The city has since moved to counter sue Choctaw Town Square LLC for the return of more than $1.9 million paid as a developer fee that the city claims was improperly collected, as well as damages and other expenses.
The partially city-funded Choctaw Town Square shopping development has encountered several problems since Choctaw officials signed an agreement with Choctaw Town Square LLC in 2010 to develop the site on NE 23 east of Henney Road.
Choctaw has pledged water, sewer and traffic improvements worth an estimated $9.6 million for the Choctaw Town Square project to lure new business to the city.
The developer also claims in its lawsuit that Choctaw should pay for Choctaw Town Square LLC's legal costs to defend itself against a lawsuit filed by former Choctaw City Manager Robert L. Floyd.
Floyd moved to sue Choctaw and Choctaw Town Square in June. The former city manager claims in his lawsuit that the city council wrongfully fired him after he questioned the dollar amount on an invoice Choctaw Town Square LLC submitted to the city.
The city plans to continue developing the Choctaw Town Square site without the Arkansas developers, Ross said Wednesday.
Plans for a Walmart Supercenter on the site remain on track, Ross said.