ITEM TITLE:
Subject to FISTA approving an amended budget and the proposed amended support agreement, consider approving the First Amendment to the Limited Services Agreement between Fires Innovation Science & Technology Accelerator Development Trust Authority (FISTA) and City of Lawton for FY 23-24, including any floor amendments that may be made thereto, to incorporate (a) $36,620.02 for repairs to Central Mall (aka Central Plaza) for storm damage, (b) $257,250.00 for Property Insurance Premiums for Central Plaza, and (c) $1 million financial incentive to support a collaboration agreement between r4 Technologies, Inc. and the FISTA Innovation Park wherein artificial intelligence (“AI”) will be utilized for workforce and supply chain development, and to drive economic growth.
INITIATOR: Councilman Randy Warren
STAFF INFORMATION SOURCE: Acting City Attorney Tim Wilson, Deputy City Manager Dewayne Burk, Finance Director Joe Don Dunham.
BACKGROUND: On August 22, 2023, Council approved a Limited Support Agreement between the City of Lawton and the FISTA Development Trust Authority to include a proposed budget of $5,845,753.73. One of the primary functions of FISTA is to assist with attracting high-quality jobs and private investment in the Lawton community that will promote an economy conducive to the future growth of the Lawton - Fort Sill area. Thus, FISTA is requesting that Council approve an additional $1,293,870.02 in funding for the following purposes: (1) $36,620.02 to address the cost of storm repairs to Central Plaza; (2) $257,250 to cover the facility insurance premiums for Central Plaza for 2022 and 2023; and (3) $1 million financial incentive to support a collaboration between r4 Technologies, Inc. and FISTA Innovation Park. The $1 million financial incentive would, under an agreement between FISTA and r4 Technologies, be paid to r4 Technologies through four separate payments of $250,000.00, payable in November 2023, February 2024, July 2024, and October 2024.
This matter was originally considered at a special council meeting on October 30, 2023. It was originally proposed that the City would retain the $1 million and reimburse FISTA for its costs, with the $500,000 of economic development assistance being provided in the FY-23-24 support agreement and the remaining $500,000 to be considered in the FY-24-25 support agreement with FISTA. After discussion, council voted to amend the proposed agreement to provide the entire $1 million to FISTA in FY-23-24 with FISTA to submit quarterly written reports to the City advising how the funds were being used and the number of jobs created.
The proposed revised amendment to the FY-23-24 FISTA support agreement captures the intent of the floor amendment made by council at its October 30th meeting. As a measure of protection, the proposed amendment also includes language that: (1) FISTA will immediately notify the City in the event r4 fails to meet its obligations or is otherwise not in compliance with its agreements with FISTA, and FISTA will cease making any payments of the $1 million to r4 until r4 is back in compliance; (2) the $1 million will only be used for the four payments as set forth in the Presence Agreement; and (3) any portion of the $1 million not spent for the stated purpose shall be returned to the City.
As a result of the October 30, 2023, floor amendment, FISTA has been asked to approve an updated budget and the proposed revised amendment to the FY-23-24 support agreement. Krista Ratliff - CEO/President of FISTA or another representative from FISTA is expected to be present to address this item and answer questions from the city council.
EXHIBITS: (1) proposed First Amendment to the FISTA Limited Services Agreement - revised from October 30, 2023 version - with and without redlines (2) FISTA 2023-24 Amended Budget, (3) FISTA Presence Agreement with r4 Technologies, (4) FISTA Job Creation Agreement with r4 Technologies, and (5) FISTA Lease Agreement with r4 Technologies
KEY ISSUES: N/A
FUNDING SOURCE: Hotel Motel Tax & 2019 Propel CIP - economic development funds.
STAFF RECOMMENDED COUNCIL ACTION: Subject to FISTA approving an amended budget and the proposed amended support agreement, consider approving the First Amendment to the Limited Services Agreement between Fires Innovation Science & Technology Accelerator Development Trust Authority (FISTA) and City of Lawton for FY 23-24, including any floor amendments that may be made thereto, to incorporate (a) $36,620.02 for repairs to Central Mall (aka Central Plaza) for storm damage, (b) $257,250.00 for Property Insurance Premiums for Central Plaza, and (c) $1 million financial incentive to support a collaboration agreement between r4 Technologies, Inc. and the FISTA Innovation Park wherein artificial intelligence (“AI”) will be utilized for workforce and supply chain development, and to drive economic growth.