Lawsuit challenging Oklahoma Turnpike bonds tossed from county court

The fate of bonds to provide initial funding for a $5 billion extension of the Oklahoma Turnpike rests solely with the state Supreme ourt after a lower court judge dismissed a challenge to the debt.

In Cleveland County District Court this week, Judge Timothy Olsen granted the Oklahoma Turnpike Authority’s motion to dismiss a lawsuit brought by Pike Off OTA and property owners in the path of the project.

Olsen ruled the Oklahoma Supreme Court “has original and exclusive jurisdiction” over the validation of OTA bonds, noting the lawsuit’s claims were “virtually the same” as the protest brief plaintiffs filed with the high court.

The Pike Off lawsuit, which was filed in May, claimed the bond financing and building of the turnpike’s South Extension, East-West Connector, and Tri-City Connector projects violate state statute. The Turnpike Authority petitioned the state Supreme Court in August to validate $500 million of bonds after receiving conditional approval for the debt from the Oklahoma Council of Bond Oversight.

“Judge Olsen’s decision in the Pike Off case confirms OTA’s legal position that the Oklahoma Supreme Court has the exclusive jurisdiction to decide whether the OTA can issue bonds to construct the ACCESS Oklahoma Program turnpike projects,” said Brenda Perry Clark, an Oklahoma Department of Transportation spokeswoman, in an email.

Randy Carter, a spokesman for Pike Off OTA, said Olsen’s ruling was procedural and did not address the merits of the case.

“He simply made a ruling as to the court in which the ruling should be made,” Carter said in a statement. “Our argument has been heard by the Oklahoma Supreme Court, and we are awaiting a ruling.  We are hopeful they will rule in our favor on the legal merits of the case.”

The state’s high court held oral arguments Nov. 28 over the validity of the second senior lien revenue bonds the Turnpike Authority would issue. 

After launching a request for proposals in mid-June, OTA selected Wells Fargo as senior manager and Stifel, Nicolaus & Company; Morgan Stanley; BOK Financial; and Raymond James as co-managers.

In a ruling earlier this month in a separate lawsuit, Olsen found OTA willfully violated the state’s Open Meeting Act by failing to disclose the ACCESS  (Advancing and Connecting Communities and Economies Safely Statewide) Oklahoma plan on January and February board meeting agendas.

Perry Clark said while the turnpike authority disagrees with that ruling, it has paused consultants’ work on the project.

“This will allow the OTA to evaluate its options and develop the necessary corrective action items for the board’s consideration,” she said. “Such efforts will assist the OTA in moving forward in a deliberate and thoughtful manner and in compliance with the court’s decision.”

Gov. Kevin Stitt officially unveiled the 15-year project in February, calling it “a bold investment in our future that provides needed corridor connections and expansions while making travel easier and leading to more economic development across the state.”