Lawton City Council to decide on hotel-motel tax allocations

An allocation formula for revenue generated by Lawton’s hotel-motel tax and a decision on revoking a building permit for a small cellphone tower in northwest Lawton will be decided today by the City Council.

The hotel-motel tax decisions are part of the annual budget process being put into place for the document that will guide expenditures for the new fiscal year that begins Monday.

That budget, already approved by the City Council, includes $2,229,667 in anticipated revenue from the tax the city charges in the rental of hotel, motel and short-term room rentals, a figure city staff amended to increase by $89,952. Of that total, $322,619 is generated within TIF 2, the Tax Increment Financing District over the Second Street redevelopment project where funding is dedicated to financing infrastructure improvements.

That adjustment leaves $1.997 million in unallocated funds, which by the terms of the ballot resolution approved by city voters must be spent on purposes that encourage, promote and foster conventions, tourism, industrial development and economic development.

The Lawton-Fort Sill Chamber of Commerce receives a portion of those funds, as it has every year since the tax was created, and Chamber President John Michael Montgomery is expected to make a presentation on the chamber’s plans.

A companion item sets the funding formula that would be used to allocate revenues expected in the coming year, with the majority going to the chamber ($769,926) and the Lawton Economic Development Corporation ($381,026). Another $226,488 would be allocated to the economic development fund, while the Lawton Enhancement Trust Authority would receive $132,460. The remaining $487,100 is dedicated to the tourism category, which will be allocated to nine entities for their activities in the coming year: Museum of the Great Plains, Lawton Community Theatre, Lawton Philharmonic Orchestra, Lawton Heritage Association, McMahon Auditorium, Holiday in the Park, Juneteenth, the fireworks display at Freedom Fest, and Lawton Farmers Market.

The economic development fund is one of the vehicles the City of Lawton uses to provide incentives to new development.

One of the those new developments will see its contract amended, if council members agree today.

The council is being asked to increase the cap on funds being allocated to Fisher59 Properties LLC, which is planning a 100,000-square-foot distribution center in the Airport Industrial Park near Lawton-Fort Sill Regional Airport. An existing agreement would provide up to $1.6 million to Fisher59 to reimburse it for public waterline, sewer line and road work it will do as part of the project.

However, an engineering estimate indicates costs will exceed that cap, and Fisher59 has asked to increase the cap to $3.5 million, allowing coverage of improvements now estimated at $2,559,824, along with costs associated with testing, engineering, project management, interest and a $703,239 contingency fund. City administrators said the city and engineers have agreed to “significant changes” in the proposal. While new cost estimates won’t be available until today’s meeting, city staff has suggested a resolution setting the new cap at $2.9 million, after removing the contingency fund since the new cost estimate “seems to be adjusted for the recent spike in construction costs.”

Council members also will look at another old item: a decision on whether they want to revoke the permit that allowed installation of a small cell wireless facility adjacent to 6432 NW Arrowhead Drive. The council delayed a decision on the request by the homeowner until it received a report from city staff about how six peer cities process permits for similar facilities, compared to how Lawton uses the ordinance it put into place in 2021.

That ordinance has become an issue in recent months as U.S. Cellular began installing small towers in residential neighborhoods, working from a list of 26 sites permitted by the council between December 2021 and June 2023.

Residents have criticized some placements, including Arrowhead property owner who said the tower distracts from her property and wasn’t placed where it was stated in its permit. City staff recommended the tower be allowed to remain, saying its placement isn’t significantly different than permit requirements and that U.S. Cellular opposes moving the tower to another site because “this location is the best spot for the coverage that they are providing with the Small Cell Wireless Facility,” according to the agenda commentary from Community Services Director Charlotte Brown.