Oklahoma City considers 1% sales tax to build $1B arena for NBA’s Thunder

Since then, the Oklahoma City Thunder have played their home games in what is now a modest arena by NBA standards. But the team owners want a new arena, and under a deal they cut with city leaders, they want taxpayers to foot most of the $900 million price tag.

Oklahoma City voters are set to decide Tuesday whether to approve a six-year, 1% sales tax to help fund construction or risk the same fate as Seattle: losing the team to another market. But some residents and experts who have studied public-private partnerships say the deal is much better for the wealthy team owners than the average resident.

Under the plan before voters, the new arena would cost at least $900 million, with Thunder owners chipping in 5%, or $50 million, and another $70 million coming from a previously approved sales tax earmarked for improvements to the current arena. The team also would agree to stay in the city for 25 years in the new arena, targeted for opening before the 2029-2030 season.

Many city residents say the deal is far too generous for the Thunder owners, who include some of the wealthiest residents of Oklahoma, especially at a time when most arenas are being funded primarily by private investment or a much smaller public investment.

“It’s such a huge amount on the citizens, which doesn’t seem like a very responsible use of our money,” said Natalie Lucero, a 29-year-old Oklahoma City resident who said she plans to vote no.

“Plus, it’s a regressive tax that affects the poorest people,” she said. “It just doesn’t feel good to me.”

‘Buy your own arena’

The Thunder, purchased by a group of local businessmen for $325 million, are now valued at more than $3 billion, according to the most recent estimate by Forbes. A spokesperson for the team did not respond to multiple requests for comment on the proposal.

“These guys have made almost $2.7 billion, and they’re going to tell us they can’t afford a $1 billion arena?” said Nick Singer, a local realtor and organizer of the opposition group “Buy Your Own Arena.”

Singer and others also voiced concerns about the lack of price caps in the $900 million cost projection and said there’s no ironclad guarantee the owners will stay in Oklahoma City…