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Council authorizes negotiation of up to $8 million incentive for Scheels store after debate
Summary
Council approved a joint resolution to negotiate an incentive package for a proposed Scheels store that could total up to $8 million over 10 years (structured as pay-for-performance with an annual cap). The vote was 8–1 after public criticism about taxpayer giveaways.
The Oklahoma City Council on Aug. 1 authorized city staff to negotiate a possible economic development agreement with Scheels for a proposed large-format Scheels sporting goods store, enabling up to $8 million in incentive payments over 10 years tied to performance metrics.
Kenny Sudel of the Alliance for Economic Development presented the term-sheet-style proposal and said the contract would include pay-for-performance metrics. During the presentation, staff said the incentive structure would contain a maximum annual payment (an updated correction noted $854,000 per year) and a $100 million annual sales threshold in some contract language as a minimum for payment in a given year.
Trevor Klein, director of operations for Scheels, described the company as employee-owned and emphasized local hiring and community giving. “We’re 100% employee owned,” he said, and later projected significant visitor draws and payroll impacts.
Residents raised objections in public comment, arguing that taxpayer dollars should not be used for corporate incentives. “Giving away money to corporations that may or may not be able to make a profit without taxpayer gifts… This is so disgusting,” said Mike Reynolds, who opposed the incentive. Other residents asked about diversity in hiring and local benefit.
Council members pressed staff on contract metrics and wage expectations; staff said a formal contract will return to council with specific metrics and pay-for-performance terms. The council then approved the enabling resolution to proceed with negotiations; the motion passed 8–1.
Next steps include returning a negotiated contract with detailed performance metrics for council approval before any payments are made.
