LAWTON – FISTA’s newest tenant will not move into the FISTA Innovation Park, located on the west side of Central Plaza, but will find its own space elsewhere in the former mall.
The FISTA Development Trust Authority recently approved a five-year lease with r4 Technologies, a Connecticut-based company that uses artificial intelligence to collect data for specific reasons. In this case, r4 and FISTA will work together on a project using AI to bolster workforce and supply chain development and drive economic growth.
The FISTA Innovation Park is currently full, which is why r4 will set up shop in another area of Central Plaza, according to ABC affiliate KSWO. The company is expected to move into the mall within a month.
In addition to the lease, the FISTA authority approved a job-creation agreement with r4 that requires the company to create five new jobs based at FISTA during the first year of the lease. The company must also create at least 20 additional jobs for the duration of the lease, paying average annual wages of $100,000, which includes salaries and benefits.
“In an effort to support r4, the FISTA agrees to provide incentives to r4 in exchange for high-quality and paying jobs being stationed at FISTA by r4,” the agreement said. “The base annual rent for the space is $17.00 per square foot, which will be abated in full by FISTA for a period of two years if r4 meets its job creation obligations.”
The agreement defines high-tech jobs as all jobs with average annual wages of at least $100,000, which includes salaries and benefits, training and travel expenses, stock options and health benefits.
R4 will have six months to make the hires it needs to cover its base rent, according to the agreement. The company will report its hires, wages and average compensation to FISTA at the end of the six-month period and once a quarter after that.
If r4 does not satisfy the job creation requirement, it will begin paying a percentage of the base rent, according to the agreement. For example, if r4 is required to create five jobs for a certain period but only generates four, the company will pay 20% of its base rent. Similarly, if the company is required to create 10 jobs but only generates nine, it will pay 10% of its base rent.
The lease amount will remain in force until r4’s next quarterly report, according to the agreement. At that time, the number of newly created high-tech jobs will determine the company’s annual base rent for that period, if any.
FISTA will not provide any additional incentives if r4 exceeds the number of required jobs for each period outlined on the funding schedule, according to the agreement. If the company drops below a certain number of employees meeting the $100,000 salary threshold, a portion of the base rent will be due for each unfilled or ineligible job below the required number for that period.
Only the base rent for the first two years of the lease will be eligible for abatement, according to the agreement. R4 will be responsible for paying any additional rent during the first two years and will pay the full base rent for the final three years.
As part of the incentive package, FISTA will provide a $1 million payment to r4. The payment will be divided into four installments of $250,000 apiece.
The FISTA Authority also approved a third agreement with r4 that provides additional details of the partnership. That agreement says in exchange for the incentives, r4 will open a FISTA AI Center of Excellence within the first 100 days; participate in design sessions with FISTA; plan for expansion, including an evaluation of market opportunities; plan a joint venture with FISTA; and include FISTA branding on advertising or in success stories.