Anatomy of a Friendship

Aristotle was an Ancient Greek philosopher who made pioneering contributions to all fields of philosophy and science.  In his ethical masterpiece The Nicomachean Ethics he said there are three kinds of friendship: friendships of pleasure, utility, and of virtue. Friendship of utility is based on what two people can do for each other and it ends rapidly when the need is gone for the other person. The second is the friendship of pleasure, and it is based on the enjoyment of shared activities and is often short-tenured. In both utility and pleasure, the other person is not valued and is a means to an end.   The friendship of virtue is stable because it is true, real, and good. This is the friend you like for who they are and often they push you to be a better person. To understand these friendships we must look at their anatomy. Anatomy is a branch of biology, and it is concerned with the study of the structure or internal workings of something.  Through dissection or the separation of parts, much can be revealed. 

July 2016: Robert Elliott formed The Associates, a full-service residential real estate brokerage.

So, who is Robert Elliott?  Well, he is the Principal of Robert Elliott Custom Homes which has developed many projects throughout University Park, Highland Park, and the Preston Hollow area. Elliott also formed The Associates in 2016, mostly known in Dallas for its high-end luxury personal service and sold over 200 million in real estate in the Dallas area. Lastly, he is also a Partner in Stillwater Capital which was a fully integrated, private real estate company that has experience in design, construction, and operations of mixed-use developments, urban living communities, and custom projects. Stillwater is a key player in the PGA Frisco. They helped with the recruitment of bringing The PGA to Frisco, and is the developer behind The Link which neighbors the PGA Frisco.

May 2017: Jeff Cheney is elected Mayor for The City of Frisco

August 2017: Mayor Cheney and Councilman Will Sowell travel to Charlotte, NC for the 99 th PGA Championship.  It was there they meet with PGA leadership and Robert Elliott and his fellow representatives of Stillwater Capital.

November 2017:  The Associates, a brokerage owned by Robert Elliott announced its expansion to The Star in Frisco, and that The Cheney Group would be joining his brokerage.

In 2017, The Cheney Group was considered a powerhouse and recognized as one of the #1 Home-Selling Teams in the Frisco market with over $900 million in sales. There was no better place to set roots than the prominent location of The Star.  At the end of 2017, Stillwater Capital, The Associates, and The Cheney group office together at The Star.

December 5, 2017: Cheney filed an affidavit recusing himself from an item on the agenda during the executive session.  The reason listed is that he was a “partner with Stillwater Capital, Robert Elliott is also the broker for The Associates, my employer.” 

Throughout 2018 talks and planning continued for both Stillwater Capital projects, the PGA Frisco and The Link in the same office where The Cheney Group presided. It is fair for one to assume he had plenty of access to all things PGA Frisco as the development was coming together. 

December 2018: A notice was posted by The City of Frisco for a special meeting of the City Council on 12/4/2018 at 4:30 pm to authorize and execute the proposed Master Development Agreement for the PGA Frisco. Cheney announced he was turning the meeting over to Mayor Pro Tem Shona Huffman but first wanted to make a few statements.  He said he would be recusing because of the conflict between his private business, his broker being Robert Elliott and Elliott’s partnership in Stillwater Capital which is involved in the project before the council that evening.  He then laughed and said he thought it was a little of a loose association but after speaking with the city attorney it was best out of an abundance of caution to recuse himself.  He said the last thing he would want to do is put any doubt into a project of this magnitude and how excited and proud he is to be a part of a special team in the City of Frisco.  He then announced he was going to take “mayor’s privilege” to make a few comments.  He talked about the PGA Frisco dream of Mr. Ovard and his family, his trip to The PGA championship, and how the council members deserve credit for taking an active leadership role to bring The PGA to Frisco since he had to recuse himself from most of the project.  He made mention of how much hard work was put in by the City Manager George Purefoy and city staff. Lastly, he thanked The PGA for trusting Frisco and choosing Frisco as their new home.  As everyone clapped he left the stage. 

Wait, what?  A little loose of an association?  There is nothing loose about the association between The Cheney Group, The Associates, and Stillwater Capital. At this point, we have established the connection between the three groups and to anyone who is not blind, there is a clear relationship that creates a conflict of interest for Cheney.  In our opinion, he should have removed himself from any conversation relating to these projects, from providing input on the projects, from talking to developers and other parties of the project. 

Mayors Privilege?  We tried to find the mayor’s privilege in the rules of the Texas Meeting Laws, but we couldn’t.  Overall, he spoke for over 6 minutes and 45 seconds before the vote.  We can all agree at this point the decision is made and the meeting is really about pomp and circumstance, but he should have reserved his comments until after the vote. 

October 15, 2019: In a closed session, the council received legal advice regarding amendments to the Master Development Agreement executed by the City of Frisco with the players of the PGA Frisco development.  Did Cheney participate in these conversations or recuse himself? We don’t know and doubt anyone will tell us.

November 19, 2019 Email: Mike Smith with TRT Holdings, who represents the Omni Hotel portion of the PGA Frisco deal sends out an email to several folks involved in the deal. Just a few are Fehmi Karahan (Fields) and his team, Robert Elliott (Stillwater) and his team, Chris Kleinert (Hunt) and his team, plus he included Jeff Cheney, George Purefoy, Ben Brezina, and Ron Patterson. He wants to host a lunch at his office to update everyone on the PGA Frisco project and catch up on what is happening on the surrounding land and discuss any issues that should be coordinated between each of the respective developments. A second email from Stephanie New the Executive Assistant at TRT Holdings for Mike Smith goes out asking if December 9, 2019, would work for everyone.

Two days later, Julie Venture with Frisco EDC responds Ron Patterson is available and Jeff Cheney responds he is available as well.   That is where the email chain stops so we were curious why our PIR didn’t include the rest of the conversation which seemed odd. To say we are perplexed is an understatement. Why is Mayor Cheney the only one on the council invited, why not invite all the council members? Did Cheney or city staff update the rest of the council after this meeting what transpired at lunch. Remember, at this time Mayor Cheney’s personal business is under Robert Elliott so it is obvious he was involved in conversations regarding the development. Is his involvement a conflict of interest? Yes!

June 16, 2020: Did he oversee the consent agenda vote where two items pertaining to Omni Stillwater Woods Golf Resort was involved? Yes he did!

June 29, 2020 Email: Clay Roby (Stillwater) sends Jeff Cheney an email to his personal business account, not the city email.  He states he and Robert are compiling information on The Link with the goal of creating a discussion piece for the joint Council and Planning and Zoning work session coming up.  He would appreciate Cheney’s perspective on the development and what they can do to find “win-win” solutions to the outstanding items in the PD.  Then he asks when Cheney has time to connect. Does Cheney give feedback to all developers on future presentations going before the council and Planning and Zoning? Does Cheney help every developer find “win-win” solutions to outstanding issues in the PD? Should the Mayor be involved in these discussion on the sideline without brining in other council members? Should this be considered a conflict of interest? Yes!

July 14, 2020 Email: Clay Roby (Stillwater) sends an email to Cheney letting him know that he and Robert have been working on a presentation for the joint work session coming up on Aug 3rd and would appreciate his feedback before they submit the final version to the city.  He asks if Cheney has any time the next day to connect.  Cheney responds from his personal email (cheneygroup.com) that the next day from 2-4 would work.  Robert Elliott responds that the time works for him and the appointment is set. The next day before they are set for the 2pm call Clay Roby sends to Jeff Cheney a draft of the presentation again to his personal work email, not his official City of Frisco email. Again Cheney is giving feedback to a developer he wants us to believe he has no conflict with for a presentation that will be presented at a city work session. Did Cheney disclose to his fellow council members his involvement? We think it is a valid question.

Nov 02, 2020: Council received legal advice from the city attorney regarding the 3rd Amendment to the Master Development Agreement for the project.  Did Cheney participate in the closed-session discussion since it involved Omni Stillwater Woods Golf Resort? We don’t know.

In 2021, The Link was coming up before the council.  On March 12, P&Z approved the project, and it was listed on the council’s agenda for a vote on April 6, 2021. One would think Cheney should recuse himself from The Link (the other half) of the Frisco PGA project that Stillwater Capital was involved in.  But, no!

March 22, 2021: Monument Realty founded by Eddie and Tiffany Burns acquired The Associates owned by Robert Elliott and The Cheney Group with Jeff Cheney.  The two groups moved separately the same day to a new brokerage to break up the connection or so-called conflict of interest. Cheney has said his move to Monument cleared any conflict he had with the projects.  Really, we would argue that regardless of his move to Monument it does not erase or expel his interwoven relationship to the project or the players in the project.

Fast forward the VHS tape (I would say Betamax but no one remembers that) to June of 2021, Cheney said in his response to an ethics complaint filed, the investment group handling the PGA is Omni Stillwater Woods per the city’s agreement.  He also said there is no conflict of interest because there are no contractual agreements with The Associates, Stillwater Capital, or Monument Realty.  Part of his rebuttal was the complaint’s information was inaccurate.

April 6, 2021: Now rewind the VHS tape to the City Council meeting where The Link was before the council.  Two of the speakers “in favor or for” the project were Clay Roby and Cole Henley and the minutes state they are there on behalf of Stillwater Capital Investments (not Omni Stillwater Woods). When Mr. Roby approached the podium he stated, “he was there to speak on behalf of The Link application, as the Managing Director with Stillwater Capital one of the investors of The Link property before you tonight.” Well, well, well if Cheney wants to argue semantics at his ethics complaint then we would like to argue the same back. See the semantics of the language used by Mr. Roby does not state he is with Omni Stillwater Woods so that means Cheney’s argument given during his ethics rebuttal is null and void and there is a conflict of interest.

The meeting continued and a few of the council members raised concerns.  Mayor Cheney’s response was swift and immediate and you could tell he appeared aggravated when he respond to the council’s concerns saying this is a new asset class to Frisco.  He continued and said “when it comes to density it’s a political dog whistle and good for political campaign mailers.  When you speak to people and actually educate them (because he thinks we are stupid) on how multi-family works, how it actually reduces traffic and builds our commercial basis they are okay with it. It’s ironic to him that people who consider themselves conservatives don’t look at the economics behind the developments and how it’s driving our tax bills down and it’s the model for how we build Frisco.” He then went on to talk about the challenges of the property and the topography of the area.  It would be one of this council’s greatest failures if we do not allow the only piece of property with unobstructed views of the golf course to be developed into anything less than spectacular.  To do that we must have blend-use projects. Mayor Cheney continued with his selling and pushing of the development and ended up talking for a little over 5 minutes. 

Then Mr. Roby said at the podium he understands what it is like to knock on doors because at Stillwater we have a residential development arm called Robert Elliott Custom Homes Stop the presses!  Again, Roby calls the company behind The Link Stillwater Capital Investments and acknowledges Mr. Elliott’s residential arm as part of the company. Closing the meeting Cheney said they should table the issue, then said he thought they were all under the same understanding based on all the work sessions and meetings and it was clear he was annoyed at the council’s concerns and with the delay.

April 16, 2021, Email: Clay Roby (Stillwater) sends Cheney an email with a presentation and notes page 15 is a new slide that shows the PD adjustments they are contemplating to propose based on the meetings with the council members they had the last few weeks and he would like Cheney’s feedback.  The next day Cheney responds he likes the presentation and asked what the feedback has been from the council.  Clay responds the same day Bill Woodard appreciated the commitment to the trial and said SWC has his support.  Brian Livingston and Dan Stricklin like the reduction in the residential units but would not commit support.  They plan to meet with Shona on Thursday. They have not been able to meet with Will Sowell but anticipate he will support the project.

April 30, 2021, Email: Clay Roby (Stillwater) sends Cheney via his personal email a copy of the presentation he plans to present at the council meeting next week.  He mentions they have been meeting and talking with several on the council to answer any questions from the April 6 council meeting.  He mentions good feedback from most on the council, but Dan and Brian might still be on the fence.  Then Clay asks Cheney if he has had a chance to discuss with anyone on the council and to let him know if they need to connect prior to the upcoming Tuesday council meeting.  The funny thing is there is no response in the emails from the PIR.  Why was the response back to Clay not provided?  Where is it?

May 1, 2021, Email: Roby (Stillwater) sends an email to Cheney that they are working on the press release in anticipation of next week’s approval. He wanted to see if Cheney would be willing or able to provide a quote for the release. On May 3 Cheney responded absolutely he would like to help and asks if their marketing people want to write something up that he can approve so it is on message.  Then he also offers something along the lines of: “The Link delivers to promise of capitalizing on the PGA and Omni Resort and Convention Center.  The links delivers quality office with unobstructed views of the golf course as well as a mix of entertainment and destination dining.  The large open space and trail connectivity will make the residential components highly livable.  The Link is a world-class project that will maximize the energy of the PGA Frisco brand.” Should the mayor allow a third party marketing like Stillwater to write the copy for him to approve for their own marketing materials?  Probably because his statement makes no sense but seriously no the Mayor should be using the city’s internal communication department. Again it is an appearance that some would consider to be a clear conflict of interest. 

May 4, 2021: City Council tables The Link to May 18, 2021.  During the public hearing, Clay Roby once again said he was there to speak on behalf of the project applicant and that he is the Managing Director at Stillwater Capital and is responsible for SWC mixed-use projects. Once the public hearing closed Mayor Cheney points out there a few more questions to be answered so they are tabling until the May 18 meeting.

May 18, 2021: Council Approves The Link

Roby spoke again on behalf of the applicant and the minutes produced by the city again list his company as Stillwater Capital Investments (not Stillwater Capital Woods).  Mayor Cheney points out they have been talking about the project for a long time and it has been tabled a couple of times.  He points out the odd shape of the land, the topography, and how this land before the PGA Frisco would have been developed into boring office space.  Today we sit here discussing a billion-dollar development because of the halo effect of the PGA Frisco.  This odd, shaped property is probably one of the most important zoning cases the city has ever had, and it had to be looked at in the totality of the whole region. Because of how important this project is the city has never been more demanding, more difficult to work with, and more challenging with any developer.  In closing, Cheney says this is a project we should be celebrating, and he feels like we must justify making a world-class decision that will impact generations in their community.  He told the developer they are excited about their project and proud to move forward with them as partners, and that we’re grateful they see Frisco as the city to invest a billion dollars in over the next 10 to 15 years.  Now here is our question, does Cheney really feel citizens need him to justify the project or does Cheney feel the need to justify it because he knows the scrutiny his involvement could possibly play?

If you remember at the end of my blog, The Silicon Valley of Golf  I was left pondering a few questions. Did Cheney have behind-the-scenes access to the inner workings of these  3 world-class developments since officed with Stillwater Capital and worked with The Associates?  The answer is a resounding YES!  Cheney clearly has had a relationship with The Associates, Robert Elliott, and Stillwater Capital since 2017. Robert Elliott was his boss (broker) and all three offices are together at The Star for several years. Moving to Monument Realty on March 22, which is 15 days before the expected vote on The Link project does not absolve him of a conflict of interest. Did he recuse himself from all conversations or meetings with developers?  He stated in some of his comments that he had conversations with the developers and based on the emails clearly he did not recuse himself.  Did he recuse himself from council discussions, due to his relationship with Stillwater Capital?  No, he spoke at nauseum at the April 6, May 4, and May 18 council meetings. To anyone watching, it was clear his determination to help get this project approved.  Is that because it was a good project, because of his relationship with the applicant, or because he had an investment in the deal?  We honestly can’t determine his motivation because of the clear glaring violations that took place.  Is it fair for the mayor to argue language semantics as a defense during his ethics complaint when clearly the applicant stated their name as Stillwater Capital during the approval process on record and it is listed on city minutes the say way?  No, he should not be able to bend the rules to suit himself when necessary but in Cheneyville we live by his rules.  Should Cheney be helping the developer with presentations and marketing materials?  Should he be sharing private conversations that he has had with other council members with developers or using those conversations to help developers “win” approvals?  Should Cheney be doing “city business” via his personal real estate email?  No, absolutely not! When someone files a PIR does the city actually review his personal email or do they ask him to turn over documents pertaining to the request on good faith? How can he say his personal business is not a conflict when he is using it to run city business as well?  The city is asking residents to “trust me” we did the right thing. Based on what we have already unloaded would you “trust the city?” Probably not, since all these things give off the perception of shady behavior.

We agree this is a project to be proud of, a project that will change Frisco forever which is a great thing. Stillwater Capital and all of those involved have done a phenomenal job in bringing this together and creating a true masterpiece. Where we disagree is Mayor Cheney’s clear and almost blaring horn-honking conflict of interest.  Our concerns are ligament when our mayor is so closely connected with a project, and it is justifiable for us to ask about his relationship whether it be a friendship or business relationship.  We don’t think it is out of line to say something smells like shit and up to the end there was a major conflict of interest.  Trying to “CURE” a conflict just weeks before the vote for The Link should have everyone’s eyebrows raised including the city attorney unless he fell asleep. What we cannot understand is why are citizens not outraged, asking questions, standing up, and saying something is not right here. It is time for citizens and the media to ask questions and the first should be what shady shit is happening in Frisco?

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