Langenkamp on Helmerich Park deal: "Grand Juries have been impaneled for less."

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Save Helmerich Park posted the following comment from R. Dobie Langenkamp, former Director of the National Energy Law and Policy Institute and Chapman Distinguished Professor of Energy Law at the University of Tulsa Law School, about the business flaws of the Tulsa Public Facilities Authority effort (with Mayor Dewey Bartlett Jr's enthusiastic approval) to sell 9 acres of Helmerich Park for a commercial development, reciting some of the history of the property and analyzing the price against the market value of land near major intersections. Even if you don't have a problem with selling off riverfront parkland, you ought to have a problem with the city selling a valuable piece of property at a major intersection without competitive bidding.

Dear Friends of Helmerich Park.

Craig Immel, Terry Young, Herb Beattie, and Greg Bledsoe have spelled out the legal and policy flaws regarding the Helmerich Park decision. Let's look at the deal from a business standpoint. Do so and you will agree with me that it is absurd if not suspect.

The entire 60-plus acres was mortgaged over 30 years ago to the First National Bank for $12.5 million. Surely its appraisal at that time substantially exceeded that amount. The Bank foreclosed on it and Walt Helmerich arranged for the purchase for the City from the bank (he was a member of the board) for $4.5 million. He raised $2.5 million from public spirited friends (Who attended a breakfast at the Tulsa Club for $800 each) and Roger Randle as Mayor came up with the remaining $2.5 million announcing that the land would be used for a park to be exceeded in size only by Mohawk.

The developer - possibly using REI as a bait and switch - has proposed to buy the key nine (9) acres - the "cream" as it were - for $895,000 ($1.465 million less a $570,000 credit to the developer in return for on-site infrastructure improvements). This amounts to less than $2.50 per square foot. Ask any of your realty friends what a corner on two major thoroughfares is worth these days. The numbers I get are from $10 and up. The entire 60-acre parcel was worth about $5.00 a foot when the First National Bank took the $12.5 million mortgage on it 30 years ago. This corner lot should be appraised before further action. such an appraisal would indicate a value of 5 million or more (400,000 sq ft x $10).

This option to the developer was given for virtually nothing ($5,000, refundable consideration) and has just been extended until August for exercise without additional consideration.

Initially, Tulsa was told the parcel sought would be for REI alone - after Clay Bird has finished his no competition sweetheart deal - it was for a full 9 acres for an entire shopping center not specifically requiring the involvement of REI.

Why are Dewey and Clay Bird giving this park parcel away without an appraisal or a public bidding procedure?

Why is Dewey hell bent on seeing that this particular Dallas developer gets this park property for a song?

Grand Juries have been impaneled for less.

R. Dobie Langenkamp

Save Helmerich Park adds this note: "The former Luby's parcel diagonally across the intersection from this corner of Helmerich Park - 2.48 acres/108,217 square feet - has a 2016 value of $3.695 million. If my math is correct, that is over $34.00 per square foot."

Remember, Mayor Bartlett Jr supports this deal, and not one member of the City Council opposed changing the comprehensive plan to facilitate the deal. (G. T. Bynum IV recused himself.) If this bugs you, as it should, you have until 5 p.m. Wednesday to file to run against these mis-representatives.

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This page contains a single entry by Michael Bates published on April 11, 2016 11:10 PM.

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