Council approves up to $8 million incentive package for Scheels; debate centers on pay‑for‑performance terms and public cost

The Oklahoma City Council voted to advance a negotiated economic development agreement to attract Scheels, a large employee‑owned sporting‑goods retailer, to the city, authorizing staff to negotiate terms tied to performance metrics and a ten‑year cap of up to $8 million.

Kenny Soodel of the Alliance for Economic Development told council the proposed package would be structured on a pay‑for‑performance model with a maximum $8 million over 10 years and an annual cap (negotiated in session as $854,000 per year). He said staff expects the store would generate roughly $130 million in annual sales and that more than half the projected sales would come from outside a 25‑mile radius.

Trevor Klein, director of operations for Scheels, described the company as "100% employee owned" and emphasized long‑term investment in staff and community giveback programs. "We're 100% employee owned," Klein said, noting employee ownership and local hiring as selling points for the project.

Council members pressed for contract details, emphasizing that any incentive would be conditioned on measurable metrics. Alliance staff said a minimum threshold — a $100 million annual sales floor — was under consideration as a trigger for annual payments and that the structure would be embedded in an enforceable contract.

Public commenters were split. Some residents spoke in favor of jobs and community benefits; others criticized the use of incentives. Mike Reynolds, a long‑time resident, called subsidies "giving away money to corporations" and questioned whether the public would ultimately bear the cost. The council carried the motion to enable negotiations and approve the resolution; recorded votes showed the motion passed 8–1.

Officials said the next step is to return with a contract that will specify performance metrics, clawbacks and reporting requirements for the incentive.