Cost, timeline, and more: 6 things to know about OKC's proposed new Thunder arena

Oklahoma City officials have announced plans to build a new arena home for the OKC Thunder.

Here's what we know so far about the cost and timeline for the new arena.

How much will the new OKC arena cost?

The new arena would be built at a minimum cost of $900 million.

This is comparable to the newest NBA arenas that have been built for $500 million to more than $1 billion.

The arena will be primarily funded by an extension of the city's temporary one-cent sales tax, which is currently funding MAPS 4. The MAPS 4 sales tax ends in 2028, but the city hopes to open the new arena in time for the 2028-2029 NBA season, if not sooner.

Another $70 million will come from MAPS 4, as it was previously earmarked for upgrades to Paycom Center.

How they will build the arena by the 2029-2030 season while the sales tax won’t start until after MAPS 4?

Mayor David Holt said a short-term bank loan will be used to allow work to start prior to sales tax collections.

“We’ll utilize short-term borrowing methods, not bonds, and the upside of that is compared to our typical side of financing, there will be significantly lower borrowing costs,” Holt said. “It's the difference between paying back over 30 years compared to pay back over five to six years.”

More: How OKC Thunder ownership's contribution to new arena compares to NBA peers

City Manager Craig Freeman said the city will use a selection process to choose a bank and negotiate lending terms if the sales tax is approved by voters. The loan will likely be a line of credit, Freeman said, to allow the city to only borrow as much as is needed as the project proceeds.

Holt said all borrowing costs are being included in what will be raised by the sales tax.

“We had a choice to raise taxes or delay the project until 2034,” Holt said. “We wouldn’t have an NBA team if we did that.”

When will OKC vote on a new arena?

The vote, if approved by the OKC city council, would take place on Dec. 12.

Oklahoma City Mayor David Holt and City Manager Craig Freeman will present the plan at the Sept. 26 city council meeting. The resolution to set a special election requires a simple majority approval from city council, and the December vote will need a simple majority from voters.

How much will the Thunder ownership contribute to a new OKC arena?

The owners of the Oklahoma City Thunder will contribute $50 million toward the arena. This is a first in city history, as the city's three previous downtown arenas have been paid for entirely by taxpayers.

How long will the Thunder commit to playing in OKC?

If voters approve the new arena, the Thunder has agreed to play in Paycom Center until it is built, and play in the new arena for 25 years.

Where could the new OKC arena go?

While nothing is official, The Oklahoman has previously reported potential locations for a new arena.

Potential options include the former Cox Convention Center, which currently houses Prairie Surf Studios, as well as nearby downtown surface parking lots and undeveloped plots.

Contributing: Steve Lackmeyer and Jessie Christopher Smith

This article originally appeared on Oklahoman: New OKC Thunder arena facts to know: From cost, the vote, and more