters tonight, who can now expect this partnership with the Thunder and the NBA to last beyond 2050,” Holt said.
Election results are still subject to changes and are not official until they’re certified by the appropriate election board. Unless a contest or election or a petition for recount has been filed, results will be certified no later than 5 p.m. Friday, Dec. 15, according to the State Election Board.
Brianna Garcia is a freelance journalist covering local politics and culture for Free Press. She has a degree in Journalism from the University of Central Oklahoma.
