City Council OK’s deal for 12,500-seat Broken Arrow amphitheater

Written By: John Dobberstein

(BROKEN ARROW, Okla.) A deal to build a $71.5 million outdoor amphitheater in Broken Arrow was approved Tuesday by the Broken Arrow City Council in a move expected to bring upscale entertainment and an economic impact of more than $211 million annually.

Read this article on The Broken Arrow Sentinel here. 

A development agreement between the city of Broken Arrow, the city’s Economic Development Authority and Sunset at Broken Arrow LLC was green lighted unanimously, which will bring an upscale 12,500-seat entertainment venue on undeveloped property just north of the Broken Arrow Events Park.

The project, which has been discussed and negotiated since May, will include nearly $20 million in infrastructure improvements to the Events Park and the surrounding roads, to be paid for by a sales-tax-only tax increment financing (TIF) district.

Tuesday's approval kicks off the next stage of work that includes the city's proposed purchase of 41 acres of land from a private owner, 13 acres of which will be sold to Sunset at Broken Arrow for the amphitheater.

The investment would create 741 jobs during the construction period and 86 direct full-time positions with an annual payroll of approximately $3.5 million, along with 154 indirect jobs with an annual payroll of approximately $4 million, the development agreement says.

The developer further anticipates the generation of approximately $85.5 million in sales tax revenue through ticket, food and beverage sales. Construction is expected to be completed by the end of 2025. Rush said promoters are guaranteeing at least 45 shows per year, but it could be anywhere from 50 to 60.

The project would also, according to the agreement, generate approximately $933,000 in new annual ad valorem taxes that would benefit entities such as Wagoner County, the Wagoner County Health Department, Broken Arrow Public Schools, Tulsa Technology Center and city of Broken Arrow.

The city of Broken Arrow and the developer have agreed to hold a public meeting about the project later this fall to give the public additional opportunity for input and to ask questions.

“You've heard me say this for a little over eight years now that the city's number one role as it relates to economic development … is to create and maintain an environment that promotes private investment,” said City Manager Michael Spurgeon. “The council members, as well as our EDC and the Chamber understand that job growth and prosperity in the community comes from partnerships with the private sector.”

Jennifer Rush, the city’s economic development director, said Colorado Springs-based Notes Live approached Broken Arrow officials in May with a proposal for 4,500 to 8,000 seats. While researching the property’s history, Rush found an amphitheater was part of a master plan for the Events Park dating back to 2011.

Spurgeon, Rush and Assistant City Manager Norm Stephens hosted a site visit with officials from Notes Live and negotiations continued while the city interviewed other cities where Notes Live had developed similar projects.

The footprint of the Broken Arrow proposal began to grow as Notes Live researched the local market and determined it could support a larger facility.

Notes Live provides luxury outdoor music venues and entertainment campuses, as well as established entertainment complexes, including Sunset Amphitheaters, Bourbon Brothers Smokehouse & Tavern restaurants, and Boot Barn Hall live music venues.

Notes Live has partnered with Anschutz Entertainment Group (AEG) to operate its amphitheaters.

AEG is the world’s leading presenter of sports and live entertainment: 50% of tickets sold worldwide in top 10 arenas are sold with AEG affiliation, and 15 out of the top 20 arenas are owned and/or affiliated with AEG – 7 of which are in Oklahoma, including the BOK Center in Tulsa.

Notes Live has proposed several amphitheater projects throughout the U.S., including a $70 million project in Mustang, west of Oklahoma City, and $40 million projects near Nashville and in Colorado Springs.

Robert Mudd, senior vice president of real estate development for Notes Live, said the Tulsa-Broken Arrow-Oklahoma City corridor is an underserved market for entertainment and hospitality. He projected as much as 25% of the visitors to the Broken Arrow amphitheater would be coming from surrounding states.

Notes Live’s amphitheaters are known to be luxury in scale, with landscaped grass berms, fire-pit suites and corporate suites to go with quality entertainment.

“You will see anywhere we go that we are going to provide a world-class hospitality experience. And one of the other things that you're going to see is fire,” Mudd said. “We just believe that some good music and a fireplace tends to lower the rancor that we live in today and we've incorporated that into everything that we’ve done.”

The Event Park’s proximity to the Creek Turnpike, its distance from residential zones and the park’s established history of hosting events helped convince the company Broken Arrow was the best choice.

There will certainly be concerns from homeowners about noise from the entertainment. Mudd said acousticians will be brought in to optimize the project for live music and ensure the company is being “considerate of the neighbors around us.”

The development agreement requires the city build 2,360 parking spaces ($7.1 million) and stormwater detention facilities ($2.2 million). The city would also execute a lease or agreement with Northeastern State University’s Broken Arrow campus for the use of 1,000 parking spaces there for events at the amphitheater.

Road improvements include work inside the Events Park ($2.5 million) and, subject to property acquisition, a roadway extension to the site’s north end ($2.1 million), and a roadway extension providing connecting access to State Highway 51 at East Washington Street, including railroad crossing improvements ($3.5 million).

The city would also agree to build a third access point across a creek to connect the project site with the Challenger Sports Complex ($250,000). The developer would pay for internet, electric, public utilities or natural gas access.

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