City Foundation rejects request to fund Muskogee's $29M judgment, then gives $10M to help with expenses

At their bimonthly meeting this evening, the City of Muskogee Foundation rejected Muskogee Mayor Ryan Lowe's proposal to use the equivalent of (approximately) half of the foundation's annual return on investment to pay Muskogee's pending $29.25M legal bill stemming from three lawsuits over improper condemnation and demolition of derelict properties in 2005 and 2006. The city's other options for payment are either back-breaking property tax hikes or a hefty sales tax hike, or some combination of the two.

At the same time, the Foundation did approve another request by the city for a $10M grant (spread out over 5 years) so the city could reallocate other funds to put toward that debt service. Read more on the meeting from the Muskogee Phoenix and KJRH.

CITY OF MUSKOGEE FOUNDATION ANNOUNCES $10 MILLION FUNDING AGREEMENT WITH CITY OF MUSKOGEE 

MUSKOGEE, OK (Oct. 26th) - The City of Muskogee Foundation today announced a five-year, $10 million funding partnership with the City of Muskogee to support eligible industrial development activities while providing the City with greater flexibility to address its financial obligations. The request from the City was approved during the Foundation’s bimonthly board meeting, with 12 members voting in favor and two abstaining.

Under the partnership, the Foundation will commit $2 million annually for five years to support eligible expenses through the City’s Industrial Development Capital Fund. The arrangement is intended to preserve funding for industrial development priorities while allowing the City to redirect eligible franchise fee revenues toward its financial obligations, subject to the final agreement and any required approvals.

“We are grateful for the Foundation’s continued partnership and its desire to be part of the solution. This commitment is a meaningful step toward easing the financial burden on our citizens,” said City Manager Kendal Francis.

Over the past six years, the Foundation has provided nearly $19 million to the City for capital projects and essential services. The new commitment builds on that longstanding partnership and reflects a shared interest in supporting Muskogee’s immediate needs and long-term future.

“The Foundation was established to make a lasting difference in Muskogee, and our investment in the City’s capital projects and essential services over the years reflects that commitment,” said Kari Blakley, executive director of the City of Muskogee Foundation. “Today’s commitment builds on that support, helping the City address an immediate need while preserving the Foundation’s ability to continue investing in Muskogee for generations to come.”

The City is developing a comprehensive repayment strategy that includes issuing municipal funding bonds and pursuing a voter-approved sales tax increase dedicated to debt repayment. The proposed plan would combine sales tax revenue with available municipal revenues, including eligible franchise fee revenue, to meet the City’s financial obligations while preserving funding for industrial development.

About City of Muskogee Foundation
Established in 2008, the City of Muskogee Foundation supports charitable programs and projects that benefit the Muskogee community, including initiatives in education, health care, infrastructure, housing, economic development, arts and culture, and other community needs. Over the past five years, the Foundation has awarded more than $38 million in grants. Learn more at cityofmuskogeefoundation.org.