Firm using AI to resolve worker shortage to receive $1 million incentive from Lawton

Lawton City Council members are ready to gamble that an entity using artificial intelligence can resolve workforce and food shortages.

And, they’re willing to designate $1 million in economic development funds to do so.

Council members voted Monday to designate $1 million to the FISTA Development Trust Authority for an economic incentive package with r4 Technologies, a Connecticut-based company that uses artificial intelligence (AI) to solve problems. Approval from all seven of the council members present came with an amendment to the limited services agreement with FISTA that outlines its budget for the 2023-2024 year. Additionally, $36,620.20 was allocated for repairs to Central Plaza for damage caused by the June 15 storm and $257,250 for property insurance premiums for the complex that still houses retail businesses as well as vacant retail space being converted for use FISTA Innovation Park tenants.

While the park was created to provide work space for military defense contractors, agreements with other entities also have entered the picture, including one with r4 Technologies.

Council action Monday approved a $1 million financial incentive to support what is a collaborative agreement between the city and the FISTA Innovation Park, with funds designated for development of AI for workforce and supply chain development.

The initial proposal was to pay the incentives funds in installments spread over two fiscal years: the year that ends June 30, 2024, and Fiscal Year 2024-2025, which begins July 1, 2024. But, Acting City Attorney Tim Wilson said one council cannot financially obligate another council, meaning Monday’s financial agreement could not extend beyond this fiscal year.

Council members debated how they were going to allocate the funding, ultimately agreeing with a recommendation from Mayor Stan Booker that they would designate the entire $1 million to the FISTA Development Trust Authority. The authority will place the funds into an escrow account and allocate it as necessary, meaning the authority also would be responsible for ensuring r4 Technologies meets the requirements of its agreement. The council’s other option had been to designate $500,000 this fiscal year, then wait until the budget is finalized for the Fiscal Year that begins July 1, 2024, to designate the rest.

Wilson said designating the entire amount to FISTA now means the council is surrendering oversight of the allocations to the FISTA Development Trust Authority.

City administrators said the funding source will be the economic development category of the hotel-motel tax, which has been accumulating for years. Designating $1 million to r4 Technologies would leave that fund with a reserve of $1.9 million, City Finance Director Joe Don Dunham said.

Ratliff said the funds will be held in escrow, meaning they could be allocated only to what was agreed to: incentives for r4 Technologies. Ward 8 Councilman Randy Warren, one of the council’s representative to the trust authority, said that board also must make quarterly reports to the council on the project.

To receive the funding, r4 Technologies must commit to specific goals. One is bringing a workforce of its own to Lawton, and the firm already has said it plans to have 25 people on board in a year, three to five in the first six months of operation. By year 10, the r4 Technologies workforce would be at least 100, Ratliff said, adding that is just what would be working at the FISTA, not what the firm would be adding to the workforce in total.

The timeline also specifies r4 Technologies would be operational at FISTA within 100 days.

“This will put Lawton-Fort Sill on the map,” Ratliff said.

Ratliff said the risk of failure — meaning, not reaching its objective to spread nationwide — still would create a workforce for Lawton. She said the upside is tremendous, noting workforce is not just a problem locally.

“It is nationwide,” she said.