Developers pitched billion-dollar dreams for Oklahoma, but so far haven't followed through. Why?

Steve Lackmeyer, The Oklahoman, December 5, 2024

They come from out of state, and the promises they make seem too good to be true — and indeed, all too often, they are just that. 

If one were to believe the news releases, the hype and boasting of politicians, construction should already be underway on a $5.6 billion oil refinery in Cushing, a $2 billion amusement park in Vinita, a $1 billion solar panel factory in Inola, and skyscrapers and an amphitheater in Oklahoma City. 

Each and every one of the projects were to be beyond spectacular. Oklahoma would reap millions of dollars in economic development and thousands of new, high-paying jobs. 

Yet, as 2024 draws to a close, all of the projects are stalled or delayed indefinitely.

David Chapman, who teaches real estate at the University of Central Oklahoma, cautions against chalking it all up to the developers coming in from out of state. 

“It’s bizarre,” Chapman said. “But the answer lies in each one of them being an individual case. We want to lump them all in together and find commonality.” 

Indeed, reporting by The Oklahoman shows the stalling and delays involve a mix of unrealistic expectations, politics, government red tape and shaky economic confidence due to unrest overseas. Delayed projects include: 

• Four towers in Lower Bricktown pitched by California developer Scot Matteson consisting of two apartment towers to sit atop a parking and retail podium and a 22-story Hyatt Dream Hotel. A second phase has drawn worldwide attention ― the tallest tower in the country consisting of apartments and a second hotel.

• Gene Bicknell, a former Pizza Hut franchisee and owner of a theater in Branson, announced in 2023 he was going to build a $2.5 billion “American Heartland Theme Park” in the small town of Vinita. The plans included roller coasters, an indoor water park, a 300-room hotel and an RV park with an opening set for 2026.

• Colorado Springs developer JW Roth announced in 2023 he was going to build a $100 million, 12,500-seat amphitheater along the Kilpatrick Turnpike between Mustang and Yukon. He is now looking for a new location in Norman.

• Enel Spas, an Italian renewable energy company, planned to start construction on a $1 billion solar panel factory in Inola in fall of 2023 with the first panels expected to be on the market by next month.

• Steven Ward, managing director of Southern Rock Energy Partners, announced in May 2023 his company was going to build a $5.6 billion refinery designed with green energy features including solar power and recycled water and a 90% reduction in emissions associated with existing refineries.

Of all the projects announced and then delayed, it is the American Heartland Theme Park that generated excitement among young and old in Vinita, a town that has seen its population drop from a peak of 6,740 in 1980 to 5,193 in 2020. 

Vinita, a 27-minute drive to Grand Lake, celebrated the announcement by Bicknell's Mansion Entertainment and quickly agreed to annex the company’s 1,000 acres east of town. 

Tim Wright, owner of Annabelle’s Fun Farm in nearby Welch, started hearing rumors — “whispers” — about a theme park being built in town several weeks before it was announced but didn’t know whether the rumors were true. 

“I thought it would be great for the area,” Wright said. “I’m in the entertainment business. I’m always bringing people to the farm to entertain them. We get a lot of ideas from theme parks. I love that industry.” 

Wright started the fun farm in 2011 in what was just a cow pasture. He turned it into a colorful, cartoon-style set of cornfield mazes in addition to a pumpkin patch and other amusements. He has since built a side consulting business where he builds similar cornfield mazes across the country. 

When those farms are closer to major highways or population centers, they attract 50,000 to 80,000 seasonal visitors, Wright said. But at his own farm, he draws about 10,000 people. 

“I’m super hopeful that the park happens,” Wright said. “I’m hoping that many more tourists would allow me to be open more of the year and see more business.” 

Wright admits not everyone shares his optimism, especially after the Tulsa World recently reported the amusement park is being delayed until 2028. Various reports indicate Bicknell is in his early 90s.

“It's definitely divided,” Wright said. “I don’t know anyone who is against it, but there are definitely a lot of people who don’t believe it’s ever going to happen.” 

Skepticism — and a sign

Frank Kole owns Hero’s Deli in two locations ― Langley, which is south of the 1,000 acres acquired by Mansion Entertainment, and Grove, which is east of the proposed site. 

The native New Yorker set up delis that provide locals and visitors a chance to enjoy the sort of sandwiches and deli items typically not found in Oklahoma. He also owns some area rental homes. 

“Being a small business owner, my first reaction to this was ‘Awesome!’ We need a workforce at the lake,” Kole said. “I have plenty of customers but not enough people to work for me.” 

The amusement park, which was projected to create 4,000 new jobs, would likely generate additional potential workers through families moving to the area, Kole reasoned.  

Kole, however, quickly grew skeptical of the project as he saw what he calls “piss poor planning” by Mansion Entertainment.  

“I talk to city officials and the board of health, before I purchase a property,” Kole said. “It doesn’t seem like that happened. It seemed to me they were going to try to escape any type of city planning by building in a small town. It didn’t seem like they did any of their homework.” 

Kole said he didn’t need to read a story in the newspaper to conclude the theme park was stalled. 

“The sign blew down six months ago,” Kole said. “They took a long time to fix it. As a small business owner, I know those details are huge in the public eye.” 

Mansion Entertainment declined to answer questions from The Oklahoman. The company is facing lawsuits totaling just under $6 million from its design firm and a contractor over unpaid bills.

“To build an RV park is simple,” Kole said. “They're being built all around the lake by other entrepreneurs without an issue.” 

'Sitting on the sidelines'

By all appearances, the park project is indeed on hold at the very least. The spot where dignitaries joined company representatives in a groundbreaking ceremony for the RV park a year ago is now cleared of equipment and a construction trailer and is now surrounded by fencing. 

Tony Blatt, a principal partner of ADG/Blatt, one of the firms hired by Mansion Entertainment, told The Oklahoman his firm was given a stop-work order. 

“We’re sitting on the sidelines,” Blatt said. “Right now, it’s kinda quiet.” 

That’s not to say the theme park announcement itself isn’t having an impact on the area’s economy. But Kole sees that impact as hurting a community already dealing with a declining population. 

“A lot of people sold their properties,” Kole said. “Prices around the lake spiked. I rent to a lot of blue-collar tenants. Rents around here have doubled the past two years, and I think it was due to that announcement. It really changed things.” 

Uncertainty and silence surround stalled projects

Developers who distributed news releases and sought publicity when they first announced their projects are saying little if anything when their timelines fall apart.

Mansion Entertainment, Southern Rock Energy Partners and Roth's Notes Live all either declined comment or did not return calls to The Oklahoman.

Boardwalk at Bricktown developer Scot Matteson said his plans to start construction on the skyscrapers in Bricktown was delayed until sometime next year as he awaits a report by the Federal Aviation Administration that will determine whether he can build the country's tallest skyscraper, the 1,907-foot-tall Legends Tower.

Roth appears to be still seeking a new amphitheater site after nearby residents prompted a unanimous denial of zoning for the west Oklahoma City site. Similar concerns ended discussions for a new site in Edmond. Norman City Manager Darrel Pyle confirmed talks are now underway with potential sites including 24 NW and Rock Creek and along the future east-west connector turnpike near Interstate 35. Pyle said Roth is requesting tax increment financing even though no such assistance was in play for the site in Oklahoma City. 

Reuters reported Enel Spas, an Italian renewable energy company, put the plans for the solar panel factory in Inola on hold because of money and politics. Construction on the plant was supposed to begin in fall 2023, with the first of the plant’s solar panels scheduled to be on the market by the end of 2024. The facility was supposed to create 1,000 “new direct permanent jobs” by 2025. 

“Enel, like other companies, wants to wait and see if the policies of the Inflation Reduction Act, which allocates $375 billion to renewable energy will be confirmed by the new administration,” Reuters reported.

Bruce Johnson, director of the Cushing Economic Development Foundation, said the refinery is stalled due to the same concerns expressed with the solar panel plant. “I think it’s still moving forward,” Johnson said. “I just don’t know whether everything that needs to take place can take place for it to happen. If funding doesn’t come along the way you think it’s going to come along, you don’t know if it can move forward.” 

Failure to 'stick to it?'

Why are these deals announced? Why are they not happening? 

In addition to his experience as a real estate broker and professor at UCO, Chapman also completed a four-year term last year as an Edmond city councilman. 

“The question on these deals is what can we do as a community to not be let down,” Chapman said. “That’s the hard part. It’s the boy who cried wolf. Now, if anyone makes an announcement, and the response can be, ‘Yeah, right.’” 

If there is any common theme in the big deals pitched by out-of-state developers who then end up delayed or stalled, Chapman believes it is that such deals can benefit from involvement of experienced locals.  

Chapman is among many who credit veteran local developer Gary Brooks for the successful restoration of First National Center in downtown Oklahoma City into a hotel, retail and apartments. Brooks’ partner was the late Texas developer Charlie Nicholas and a team of out-of-state investors. 

Chapman said Brooks had local connections, “grit” and the ability to give the project nonstop attention through numerous complications. 

“The local guys, when they’re involved, they understand what’s involved and they stick to it,” Chapman said. “The outside guys can find it to be too big of a challenge and can find lower hanging fruit elsewhere.” 

Chapman said rising interest rates likely contributed to the recent project delays.  

“Interest rates went up since a lot of this was announced,” Chapman said. “And people can now get a return on alternative investments that they couldn’t when these deals were announced.” 

Oklahoma also has a reputation for lower real estate and labor costs that Chapman believes is often misread by out-of-state investors. 

“Oklahoma City and Oklahoma looks so great from the outside that people, when they come here, think it looks so easy,” Chapman said. “They think we’re going to feel we’re so fortunate when they come here. But they still have to go through the same permitting, zoning and utilities as anywhere else.” 

Unrealistic expectations?

Cathy O’Connor is an economic development consultant whose resume includes a long stint as finance director for the city of Oklahoma City and president of The Alliance for Economic Development of Oklahoma City, an organization that oversaw urban renewal projects and an array of public-private developments. 

She helped structure deals to restore and reopen the Skirvin Hilton, the recruitment and development of the Omni Hotel, incentives projects that drew Bass Pro Shops to Bricktown and a Homeland supermarket to northeast Oklahoma City. 

She also spent months in negotiations with Chicago-based Clayco, which sought $142.6 million in tax increment financing as part of plans to build four towers and structured parking on a block that was home to Stage Center, just west of the Myriad Botanical Gardens. 

Clayco executives told The Oklahoman at the time they believed they could overcome reservations about the deal at City Hall with education on how such deals could be structured. 

“They came in with a set of expectations on how tax increment financing would work, how much money it would generate, and how much could be provided to the project,” O’Connor said. “We told them from the beginning, over and over again, how it needed to be done, and they were like, ‘Yeah, we’re going to do it this way anyway.’” 

The deal didn’t get done and the block was turned into a park as a placeholder until a new development might take its place. 

Some of the biggest success stories in recent years were led by locals, including OAK, the mixed-use upscale development at Northwest Expressway and Pennsylvania Avenue and the 50-story Devon Energy Center. 

“Look at OAK,” O’Connor said. “They have local backing, and they have resources not tied to a board of directors. Devon happened because (co-founder, chairman emeritus) Larry Nichols was committed to investing in downtown Oklahoma City and they had the resources to do it.” 

Oklahoma City does have a track record of successful projects that were completed by out-of-state developers using incentives, including the OKC Outlets mall and the Omni.  

Developers looking to do industrial projects, however, sometimes confuse incentives offered by other states as being possible in Oklahoma, O’Connor said. 

“The state’s quality jobs program is great to offset the development costs, but a lot of these projects coming from out of state expect more tax abatement and other things we don’t do here,” O’Connor said. “On manufacturing, you get a five-year property tax exemption. But you don’t get that on data centers, and maybe not the solar panel factory. And in other states, they can get 10 years of tax abatement.” 

High potential, economic conditions

Chad Warmington, president of the Oklahoma State Chamber, said he suspects changing economic conditions are impacting business decisions with each of the stalled projects. But he believes the announcements are a good sign of Oklahoma’s potential for more investment.  

“It’s like fishing,” Warmington said. “Sometimes you get them on the line but they then get away. And putting these things on hold, it’s not always a terrible sign. They may be waiting for economic conditions to move forward.” 

Warmington, however, sees a need for the state to be more strategic in recruiting and responding to economic opportunities. The chamber recently hired a consultant to look at the state’s economic strengths and how best to allocate resources. 

“How do we narrow the focus on where we look for economic development,” Warmington said. “We need a statewide look at what industries in Oklahoma have density, areas where we have a cluster of companies that involve the same sets of skills.” 

Warmington said he isn’t aware of any state incentives paid to the companies with the stalled projects. He said offers were based on performance.

“We're incentivizing a company to come here, but we’re not going to give money based on what they say they are going to do," Warmington said. "They have to come here and do what they say they are going to do and then get the incentives.” 

Warmington said the other challenge for not just drawing economic development to Oklahoma but also getting the deals done is to create a consistent approach by the state. 

“We're trying to insulate from politics,” Warmington said. “Governors come and go. Legislators come and go. These are the strategies that should outlast those folks. If Oklahoma has a clear idea of what we want to do, where we want to grow, we won’t be distracted by shiny objects or politics.” 

Steve Lackmeyer started at The Oklahoman in 1990. He is an award-winning reporter, columnist, author of seven books about the history of Oklahoma City and a member of the Oklahoma Journalism Hall of Fame. He covers Oklahoma City real estate, urban development, transportation and economics for The Oklahoman. Contact him at slackmeyer@oklahoman.com. Please support his work and that of other Oklahoman journalists by purchasing a subscription today at subscribe.oklahoman.com.