MUSKOGEE, Okla. — A Muskogee company says the city plans to annex its land will cost them an extra $5 million a year. Polaris Technology says the city won’t sit down and negotiate with them.
“Polaris was ahead of the curve,” said Dan Chepkauskas. “They were here two years ago. They took a chance on Muskogee.”
With 40 acres dedicated to data mining, Polaris planned to stay and grow in Muskogee. Now, the company says annexation could change those plans.
“It’s not just Polaris,” said Chepkauskas. "It’s the livelihoods of all these people that are working here and the families that they support.”
WATCH: Polaris says Muskogee won’t negotiate fees for annexation plan
The city plans to annex more than 120 acres in John T. Griffin Industrial Park. It’s 6 parcels of land that would include all of Polaris Technology.
Dan Chepkauskas, Polaris’ Governmental Relations Director, says the annexation wasn’t laid out when Polaris moved to Muskogee, and it comes with a 3% fee on their energy.
As OG&E’s largest consumer of energy in the state, it could be an extra $5 million a year.
“Can we afford to expand?” asked Chepkauskas. “Can we afford to be here?”
In Muskogee’s city council meeting on July 14, Muskogee Mayor Patrick Cale said the company knew annexation had always been in the works after the city approved a master plan in 2012.
“Throughout this whole discussion regarding annexation, they had lied time and time again,” said Mayor Patrick Cale.
“What was your reaction to the mayor saying that?” asked 2 News. “First of all, I was floored,” said Chepkauskas.
Chepkauskas says they want to negotiate the 3% fee with the city, but they haven’t been able to do it.
“I have it on good authority that someone is willing to take 400 megawatts of Polaris' power, if Polaris left,” said Mayor Cale.”
After that comment from Mayor Cale at the July 14 city council meeting, Chepkauskas says he doesn’t even know if the city wants Polaris in the community.
"You've basically already tried to market the very lifeblood of this company out to someone while we're still here and still using it,” said Chepkauskas.
2 News told you last month when this debate started.
The city of Muskogee sent a statement saying:
“The City of Muskogee values Polaris Technologies’ investment in our community and recognizes the company’s role in supporting technological growth and creating jobs in our region. Since their arrival, Polaris has been welcomed as a key partner in Muskogee’s economic development. At the same time, the City’s priority is to create a level playing field for all businesses while ensuring taxpayers are not subsidizing growth without the ability to plan or invest accordingly.
Recent public statements by Polaris mischaracterize the City Council’s actions regarding annexation. The annexation process, currently underway, is part of a long-standing policy objective to bring John T. Griffin Industrial Park development areas, many of which benefits from city infrastructure and services, into alignment with city boundaries. This is not about targeting any single company. It is about fairness, consistency in governance, and ensuring sustainable growth that benefits the entire community. The City’s priority remains clear: to foster economic development in a way that is equitable and allows for sound fiscal planning.
It is important to clarify that the annexation process has been conducted transparently and in accordance with Oklahoma law, with ample public notice and opportunities for input. Bringing commercial properties into the city limits ensures all who benefit from city infrastructure and resources contribute their fair share. This approach not only strengthens Muskogee’s ability to support future
development but also safeguards long-term service delivery and infrastructure investment for all residents and businesses. The City of Muskogee appreciates the contributions Polaris has made and remains committed to policies that promote business success while upholding transparency, fairness, and responsible stewardship of public resources.”
We also got this statement from Polaris' CEO:
“We are disappointed that the mayor's office continues to release inaccurate and misleading statements, first claiming we were aware of annexation plans prior to our investment and now implying we receive public subsidies. Neither is true. We remain committed to transparency, and we hope elected local leadership will engage in good-faith negotiations moving forward.”
City councilors say tax dollars were used to invest in infrastructure in the industrial park, like water and sewer with the goal of getting a return on that investment.
“The plan from day 1 was simple,” said Muskogee City Councilor Tracy Hoos. “Businesses come. We invest in the area. Businesses would come annexation would follow. It wasn’t a secret strategy. It was the whole point. We made an investment and the return on that was jobs, industry and annexation.”
Polaris says if the annexation goes through the company may be forced to take legal action.
City council will meet on July 28th to make its final decision.
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