Tulsa World: Land across from BOK Center is sold

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Land across from BOK Center is sold
The mixed-use project will include a hotel, restaurants and shops.

The Tulsa Development Authority agreed to sell property near the BOK Center for "One Place," a project that will feature a hotel, residences, retail space and entertainment venues. COURTESY

By BRIAN BARBER World Staff Writer
Published: 10/17/2009 2:27 AM
Last Modified: 10/23/2009 4:13 PM

View renderings of the planned One Place development.

A $38 million, mixed-use project across from the BOK Center that will feature a hotel, residences, retail space and entertainment venues is finally moving forward.

The Tulsa Development Authority this week agreed to a $1.5 million offer from One Developers LLC for a prime piece of property at Third Street and Denver Avenue downtown.

TDA member Carl Bracy said although the land was recently appraised at $2.4 million, the authority decided to accept the offer because it is a cash deal and because of the project's ability to move forward.

"We've been looking for the right fit for that land for some time," he said. "I really think this is going to be something special."

TDA Executive Director O.C. Walker said it is important to get a quality development in place to capitalize on the success of the arena.

"That location is going to be a happening place," he said. "When you have thousands of people right there for an event, it's really a captive audience. And the time is right for the TDA to play a role in the revitalization of downtown."

"One Place" is expected to be completed in three to five years and will encompass the entire city block bounded by Second and Third streets between Denver and Cheyenne avenues, just east of the BOK Center. It is unknown which part of the project will be done first.

Its developers have been negotiating with TDA, the city's real estate arm, since May for the parcel, which makes up three-quarters of the block.

Owners of one of the other two parcels within the site are on board for the project under Cheyenne Development LLC. The other was the location of the now-razed Towerview apartment building. Its owner, Concorde Development of Oklahoma, has reportedly agreed to sell or participate.

The principal of One Developers is Bob Eggleston, who was the construction director on the BOK Center.

Hank Pellegrini will have a financial interest in the project through Cheyenne Development LLC. Pellegrini is the son-in-law of Bill Lobeck, the husband of Mayor Kathy Taylor. The mayor does not sit on the authority, but she filed an official disclosure of potential conflict of interest with the City Clerk's Office.

The project will ultimately be assembled under One Place LLC to encompass everyone involved.

A letter of intent drafted by the TDA gives until Nov. 6 for the purchase and sale agreement to be completed and then 60 days beyond that for due diligence to occur.

Closing is expected within 10 days after that. That time frame will likely change depending on talks with the developers.

Project architect Rachel Zebrowski of Miles Associates said the schematic design is supposed to be presented to the TDA for approval before closing. She hopes to have four to six months to get it ready.

"We have a lot of work to do between now and then, but at least we're moving forward," she said. "It's a good feeling."

The project will be anchored by a 120-room Hilton urban hotel on the northeast quadrant of the site, including a 6,500-square-foot hotel restaurant.

Single-level, residential flats and 1 1/2-story lofts ranging from 750 to 1,350 square feet, along with 15,000 square feet of commercial and retail space, will be built along the site's southwestern perimeter.

If possible, an underground parking garage with more than 160 spaces will be provided.

An anchor restaurant is envisioned in a two-story space at Third Street and Denver Avenue, with smaller shops such as bookstores, coffee shops and sports-themed diners to fill the area facing the BOK Center, according to the project's description document.

The interior of the block would include a landscaped courtyard with water features, a restaurant with outdoor seating, and a possible area for a skating rink in the winter, the document states.

In addition to Zebrowski, the team includes Leinbach Properties, a residential developer; Hilton Hotels; American Liberty Hospitality, a hotel financing company; David Parker, a hotel planning consultant; and Cooper Construction Estimating LLC.

Last fall, the TDA rejected a $1.75 million offer, to be paid interest-free over two years, from a developer who wanted to build a Hampton Inn & Suites on property. That developer also wanted a six-year property tax abatement, which is not within the authority's control.

Other hotel developers have expressed interest in the site, but formal proposals have been lacking.

Projected economic impact

$146.2 million over 10 years

180 construction jobs

138 permanent jobs

1,000 visitors daily, increasing to 2,500 on event days

Source: Tulsa Metro Chamber

Brian Barber 581-8322
brian.barber@tulsaworld.com By BRIAN BARBER World Staff Writer

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Some reader comments for this story were copied from "Tulsa downtown One Place project progressing," which was published on 10/16/2009.

	Report Comment das16451, (10/16/2009 12:13:28 PM) I wish I was the Mayor's son in law......
	Report Comment Mar, Tulsa (10/16/2009 12:14:11 PM) Whatever Pigster. I'm glad to see good things being built around the BOK Center. From the drawings it looks good.
	Report Comment Mar, Tulsa (10/16/2009 12:15:09 PM) Actually all new buildings or remodeling of old buildings is a great idea for downtown.
	Report Comment Tulsa World Web Reporter, Tulsa (10/16/2009 12:20:27 PM) There are more artist renderings on the link at the top of the story, if you are interested in seeing more.
	Report Comment senor notas, Tulsa (10/16/2009 12:25:09 PM) This is great for downtown. Will these condos be "affordable?" On the other front this land aquisition gets curiouse and curiouser.
	Report Comment recyclemichael, Tulsa (10/16/2009 12:26:04 PM) The site was listed on TDA's website for years at $1.6 million and there were no offers. This group offered $1.5 million in cash. It seems a fair offer to me.
	Report Comment akup, (10/16/2009 12:33:01 PM) I'm glad this is moving forward. In contrast, I wonder how many downtown buildings that we've helped finance through 2025 or other funds are continuing to stagnate.
	Report Comment forkandknife, Tulsa (10/16/2009 12:35:00 PM) EXCITED!!
	Report Comment PR, (10/16/2009 12:35:19 PM) recyclemichael - I completely agree. Appraisals don't dictate market price, the market does. Great news about the development. Let's get the work started! Any idea of a time line on when construction will begin?
	Report Comment dukeera, Jenks (10/16/2009 12:43:07 PM) $1.5 Million vs. $2.4 Million appraised is quite a gap. I'd like to know, how much did TDA pay for the land and when?
	Report Comment DowntownDan, Tulsa (10/16/2009 12:43:24 PM) Hopefully this is one of many similar developments downtown. Visit uptown Dallas and you will see how nice a neighborhood can be when these types of developments are strung together.
	Report Comment shaw411, Scottsdale, AZ (10/16/2009 12:43:26 PM) Looks good....
	Report Comment dukeera, Jenks (10/16/2009 12:44:05 PM) Ah - that detail is helpful - thank you RecycleMichael!
	Report Comment Arbythree, Tulsa (10/16/2009 12:52:04 PM) This will be very nice.
	Report Comment beau3985, Tulsa (10/16/2009 12:52:38 PM) Looks awesome!
	Report Comment Daven, Tulsa (10/16/2009 1:24:01 PM) Thank you TDA for not standing in the way of progress anymore. I cant wait for this project to actually be built!
	Report Comment JS, (10/16/2009 1:47:29 PM) Pigster, I know it's fun to be negative and so much easier than doing something constructive, but even you could put together a deal to present to the TDA and bid against these folks. But that's not the Tulsa way, is it? The TDA has been trying to sell that block for development for years. It picked up after the opening of the BOK Center. Various people have been working on putting a deal together for a long time and couldn't get it done because of the difficult financial environment. This deal finally appears and it is backed by cash money. The alternative is let it continue to be a surface parking lot while no one gets anything done. Get over it.
	Report Comment Jumbo, (10/16/2009 1:49:02 PM) FYI - Neither the Mayor, nor any of her family members, are on the Board of the Tulsa Development Authority. The Mayor had no say in who the property should be sold to. The members of the TDA Board are: Julius Pegues, Chairman; Paula Bryant-Ellis, Vice Chairman; Carl Bracy; John D. Clayman; and Roy Peters Jot Hartley, General Counsel O.C. Walker, Executive Director
	Report Comment DK, Tulsa (10/16/2009 1:58:37 PM) Just call a spade, a spade, people.
	Report Comment Webmeister, Tulsa (10/16/2009 2:11:35 PM) $1.5 million "Market" offer? There is no "market" offer when dealing with a patronage-leaden government entity like TDA. It's who you know, and that makes the price $1.5 million instead of a higher number depends on who you know. The son in law of Bill Lobeck, our homewrecker Mayor's husband, is a friend of the Family.
	Report Comment Webmeister, Tulsa (10/16/2009 2:12:45 PM) And, there goes a lot more proximal parking to the BOK Arena. Guess we can always park at the former Bell's Amusement Park location at the Tulsa County Fairgounds, and take the bus downtown.....
	Report Comment edelweiss, Tulsa (10/16/2009 2:15:58 PM) Good for downtown, good for Tulsa!!! Great news!
	Report Comment irishtulsan1977, Tulsa (10/16/2009 2:29:50 PM) When they put in that Spirit Bank arena in Bixby the neighbors started complainin of the noise level. If you put in residences right next door to the BOK you will have the same problem.
	Report Comment BetterorWorse, (10/16/2009 2:32:33 PM) Akup...the only stagnant project from the Downtown Housing fund from Vision2025 is Michael Sager's First Street Lofts project. I think he received $1.3 million, no one knows where it all has gone cause doesnt look like it is in the building. I hear he also wants the $767,000 about to be offered...be a shame if he got that. The other projects are done or moving along...Mayo Hotel/Lofts, Philtower and Mayo Building. The price didnt climb on this land until Jones Lang LaSalle was brought in by Mayor Taylor through the TDA to study and market the property along with 4 other parcels. It was previously listed at $1.6 mil for years...I for one am glad to see this moving forward, we need greater momentum for private development in downtown. Webmeister...plans call for a parking structure on this block that will also help service public need I heard.
	Report Comment cobweb, (10/16/2009 2:35:57 PM) No conflict of interests here!

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