K.T.
Not sure about what type of tree to plant -- but here is who we just used to do some work for us:
Kinney's Stump Grinding
2302 N PKY ST
MESQUITE TX, 75149
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We had 6 oleander bushes that were all about 5 foot wide and 8 foot tall. We needed to have them removed becuase they are posionious to our dog/kid. We had them cut down to the stump by our lawn guy and then we didn't know what to do next. (My husband freaked out becuase my 2 year old picked something out of the grass and put it in her mouth and he was afraid she ate the plant -- so he had them all cut down the next day). Anyway, my husband called them and they came out that day and gave an estimate on grinding out the stumps - they were huge -- really like a tree insteadf of a bush - and replacing the huge section that was mud underneath with grass. We gave them the go ahead and they came the next day and got it done. They were very reasonable priced and everything was exactly like they said it would be. I was very happy with the job the did. My husband said they were very easy to work with. I think it is family owned.
So I bet they can help you get rid of your old tree and put in a new one. They gave us a free estimate so it is worth a try ;-)