Novus Homes sues City of Tulsa for interference

Last fall Novus Homes LLC, W3 Development LLC, and principals of the two companies filed suit against Tulsa Development Authority for breach of contract involving TDA's termination of the exclusive negotiating period with Novus Homes LLC for redevelopment of the vacant the half-block west of Elgin Avenue between Archer and Brady Streets. Novus Homes planned a lofts and retail development on the site, which is now part of the land the stadium donors plan to redevelop in connection with the new downtown stadium for the Tulsa Drillers. On Tuesday, the suit has been expanded to include the City of Tulsa as a defendant, citing actions by Mayor Kathy Taylor which, the plaintiffs allege, resulted in the early termination of the exclusive negotiating period for the land.

According to a story in today's Journal Record, "Through the discovery process, the developers said they learned of Taylor's alleged interference in TDA business and procedures, leading to termination of their exclusive deal in her quest to complete the ballpark deal."

Here's a link to the OSCN page on the suit, CJ-2008-5713. Here is the amended petition for the lawsuit (PDF). It includes the following allegation:

30. Beginning in late May, 2008, City of Tulsa Mayor Kathy Taylor began inserting herself into TDA operations related to this downtown Tulsa location, without TDA approval. The TDA viewed Mayor Taylor's interference as "irregular," and TDA Commissioners were "concerned" and "surprised" by her "irregular" interference in their operations. See, e.g., Transcript of Deposition of TDA Commissioner John Clayman, Tulsa County District Court Case No. CJ-2008-5713, at pp. 40-48 (November 11, 2008).

31. Mayor Taylor was, without consulting or obtaining approval from the TDA, personally renegotiating and amending existing TDA contracts, conveying TDA-owned properties in exchange for properties the City of Tulsa and the eventual Tulsa Stadium Trust desired, and influencing existing TDA relationships, all to enable the City of Tulsa and the Tulsa Stadium Trust to procure the real property necessary for the proposed new downtown baseball stadium and surrounding development.

32. Mayor Taylor's actions were in violation of O.S. §11 38-107, whereby powers of the Urban Renewal Authority (TDA) "shall be exercised by the commissioners thereof."

Here's the press release from Novus Homes:

DOWNTOWN DEVELOPERS SUE CITY OF TULSA
FOR MAYOR'S OBSTRUCTION WITH PROJECT

Two Tulsa development companies and their principals have filed a lawsuit against the City of Tulsa alleging that the City, and specifically Mayor Kathy Taylor, unlawfully interfered with their exclusive contractual rights to develop a downtown property. The developers allege that the City's interference was part of the Mayor's effort to relocate the Tulsa Drillers baseball stadium to the downtown Brady District.

On April 14, 2009, Novus Homes, LLC, W3 Development, LLC, Will Wilkins and Cecilia Wilkins added the City as a second defendant to their lawsuit originally brought against the Tulsa Development Authority (TDA). The developers sued the TDA on August 14, 2008, one week after the TDA prematurely terminated the developers' exclusive negotiating right on this property, situated on the half block west of Elgin between Archer and Brady, known as 120 Brady Village.

Since filing the original lawsuit, the developers learned through the discovery process that the City of Tulsa, and specifically Mayor Kathy Taylor, had irregularly interfered with TDA business and procedures in violation of Oklahoma statutes, which led to the TDA's unlawful termination of its exclusive deal with the developers. The developers allege Mayor Taylor unlawfully inserted herself into TDA operations in her quest to relocate the Drillers stadium to a site directly across the street from the property on which the developers had an exclusive right to negotiate.

As part of the stadium relocation effort, Mayor Taylor recruited a group of private donors which included herself and her husband through the Lobeck Taylor Foundation. These donors funded a significant portion of the project, and in return, were awarded the construction and financing of the ballpark project and the surrounding properties, including the property for which the developers had an exclusive right, under a self described "master plan."

Mayor Taylor's decision to rush this project through during the summer of 2008, bypassing normal process and due diligence, has resulted in multiple lawsuits and threatens to tie the City up in litigation for years to come.

Previous BatesLine entries and Urban Tulsa Weekly columns on this topic:

• August 6, 2008: The Control Freaks' Squeeze Play
• August 6, 2008: How much should a ballpark cost?
• August 7, 2008: TDA breaks its word, dumps Lofts @ 120
• August 11, 2008: Shahadi must go
• August 18, 2008: Downtown Drillers ballpark and the Tulsa Stadium Trust -- quotes of the day
• August 27, 2008: It's All about Trust
• April 15, 2009: Hot Property, All of a Sudden