MUSKOGEE, Okla. — The city of Muskogee decided in a meeting on Sept 8th to rescind its annexation of Polaris Technologies' property and start the process over again. It’s in direct response to Polaris’ lawsuit, saying the city didn’t follow the law when it began the annexation process.
“This doesn’t make any sense at all,” said Dan Chepkauskas with Polaris.
Chepkauskas says all the company wants is to negotiate with the city. It comes as Muskogee city councilors decide on whether to restart the annexation process for the date mining company’s land.
“There is a win-win out there, but the window of opportunity is closing quickly,” said Chepkauskas.
2 News told you when the city started and completed the process of annexing land at the John T Griffin Industrial Park; land that includes Polaris.
Previous Coverage >>> Hearing rescheduled for Polaris Technologies Muskogee annexation lawsuit
The data-mining company says a 3% franchise fee that comes with being in city limits will cost them an extra $5 million a year.
So, Polaris sued the city, asking a court to stop the annexation.
Polaris says:
-The city didn’t properly inform them of the annexation as required by law
-The franchise fee creates an “additional requirement” for the center that goes against a state law governing data centers
“You choke off the goose that’s laying the golden egg for you because you’re so hungry for everything that they’ve got,” said Chepkauskas. “It’s very unfortunate. It’s very shortsighted planning.”
Sept 8th, city councilors voted to rescind the annexation and start the process over. They say the “procedural concern” in Polaris’ lawsuit will be fixed if they take this step.
Additional Coverage >>> Polaris Technologies files lawsuit against Muskogee over annexation
Polaris calls the move a bait-and-switch, saying they agreed to push back a hearing to negotiate with the city, but that hasn’t happened.
“The city is showing slowly but surely, maybe that’s not on the top of their priority list,” said Chepkauskas. They want money first and then we’ll talk about integrity.”
In a statement, the city of Muskogee said,
“The city of Muskogee categorically denies any allegation of deliberate misrepresentation in connection with the annexation process. At all times, city staff have acted pursuant to the direction of the city council and in compliance with applicable statutory requirements. Prior to the September 2, 2025, Special Call Council Meeting, the city attorney engaged directly with counsel for Polaris Technology, formerly Polaris Technologies, to discuss potential options for resolution. The morning after the council meeting, rather than allowing those discussions to progress toward negotiation, Polaris immediately filed an amended petition attacking the city and asserting additional causes of action. Such conduct is a clear indication that Polaris Technologies had no genuine intent to negotiate in good faith and elected instead to pursue an adversarial course of action. The city will continue to defend itself vigorously against these unfounded claims and remains confident in the legality of its actions.”
In a statement, Polaris Technologies said:
"Polaris Technologies denounces the Muskogee City Council’s bad-faith maneuver to rescind its original annexation ordinance, a move they claimed was to pursue a fair resolution but was clearly intended to allow them to reintroduce the same flawed plan. This calculated effort, lacking transparency, contradicts assurances made to Polaris’s legal representation and signals a return to the same bait-and-switch tactics seen from the start.
City officials had previously stated their intention to rescind the original ordinance and begin negotiations, which led to the postponement of a court hearing. However, the city has not attempted to contact Polaris since that time. It is now clear that the withdrawal of the ordinance was not a step toward collaboration, but rather a procedural tactic, facilitated behind closed doors, to refine what continues to be a rushed and poorly planned effort.
“We are profoundly disappointed that the City Council has chosen to double down on this destructive path instead of working with us,” said Dan Chepkauskas, spokesperson for Polaris Technologies. “The council’s refusal to be transparent about the specific actions authorized in their vote confirms their intentions. This isn't responsible governance; it's a deliberate misrepresentation to avoid accountability. Polaris remains committed to Muskogee, but the city’s leadership seems committed to creating instability.”
The council’s continued march toward annexation sets a dangerous precedent for future economic growth in Muskogee. Polaris urges the Muskogee community to demand transparency and responsible partnership from its elected officials to protect jobs and honor the commitments that foster long-term growth.
Polaris says its litigation will continue to move forward.
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