City Pays Off Great Plains' Loan

The City of Tulsa has handed over a $7 million check to the Bank of Oklahoma, it's payment for the failure of Great Plains airlines. But taxpayers say that money belongs to them.

The News On 6's Jeffrey Smith reports a taxpayer's lawsuit filed last week says the city shouldn't pay BOK a dime until a judge makes a ruling.

That ruling hasn't happened yet, but the city still delivered the money. Some city councilors say the whole process should have been more transparent.

Great Plains Airlines flew in and out of memory, but it's made a lasting dent in taxpayer's wallets.

In 2000, the city backed Great Plains on a great big loan. But the airline defaulted after going bankrupt four years ago. The Bank of Oklahoma sued for the difference. Current Mayor Kathy Taylor pushed through a settlement even though the city wasn't named in the original lawsuit.

Councilman Rick Westcott says that was the wrong move.

"I just dont think the lawsuit should have been settled so quickly," said Westcott.

"The city made a decision that it would be in the best interest of the city, and in the best interest fo the airport, to settle that case," said Attorney Robert Sartin.

Now taxpayers have filed suit saying the city shouldn't pay up unless a judge orders it, but four days ago. The city did just that. Attorneys representing the city say after negotiating for months, it was time to pay up.

"This is not something that was done under cover of darkness or something that was done to avoid public light," said Sartin.

"I really dont know what the mayor's reasons was, but it was rushed through for some reason," said Westcott.

The taxpayer suit says because Taylor once served on the bank's board of directors, "she connived and conspired with BOK, as opposed to protecting the interest of the city."

"All of those past relationships were fully disclosed, all the parties in the lawsuit, and they were all fully investigated," said Sartin.

Sartin says the money will be refunded if a judge says so. Eight years later, Great Plains is still one turbulent ride that won't go away.

To pay for that $7 million settlement with the Bank of Oklahoma, the city council approved a temporary increase in property taxes that will last through 2011.