Council wants questions answered before committing to new lease for Ralph’s Resort

City Council members want some questions answered before they make a final commitment on a new concessionaire to operate the Ralph’s Resort area on Lake Ellsworth.

Four individuals/entities submitted proposals to operate the concession, to replace Steve and Sandra Perry when their lease expires Dec. 31. The Perrys had told city administrators they would not renew their lease, ending decades of management by members of the Perry family (although a Perry grandson submitted one of the four proposals).

Deputy City Manager Dewayne Burk said that after analysis, city staff recommended that Ralph’s Family Resort LLC (David McCall) be offered the chance to negotiate a lease, based on the strength of McCall’s immediate and long-term plans. Council members were willing to let those negotiations begin, but also said they wanted specific questions answered before they would commit, beginning with one asked by Mayor Stan Booker: why is city staff treating the Lake Ellsworth concession area differently than School House Slough on Lake Lawtonka?

The City of Lawton assumed control of School House Slough when long-time concessionaire Kent Waller ended his lease Dec. 31, 2022. Today, the city operates everything there but the general store and fueling system (both are operated by Juan Rodriquez, under a new lease launched this year). Booker said that, by contrast, the operator recommended for Ralph’s Resort would run everything, with minimal city involvement.

In his presentation, Burk said McCall was asking the city to dedicate about $220,000 in funding it had planned for varied upgrades to the general store, while McCall would handle other renovations. Council members wanted to know what work would be done and its cost, and whether the City of Lawton would be reimbursed for its investment and how long that would take.

Burk said McCall’s proposal stood out because it is “pretty ambitious,” in terms of what he wants to do. McCall proposed an initial five-year contract where he would pay the same $1,000 annual fee plus 2 percent of gross profits the Perrys pay, with some improvements made. Beginning in year six, he wants a 20-year lease, starting with an annual fee of $5,000, then increasing $1,000 a year thereafter, but not to exceed $20,000. McCall also would pay 2 percent of gross through year nine, then 5 percent in year 10. Burk said the 20-year contract would be done in five-year renewal periods, allowing city officials to evaluate what had been done.

What will be done ranges from upgrading existing facilities to adding new ones, including more camping, improved stalls, and a cafe to go with the general store.

“He set these benchmarks,” Burk said.

Some council members were concerned about how much of the city’s investment could be repaid, touching on a longtime argument that lakes should be supported by the fees charged for amenities. But, Ward 8 Councilman Randy Warren noted that unlike previous leases, all improvements made to Ralph’s Resort would remain city property at the conclusion of the lease (other leases have required the city to pay for the improvements operators made). Burk said negotiations with McCall would settle the question of what happens to those improvements if he ended his lease early.

Booker reiterated his concerns about why the city is selecting a concessionaire to handle all operations at Ralph’s Resort, when a concessionaire is only handling two functions at School House Slough. Burk said the difference is usage: Lawtonka is a recreational lake with much use than Ellsworth — primarily a fishing lake — has.

“Traffic at Ellsworth is less than Lawtonka,” he said, adding McCall believes Ralph’s Resort could become a popular concession area with investment. “He believes that more patrons could come to Ellsworth as Lawtonka fills up.”