Lawton City Council to consider plan to buy School House Slough improvements

A transition launched well over a year ago could be completed by the City Council today with a decision on buying improvements built over 25 years at School House Slough.

Council members will meet in special session at 1:30 p.m. as both council and the Lawton Water Authority to consider the purchase and sales agreement and a settlement agreement between city entities and School House Slough Inc., the former operator of the Lake Lawtonka concession. The agenda of the Lawton Water Authority (a function of the City Council) includes the purchase and sale agreement for improvements such as the convenience store and new docks, as well as settlement agreements that resolve ongoing issues between the city and its former concessionaire.

The council’s agenda includes ratification of those agreements, but only after the council votes to amend the existing fiscal year budget to include $10,354,329.94 to fund the acquisition and improvements in the operation of the water system at Lake Lawtonka, as well as water system improvements that must be made along Goodyear Boulevard “for the benefit of the city’s industrial development program.”

Specifically, the resolution of amendment specifies $2.94 million to fund acquisition and improvements in the operation of the water system that provides a benefit to city-owned recreational facilities at School House Slough, and another $7,414,329.94 for the industrial infrastructure improvements needed for Westwin Elements’ pilot plant project slated to begin at Southwest 112th Street and Bishop Road.

Westwin funding can be applied to a decision already made: a $2.44 million contract to M&T Septic and Backhoe to install 7,500 feet of 20-inch waterline in that area. The council has authorized that expenditure, as well as the purchase of water main and related materials, permit fees and Phase II design costs so work can begin immediately.

The $2.94 million is associated with the School House Slough agreements. That will complete discussions that have been under way since Kent Waller (School House Slough Inc.) ended the agreement he had had with the Lawton Water Authority since May 1997 to operate School House Slough. That contact ended Dec. 31, 2022, and the City of Lawton has been operating the concession since.

The contracts that Waller held during those 25 years allowed him to make improvements and also a new or succeeding lessee must purchase the buildings and other improvements, with the structural value determined by three independent appraisals. Because a new lessee has not been selected, the city has been operating the concession area, to include camping and boathouse leases while future operational plans are determined.

The argument has been “the disposition of the improvements as a result of the lease’s termination,” according to the agenda commentary, and council members have already decided the city would purchase those improvements.

Council action today is approving the purchase and sale agreement for $2.875 million, as well as settlement agreements that will release both sides from future claims. The details include personal property; appurtenances and other rights associated with the improvements of personal property; School House Slough Incorporated’s interest in any leases or occupancy agreements with third-party tenants; a copy of any existing plans and specifications for improvements and any other information owned by School House Slough Inc.; and electricity meter readings related to or taken from any location at the property.