OKC Council approves development agreement for new downtown arena

In a move that promises to reshape Oklahoma City’s downtown and secure the future of the Oklahoma City Thunder, the City Council approved a landmark development agreement for a new state-of-the-art arena. The partnership with PBC Sports and Entertainment, LLC (PBCS&E), owners of the Oklahoma City Thunder and the Oklahoma City Blue, follows the success of the "Keep OKC Big League" campaign, which voters endorsed in December. 

Funding Overview 

The project marks a major financial commitment, with Oklahoma City pledging at least $900 million. Funding will come from multiple sources: $78 million from MAPS 4, $50 million from PBCS&E, and a minimum of $772 million from a 72-month, one-cent special sales tax. Any surplus revenue from this sales tax will be allocated to capital improvements and maintenance. To address potential cost overruns, the agreement includes a contingency plan allowing PBCS&E to cover certain expenses to ensure the project remains on track. 

Downtown Location 

Set to rise on the former site of the Cox Convention Center, the new arena will be a central feature of Oklahoma City’s downtown landscape. The City will retain ownership and responsibility for the arena’s maintenance and operation. Additionally, 1.4 acres of the site are reserved for a possible future intercity transit hub. PBCS&E has the option to negotiate a ground lease for any unused portions of the site, with lease revenues earmarked for arena upkeep. 

Collaborative Construction Effort 

The construction process will be a collaborative effort between the City and PBCS&E, from selecting the project consultant, engineer and architect to finalizing design elements. The new arena will cover at least 750,000 square feet, meeting NBA specifications, benefiting local residents, and supporting the financial sustainability of major league sports in Oklahoma City. The development will also include a new parking garage with a minimum of 650 spaces. 

Timelines and Commitments 

The Thunder will continue to play at the Paycom Center until the new arena is completed. The agreement targets a completion date of June 2028, with a contractual obligation to open by June 2030. Once the Thunder move into their new home, they are committed to remaining in Oklahoma City for at least 25 years. 

A New Era for Oklahoma City Sports 

The Thunder have been a fixture in Oklahoma City since 2008. With the initial term of their 2008 use license agreement expiring in 2023, the team exercised a three-year extension to facilitate the development of a new arena. December’s overwhelming voter approval for the "Keep OKC Big League" campaign secured the funding needed to construct this publicly owned facility, marking the fourth downtown arena built by the city.