Republic Paperboard merits ‘development financing’ for exceeding requirements.
Republic Paperboard has far exceeded its obligations under an economic development agreement made with the Lawton Economic Development Authority six years ago, measurable metrics show.
Accordingly LEDA’s board of directors determined Thursday that the company is eligible to receive more than $4 million in “development financing.”
As part of its expansion plans, Republic Paperboard committed to a multimillion-dollar investment and creation of 20 new jobs with an average salary of $108,006, “thereby creating a net new project annual payroll of $2,160,120,” LEDA Executive Director Richard Rogalski said. Additionally, the company was required to maintain that payroll level for five years after completion of its expansion.
To support the planned growth, the City of Lawton via LEDA inked an agreement with Republic on Dec. 1, 2019, “within the framework of the STEDI [Skills Training, Education, Development and Investment] Project Plan and Increment District No. 3.”
The agreement provides for financial incentives, paid from the ad valorem tax increment generated by Republic’s operations, subject to specific performance goals focusing on employment, payroll, investment, and valuation.
Upon adoption of the original STEDI Project Plan, City of Lawton Increment District No. 3, an ad valorem and sales tax increment district, was established “to support the Republic Paperboard Company expansion.” That project included a capital investment of more than $94 million and the creation of “20 new high-quality jobs” at its manufacturing facility in the West Side Industrial Park, where it produces various paper products.
Republic recently submitted essential documentation to LEDA, which reviewed and confirmed that the company has met its performance obligations under the 2019 agreement.
In accordance with a compliance memorandum dated Dec. 15, 2025, LEDA determined that Republic is eligible to receive “development finance assistance” of up to $4,320,240. The funds will be payable in annual installments spread over 20 years - $216,012 per year from property taxes generated in Tax Increment Finance District 3, Rogalski related.
Republic Paperboard submitted annual employment certifications for 2019-2025 that verified full-time and part-time employment counts, total annual payrolls, job titles, and benefits, Rogalski said. Those documents “confirm compliance with the economic development agreement’s employment obligations for each reporting year,” he said.
For example:
• 2019: full-time equivalent employees, 148; total payroll $14.423 million, which established a baseline.
• 2020: FTE 160; total payroll $14.981 million; increase $557,742 above the baseline.
• 2021: FTE 168; total payroll $15.464 million; +$1,040,775.
• 2022: FTE 173; total payroll $15.734 million; +$1,310,461.
• 2023: FTE 175; total payroll $16.236 million; +$1,812,742.
• 2024: FTE 183; total payroll $17.656 million; +$3,232,574.
• 2025: FTE 185; total payroll $17.879 million; +$3,455,448 (projected as of Dec. 2.)
The results for 2020 were an anomaly because of the Coronavirus pandemic. COVID-19 “resulted in widespread, well-documented disruptions to business operations and labor markets” in 2020 “and qualifies as an unavoidable delay” under a provision of the economic development agreement, Rogalski asserted and the LEDA board concurred.
The net result, Rogalski said, is that in six years Republic Paperboard added 37 new full-time positions - exceeding the requirement for 20 new full-time “high-quality” jobs.
Furthermore, the cumulative increase in payroll above the 2019 baseline totaled $10,852,000. Thus, average actual net new project annual payroll in 2021 through 2025 was $2,170,400 - “exceeding the contractual benchmark of $2,160,120,” Rogalski observed.
Excluding calendar year 2020 as a period of unavoidable delay, the payroll compliance analysis focusing on 2021-2025 reflects “sustained growth in Republic’s payroll above the 2019 baseline, notwithstanding the operational and labor market disruptions caused by the COVID-19 pandemic,” he pointed out.
“It is notable that even during 2020... Republic increased employment and total payroll above the 2019 baseline,” Rogalski emphasized. “This performance demonstrates that the pandemic affected the rate of growth rather than Republic’s overall compliance trajectory...”
Also, based on increment revenues for TIF District #3 received by LEDA, starting in 2022 the resulting taxable fair cash value attributable to the project expansion exceeded the $75 million investment threshold Republic was required to make, Rogalski reported:
•2022: $76,844,533.
•2023: $96,800,145.
•2024: $89,224,076. Republic equaled or surpassed “all of its performance obligations under the economic development agreement,” Rogalski concluded.
The company is an example of “a growing industry we have been fortunate to retain,” LEDA Chairman David Madigan said.