Virtual currency businesses may be allowed in Lawton, pending council decision

Cryptocurrency mining could become legal within the City of Lawton city limits under specific circumstances, depending on a decision today by the City Council.

Council members will be acting on two recommendations from the City Planning Commission centered on digital asset mining: one allowing large operations in areas zoned for industrial use; the other to allow small-scale versions as home businesses in neighborhoods.

Both come with definitions centered on digital assets, which means virtual currency, cryptocurrencies, natively electronic assets including stablecoins, and other digital-only assets that confer economic, proprietary or access rights or powers.

Interest in Lawton was sparked by call to the city’s planning department, asking what zoning district (classifications that control what type of activities can be permitted) would allow digital asset mining. The answer is none, said Kameron Good, a City of Lawton planner who said such activity is not addressed in any existing zoning district. While the State Legislature approved a bill that would go into effect Nov. 1 to allow digital asset mining businesses in any area zoned for industrial use, Lawton will be among the first cities that have specific zoning requirements, should the council agree today.

The proposal comes with two recommendations for industrial zoning: allowing digital asset mining businesses in I-3 Light Industrial District or I-1 Restricted Manufacturing and Warehouse District. Such businesses are defined as a group of computers that consume more than 1 megawatt of electrical energy. Those that use 1 megawatt or less would be allowed as a home business in residential areas, under a second proposed zoning change.

The requirement as a home business comes with provisions, including one that specifies they must adhere to all noise ordinances and are subject to annual inspection by the fire marshal. Commission members were concerned about such businesses in residential areas, noting the intense electrical use may pose fire dangers by overloading a house’s circuits. That is why commissioners recommended the annual fire inspections.

In other business, the council will act in its capacity as the City Transit Trust to consider extending its management contract with long-time LATS operator Hendrickson Transportation Group while also giving Hendrickson and city staff permission to file a grant seeking money to pay for design work.

That work is associated with plans by Wendel Architects to complete designs for a new indoor transfer center, as well as operation and maintenance/storage facilities in a new complex being planned on Railroad Street.

Hendrickson will be seeking $165,458, funding appropriated in 2022 but not used by Lawton since the funding wasn’t needed at that time. Hendrickson said the deadline to capture those funds is Sept. 30, or Lawton will forfeit them. Once awarded, Lawton has five years to draw down or spend the funds. Wendel Architects already is working on preliminary designs.

Trustees/council members also will act on a city staff recommendation to extend their management contract with Hendrickson for another two years. The company was granted a five-year contract in 2019 to manage and operate LATS, with that contract to expire Nov. 30 unless trustees extend it. Members of the Lawton Metropolitan Planning Organization recommended that extension, saying Henrickson’s management “has been cost effective and had led to growth in ridership and improved services ….”

That extension specifies increases in the management fee paid to the firm: $187,200 in current fiscal year; $192,000 in the year one extension and $196,800 in year two. Beyond daily management, the firm also handles tasks ranging from filing federal grants to overseeing work related to the new facility.