Choctaw settles lawsuit, plans to sell tract of land

By Ann Kelley

Published: August 19, 2008

CHOCTAW — The city paid $1.7 million for a developer's land as part of settlement agreement in a lawsuit over utility services to the property.

The city in December lost the lawsuit filed by Tom Jordan or Jorco II LLC. A district court judge ruled the city owed the company $1.7 million for keeping Jordan from being able to develop his five tracts at 530 and 610 Anderson Road.

Choctaw officials were appealing the decision before the settlement.

City Manager Robert Floyd said the city paid Jordan on Friday, and as part of the agreement kept the property.

He said the city's insurance provider has paid $250,000 toward the settlement. The remainder was borrowed from the bank, but will go on the 2009 tax rolls, Floyd said.

Floyd said the city will sell the property and dedicate the proceeds to the debt.

Whatever amount is placed on the tax rolls could be spread out as long as 25 years to minimize the impact to property owners, he said.

Floyd said officials plan to sell the property to a developer who will build homes and businesses on one- or half-acre tracts with individual septic and well systems.

The disagreement between Jordan and city officials was over supplying water and sewer services to the proposed 127-home development. The closest Choctaw lines were several miles away and it would have been cost-prohibitive for Jordan to connect his development, said David Cole, Jordan's attorney.

Cole said Midwest City's lines were closer, but council members would not allow Jordan to tie onto the neighboring city's lines and declined his request to have the property de-annexed from Choctaw.

The $1.7 million is less than it would have cost Choctaw to run a line to Jordan's property, but substantially more than if Jordan had been allowed to tap into Midwest City's utilities, he said.

Cole gave credit to the jury in district court for his client's victory.

"People are tired of politicians and hacks not doing what's best for their constituents,” Cole said. "I think the jury looked at this and thought it didn't make good sense to keep Mr. Jordan from developing.”

Aside from the money, Cole said city officials lost the potential of more than 100 new families shopping in Choctaw and generating more sales tax. The school district lost additional property taxes the development would have generated, he said.

The $1.7 million is what Jordan would have profited if he would have been allowed to build the homes, Cole said.

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