LAWTON — Officials with the FISTA Development Trust Authority will have to wait until later this month to learn whether the Lawton City Council approves a request for additional funds.
The council decided Jan. 11 to delay action on FISTA’s request for an additional $2 million, which would come out of the city’s Industrial Development Capital Improvement Projects fund. FISTA requested the extra funds because bids for remodeling the former Sears store in Central Plaza came in higher than expected.
FISTA has already demolished the interiors of the former Sears and Dillard’s stores so those spaces can be redeveloped for new occupants, said Deputy City Manager Richard Rogalski. He added that FISTA has also built the Business Innovation Center in the old IBC Bank building, and some companies have already set up shop there.
The additional $2 million will help FISTA cover the cost of renovating the Sears building, said Deputy City Manager Richard Rogalski. He added that the extra funds would be added to FISTA’s budget for the current fiscal year.
“One important thing to note is that while they have to have a commitment from the city for the entire number to award the project, they certainly aren’t going to spend all of that money by the end of this current fiscal year,” Rogalski said. “So, you’ll actually see this in next year’s budget agreement that will come back to you in, probably, the May-June time frame.”
Construction costs
FISTA Chairman Clarence Fortney said the construction management firm Smith and Pickel originally estimated that renovating the Sears space would cost about $7.8 million. However, FISTA used value engineering — an approach which uses less expensive materials and methods to reduce project costs without sacrificing function — to lower the overall price tag.
“We have some bid packets that were not bid on, so we’re putting those back out on bid,” Fortney said. “But there are three that we’re going to stay or hold off on. And those three bid packets include the asphalt parking, vision signage and then the movable walls that are in the conference center.”
Fortney said those steps shaved about $921,000 from the project’s overall cost, reducing it to about $6.9 million.
Councilman Kelly Harris, who is beginning his first term in office, peppered Fortney with questions about the project and FISTA’s request for additional funds.
“As all of you know, I’m a huge proponent of this project, but this request distresses me and it raises a lot of questions,” Harris said. “The overall cost — the almost $8 million — how much of the total space that we have will that transform?”
Fortney said, “It’s about a third of the space on the front side of the north side of the Dillard’s space.”
Harris then asked how postponing a decision on FISTA’s request would affect remodeling plans.
“If we defer this for two weeks, is that going to kill anything?” he said.
Fortney said a bid opening is slated for Feb. 11, but those bids will be null and void if FISTA does not have secure funding in place by then.
“We’ll have to start the process over,” he said.
Fortney later said that FISTA officials are hoping that the federal government will supply some funds for the project.
Tapping CIP
Councilman Sean Fortenbaugh said he supports the remodeling project, but he worried about tapping the Industrial Development Capital Improvements Projects fund to help FISTA.
“I really love this project, and I know it’s going to succeed,” he said. “But I’m uneasy about where we’re getting the money for this and how we’re going to pay for it.”
The council will discuss the issue again later this month.