Majority rejects improvement district

Aug. 28—Many downtown Norman property owners urge city council to reject a proposal that would impose an annual assessment to go toward district improvements, but a state law could give the minority that supports it the means for the city to still create it.

Each property owner in the area that includes sections of downtown Main Street, Gray Street, and select properties on Eufaula Street, Comanche Street, Porter Avenue, Crawford Avenue, Peters Avenue, Santa Fe Avenue, Webster Avenue and University Boulevard would be included in the Business Improvement District if the proposal were to pass.

Acronymed as BIDs, the districts use money from property assessments to make aesthetic improvements to it, such as trash services and landscaping, and further market itself in an attempt to increase property values and decrease vacancy rates. Annual assessments are calculated using a formula that includes a property's taxable value, the acreage of a property's parcel and linear footage along the property line.

BIDs are adopted for a 10-year duration. When that time ends, the district determines if they wish to extend the BID.

A BID can pass in two ways: Through agreement of 51% of property owners, or by 51% of square footage included in the proposed district area, according to state statute.

According to survey details released by the city Friday, 92 property owners are opposed to the BID, and 34 are in favor. But with respect to square footage, 56.45% is opposed and 43.55% supports the BID.

Richard Dowell, downtown Norman property owner and BID protest coordinator, said the city, with 12.96%, and the county, with 10.82% properties in the proposed area, account for 24% of the total area. Dowell is president of Dowell Properties, which leases office and retail space.

The city has discussed the concept with downtowners in meetings over the summer months this year.

Each year, the BID board is required to pass an annual budget. It could increase by up to 10% annually, according to the Downtown Norman BID Association. The total proposed first-year budget for the downtown Norman BID is $233,000, according to downtown Norman's BID page.

Included in that budget is $88,000 for landscaping and streetscape maintenance.

If the BID were to pass, the City of Norman would transfer authority for issuance of permits and licenses for activity in the public space of the district, including streets and sidewalks to the BID's Board of Directors.

Conflicting views

While a majority of property owners in the downtown area resist the BID, some believe the cost is worth the benefit.

Cameron Brewer, who will open The Standard at 315 E. Gray St. and currently acts as BID formation committee chair, said the landscaping and streetscape are not adequately maintained.

"Look at the landscaping beds along the 100 through 300 blocks of East Main, and they are essentially trash collectors," Brewer said in an emailed response to questions from The Transcript. "Trash pickup is not to the level it needs to be, both in beds and elsewhere."

With the move to SEC expected to bring additional visitors to Norman, Brewer said it's important for downtown Norman to "put forth its best image."

"Streetscape projects on Porter, James Garner and Gray are in process or on the near horizon. Who will help coordinate traffic interruptions during construction? Who will maintain those streetscape and landscape beds following completion, especially in the areas that will realize higher pedestrian traffic following improvements?" Brewer said in his responses.

But Dowell expressed concern that the districts are fairly easy to get started, but exponentially more difficult to get rid of. Additionally, Dowell said the city council and the county commissioners would both have to vote to get rid of the BID.

"To get rid of one, you've got to have both a majority of property owners and a majority of square footage," Dowell said, citing the state statute.

Brad Goodman, Norman-based attorney and downtown property owner at 300 E. Main St., who is opposed to the BID, said the city-estimated budget for the BID seems excessive for services like powerwashing and trash pick up.

Goodman also cited concerns for management costs. According to city estimates, total management will cost $62,600 — that's over 25% of the budget. A salary of $45,000 would go to a part-time director.

He also said he's concerned about the city giving its authority away to the board.

"If the owners disapprove of something the board decides to do or spend, there is little or no recourse for the owners in the BID. As far as I'm aware, owners would not be able to go to the city with any BID issues or complaints," he said.

Unpaid assessments would mean a lien on property coequal with ad valorem tax liens, according to state statute — a significant concern for those protesting the BID.

Goodman said non-payment would make owners subject to foreclosure and put them in default under their mortgage on the property.

Bruce Remy's family has owned 306 E. Main St. and 308 E. Main St. since 1935. Remy described the BID formation process as "ominous" Tuesday. He said the assessment would add hardship to many property owners who are already struggling to keep rents reasonable.

Remy described the assessment as an involuntary tax on property, and warned that a BID could have the opposite effect of what was intended.

"If this costly proposal is approved, you will see even more empty storefronts and properties for sale downtown, not fewer," Remy said.

Debra Loeffelholz, a Norman-based attorney, has practiced out of 117 E. Main St. for 30 years. She said downtown is an area with not only retailers, but lawyers and doctors offices.

She said the perceived benefits don't apply to those who provide other services than food or retail. She also expressed frustration that property owners on Main Street, shown as red on the BID map, would pay $7.50 per square foot, but property owners on other streets would pay less.

"I say red for blood, because they want me to pay three times more than the property owners in the dark blue area (on north and south streets), and twice as much as the ones in green," Loeffelholz said. "I've got a finite amount of money and I've got a finite amount of expenses."

While protestors say the perceived benefits of a proposed BID would be inequitable, Brewer said it would benefit all property owners.

Brewer said supporters believe economic benefit would come from a better-maintained downtown, inherently bringing a higher level of interest for leasing, foot traffic and "overall activation of the public realm."

He said supporters also mentioned that aside from a group of volunteers with fulltime jobs elsewhere, no individual, staff or group is advocating for downtown on a daily basis.

Jeff Elkins covers business, living and community stories for The Transcript. Reach him at jelkins@normantranscript.com or @JeffElkins12 on Twitter.