Economic Facts

The economic impact of MAPS is a proven fact. The citizens of Oklahoma City have seen a 10-fold return on their initial MAPS investment, and momentum from the previous MAPS initiatives has launched our great city into a renaissance.

The benefits of MAPS have been well-documented, and there is no reason to believe the results of this MAPS will be any different.

Myth: This MAPS will not create jobs.

Firefighters Local 157 union president Phil Sipe called the economic projections of this MAPS "a pie-in-the-sky promise of new jobs that might be created if MAPS 3 passes." (1)

Fact: This MAPS, much like previous MAPS initiatives, will directly create jobs and spur economic development with a multiplier effect that cannot be duplicated without such investment.

A 2009 study found that the total value of new investment projects related to MAPS from the mid-1990s through 2008 totaled about $3.1 billion, with an additional $1.9 billion in projects having been announced. (2) That $5 billion represents a more than 10-fold return for the citizens of Oklahoma City on their original MAPS investment.

There is nothing pie-in-the-sky about the kind of positive economic impact MAPS has had on Oklahoma City. In fact, those in public safety have benefitted more than most, seeing their budget increase a staggering 170 percent in just 20 years.

It is projected that a new convention center alone will have a total direct annual economic impact of $78 million, almost triple what we have today. It would employ 1,121 people, creating 709 NEW jobs. It would increase direct spending by visitors in the city and would improve direct air service options to and from Oklahoma City. All of these benefits - more jobs, increased tax revenue, more air service, better image enhancement, and more - will not be realized by our citizens if the new MAPS proposals are not passed. (3)

Myth: This MAPS is a blank check to politicians with no guarantees.

Gil Hensley, vice chairman of the Not This MAPS coalition and Fraternal Order of Police Lodge 123 union president has called MAPS 3 “a blank check to a group of politicians” and said there are “no written guarantees that the named projects will ever be funded or in what order.” (1)

Fact: This MAPS proposal is structured the same as previous MAPS proposals and for good reason.

It is actually illegal to list the projects on the ballot, per the 2009 Oklahoma Supreme Court case, Fent v. State. So the Council passed a resolution specifying the projects in this MAPS. Compare the MAPS for Kids ballot with the proposed MAPS 3 ballot and the similarities are obvious. By the way, the entire City budget is also passed by resolution.

Contrary to Hensley’s assertion that the projects might not be funded, the city would be required by law to apply tax revenue toward their completion if voters approve the issue.(4)

And just like the first two MAPS initiatives, this MAPS resolution also includes the added supervision of a Citizens Oversight Board (officially Citizens Capital Improvements Sales Tax Advisory Board).

Since 1993, the City has on every occasion done exactly what it said it would do regarding MAPS. It is nothing but a baseless accusation to claim the City might not follow the resolution already adopted by the City Council.

Myth: There is no way the tax will raise $777 million.

Fact: This estimate was created using the same sophisticated process as MAPS for Kids, which came within .4% of the actual amount.

This estimate was created by the City’s finance department, by the same people that created the estimate for MAPS for Kids. In 2001, they estimated the tax would raise $512 million. Then 9/11 happened, causing the tax to begin in a recession, and it ultimately ended in one, too. But the final number came in at $514 million. The same people that came up with the MAPS 3 number nailed it on MAPS for Kids, and they are using those same sophisticated methods to create the current $777 million estimate.

Myth: New MAPS projects will increase the operating budget deficit.

Fact: The original MAPS dramatically helped our city budget, as will these MAPS projects.

Without MAPS, today, instead of looking at very modest cuts, we would be in the same position as other cities - even Tulsa - that are facing dramatic cuts in services and staffing. The revenue MAPS generates more than offsets the initial cost.

The fact is, we are experiencing the dividends of our decision years ago to invest in our city’s future with MAPS. Our economy is doing well here - especially when compared to the nation. According to a study by BusinessWeek, Oklahoma City has the third strongest economy in the nation. It has also been found to be the No. 1 Most Cost-Effective Large City in the US (FDI Magazine); No. 1 Most Affordable Housing Market (BizJournals.com); No. 1 Lowest Rent in the Nation (BusinessWeek); No. 3 for the Most Livable Bargain Markets (MSN); the No. 1 Fastest Growing Large MSA in terms of per capita income (Bureau of Economic Analysis); Top City for Finding a Job (US News and World Report); and has had the Lowest Unemployment Rate in Large Metro Cities in the US eight of the 11 months between September 2008 and October 2009. The other five months it was a close second.

Now is a great time to invest, and when the national economy turns around, we'll be in a prime position to benefit.

Myth: MAPS was always meant to be a temporary tax and it needs to expire already

Fact: The MAPS penny sales tax has expired before.

There was no MAPS sales tax between July 1999, when the first MAPS tax expired, and January 2002, when the MAPS For Kids tax began, according to city records. It is a temporary tax, but because of its resounding success and the exemplary stewardship shown by the city, voters continue to embrace its mission.

Myth: In a down economy, now is not the time for projects like this MAPS.

Fact: Oklahoma Economists Agree: Now is the Perfect Time to Invest in Major Infrastructure Projects

Three Oklahoma economists agree that while the national economy is down and cities elsewhere struggle, Oklahoma City is in a prime position to invest in major infrastructure projects.

“The timing of MAPS is perfect. We’ll get the projects done at a lower cost, and the return on economic activity in the city will be maximized because of the timing, not in spite of the timing. If the construction industry was highly active right now and we put more activity into it, we would end up with less quantity and higher prices. At this point in time, we will get more return on our investment of economic activity per dollar spent and at better prices. It’s never a bad time to invest in key infrastructure in your city. The real fear should be of stopping the momentum and never starting it again. We have a momentum built up that is really setting us apart in the region.”

Russell Evans, director of the Center for Applied Economic Research at Oklahoma State University

“The construction industry is being impacted by the national recession, and that releases resources that can be gainfully employed here - so it’s a good time to engage in construction activity. Construction dollars will stretch further in Oklahoma during this time of national recession. The timing is very good, and it really contrasts quite dramatically with a couple of years ago. I’m anticipating we would get a lot of bang for the buck out of these MAPS projects. If we don’t invest now it would slow our rate of progress and likely damage our momentum. ”

Bob Dauffenbach, director of the Center for Economic and Management Research at the University of Oklahoma

“Oklahoma City, of all cities in the US, is the one that has a unique opportunity in terms of land usage to put together a major urban park. That combined with the opportunity generated by the river development and the realignment of I-40 is truly remarkable. This is an opportunity that no other city has right now, and we don’t want to blow it. I’ve studied this long enough to know that the opportunity to capitalize on the river and to invest in a downtown park has linkages with new investments that are profound. I think it is important to point out the merits of using sales tax to fund these projects. We don’t have to borrow money, for one, which means we don’t have to pay interest on bonds or pay higher property taxes. And secondly, because greater Oklahoma City covers such a large area, people from other communities are helping us pay for programs and projects located in Oklahoma City. We can take advantage of the sales tax generated from residents not just of Oklahoma City, but elsewhere in Oklahoma. It all makes a good deal of sense. The economic benefits of MAPS are significant, but in some ways the non-economic benefits are even greater. We are doing this for ourselves and we shouldn’t forget that. We are doing this to make this a better place for each of us to live.”

Larkin Warner, professor emeritus at Oklahoma State University, who has extensively studied the economic impact of both MAPS and MAPS for Kids

MAPS Jobs and Economy Facts

Direct Construction Impact

• Direct impact for all 8 projects will result in 8,943 jobs with $294.6 million in payroll – jobs will be created over a period of 10 years

• Total construction impact (both direct and indirect) will support 14,908 jobs, $477.6 million in payroll, and an overall output of $1.2 billion over a 10-year period.

Whitewater Experience

• More than 200 direct construction jobs and 140 additional indirect jobs will be created in the Oklahoma City metro area during the construction of the whitewater experience – creating a total economic impact of $29.6 million in the Oklahoma City metro area.

• The whitewater experience would have an average annual impact of $28.8 million during the first 13 years of operation

• It would support more than 230 jobs each year and $5.3 million in payroll at other local businesses supported by visitors, employee spending and supplier purchases.

• The whitewater experience, including on-site retail and restaurant facilities, would employ a full-time staff of about 48 people, including seasonal workers, with an average payroll of $1.9 million annually

• The whitewater experience will make direct local purchases of approximately $1.2 million annually for utilities, security, janitorial, landscape and other maintenance services. These local purchases create an economic impact of $1.9 million annually.

• It is estimated that the whitewater experience would see between 230,000-260,000 visitors per year. On average, these visitors would spend $185 per day in off-site expenditures. This is equivalent to $8.4 million in off-site expenditures per year attributable to the whitewater experience.

• The primary impact of the whitewater experience on the region would be from visitors – supporting more than $107.4 million in visitor expenditures during the first 13 years, including only off-site expenditures for lodging, food, retail and transportation. On-site visitor expenditures would result in an economic impact of $179.6 million, or an average of $13.8 million per year, directly or indirectly supporting over 200 jobs per year in the Oklahoma City metro area.

• The whitewater experience could generate $14.3 million in local sales, property and transient lodging tax revenues in the first 13 years of operations, and $14.5 million in state sales taxes during that period.
  State Fair Park Improvements.

State Fair Park Improvements

• The improvements to State Fair Park will allow the facility to grow from 271 to 327 event days of exhibition building use; attendance at events using the exhibition facilities will rise from 647,886 to 959,034.

• The proposed facilities are expected to generate more than $136 million in direct spending annually, an increase of more than $40 million compared to the existing facilities.

• City tax revenues are estimated to total more than $8.0 million annually, an increase of $2.4 million currently.
  

Convention Center

• The Convention Center would have an annual economic impact of $78 million, a $50 million increase over the impact from Oklahoma City’s current convention facilities

• The Convention Center would employ 1,121 people, with an average payroll of $27 million.

General

• A recent study done by the Oklahoma Tourism and Recreation Department revealed that the dollars spent by tourists in Oklahoma County grew from $857,880,000 in 1990 (pre-MAPS) to $2,104,720,000 in 2008 (post-MAPS), an increase of about $1.25 billion.

Bottom Line

MAPS construction jobs alone will create 8,900+ jobs over the next 10 years. And a growing visitor industry will create even more. Let's continue the momentum in Oklahoma City by voting YES for MAPS on December 8.

(1) "Not This MAPS Coalition Launches Campaign To Defeat MAPS 3 Initiative on Dec. 8 Ballot." Not This Maps Coalition. 12 Nov. 2009. Web. 16 Nov. 2009. <http://nomaps3.com/menu.html>

(2) "Total Value of Investment Projects Related to MAPS Exceeds $3 Billion, Study Shows" Greater Oklahoma City Chamber. Web. 16 Nov. 2009. <http://www.okcchamber.com/page.asp?atomid=1952>

(3) "Convention Center." Yes For Maps. Web. 16 Nov. 2009. <http://www.yesformaps.com/convention.html>

(4) Brus, Brian. "MAPS 3 opponents launch campaign." The Journal Record. The Journal Record. 16 Nov. 2009. Web. 18 Nov., 2009 <http://www.journalrecord.com/article.cfm?recID=104433>