OKC MAPS Economic Impact - Executive Summary

OKLAHOMA CITY MAPS PROJECTS M e t r o p o l i t a n A r e a P r o j e c t s

Economic Impact Study

25 Years of Change Through Public and Private Investment

NOVEMBER 2019| Executive Summary

OKC MAPS PROJECTS – 25 YEARS

Table of Contents MAPS Projects....................................................................................................................................... 1 MAPS Projects - Structure and Status................................................................................................... 4 Other Related City Development Efforts .............................................................................................. 6 Downtown Study Area – Demographic Profile ..................................................................................... 8 Downtown Study Area .......................................................................................................................... 8 Demographic Structure and Change................................................................................................... 11 Downtown Study Area - Economic Profile.......................................................................................... 15 MAPS Investment – Public and Private............................................................................................... 18 Public Investment–MAPS, MAPS for Kids, MAPS 3............................................................................. 18 Total Public and Private Investment................................................................................................... 19 Private Investment and Property Market Valuations......................................................................... 21 Downtown Office Market ................................................................................................................... 22 Downtown Residential Market ........................................................................................................... 23 Bricktown Property Valuations ........................................................................................................... 24 Lodging, Tourism, and Cultural Attractions ........................................................................................ 26 Lodging................................................................................................................................................ 26 Tourism ............................................................................................................................................... 27 Downtown Transportation ................................................................................................................. 30 Embark Streetcar ................................................................................................................................ 30 MAPS Evaluation................................................................................................................................. 34 Key Policy Findings.............................................................................................................................. 34

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OKC MAPS PROJECTS – 25 YEARS

Table of Figures Figure 1. MAPS 3 Projects – Summary.......................................................................................................... 5 Figure 2. Downtown Study Area Map........................................................................................................... 8 Figure 3a. Downtown Study Area Census Tract Boundaries ........................................................................ 9 Figure 3b. Downtown Study Area – Census Tract Map ............................................................................. 10 Figure 4. MAPS Projects – Total Public Investment .................................................................................... 18 Figure 5. Public and Private Investment - MAPS & Downtown Study Area................................................ 19 Figure 6. Total Market Value of Assessed Property in Study Area ............................................................. 22 Figure 7. Downtown Hotel Development ................................................................................................... 27 Figure 8. Visitation/Participation in Downtown/Bricktown Area ............................................................... 29 Figure 9. Downtown Streetcar Map............................................................................................................ 33 Appendix 1. MAPS Projects ....................................................................................................................... 37 Appendix 1. (Cont.) MAPS for Kids Projects............................................................................................... 38 Appendix 1. (Cont.) MAPS 3 Projects ......................................................................................................... 39

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OKC MAPS PROJECTS – 25 YEARS

About this study

Oklahoma City MAPS Projects: 25 Years of Change through Public and Private Investment was prepared by the Greater Oklahoma City Chamber and RegionTrack. This report extends the previous evaluation of the MAPS projects titled Impact Analysis of Oklahoma City’s MAPS and Other Significant Central City Investments prepared by Larkin Warner and Eric Long. The initial release of the report in 2003 was followed by updates in both 2005 and 2009. For more information about this study, please contact Eric Long at 405-297-8976 or elong@okcchamber.com.

About the authors

Mark Snead is an economist and president of RegionTrack. His research interests focus primarily on regional economic modeling and forecasting, local area economic development, and the economic role of the nation’s energy-producing regions. Prior to founding RegionTrack, Mr. Snead served as vice president and Denver branch executive of the Federal Reserve Bank of Kansas City where he served as the Reserve Bank’s regional economist and lead officer in the states of Colorado, Wyoming and northern New Mexico. Mark was responsible for briefing the Kansas City Fed’s president and external audiences on economic and business activity in the Denver region’s states. Eric Long is the research economist for the Greater Oklahoma City Chamber, where he has served for over the past decade. As the Chamber’s research economist, he provides business intelligence, workforce and economic analysis that support the region’s economic development efforts and local businesses. Mr. Long has served on the national board of C2ER, The Council for Community and Economic Research and is a past graduate of Leadership Oklahoma City.

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OKC MAPS PROJECTS – 25 YEARS

MAPS Projects Oklahoma City recently marked 25 years of public capital improvement projects funded through the MAPS initiatives. The MAPS projects addressed needs in transportation, education, recreation, entertainment, arts and culture, public space and lifestyle amenities. In the 25 years since the onset of the initial MAPS projects, Oklahoma City and its residents have enjoyed a substantial improvement in the quality of life, particularly in the downtown area. The reconstruction of the area and the subsequent turnaround in the City’s economic trajectory have been substantial and consistent, if not transformative. The MAPS projects are viewed as the clear catalyst behind the revitalization underway in Oklahoma City. More importantly, these public investments in turn triggered significant private development in housing, lodging, retail, office space and recreational offerings. This report documents the activities of the MAPS projects and evaluates the resulting changes in the demographic, workforce, lifestyle and economic conditions enjoyed by residents of Oklahoma City. Three Rounds of MAPS All three rounds of MAPS projects (MAPS, MAPS for Kids, and MAPS 3) have contributed to the resurgence of downtown Oklahoma City and increasingly the broader metropolitan area. The initial MAPS projects established many of the civic landmarks now recognized as key components of commerce, government and civic life in Oklahoma City. The initial MAPS projects are now being integrated more deeply into the city’s long-range plans for downtown through synergies with MAPS 3 projects. MAPS for Kids played only an indirect role in the revival of downtown but represents a major step toward improving educational outcomes across the city’s primary school district. MAPS for Kids was intended to serve as a catalyst in raising educational outcomes in the public schools by revitalizing an increasingly decaying educational infrastructure. The key contribution of MAPS for Kids to downtown is the construction of a new charter elementary school that fills a critical gap for families with young children who choose to live downtown. Several MAPS 3 projects are now fully completed, and the extent of their future contribution is now being realized. Many of the MAPS 3 projects represent vital components of the city’s plan for downtown revitalization that were envisioned in the early 1990s. The increased focus of MAPS 3 on lifestyle amenities such as Scissortail Park, wellness centers and biking trails underscores the range of items beyond traditional infrastructure that characterize today’s great cities in which to live and work. Prior Evaluations Because of the key role played by public funding and the substantial financial commitment of taxpayers in the region, ongoing evaluation of the outcome of the MAPS projects is fundamental to public oversight. This report extends the most recent evaluation of the MAPS projects titled Impact Analysis of Oklahoma City’s MAPS and Other Significant Central City Investments prepared by Larkin Warner and Eric Long. The initial release of the report in 2003 was followed by updates in both 2005 and 2009. The 2009 MAPS report focused primarily on the influence of the initial round of MAPS projects and accompanying private investment activity in the downtown Oklahoma City area. The report also

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OKC MAPS PROJECTS – 25 YEARS

discussed the early stages of planning and implementation of the MAPS for Kids projects underway at the time. This report extends the 2009 report by updating outcomes for the early MAPS projects and providing an initial examination of the more recent MAPS efforts. The time frame of the report focuses primarily on the period since 2009, which captures the era of the MAPS 3 initiative. Measuring Change Since the release of the 2009 report nearly a decade ago, much has changed surrounding both the MAPS projects and the resulting development of Oklahoma City, particularly in downtown. The original MAPS projects continue to mature, MAPS for Kids projects are now largely completed, and a significant round of projects approved under the MAPS 3 initiative are completed or underway. The overall results suggest that the initial public investment in MAPS triggered substantial additional public and private sector investment. To date, approximately $1.8 billion in city investment has been used or earmarked for the three rounds of MAPS projects in Oklahoma City. Additional city infrastructure expenditures in the period totaled $690 million and worked to enhance the outcome of the MAPS projects. Other federal, state and local government entities invested an additional $600 million in the downtown area. Total public investment through city spending on MAPS and investments by other public sector entities reached $3.1 billion between 1995 and 2018. Private investment spending in the downtown study area similarly surged along with the initial MAPS projects and continued steadily through 2018. Estimated private investment spending totaled $3.9 billion between 1995 and 2018. Private investment gains are highly visible in the office, hotel, medical and research, residential, food service and entertainment sectors. In total, the combination of city investment through MAPS along with other public and private sector investment in the downtown study area reached an estimated $7 billion in the full MAPS era. Report Objective and Structure In assessing the various changes resulting from MAPS, this evaluation pursues three basic underlying tasks: 1. Update the prior evaluation of the original MAPS projects provided in the 2009 report, particularly the contribution of MAPS to change in downtown Oklahoma City 2. Provide an initial review of the mostly completed MAPS for Kids projects 3. Detail the completed or currently underway MAPS 3 initiatives and the role these projects are expected to play in shaping future growth in Oklahoma City A final, though more informal, task pursued throughout the report is the development of a more integrated view of the three rounds of MAPS projects approved to date. The number and breadth of projects and the length of time over which they have transpired warrants a more comprehensive view of MAPS as a single, ongoing economic development effort that now extends 25 years. Downtown Revitalization A key aspect of the report is measuring change in the downtown area where most MAPS projects are located. When MAPS was first proposed in the early 1990s, no catalyst capable of propelling economic renewal in downtown Oklahoma City was visible. Downtown had settled into stagnation and then entered decline in the decade following the Oil Bust of the early 1980s.

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OKC MAPS PROJECTS – 25 YEARS

Downtown’s condition reflected decades of insufficient public and private investment. Private housing, retail and office development had moved mostly outside the city’s central core into other more vibrant markets across the city. In reversing the trend in place, the MAPS initiatives pursued the increasingly important economic development strategy of placemaking , or the process of developing a city in which residents want to live, work and play. This approach acts as both a retention mechanism for current businesses and residents while attracting others from outside the region. The objective for downtown called for the weaving together of an expanded business and employment presence, a vibrant residential community, expanded retail and services options, medical and education facilities and a range of cultural, recreational and entertainment venues.

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OKC MAPS PROJECTS – 25 YEARS

MAPS Projects - Structure and Status The MAPS initiatives remain highly innovative in terms of both structure and process. Some of the key characteristics of the MAPS projects include: 1. Public inception: Projects are initiated through a public input process 2. Public vetting process: City Council reviews and makes project recommendations 3. Voter approval: Projects are approved through a majority vote of the people 4. Direct funding: Funded through a temporary dedicated local sales tax 5. Pay-as-you-go: Projects begin only after funds are collected 6. City managed: Direct project operations are managed by City staff 7. Debt-free: Projects carry no debt upon completion 8. Public oversight: Continual public oversight by volunteer committees of private citizens These elements continue to serve the MAPS process well. The three rounds of MAPS projects approved by voters to date represent widespread improvements in city infrastructure. An overview of the composition, cost and status of the three major MAPS initiatives is provided below. A more detailed description of each MAPS initiative is provided in Appendix 1. MAPS (Metropolitan Area Projects) Downtown revitalization and civic arts/entertainment venues • The original MAPS projects were approved on Dec. 14, 1993, by 54 percent of voters. • The initial $350 million sales tax-funded program focused primarily on revitalization of the core downtown area. • Projects included construction of the Chickasaw Bricktown Ballpark, construction of the Bricktown Canal, renovation and expansion of the Cox Convention Center, construction of Chesapeake Arena, renovation of the Civic Center Music Hall, creation of the Oklahoma River system, construction of the Ron J. Norick Downtown Library, improvements at State Fair Park and a rubber-tire trolley system for transportation to/from downtown and the surrounding area. • The final MAPS project was completed in 2004. • All the original MAPS projects except the trolley system remain in place. • MAPS projects are now recognized as key downtown landmarks and important civic, arts and entertainment destinations. MAPS for Kids Revitalization of public school infrastructure • Voters approved funding for MAPS for Kids on Nov. 13, 2001, with a 61 percent majority. • The $694 million initiative was intended to provide a comprehensive overhaul and restructuring of the aging public education infrastructure in Oklahoma City. • Funding included $514 million in city sales tax and a $180 million bond issue. • $154 million of the funding was split among 23 suburban school districts serving children living within the Oklahoma City limits but attending school outside the Oklahoma City Public School District.

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OKC MAPS PROJECTS – 25 YEARS

• The proposal called for the closure of unneeded school buildings, construction of new schools, and at least $1 million in deferred maintenance and other renovations at every other district school. • A key goal of the effort was to reduce the number of buildings operated by the district from 88 to 70. There are currently 64 structures operated by the district after the district’s Pathway to Greatness project further streamlined the number of buildings. • Six new school buildings were constructed, including a new downtown elementary school. • Nearly all MAPS for Kids projects were completed by 2018. MAPS 3 Downtown infrastructure development and health/recreation venues • The MAPS 3 initiative was approved by voters on Dec. 8, 2009, with a 54 percent majority. • Funding for the $777 million campaign was derived from the dedicated MAPS sales tax. • MAPS 3 centered on major downtown capital projects but also included trails, sidewalks, and senior health and wellness centers located throughout the city. • The largest MAPS 3 projects—Convention Center, Scissortail Park and the OKC Streetcar system—are already transforming the Core-to-Shore development area downtown. • Two wellness centers, the streetcar, the Bennett Event Center at State Fair Park and the RIVERSPORT Rapids whitewater rafting and kayaking center are completed. The trails are nearing completion, and two more wellness centers are in the planning stages. • All currently active MAPS 3 projects are scheduled for completion by 2021. A summary of the status of all MAPS 3 projects is provided in Figure 1. Figure 1. MAPS 3 Projects – Summary Type Project Cost Status Convention Center Downtown Convention Center $288.0 million Underway City Park Scissortail Park (Downtown) $132.0 million Underway Streetcar Downtown Streetcar $131.0 million Completed in 2018 State Fair Event Center Bennett Event Center $58.7 million Completed in 2017 River Rapids RIVERSPORT Rapids $57.0 million Completed in 2016 Wellness Centers Senior Health & Wellness Centers $52.0 million Two completed, two underway Trails Trail System $39.5 million Mostly completed Sidewalks Sidewalk Construction/Repair $18.1 million Underway Total – MAPS 3 $777 million Source: City of Oklahoma City and Greater Oklahoma City Chamber

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OKC MAPS PROJECTS – 25 YEARS

Other Related City Development Efforts Along with the three MAPS initiatives, Oklahoma City has engaged in other major non-MAPS investments focused on improving city infrastructure and quality of life for residents in the MAPS era. These efforts have worked to enhance the outcome of MAPS and include the following: 2007 Bond Program In 2007, Oklahoma City voters approved a 10-year series of annual bond issues totaling $835.5 million to improve or replace city infrastructure. Projects include the repair of 750 miles of residential and arterial streets, bridge repair, park improvement, drainage system improvement, sidewalk and trail construction, new police and fire stations, bus replacement and public library updates. The bond program also provided $75 million for an incentive fund for economic development. I-40 Realignment The relocation of I-40 to replace the old elevated Crosstown Expressway Bridge dramatically altered much of the landscape just south of downtown Oklahoma City. Following the I-40 realignment, the city created the iconic Skydance Pedestrian Bridge spanning a stretch of the new interstate south of downtown. The bridge was intended to break the development barrier presented by the interstate and allow foot traffic to easily move across the busy I-40 corridor between downtown and the river. The $688 million project also opened a considerable stretch of developable land along the path of the original bridge on the south edge of downtown. Core to Shore The city’s Core-to-Shore project was implemented in 2008 to reconstruct the south entrance to downtown and build a corridor stretching from the city center to the revitalized Oklahoma River to the south. Another important component of the Core-to-Shore plan called for the creation of a new urban corridor using land opened by the I-40 realignment to create a new entrance to the city on the south side of downtown. The Oklahoma City Boulevard is now complete and development along the new route is brisk. Project 180 In 2009, the city embarked on an eight-phase $176 million project for the redesign of downtown streets, sidewalks, parks and plazas to improve appearance and make the central core more pedestrian friendly. Plans called for the addition of landscaping, public art, marked bike lanes, decorative street lighting and additional on-street parking spaces. Better Streets, Safer City Approved on Sept. 12, 2017, by Oklahoma City residents, the Better Streets, Safer City initiative temporarily extended the MAPS 3 1-cent sales tax for an additional 27 months (through March 2020) to generate $240 million for infrastructure. Initiatives include $168 million for street resurfacing, $24 million for streetscapes, $24 million for sidewalks, $12 million for trails, and $12 million for bicycle infrastructure. The vote included approval of a 10-year series of bond issues totaling $967 million to invest in streets, police and fire facilities, parks, and other basic infrastructure needs. The final component is a permanent 1/4-cent sales tax rate increase to support increased public safety. The tax will generate an estimated $26 million annually to the general fund.

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OKC MAPS PROJECTS – 25 YEARS

MAPS 4 In October 2018, Mayor David Holt and the Oklahoma City Council announced efforts to collect ideas from the public for potential MAPS 4 projects. Mayor Holt and councilmembers heard presentations for potential MAPS 4 projects during a series of special meetings in July and August 2019. The slate of projects were approved by City Council and the vote was called for Dec. 10, 2019. The strategy remains the identification of transformational ideas that continue the momentum from prior MAPS programs and propel the city forward.

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OKC MAPS PROJECTS – 25 YEARS

Downtown Study Area – Demographic Profile Because many of the MAPS projects to date focus on revitalization and development of downtown, the report seeks to evaluate demographic and economic changes in the downtown market area. Downtown has undergone significant change since the onset of the initial MAPS programs and is currently experiencing accelerated development traced to MAPS 3. Downtown Study Area Figure 2 illustrates the general downtown market area encompassing most of the MAPS spending. This defined region is commonly used by both the city and related entities to describe the current footprint of the broader downtown Oklahoma City market. The study area captures the location of most downtown MAPS spending as well as other major public spending initiatives targeted at the downtown market. The 4.41 square mile area is generally bordered by Western Avenue to the west, 13th Street to the north, I-35/235 and Lottie Avenue to the east, and the Oklahoma River to the south Figure 2. Downtown Study Area Map

Source: Greater Oklahoma City Chamber

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OKC MAPS PROJECTS – 25 YEARS

Public databases of economic and demographic data do not generally correspond to the exact boundaries of the downtown market area shown in Figure 2. Activity in the downtown study area is evaluated throughout the report using combinations of census tracts and ZIP codes to provide approximate coverage of the downtown area. The report uses both the 14 census tracts (see Figures 3a and 3b) and the four primary downtown ZIP codes – 73102, 73103, 73104, and 73106 – to evaluate changes in demographic and economic conditions in the study area.

Figure 3a. Downtown Study Area Census Tract Boundaries

Approximate Location in Study Area N/S by E/W (North-N, South-S, Central-C, East-E, West- W)

Census Tract

Approximate Boundaries (North to South, West to East) NW 23rd to NW 10th between Robinson and Santa Fe

Selected Features

Mixed use, Byron's Liquor Warehouse, Aberdeen Properties

1016

NW

(L-shaped) NW 23rd to NW 13th between Walker and Robinson; NW 16th to NW 13th between Western and Walker NW 23rd to NW 16th between Western and Walker NW 13th to NW 9th between Western and Robinson

1017

NW

Heritage Hills

1018

NW

Mesta Park

1025

CW

St. Anthony Hospital, Bone & Joint Hospital Oklahoma School of Science and Mathematics, Oklahoma Department of Commerce North part of Oklahoma Health Center; University of Oklahoma Health Sciences South part of Oklahoma Health Center, Presbyterian Health Foundation Research Park Central-west downtown including National Memorial, Sycamore Square, new Federal campus, County Jail, and Regency Tower Downtown including Myriad Gardens, City and County offices, Civic Center Police Department and Municipal Courts, Wheeler Park Empty former Main Post Office; Union Station, OKC Boulevard, north Scissortail Park Automobile Alley and Downtown including Cox Convention Center

1026

NE 13th to NE 8th between Santa Fe and Lincoln

CC

1027

NE 13th to NE 8th between Lincoln and Lottie

CE

1030

NE 8th to NE 4th between Santa Fe and N. Lottie

CE

1091 (Formerly 1031.01 & 1031.02)

NW 10th to Reno between Robinson and Santa Fe

CC

NW 9th St. to Couch Drive/4th between N Western and N Robinson NW 4th to Reno along N Robinson (eastern edge) and Robert S. Kerr to California along Lee (western edge)

1032

CW

1036.01

SC

1036.02 NW 2nd Street and Couch Drive to Oklahoma River between N Western and Lee/Shartel

SW

California and Reno to SW 8th between Shartel and Santa Fe, north of new I-40 NE 4th to Union Pacific tracks between Santa Fe and I-35 ramp I-40 to Oklahoma River between Shartel and Shields/Santa Fe

1037

SC

1038

SE

Bricktown and Deep Deuce

1040

SC

South Scissortail Park to Oklahoma River

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OKC MAPS PROJECTS – 25 YEARS

Figure 3b. Downtown Study Area – Census Tract Map

Source: Greater Oklahoma City Chamber

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OKC MAPS PROJECTS – 25 YEARS

Demographic Structure and Change The focus of the MAPS projects on placemaking was expected to establish the foundation for a vibrant downtown area where residents can live, work and play within the central core of the city. In turn, these changes were expected to introduce substantial change in the demographic makeup of the downtown area. Since about 2009, marked acceleration has taken place downtown in population and housing market growth. The area’s residents are also becoming younger, more educated, higher earning and more racially diverse. The full report provides a detailed evaluation of the changing demographic structure of the downtown study area and evaluates changes since the 2009 report. Key findings from the report include: Population Population growth in the downtown study area accelerated in 2010 following decades of relatively weak gains. • Total population in the study area increased 20.8 percent between 2010 and 2017, adding nearly 2,200 new residents. • Adjusted for residents living in group quarters, population in the study area increased by more than 1,000 new residents (14.9 percent gain) between 2010 and 2017. Population growth in the downtown study area is now far outpacing the broader region. • The 20.8 percent gain in the study area since 2010 is more than double the 7.7 percent gain countywide and four-fold the 4.6 percent gain statewide in the period. • Adjusted for residents in group quarters, the 14.9 percent study area gain is roughly twice the rate of county population growth (7.7 percent) and more than triple the state gain (4.6 percent). The downtown area is steadily moving toward a critical mass of residents. • Total population in the downtown study area reached a reported 12,603 residents in 2017. • After adjusting for residents living in group quarters, an estimated 7,808 persons not in group quarters now reside in the downtown study area. Housing Along with population, housing growth in the downtown area accelerated beginning in 2010. • County assessment data suggest that approximately 2,700 housing units were added in the downtown study area between tax years 2009 and 2017, a 55.3 percent gain in the period. • Three-fourths of new downtown residential units added since 2009 are found near SSM Health St. Anthony Hospital (1,052 units) and in the Bricktown/Deep Deuce area (1,006 units). • A total of 7,635 housing units are reported in the downtown study area in tax year 2017. The downtown housing market remains heavily rental, with vacancy rates falling over time. • Currently, approximately only one-fourth (23 percent) of total housing units in the study area are owner occupied. Almost 60 percent are occupied by renters, with 18 percent vacant.

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OKC MAPS PROJECTS – 25 YEARS

• Vacancies as a share of total units trended down sharply between 1990 and 2000 but have remained at approximately 18-19 percent of total units since 2000. Rents remain low relative to many central cities but have risen sharply in key downtown census tracts. • Median monthly rents in the downtown study area remain relatively low at $947 in 2017. • Median monthly rents vary widely, ranging as high as $2,000 in tract 1030 (south of University of Oklahoma Health Sciences Center) and as low as $575 in tract 1026 (near the Oklahoma Department of Commerce). Owner-occupied housing represents a declining share of the downtown market, but valuations are rising sharply in key census tracts. • Median values for owner occupied homes are highest in tracts 1017 (Heritage Hills, $427,600) and 1018 (Mesta Park, $296,200) to the north and tract 1038 (Bricktown and Deep Deuce, $423,800) to the southeast. • Median home values remain the lowest in tracts 1030 (south of University of Oklahoma Health Sciences Center, $104,800), 1032 (near the Oklahoma City National Memorial & Museum and Oklahoma County Jail, $119,500), and 1016 (far north, $143,100). A significant share of the city’s early legacy housing stock remains in place in the study area. • Housing units added in the study area between 2010 and 2017 now represent an estimated 11 percent of total housing units. • Approximately 27 percent of housing units in the downtown study area were constructed since 2000 when the initial MAPS projects opened. • Legacy housing remains important downtown, with 42 percent of study area units constructed prior to 1950 and 38 percent built in 1939 or earlier. Demographic Profile: The population of the downtown study area remains relatively young and the median age is falling. • Residents living in the study area have a median age of 34.0 years in 2017. This compares to 34.4 years for the county, 36.3 years for the state and 37.8 years nationally. • The median age of residents in the study has declined slightly from 34.3 years in 2010. • The low overall age dependency ratio of the study area suggests the area is home to few residents outside the traditional working ages relative to the broader region. Declining school enrollment in the study area reversed along with population beginning in 2010. • Total school enrollment among downtown residents in 2017 is down slightly from a high of approximately 2,000 students in 2000 but has rebounded by almost 225 students since 2010. • The largest gains in enrollment since 2010 are among elementary, secondary and college students residing in the study area. • More than 800 residents in the downtown study area are enrolled in college or graduate school.

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The study-area population is far more racially diverse than the surrounding region. • Almost two-thirds (63.7 percent) of the study area population identified as white (non-Hispanic) in 2017, far lower than the 68.9 percent share in Oklahoma County and the 72.9 percent share statewide. • Approximately 20 percent of residents identified as black or African American (non-Hispanic), well above the 15.0 percent share at the county level and the 7.3 percent share statewide. • A reported 4.4 percent identify as American Indian or Alaska Native reflecting the high share of American Indians residing in Oklahoma. • The Asian (non-Hispanic) share of population reached only 3.5 percent in 2017 with the highest numbers of Asian residents in the northern areas of downtown (tracts 1017 and 1018) between 13th and 23rd bordered by Western and Robinson. • Residents reporting as Hispanic or Latino (but of any race) comprise only 7.3 percent of the study area population in 2017. This is far lower than the 16.4 percent Hispanic share in Oklahoma County and slightly below the statewide share of 9.8 percent. • The study-area residents reporting as two or more races is 6.4 percent, slightly below the statewide share of 6.8 percent but slightly above the countywide share of 5.4 percent in 2017. The average level of education in the downtown study area is relatively high but is highly variable across census tracts. • Study-area residents have an average of 13.8 years of schooling in 2017, or an average of 1.8 years of education beyond high school. • Education levels are far higher in the three northernmost highly residential census tracts (1016, 1017 and 1018), with 68 percent of residents having completed a bachelor’s degree or higher. • Among the southern tracts, the highest levels of attainment are found in the Business District (15.3 years of schooling) and Bricktown/Deep Deuce (16.3 years of schooling), both with residents having roughly a college degree on average. • The lowest educational attainment levels are found in tract 1037 to the southwest of downtown (11.6 years of schooling) and tract 1040 (11.4 years of schooling) south of I-40 to the Oklahoma River. Residents in both tracts have completed slightly less than a high school diploma on average with few completing a bachelor’s degree or higher. Median household income in the downtown study area is relatively high compared to the county, state and nation. • Median household income in the study area reached $59,605 in 2017, 17 percent above the county median of $50,762 and 20 percent above the statewide median of $49,767 in the period. • Median household income in the study area is also 3.4 percent above the U.S. median of $57,652 in 2017. • Across all downtown tracts, 29 percent of households report income of $100,000 or more, while four tracts report no households with income above $100,000. • Average income ($90,907) is far above the median income for the study area ($59,605), suggesting a significant concentration of very high earning households in the study area.

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OKC MAPS PROJECTS – 25 YEARS

• There is significant income diversity in many of the tracts in the study area that have a relatively high share of households with income both above $100,000 and below $25,000.

The disability share in the study area is above both the national (12.6 percent) and county (13.6 percent) shares but falls below the state share (15.9 percent). • More than 80 percent of residents with a disability are between the ages of 18 and 64. • Younger residents under the age of 18 and older residents ages 65 and over both comprise a relatively small share of total residents reporting a disability. The downtown study area has a very high share of management, business, science and arts occupations relative to the county, state and nation. • Much of the difference in occupational mix relative to the county, state and nation is traced to just two occupations – management and health care. • Management occupations reflect a high number of white-collar managerial jobs across most industries located downtown. • Health care occupations are traced to the presence of SSM Health St. Anthony Hospital, OU Medical Center and the University Research Park in the study area. • The overweighting of jobs in management, business, science and arts occupations results in far lower shares of occupations in the remaining four major occupation groupings. • In comparison, both the county and state closely match the overall national occupational mix for most major and detailed occupation groups.

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OKC MAPS PROJECTS – 25 YEARS

Downtown Study Area - Economic Profile Along with accelerated growth in population and housing, another key spillover effect anticipated from MAPS is growth in the base of business establishments and employment downtown. Many of the city’s largest employers have a significant presence downtown and attract workers from all regions of the metropolitan area. Much like population and other demographic measures, the results suggest a sharp increase in employment and business activity in the downtown study area since approximately 2009. Activity in the study area has also far outpaced the county, metro area and state in the period. The full report provides a detailed examination of recent changes in the size and composition of the local economy in the downtown study area. Key findings on changes in the downtown study area economy include the following: Employment Much like recent population gains, a distinct acceleration in downtown job growth has taken place since approximately 2009. • Total jobs located in the 14 census tracts in the downtown study area reached 61,100 in 2015, the most recent year of data available. • More than 9,000 jobs were added in the study area between 2009 and 2015, a 17.3 percent gain. This follows an extended period of relatively flat and volatile job growth from 2002 to 2009. • The study area far outpaced job growth at the county (12.4 percent), metro (12.5 percent) and state (8.0 percent) levels in the period. • Measured instead across the four major downtown zip codes, more than 8,800 jobs were added between 2009 and 2016, a 22 percent gain in the period. • Total jobs in the four primary downtown zip codes surged to more than 48,700 in 2016. • Job growth in the study area zip codes also far exceeds the reported 5.4 percent gain statewide, 7.7 percent gain countywide, and 7.6 percent gain for the metropolitan area in the 2009 to 2016 period using comparable measures. Most new workers in the study area since 2009 commute to downtown from outside the relatively small downtown study area. • In 2015, more than 59,500 (97.4 percent) of the 61,100 jobs downtown were held by persons who live outside the study area. • Since 2009, more than 8,500 of the approximately 9,000 new downtown jobs were filled by residents living outside the immediate downtown study area. However, most new jobs in the downtown study area since 2009 were filled by workers who live in Oklahoma County. • Two-thirds (5,999) of the 9,009 net new jobs downtown were filled by residents living in Oklahoma County.

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OKC MAPS PROJECTS – 25 YEARS

• The total number of Oklahoma County residents working in the study area increased 20.4 percent in the period to a total of 35,432, exceeding the overall downtown job gain of 17.3 percent in the period. • Neighboring counties supplied the remaining one-third of workers in the period, a reflection of the continued broad distribution of labor across the region. • Residents of both Cleveland and Canadian counties gained about 1,000 downtown jobs each in the period. Despite large and growing numbers of in-commuters to downtown, growth in employment of residents who live in the study area has been even stronger. • Measured from the recent bottom in 2010, employment among study area residents regardless of where they work increased 26.8 percent through 2015, or a total of 5,280 workers. Jobs in the downtown study area remain highly concentrated in four sectors - health care, education (primarily medical), public administration (city, state and federal government) and mining. • These four sectors represent the traditional areas of employment concentration downtown. • These sectors are anticipated to remain anchors in the area in the near- to intermediate-term. • In the longer-term, however, industry diversification could begin to introduce significant change to the current industry structure downtown. The growth rate for downtown jobs has been larger and more persistent for residents who live in the study area versus commuters coming from outside downtown. • Total jobs in downtown held by downtown residents were at a recent bottom of 1,006 in 2010 and increased by 600 to just above 1,600 by 2015, a 59 percent gain in the period. • Though the absolute numbers are smaller than for commuters, job growth rates are far higher for downtown residents and suggest an important shift in the labor supply of the region. Recent growth in the number of workers who both live and work downtown is found almost exclusively among workers in the highest wage category. • Based on monthly earnings in three income ranges ($1,250 or less, $1,251 to $3,333, and more than $3,333), the number of workers in the highest wage category has increased steadily from about 400 in 2007 to 944 in 2015, a more than doubling in the period. • In contrast, while a significant share of downtown residents is employed in lower-paying jobs located downtown, the number has remained flat or fallen slightly since 2002. ZIP code-based employment estimates for the study area similarly suggest a surge in downtown hiring in recent years following an extended period of relatively stagnant business activity. • Following little net hiring growth in the study area from the Oil Bust in the early 1980s through the late 2000s, more than 8,800 jobs were added in the downtown study area ZIP codes between 2009 and 2016, a 22 percent gain in the period. • Total jobs in the four primary downtown ZIP codes surged to more than 48,716 in 2016.

16

OKC MAPS PROJECTS – 25 YEARS

Payroll at firms operating in the four primary ZIP codes similarly accelerated beginning in 2009. • Total annual payroll increased from $2.2 billion in 2009 to more than $3.4 billion in 2016 – a 57 percent increase. • Downtown far outpaced payroll gains across the broader region. • The 57 percent gain downtown was more than double the 26.4 percent gain statewide, 27.8 percent gain countywide, and 26.8 percent gain in the metropolitan area in the period. Recent downtown payroll gains far exceed historical gains. • Total payroll growth from 1995 to 2009 averaged 4.2 percent annually versus acceleration to 6.8 percent annually between 2009 and 2016. • Some sluggishness is present in 2016 relative to 2015 but reflects the statewide oil and gas slowdown in the period. Payroll gains in the study area are more than double the pace of reported employment gains in the period, suggesting rising pay per worker in the study area since 2009. • Average payroll per worker increased from $54,600 in 2009 to $70,200 in 2016, a 29 percent gain in the period. • For comparison, average pay per worker in the study area ($70,200) now far exceeds payroll per worker at the state ($42,042), county ($46,042), and metro ($43,061) levels. • The annual pay premium per downtown area job is now 67 percent relative to the state, 52 percent relative to the county and 63 percent relative to the metropolitan area. Business establishment growth in the U.S. and in many states has been sluggish for more than two decades but resumed growth in the downtown study area since 2012. • The downtown study area added 250 net new establishments (13 percent gain) from 2012 through 2016, the most recent data reported. • The rate of establishment growth in the study area is more than double the rate in the period for the county (5.0 percent), metro area (5.3 percent), state (2.5 percent), and nation (4.4 percent). • A reported total of 2,200 business establishments were operating in the study area in 2016. The average size of business establishments in the downtown study area continues to increase. • The number of workers per establishment has increased steadily since reaching a recent low in 2010, rising from about 20.3 to 22.1 workers per establishment through 2016. • The average size of a business establishment in the study area measured by total payroll is similarly increasing. The average firm increased its payroll from $1.1 million in 2009 to approximately $1.6 million annually in 2016, a 40 percent gain in the period.

17

OKC MAPS PROJECTS – 25 YEARS

MAPS Investment – Public and Private Large-scale local public infrastructure projects like MAPS are typically accomplished only through state and local government coordination and funding. The public backing of the large public investment through MAPS was intended as a signal to private investors and developers that significant steps were being taken toward revitalizing downtown Oklahoma City. Along with changing demographics and a rebounding downtown economy, MAPS was expected to induce a rebound in private investment in housing, office, retail and other development. The 2009 evaluation of MAPS documented significant new private and public investment in the downtown study area tied to the onset of MAPS. Findings in the current report indicate continued strength in both private and public investment downtown. Both the housing and office markets are benefiting from continued investment and rising overall property values. Existing properties tracked over time in Bricktown show steady and substantial Figure 4 provides an overview of the $1.81 billion in total public investment across all three major MAPS initiatives the past 25 years. The three rounds of MAPS are progressively larger in size as measured by actual cost. The original $350 million MAPS program accounts for slightly less than 20 percent of total investment. Both MAPS for Kids ($684 million) and MAPS 3 ($777 million) have approximately twice the public investment of the original MAPS projects, comprising 38 percent and 43 percent, respectively, of total public investment. Figure 4. MAPS Projects – Total Public Investment valuation gains since the initial MAPS projects were opened. Public Investment–MAPS, MAPS for Kids, MAPS 3

Actual Cost

Inflation-Adjusted Cost (2018)

Project Cost (millions)

Share of Total

Project Cost (millions)

Share Of Total

Project MAPS

$350.0

19.3% 37.8% 42.9%

$569.2

24.6% 39.0% 36.4%

MAPS for Kids

684.0 777.0

902.8 843.6

MAPS 3

Total 100.0% Source: City of Oklahoma City, Greater Oklahoma City Chamber, and Bureau of Labor Statistics Notes: Cost is inflation-adjusted using the approximate midpoint at which sales tax revenue for each MAPS project was received. MAPS projects are adjusted using a midpoint of March 1996; MAPS for Kids uses a midpoint of January 2005; and MAPS 3 uses a midpoint of July 2013. Inflation adjustments are made using the all urban consumer price index-U.S. city average. $1,811.0 100.0% $2,315.6

Inflation Adjusted Investment To account for the effects of inflation over the 25-year life of the MAPS projects, Figure 4 provides an estimate of the inflation-adjusted cost of the three rounds of MAPS projects in 2018 dollars. The total inflation-adjusted cost across the three MAPS initiatives is approximately $2.32 billion in 2018 dollars, or an inflation differential of 28 percent above initial cost. The relative share of total cost devoted to the three MAPS initiatives also shifts after inflation adjustment. The initial MAPS projects now comprise about 25 percent of the total at $569 million in

18

OKC MAPS PROJECTS – 25 YEARS

2018 dollars. MAPS for Kids retains the same approximate share of the total cost (39 percent) with an inflation-adjusted cost of $903 million. MAPS 3 is no longer the largest of the three initiatives after inflation-adjustment, dropping to 36 percent of total cost at $844 million in 2018 dollars. Total Public and Private Investment Along with city investments through MAPS, increased investment is traced to both the private sector and other public sector entities at the federal, state and local government levels. Total investment includes all city spending on the three rounds of MAPS projects plus other investment (both public and private) in the downtown study area. Estimates of total investment for the downtown study area are detailed in Figure 5. Estimates from the 2009 MAPS report covering the 1995 to 2008 period are combined with more recent estimates for the 2009 to 2018 period. Estimates of public investment are divided into those made by the city versus those made by other public sector entities. City investment is further split into MAPS and non-MAPS components. Private investment is categorized across nine major groupings of development. Figure 5. Public and Private Investment - MAPS & Downtown Study Area Investment (millions) % Share 1995-2008 2009-2018 Total Public City of OKC - MAPS $356.1 $1,461.0 $1,817.1 26.1% Non-MAPS 56.5 633.4 689.9 9.9% Total City of OKC $412.6 $2,094.4 $2,507.0 36.0% Other Public (Federal, State, & Local) 548.7 48.9 597.6 8.6% Total Public $961.3 $2,143.3 $3,104.6 44.6%

Private

Medical & Research

1,288.1

275.7 759.7 285.0 174.9 108.5

1,563.8 1,008.9

22.4% 14.5%

Office Hotel

249.2 190.4 237.5 154.0

475.4 412.4 262.5

6.8% 5.9% 3.8% 0.9% 0.7% 0.2% 0.2%

Residential

Entertainment/Cultural

Food Service

24.8 22.1

36.9 28.2

61.7 50.3 15.0 11.7

Retail

Parking

6.5 8.0

8.5 3.7

Other

Total Private

$2,180.6

$1,681.0

$3,861.6

55.4%

Total Public and Private

$3,141.9

$3,824.3

$6,966.2

100.0%

Note: The two time periods of investment displayed in Figure 5 are not of equal time span and are based upon the update schedule of current and past MAPS evaluation reports. The 1995-2008 period captures investment over a 14-year period, while the 2009-2018 period captures only approximately 10 years. Source: City of Oklahoma City, Greater Oklahoma City Chamber of Commerce, Mc-Graw Hill Dodge Reports, and RegionTrack Downtown Investment Activity – 1995 to 2008 Estimates from the 2009 MAPS report documented a significant increase in investment activity in the

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