Ralph’s Resort has new operator

Ralph’s Resort has a new concessionaire.

City Council members, acting in their capacity as the Lawton Water Authority on Tuesday, approved a 10-year contract with Ralph’s Family Resort LLC, an entity created by David McCall for his family to operate the Lake Ellsworth concession area. That concession has been operated by the Perry family for decades, but Steve and Sandra Perry had notified the City of Lawton they would not renew their current lease when it expires Dec. 31.

The water authority/council decision means Ralph’s Family Resort will assume operations Jan. 1, said Deputy City Manager Dewayne Burk in his presentation to the water authority. McCall’s proposal was one of four city staff reviewed, with Burk and other administrators saying it was the best one for the lakeside area.

Details have changed from the proposal initially submitted by McCall, and the one the water authority accepted Tuesday specifies the concessionaire won’t be paying a percentage of gross profits for the first 10 years of the lease, and an annual rent of only $10. Burk said that is because McCall’s business plan puts substantial private investment into Ralph’s Resort, working from a $500,000 line of credit that will fund upgrades ranging from new boat stalls and a camping area, to a cafe and an upgraded or new general store.

Burk said the business plan sets a time table for those upgrades, which must be met in order to retain the lease.

“All improvements have to be met,” Burk said, adding that in year 11, Ralph’s Family Resort will pay a $5,000 annual lease, plus 5 percent of gross revenues (excluding fuel sales, if McCall adds them), assuming the contract is extended

That $5,000 lease will increase by $1,000 a year thereafter, until it reaches a top out of $20,000, under the lease’s terms. It also addresses a problem the City of Lawton had with other concession operators: having to buy the improvements made to the property. In this lease, if the City of Lawton ends the lease, it must pay 75 percent of the value of the improvements if it ends the lease in the fifth year, 50 percent in the 15th year, and 25 percent in the 20th year. The concessionaire would receive no compensation if the city ends the lease after 25 years, but must pay for actual construction costs if it ends the lease before year 10.

Burk said city staff believes McCall’s proposal is fair, explaining the family will be funding “significant repairs” in the early years, an expense the City of Lawton won’t have. In McCall’s original proposal, he had asked the City of Lawton to help him build or repair the general store, as well as handle demolition and removal of damaged dry stalls, wet boat storage, and indoor fishing arena.

“The City of Lawton will put no money in at all. We will not invest any money in the facility for 25 years,” said Ward 4 Councilman George Gill, adding any improvements added by the concessionaire will be the City of Lawton’s property after that time.

McCall, who has an extensive business background and family ties to the area, has said he has plans for the concession area and will keep it strictly focused on family activities.

“The goal is to keep a fun, safe, sober environment for families to come and enjoy the lake,” he said in his proposal.