Lake Texoma Developments

Strip and Flip

They want us to be cheerleaders

We have been concerned as you know about large developers around lakes trying to grab prime lakeshore public land owned by the government. We have been repeatedly asked to be cheer leaders for these types of major developments, to play nice and don’t ask any normal business or public recreation use questions. When you ask questions or raise concerns that the development objectives should be compatible and complementary with the lake’s fish, wildlife, environment, public recreation and tourism and lake area businesses, we are strongly advised that we are against economic development for Lake Texoma and the free market should decide the winners and losers.

We think not!

We are for development around the lake on some lakeshore federal land providing that it is reasonable, compatible and the public is part of the planning and consideration process. Some of the large developers try to work effectively with area recreational enthusiasts and businesses. However, we are observing more and more that other large developers want it their way or they will try to force concerned businesses and citizens out one way or the other. The free market is great and private enterprise is able to operate facilities more cost-effectively than the federal, state or local governments or non-profit organizations in some but not all situations. But, there has to be a balance between large developers and the public and other businesses or big money, egos, greed and political clout will drive the developments into the strictly for profits category for large developers with little regard for others.

In Basic English it is called Strip and Flip whether it is companies or real estate development. Some large well connected and financed promoters and developers purchase prime lakeshore government owned public land dedicated for recreation, tourism and public access at give away prices. They strip out most of the public recreation and tourist value and access and then flip the land by quick lot sales and upscale water front or view residences at extremely high profit margins. They win and the pubic and other businesses are left with collateral damage. That is not a reasonable balance in anyone’s view other than this type of large developer.

This process started on Lake Texoma at the Oklahoma Lake Texoma State Park where the Corps was required by federal legislators to sell the public land within the State Park to the State of Oklahoma. The State then sold approximately 600 acres of the park land to a promoter/developer at around $14,000 an acre for waterfront or view land who has recently announced that they will build approximately 1,000 private residences on the park land along with a later hotel-convention center five to eight years after the State Lodge and 70 cabins were shutdown and access denied to the public. The land even included a new state funded golf course worth almost $10 million! The water front and view residential lots alone are estimated to sell for $500,000 to $1million.

The State now plans to compound their corporate welfare by selling over 900 additional acres of prime waterfront and view land used for the remaining Lake Texoma State Park campgrounds and related facilities! The State bemoans the fact they do not have enough funds for their parks and yet they are planning to relocate the State Park campgrounds from one of the best locations on Lake Texoma to who knows where and at a greater cost than they will ever receive from the developer for the sale of the remaining state park land. A sound business practice? Most people think not!

 Is it a Sound Public Investment and Business Practice or Corporate Welfare?
After purchasing the public property from the federal and state governments at far below fair market prices (according to most people), the developers have repeatedly had the audacity to attempt all measures to obtain federal and state grants as well as various increased tax tactics for local taxpayers such as TIF’s to pay for their development’s infrastructure! If it was such a good business investment why do they need all the corporate welfare?

Federal and state officials wonder why the public is very upset when they see this type of excessive government generosity while the public is losing affordable access to recreation they have used for years or their area businesses are dependent upon it. The same officials underfunded the federal and state parks and recreational areas for years even with strong justifications and then said that privatization was the only answer.

This type of developer attitude and approach has been observed with the proposed and now approved federal WRDA 2007 legislation requiring the Corps to sell the pristine public land along the east side of Little Mineral Bay to the City of Denison, Texas who will reportedly quickly sell the land to a promoter/developer. Here we go again with strip and flip. The undeveloped Corps shoreline land, forests and Little Mineral Cove East will be changed to golf courses and boat slips primarily for private use and lost for “affordable” public access. Moreover, critical onshore and aquatic habitat and spawning areas will be lost.

It’s still Strip and Flip even if the promoter continues the development.
The public with middle and modest income will be effectively stripped of their public access since they will not be able to afford most amenities. The promoter/developer flips the former public land use to develop the land with upscale resort and so called public recreation and tourist facilities which are a facade.

The federal WRDA 2007 legislation for the Oklahoma Demonstration Lake Program will open up Lake Texoma on the Oklahoma and Texas sides of the lake to this type of developer land rush and grab for the future. Watch out for collateral damage as an outdoor enthusiast or business owner! You may be next.