Trust approves up-to-$8 million negotiation to bring Scheels flagship to Oklahoma City

The Oklahoma City Economic Development Trust on July 29 authorized the general manager to negotiate an economic development agreement not to exceed $8,000,000 to support development of a Scheels Sporting Goods store in Oklahoma City. The Trust voted on a joint resolution and the item passed after a motion and second.

The Trust said the incentive would be capped at $800,000 per year over 10 years, with a total not to exceed $8 million. Kenny Sutil, speaking for Trust staff, said the project is expected to generate about $130 million in annual sales and estimated the city’s general fund would receive about $2.9 million after incentives in a full-incentive year, depending on the payments actually made: “If we have to, you know, pay an $800,000 incentive, the city would get to keep the difference on that.”

Trevor Klein, director of operations for Scheels, described the chain’s business model and the planned store. He said Scheels is an employee-owned company of about 13,000 associates and that its large, flagship-format stores emphasize in-person experience: “Our goal is to be the Disneyland of sporting goods.” Klein said the proposed Oklahoma City location would be a flagship of roughly 300,000 square feet, drawing regional customers: “About, nearly 20% of our sales come from outside of a 100 mile radius of the store.”

Klein outlined economic impacts the company expects from the store: more than 200 full-time positions and roughly 500 total jobs, with specialty-shop managers’ pay starting in the low $50,000s and assistant store leaders’ pay ranging from the low $70,000s to about $115,000. He estimated annual payroll for the store at “at least 15 or $16,000,000 a year.” He also described substantial upfront construction and inventory costs, saying the stores commonly exceed $100 million in construction and “in reality, they’re north of a $150,000,000 project to open them.”

Trust members asked about site selection; Klein said the company is considering a location northwest of Quail Springs Mall near Memorial and Hefner Parkway, and that the store would anchor a larger mixed-use, destination project. He said Scheels pursues slow growth and typically opens one or two new flagship locations per year.

The Trust’s authorization is to negotiate an agreement; final terms must return for approval by both the Trust and Oklahoma City Council, consistent with the city’s retail incentives policy and the Trust’s practice. The motion to authorize negotiation passed; the transcript records no roll-call vote tallies or the names of the mover and seconder.

If the parties finalize an agreement, staff said it will be brought back to the Trust and the City Council for formal approval.