State files lawsuit against Swadley's after contract questioned

“We are committed to getting to the bottom of this,” Stitt said. “There are a lot of different investigations going on right now. I think we can all agree that the most important things are protecting the taxpayers and shining a light on any corruption and any bad actors.”

Stitt also announced that he had accepted the resignation of Jerry Winchester, Oklahoma Tourism and Recreation Department executive director.

“I regret that in the best interest of the department, I feel it necessary to resign as executive director of the Oklahoma Tourism & Recreation Department effective immediately,” Winchester wrote in a Friday letter to Stitt. “I don’t want my continued involvement to overshadow the great accomplishments that have been achieved these past three years.”

It was not immediately clear if Stitt sought the resignation.

Stitt held a press conference with Lt. Gov. Matt Pinnell, who serves as secretary of tourism, wildlife and heritage. Pinnell will take more of a role overseeing the tourism department, the governor said.

Questions have arisen about how much Swadley’s has charged the state to operate Foggy Bottom Kitchens restaurants at several state parks. The state paid the company nearly $17 million to install restaurants and make improvements at the parks.

Stitt’s news conference lasted less than six minutes. Citing the lawsuit, he declined to take questions from the media.

The announcement came after the Oklahoma House said Thursday it would investigate the matter. Oklahoma County District Attorney David Prater also has called for an audit and asked the OSBI to investigate.

On Monday, the state cancelled the Swadley’s contract due to “potential fraudulent activity.”

In the two-page lawsuit filed Friday in Oklahoma County District Court, the state alleges the company violated its promises and obligations and is in material breach of contract and has failed and refused to provide an accounting.

Stitt said all the renovations at state park restaurants are state property.

“Those restaurants are move-in ready,” Stitt said. “And we are excited to get them reopened.”

Stitt said his team keeps getting asked about comments reportedly made by Brent Swadley, the owner of the company.

“Let me be clear,” Stitt said. “I don’t have any sort of relationship with Brent Swadley. I don’t know Brent Swadley. I have no involvement in this contract.”

Prior to the press conference, Swadley’s Foggy Bottom Kitchen issued a statement.

“Swadley’s is proud of the work it has done in Oklahoma’s beautiful state parks,” the company said.

In March 2020, the company entered a contract with the state to redesign, rebuild and revitalize six restaurants in state parks and got it done in less than two years despite complexities, the statement said.

“From the beginning, Swadley’s acknowledged and accepted that this project would be a difficult undertaking, but the extent of the decay and neglect at the various restaurants made it more difficult than either party initially anticipated,” the company said.

In addition, the COVID-19 pandemic increased the cost of labor and raw materials and imposed restrictions on indoor dining, the statement said.

“Swadley’s is proud of the hard work of our employees, which brought the amenities at these state parks in line with the breathtaking natural beauty of our great state has to offer,” the statement said. “Swadley’s leadership team is disappointed by the recent decision to terminate its contract and heartbroken for the hundreds of employees whose livelihoods are directly impacted.”

Video: House leadership announces investigation of Swadley’s state contract.