The Failed Lake Texoma Redevelopment - Part 3

Public Relations and the Taking of Lake Texoma State Park

In commercial advertising there are laws against "bait and switch" sales tactics. That's when you are promised one thing for your money, and you are given something else. The "Promise" or item advertised is the "bait." And the disappointing product or service you received is the "switch." Bait and Switch.

But when it comes to deceiving the general public through a coordinated public relations campaign involving the same unethical practice, there are no protections for the buyer. Public Private Partnerships (PPP) are based on the trust of the public officials who are supposed to serve in the public interest.

But, the failed Lake Texoma Redevelopment proves that those who were skeptical about this PPP in the first place, were right. They sensed a scam when the head of the Real Estate Division at the state Land Commission (CLO) and Corps of Engineers officials first came to Kingston in November, 2004. They asked questions and were mislead on several counts regarding the proposal.

CLO & USACE Public Meeting to Promote Lake Texoma Redevelopment

The event was held at the Lake Texoma State Resort Park Lodge. The speakers were Perry Kaufman, a former CLO Attorney, Keith Kuhlman, School Lands Trust (CLO) Real Estate Division Director, Cynthia Kitchens, US Army Corps of Engineers Lake Texoma Project team leader, and Ron Jordan, USACE.
Their primary focus was to describe and promote the project and to answer questions.

Keith Kuhlman introduced himself as the Director of the Real Estate Division of the Oklahoma Commissioners of the Land Office (CLO) also known as the School Lands Trust. He said, “We’re here to tell you where we’re at and what we’re doing.”

The CLO/School Lands Trust is a state agency, a trust. He said, “Our mandate is to make money. We’re supposed to make money and maximize the income of these properties for the School Lands Trust.”

The CLO first became interested when the Oklahoma Tourism and Recreation Department (OTRD) was unable to fund Lake Texoma State Park. In 2001, the CLO ... opened bidding to run the State Park Lodge and Resort Golf Course, which was not successful.

Kaufman said that two years ago the state issued a Request For Proposals (RFP) to “do a resort development which we would treat as an investment.” He then referred to a map which was published in newspapers that month. (11/04)

CLO Assistant Secretary Kuhlman Deceitful About Park Privatization

Kuhlman said they were seeking to acquire 850 acres from the federal government, to combine with 250 acres already owned by OTRD. “Specific legislation by Congress allows us to acquire the land,” he said. Kuhlman didn't say that the federal land transfer would require a full environmental review. Nor did he correctly say they were seeking 564 acres in this first federal land transfer. A later plan to seek an additional 1,022 acres (Area "C") would be contained in a secret Tourism Department contract with Pointe Vista in June, 2008. For a total of approximately the 1580 acres authorized by WRDA-99 legislation.

The CLO created a “package proposal under our name and issued the RFP to 150 developers,” he said. A state feasibility study showed that the project “will be a good money maker for the School Lands Trust,“ he said. “There is a tremendous amount of interest.”

Kaufman suggested, “At least two resorts could take the place of this Lodge.” He said, “This is just a conceptual design. It includes condominiums, timeshares, convention facilities and 18-36 holes of Golf Courses. On the Real Estate side, houses or second homes will be built.” Note that we already had two publicly-owned, publicly-funded 18-hole golf courses within The Park.

Kuhlman Said Golf Courses, Resort Sites Would Remain State Owned

He said, “Some areas will be sold. There will also be areas that will be held under long-term lease. The golf courses and the resort sites will remain under long-term lease. The north shore will all be sold with covenants and restrictions.” The north shore is the area Pointe Vista is now attempting to develop while abandoning their contractual obligations for their promised hotel.

Kaufman said, “You (the public) will tell us exactly what will go there. It will be very restrictive. This is a very unique proposal with very unique qualities. Marshall County should be very proud of it.” A member of the audience from Rolling Hills said, “We were told that area is flood control area never to be sold.”

In response Cynthia Kitchens said, “We were directed to make the sale by the Water Resources and Development Act (WRDA) of 1999.” She said, there will be “no permanent structures below 645 feet (elevation). There will be access roads throughout the property. Rolling Hills roads are not excluded as an access to the development.”

WRDA-99 authorized the federal land transfer, but did not mandate it. And the authorization came with a requirement to comply with all federal laws. They didn't comply with any federal laws.

Kuhlman stated, “We’re working with the Town of Kingston Feasibility Study which will bring a sewage treatment plant over here to serve development.” This never happened, or Pointe Vista wouldn't have recently requested a Rural Water and Sewer District to serve their new rental town homes.

“The sewer line we’re talking about bringing over from the City of Kingston along the highway will include a pump station, lift station, and involve the Oklahoma Department of Environmental Quality (DEQ) and the Department of Fish & Wildlife.” None of this ever happened.

Kuhlman Outlined Strict Guidelines For the Chosen Developer

“They must have the financial capability to complete the project,” he said. “And their design must meet our qualifications. It’ll come down to who has the most money.” And so Pointe Vista spent six years looking for investors, including the Chinese government. Again, Kuhlman mislead Kingston residents.

He said, “We’re talking about federal investments here. NEPA (the National Environmental Policy Act) requires an EA (Environmental Assessment) for this area. That report will be out for public review in early March, 2005 at your public library for comment.”

Kitchens said, “Seems like we (local residents) are thinking about everything negatively, but there are a lot of people in Marshall County excited about this kind of development.”

Vicki Gaylor of Kingston said, “We were always told that this would be Corps land permanently – wild lands. People are really disgruntled.”

Kuhlman said, “The Lakeshore Management Plan is very restrictive. Regarding docks, only new day use docks will be built. The housing units that are sold will be on the tax roles.” He repeated, “Quite a bit of it will be retained by the State – the resorts and the golf courses.” Kuhlman sold Kingston a bill of goods.

None of the federal land purchased by the state was "retained by the State" to include "the resorts and the golf courses." Chickasaw Point Golf Course was and is federally protected under the Land and Water Conservation Fund (LWCF) Act, but it was sold along with the former state resort lodge property.

Kuhlman said, “Whatever company that comes in will have to have the expertise and experience to do exactly what we’re talking about doing. And if they haven’t and can’t, they won’t even come close to being selected to be the development company.”

Pointe Vista has never developed anything. It was a the vision of Scott and Mark Fischer, CEO of Chaparral Energy who purchased the park land in 2008. In December, 2008, "Pointe Vista" was sold by Chaparral to the Fischers and co-owner, Aubrey McClendon, former CEO of Chesapeake Energy.

“So, they will be selected on technical expertise?” asked another resident. “Yes. Absolutely,” said Kuhlman.

This is the first and most important bait and switch because it provided the foundation of the Lake Texoma Redevelopment. Perhaps it's the reason that a dark cloud hangs over the project today, that it was born in deception, and languished for six years in deception because Keith K