Lake Texoma - Recent Transfers of Public Land To Private Developers

Recent Transfers of Public Land To Private Developers

The Water Resources Development Act of 1999 (Public Law 106-53 113 Stat. 359), authorized USACE to sell to the state of Oklahoma approximately 1,580 acres (6.4 km2) of federally owned land on the north shore of Lake Texoma in Marshall County, Oklahoma, under lease at that time to the Oklahoma Tourism and Recreation Department. The land was part of the Lake Texoma State Park, a conglomerate of state-owned lands and federally owned lands leased to the state, totaling approximately 1,882 acres (7.62 km2). The park was home to numerous state and concession operated facilities and activities, including a resort lodge with 106 guest rooms and suites.

Initially the State of Oklahoma Commissioners of the Land Office purchased only 558 acres (2.26 km2) from USACE in March 2007. Soon after, the State reached an agreement with Pointe Vista Development, LLC, for the sale of approximately 750 acres (to include the land purchased from USACE and land already owned by the State) for the development of home sites and an upscale resort. Pointe Vista is a partnership between Mark Fischer, president and chief executive of Chaparral Energy, and Aubrey McClendon, chairman and chief executive of Chesapeake Energy. Also in 2007, the Governor of Oklahoma, Brad Henry, indicated that the state would likely purchase all or most of the remaining land at Texoma State Park under lease from USACE to transfer to Pointe Vista for further development. The new development is proposed to include 18–36 holes of championship golf, a club house and practice facility, aquatic center, outdoor recreation center, nature parks, campgrounds, retail shops and an amphitheater. It is estimated that the new development will cost $360 million, which will also include housing, as well as a full-service hotel with restaurants, gym, business center, multiple swimming pools, spa and meeting rooms. The proposed private community will have 250–350 high-end homes, ranging in size from 1,500 to 4,000 square feet (140 to 370 m2).

The Lake Texoma Lodge, built in 1951, officially closed its doors on December 1, 2006. The lodge was in poor repair, resulting in a steady decline in the facility's use. As of May 2008, new development has yet to begin. Local area businesses have expressed concern at the loss of tourism revenue currently being experienced, and that without a lodge or hotel of some kind capable of housing large groups, a significant reduction in business will continue to be experienced. Early estimates are it could be anywhere from three to eight years before anything new is in place to house large groups visiting the lake.

Section 3182(j) of the Water Resources Development Act of 2007, authorized USACE to convey approximately 900 acres (3.6 km2) of land at Lake Texoma to the city of Denison, Texas. The provision was backed by U.S. Congressman Ralph Hall (R) as an economic development initiative. The sale is to be at fair market value and the city of Denison is responsible for all costs associated with the transaction (costs for completing NEPA compliance documentation, surveys, appraisals, USACE administrative costs, etc.). The city in turn intends to sell the property to George Schuler, a local developer, for the creation of a private residential and recreational development on the conveyed land and adjacent land already owned by Mr. Schuler. The eventual development may result in as many as 10,000 residents locating in the Grandpappy Point area.

The city and Mr. Schuler attempted to lease the same land from the Corps of Engineers in 2004, but abandoned those attempts in favor of legislation mandating the transfer, due to the inability to use the land for the intended purposes under a lease without an update of the Corps Shoreline Management Plan (SMP) for Lake Texoma. The majority of the land is currently zoned as Limited Development, Protected Area (suitable for nature hiking, birdwatching, etc.) and Aesthetic or Scenic areas. The Corps has previously stated that any revision of the SMP will require the completion of a Supplemental Environmental Impact Statement (SEIS) for the entire Lake Texoma project that will consider the cumulative impacts of the extensive development that has occurred around the Lake since the original EIS was conducted in the 1970s. Completion of a lake-wde SEIS has been estimated by the Corps to take up to 2 years to complete at a cost of approxiamtely $2.5 Million. Since Section 3182(j) contained no provisions exempting the sale from the requirements of NEPA, it is expected that completion of the SEIS and revision of the SMP will also be required prior to completion of the sale, and that the city of Denison will be required to bear that as a cost associated with the transaction.