Judge rules City of Norman must pay $2.1 million to University Town Center developers in ongoing lawsuit

Background on the Lawsuit

A Cleveland County judge ruled that the City of Norman must pay $2.1 million to University Town Center developers. The shopping center at I-35 and Robinson had sued the city, claiming that officials wrongfully withheld millions promised for development in the University North Park area.

The Legal Battle

The legal dispute began in Oct. 2023 when University Town Center LLC filed a lawsuit, claiming that Norman officials refused to pay the $5 million agreed upon for development in the University North Park Area. The original TIF (Tax Increment Finance) agreement, made in 2006, was for $8.25 million to fund high-end retail and entertainment. In 2019, the agreement was modified, reducing the payout to $5 million.

City’s Argument

City attorneys argued that Main Event Entertainment, a company tied to the project, did not qualify for reimbursement of construction costs. Councilmember Stephen Tyler Holman, Ward 7, agreed with this point, stating that the agreement was for unique, new, and walkable options for Norman residents. Holman added that the development did not meet the standards set in the agreement.

Councilmember’s Perspective

"We have a local version of that with HeyDay, which is a locally owned business that offers the same entertainment for the most part," said Holman. He emphasized that the strip mall built did not fulfill the city's original vision for the $5 million incentive.

Previous Payments Made

In 2022, University Town Center LLC was paid $2.9 million of the TIF funds.

The Ruling and Current Status

The judge’s ruling mandates the City of Norman to pay $2.1 million to the developers for infrastructure installed in the University North Park TIF district. The city stated that the initial withholding of funds was due to seeking clarity on the developer's agreement with the Norman Tax Increment Finance Authority.

Ongoing Case and Future Plans

This ruling was a partial motion for summary judgment, and the case is still ongoing. The planned Entertainment District, which includes a new OU basketball arena, could be the next TIF district, planned right next door to the University Town Center.