MUSKOGEE, Okla. — After months of conflict between city leaders and the data mining & storage company Polaris Technology, the City of Muskogee finalized its annexation of the property the company operates on July 28.
Polaris's massive servers and cooling centers first flipped on over a year ago on county land while still paying to use city resources like water - about 6% of the city's supply each day.
- Previous coverage>>> Polaris says Muskogee won’t negotiate fees for annexation plan
"It's not like they're selling it at a loss," C-Group Governmental Affairs' Daniel Chepkauskas told 2 News. "And if they were, I would just say that's bad business practice. I don't know why you would do that. So it's not like Polaris isn't paying for the services that are provided to them."
Only Ward 2 Councilor Jaime Stout voted to oppose the annexation, which Mayor Patrick Cale stated beforehand was always the city's plan to do, dating back to 2013, no matter what business occupied the land.
"We are committed to treating all businesses and citizens fairly," Mayor Cale said. "Each and every business in Muskogee pays the same franchise tax fee."
- Read the mayor's full statement HERE.
That 3% franchise tax fee, Polaris has told 2 News previously, will add $5 million in added costs annually to operate inside the city.
"The $5 million per year risks Polaris's viability," Chepkauskas added.
Polaris has said if the city finalized the annexation of the six parcels, the company would pursue legal action.
WATCH: Muskogee City Council finalizes annexation of Polaris property, exit possible
"Oh it's definitely on the table," Chepkauskas said. "I'm just not willing to commit to legal action (but) it is definitely on the table."
"Polaris does not want to leave (Muskogee), he added. "But if they have to because they can't afford the franchise fee, then that's what they'll do."
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