City of Muskogee Foundation rejects request to pay city's nearly $30M in legal judgments, approves $10M grant

MUSKOGEE, Okla. — The City of Muskogee Foundation voted on Oct 26 against paying the city’s nearly $30 million in legal judgments but approved a separate $10 million grant to help cover city operating expenses.

The decision came during a packed, standing-room-only meeting where Muskogee Mayor Ryan Lowe asked the foundation to help pay off the city’s legal judgments.

Muskogee resident Mark Hughes expressed concern about what the decision could mean for the community.

“This is going to be devastating to the city of Muskogee and the people who live here,” Hughes said.

Lowe also expressed frustration following the vote.

“I’m baffled, I’m disappointed, I’m angry, I’m all of the above,” Lowe said.

The city faces three legal judgments totaling $29.25 million, plus interest. The cases involve properties the city previously condemned and demolished.

City officials have warned that one option for paying the judgments could result in increased property taxes.

The uncertainty has already affected other plans in Muskogee. Muskogee Public Schools paused its timeline for a potential bond issue while waiting to see how the city would handle the judgments and what impact that decision could have on taxpayers.

Lowe said he was concerned that the financial responsibility could fall on residents following the foundation’s decision.

The City of Muskogee Foundation is a nonprofit organization that provides funding for community improvements, programs and other initiatives benefiting Muskogee residents.

Although board members rejected paying the judgments directly, they approved a separate grant requested by the city to help with operating expenses. The grant will provide $2 million annually for five years, totaling $10 million.

City of Muskogee Foundation Executive Director Kari Blakley released a statement following the meeting explaining the organization’s decision.

“Today’s commitment builds on that support by helping address an immediate need in our community while preserving the foundation’s ability to support Muskogee and its residents for generations to come,” Blakley said.

The city is expected to hold another meeting in early November to discuss how it will pay the legal judgments.