The City of Oklahoma City decided the fate of the unfinished American Indian Cultural Center and Museum Tuesday morning. The city council unanimously approved an agreement that outlines who will operate and maintain the facility.
State lawmakers created the Native American Cultural and Educational Authority in 1994 to build and operate the AICCM. A 2009 economic impact study estimated the museum would generate $8.9 million in local taxes, and $7.5 million in state taxes through both tourism and commercial development, jobs, and other economic activity.
The state issued a total of $63 million in bonds for construction, which came to a halt in 2012 when that funding was exhausted. It’s been four years since there was any new construction at the facility just southeast of the junction of Interstate 35 and 40, but the state has continued to pay for operating costs.
Under a bill passed last year, the state is providing an additional $25 million in bonds and will transfer responsibility of the museum to the city once it’s finished.
The Chickasaw Nation agreed to help with completion costs, develop the surrounding commercial property, and provide up to $14 million in operating costs over the first seven years. But there’s no guarantee the museum will be successful, and that gave councilman Pete White reservations about voting “Yes.”
“No business would’ve done it this way,” White said. “This is so far from a good businesslike way to do things, that I’m just troubled by the fact that there could be holes in it that we’re not even seeing right now.”
Oklahoma City Finance Director Craig Freeman acknowledged there are uncertainties, and the deal hinges on reaching a successful agreement with the Chickasaws, which will come at a later date.
Councilman Larry McAtee asked Freeman how the city will make up the difference if the museum initially loses money.
“It could through a foundation where we have an endowment that helps to fund that into the future. There’s a lot of different options to get there,” Freeman said. “But it is our responsibility. And I think in addition to what you’re saying, if in those first seven years, if that subsidy exceeds two million dollars, that also will have to come from another source.”
The city can still back out if they don’t reach an agreement with the Chickasaws, which city manager Jim Couch compared to a contingency plan when closing on a house.
Councilwoman Meg Salyer says she likes having that safety net.
“I certainly derive some comfort with lots of these contingency points, because it is an extremely complicated deal,” Salyer said. “I hope we all get to go to a ribbon cutting, but we’re not finished working, that’s for sure.”
Under the deal, Oklahoma City will contribute no more than $9 million.
KGOU relies on voluntary contributions from readers and listeners to further its mission of public service to Oklahoma and beyond. To contribute to our efforts, make your donation online, or contact our Membership department.