OKC MAPS Economic Impact - Executive Summary

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

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