Tulsa staff outline $245,839 judgment tied to Performing Arts Center renovation dispute

City officials told the Public Works Committee they will seek council approval to pay $245,839.08 to Construction Enterprises Inc. and to forward payment paperwork to the county for levy repayment over three years, resolving a litigation over lobby renovations at the Tulsa Performing Arts Center.

Chad Becker of the Treasury Department said the sinking fund had sufficient cash to make the payment; he reported a sinking-fund balance of about $79.2 million as of the morning of the meeting. City legal staff described the case, CJ2023234, as a construction dispute arising from renovation work at the Performing Arts Center. The city withheld some payments over workmanship concerns and nonpayment to subcontractors, which led to mediation involving the contractor, the contractor’s surety, the architect of record and subcontractors.

According to the legal presentation, an independent architect reviewed completed work and punch lists; mediation apportioned some claims to the city and some to the contractor and resulted in the settlement figure. Paul Zachary of Public Works said project funds remain available to complete the original scope and that the mediation outcome allows the city to pay for completed work and finish remaining items.

Committee members pressed for clarity about whether the original $2 million contract had been paid; staff replied that the $245,839 figure represents the settlement amount and that remaining project funds will be used to complete incomplete work. Staff said the lobby is not finished and that the city will advertise or incorporate remaining work into other projects; they also noted that some subcontractors will be paid through the settlement.

No committee vote was recorded during the presentation; staff said the resolution authorizing payment, which carries an emergency clause, will be on the council agenda that evening for final action.