Spot chosen in downtown OKC for new Thunder NBA arena

OKLAHOMA CITY — The OKC Thunder’s ownership group has selected the footprint of the old Cox Convention Center that is currently Prairie Surf Studios as their desired spot for the new NBA arena.

An agreement to develop on the site is on the agenda for the Oklahoma City Council meeting on Tuesday.

And it likely comes as little-to-no surprise to anyone who has been following the process.

The site is next to the current Paycom Arena, home to the Thunder and is owned by the City of Oklahoma City.

arena
Screenshot of the proposed site that shows the Cox Convention Center that is now Prairie Surf Studios that is desired by the owners of the OKC Thunder. (from Google Maps)

And, it is in the perfect spot to benefit from plans the Regional Transit Authority has to build a transit hub where the old Santa Fe train station is or near it just across the street.

When the City Council informed Prairie Surf Studios that the city would not renew their lease it became apparent that the city was preparing for this move.

The ownership group, PBC Sports and Entertainment, LLC own the Thunder and the Oklahoma City Blue.

City funding approved by voters after passionate debate

The proposed agreement (see below) that will be before the City Council Tuesday is based on the original 2008 development agreement that resulted in the current arena being improved and a practice facility being built. According to a news release, it also aligns with the Letter of Intent approved by City Council in September 2023.

Oklahoma City voters approved the new penny sales tax to pick up where MAPS 4 leaves off and use the funds to build a new arena for the privately-owned OKC Thunder.

78 million in MAPS 4 money that was planned to upgrade the current Paycom arena will be put toward the construction of the new arena instead.

The public debate over the arena aired strong opinions both for and against that were revealed in the City Council meeting in September leading up to the Dec. 12 vote.

Those for the arena argued the proposal’s economic advantages and the possible shift in status for Oklahoma City as a desirable place.

But, those who were against the idea were distressed that the use of the penny sales tax previously used for MAPS projects that have benefitted a wide swath of people would be used to further enrich the already-rich owners.

Agreement proposed on Tuesday City Council agenda

Tuesday, the Oklahoma City Council will take up the proposed agreement to used the site for the new arena.

Here is an outline of basics of the agreement and some background provided by the Public Information office of the City in a news release Friday afternoon:

Agreement overview 

Funding

  • OKC agrees to spend a minimum of $900 million on the new arena. The new arena will be funded by (listed in order of how the money will be spent):
  • Any surplus revenue from the one-cent special sales tax after the arena’s construction and repayment of financing costs will be allocated to capital improvements and maintenance of the new arena.
  • The agreement acknowledges that there are no other sources of revenue to fund the new arena, and so the agreement provides that if the costs appear to exceed available budgeted funds, the parties will work together to value engineer the project. PBCS&E can privately fund portions of the project to avoid removing them through value engineering.

Location

  • The agreement identifies the City-owned former site of the Cox Convention Center as the site of the new arena. The City will own and be responsible for maintaining and operating the new arena.
  • Approximately 1.4 acres of the site will be reserved for a potential future intercity transit hub.
  • PBCS&E can negotiate with the City for a ground lease to develop any unused property on the new arena site at market rate, with revenue from the lease to be used for the arena’s maintenance and improvements.

Construction

  • The agreement outlines a collaborative process between the City and PBCS&E in the planning and construction of the building. 
  • The City and PBCS&E will work together to select the arena’s project consultant, engineer, architect, design and other aspects of construction.
  • The new arena will be at least 750,000 square feet.
  • The new arena will be built to:
    • Benefit the residents of Oklahoma City
    • Meet NBA specifications and requirements
    • Maximize team revenues, ensuring the sustainability of major league professional sports in Oklahoma City
  • The project includes the construction of a new parking garage on the arena site with at least 650 spaces.

Timing

  • The Thunder will continue to play home games at the Paycom Center until the new arena opens. 
  • The agreement maintains the completion date of 2029 as outlined in the letter of intent but provides a path to a target completion date of June 2028, with a contractual obligation to open the new arena by June 2030.
  • The Thunder’s 25-year commitment to remain in Oklahoma City begins when they move into the new arena.

Arena Background

The Oklahoma City Thunder has called Oklahoma City home since 2008. In 2023, the initial term of the 2008 use license agreement expired. The Team exercised an option to extend the agreement for three years to allow time to develop a plan for a new arena to keep the Thunder in Oklahoma City for 25 years after the new arena opens. In December 2023, Oklahoma City voters overwhelmingly approved a penny sales tax to build a new, publicly owned arena. The new arena will be the fourth downtown arena in city history constructed by the public.

Agreement draft for consideration by the Oklahoma City Council

PBC2024-Development-Agreem

Free Press will continue to cover developments on the new arena.


Author Profile

Founder, publisher, and editor of Oklahoma City Free Press. Brett continues to contribute reports and photography to this site as he runs the business.