Economic Interest at The Preserve

Unless you are Cheech & Chong who smoke too much weed or ate one too many gummies, then you know when you hear the words Fields Frisco it is referring to Fehmi Karahans development on the Northwest side of Frisco next to the Frisco PGA.  According to the Fields Frisco website, Fields is built on the big idea that when you build something so different, so magical and so enticing, they will come.  Built on the big idea that pure and simple architecture is elegant, fresh and true to its core. Built on the big idea that the great outdoors is equally as important as the great indoors. So, we’re making both great.

We initially thought that Fehmi Karahan must have liked the movie Field of Dreams.  Then we thought, maybe he read our blog Field of Dreams where we told you about a 2019 email involving Mayor Jeff Cheney and the “UNOFFICIAL VIP LOT LIST” he was pitching at fancy dinners.  Either way, Fields Frisco is already known for its steep slopes, breathtaking views, and the winding creeks and trails soon to come.  Of course, it is also known for being the development with the most exclusive new neighborhood being built called “The Preserve” aka the ESPN lots, that will look over the new PGA Frisco golf courses.

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We have been following this development very closely and written several blogs on questionable business relationships that have come from it and “expanded” some political pockets in town.  We have also called out our current leadership and their need to recuse them self from certain votes due to potential conflicts of interest we felt existed.  You also know we follow the city council meetings closely and review the agendas when they are released looking for hidden agenda items. 

When the agenda came out for the January 16, 2024, City Council meeting we reviewed it as normal, and nothing really stood out.  Then while watching the council meeting, we were surprised after the reading of Agenda Item #60 when out of nowhere Mayor Cheney and John Keating announced they would be recusing themselves from the vote and discussion on the agenda item.  The agenda item reads, “Consider and act upon approval of proposed modifications to Table 4-1 as permitted by Planned Development-280. Zoned Planned Development-280. Neighborhood #3, #52, and #53. Applicant: Kimley-Horn and Associates, Inc.”  Seems pretty generic right?

What is Agenda Item 60 about?  The Preserve at Fields Frisco!  We decided to file a PIR for the recusal paperwork to learn more.  At the meeting, Mayor Cheney announced he had clients who purchased in The Preserve.  The recusal paperwork states he had a conflict with the agenda item as it could have a benefit of ECONOMIC INTERESTS for 1) myself and/or one of more persons related to me or 2) my client or customer.  Economic Interest refers to a legal or equitable interest in real property, personal property or contractual rights with a value of more than $50,000.

Then we noticed an asterisk that says for the purpose of Section C of this Affidavit, a “person related to me” refers to a person within the second degree of consanguinity (parent or child, sibling, grandparent) or the second degree of affinity (spouse or in-law).    Now this has got our attention because we have said for almost two years that Jeff Cheney had a lot in The Preserve right next door to his best buddy John Keating.  We wrote about it in our blog The Preserve Lots and showed you the plat map photo taken from a builder’s office.  Cheney has repeatedly denied to the public, the Dallas Morning News, to other outlets about owning any property in The Preserve.

We know Cheney and his brokerage have sold lots in The Preserve which has not stopped him in the past from speaking on agenda items or overseeing council votes on the issue.  So why now?  Why is Mayor and Real Estate Mogul Jeff Cheney RECUSING himself and claiming ECONOMIC INTEREST now?  We are interested in what you think.  Do you think Cheney owns a lot in The Preserve?  Do you think he could have bought a lot for “some clients” meaning he put in a family member’s name?  He knows if we find a lot in his name it will show him as a liar, especially if it is one of those great ESPN lots on the bluff over the 8 hole that sold out rather quickly on the street nicknamed “Billionaires Row.” 

Next, we looked at John Keatings recusal paperwork from the same meeting and same agenda item.  Remember he announced he had purchased a lot and while the lot was still in the builders name, he would be closing on it in the coming months, so he needed to recuse himself.  Keating checked the Real Property option which states, I and/or one or more person’s related to me have an interest in real property with a fair market value of $2500 or more that is involved in the agenda item, or located within 200 feet of that property, and it is reasonably foreseeable that action on the item will have a special economic effect on the value of the property.  It then denotes with an asterisk that a “person related to me” refers to a person within the 1st degree meaning a parent, child or spouse. 

Our questions for Keating are obvious, he has openly declared on financial forms he was a “househusband” while married to his former wife.  After being a stay-at-home dad and cheating on his wife of 20+ years who filed for divorce, he either A) got a lofty divorce settlement to buy a home in the most prestigious new gated community in Frisco or B) won the lottery.  While Mr. Keating does have his REAL ESTATE LICENSE NOW, we cannot find any listings he has sold to show he made an income in the last year.  We also don’t think military benefits are enough for a home in the new most “exclusive Frisco neighborhood” The Preserve. 

Now fast forward to May 7, 2024, and the Consent Agenda Item #16 that reads “Consider and act upon authorizing the City Manager to execute a Third Amendment to the Second Development Agreement by and between the City of Frisco and the following Delaware limited partnerships: FHQ Development Partners LP F/K/A FHQ Holdings LP, Fields Preserve Investment Partners LP, Fields Midtown West Investment Partners LP, Fields Point West Investment Partners LP, Fields Midtown East Investment Partners LP, Fields East Village Investment Partners LP, Fields Point East Investment Partners LP, North Fields Investment Partners, LP, and Fields University Village Investment Partners LP. (CMO/MD)”

Item 16 is a development agreement, between the City and Developer, related to the public infrastructure construction and assessments dated February 10, 2021.   In a nutshell, the Developer is responsible for the delivery of certain defined roadways, hike and bike trails and related infrastructure called “Developer Improvements” for the Fields project.  We would assume those “Developer Improvements” would have a direct correlation to the value of the properties Cheney’s clients and Keating purchased which means they pulled the item from the consent agenda to recuse themselves from the vote on the item correct?  No, they did not and in fact it was Mayor Pro-Tem John Keating who moved to approve the Consent Agenda item with Angelia Pelham seconding his motion.   Why did they not pull the item and recuse themselves this time?

Then just two weeks later at the May 21, 2024, council meeting we found Agenda Item 21 on the Consent Agenda which states, “Consider and act upon authorizing the City Manager to modify the Deed of Trust as security in lieu of physical improvements for final acceptance.”  We learned the agenda item is also about The Preserve Phase 1 and 2 private gated subdivisions currently under construction. The developer was requesting final acceptance on both phases prior to final completion. The acceptance is for landscaping (including screening; hardscape; plantings of trees, shrubs, sod, plants, etc.; soils; and fine grading), irrigation improvements, sidewalks, barrier-free ramps, pavers, permanent signage, and all other appurtenances and improvements related thereto. A Deed of Trust was approved by Council as a part of the Fields Second Development Agreement. 

We can only assume that landscaping and the so-called improvements listed above would also have a direct correlation to the value of the properties Cheney’s clients and John Keating purchased.  They obviously pulled the item from the Consent Agenda and then recused themselves, right?  Nope!  John Keating was the first to recommend passing the consent agenda as is.  Should he have voted on this project as it directly affects the “REAL PROPERTY” he now is closing on in The Preserve?

In closing, we would love for you to comment on this blog and answer the following questions.  Do you believe Jeff Cheney owns a lot in The Preserve under his name or a relative’s name?  Do you think they should have to recuse themself from any item on the agenda that is related to Fields Development?  Why do you think after all these years Mayor Jeff Cheney and Real Estate Mogul Cheney is now claiming the need to recuse himself when has had clients buy in this community since it was announced?  Agents within his brokerage, that he owns, have sold homes in this community which means he got paid as the broker. Why is there just now a CONFLICT OF INTEREST?   Last question, why do you think the city intentionally hides the development names on the Agenda Item? Do you think the agenda’s need to be more forthcoming so citizens can clearly see what is coming before the council?

Secrets of the Performing Arts Center

The City of Frisco is asking taxpayers to consider a new Performing Arts Center that has a rumored will cost taxpayers a rumored price tag of $300 Million up to $600 Million+ dollars.  The city has started a “Sell It to the Public” campaign with a company called Theatre Projects on social media which begins with residents taking a survey to gather feedback on the grand idea.  They announced plans to host open house sessions at City Hall, talk to local arts organizations, and will host listening sessions for the public. 

We received an email this week from one reader who attended their “Zoom Session” and guess how many residents participated?  Maybe 15 plus the representatives from Theater Projects who is doing all the dog and pony work for the city. I guess the small attendance still counts towards feedback but compared to a city of 220,000 people it does not like seem a great sample to us.  The email also said how they are currently looking at two properties to potentially house this Performing Arts Center which we find very interesting.

The website which has been set up talks about the Project History and how the city has been studying the possibility of a new performing arts center for over 6 years.  It refers to several studies and assessments done to support the future planning of the “critical Frisco asset” for our community.  It also has a link to the 45-page 2023 Business Plan put together by Theatre Projects.  Even though the 2023 Business Plan put together by Theatre Projects shows the Hall Group vision, our inside source says Hall Group is out! They will not be a part of this theatre project in any way shape or form, and they are not offering up the land for it any longer. Hence why on the “zoom” we mentioned earlier, they stated they were “eyeing two different potential sites for this PAC.

They are using every avenue to make sure we know how great and grand this project is and to show us how badly we need it.  The city’s friends at Frisco Enterprise, the paper in their back pocket, wrote an article and it states that “Back in September, the Frisco City Council approved a $1.4 million professional services agreement with consultant Theatre Projects.”  Part of that agreement is that the city leadership and the team from Theatre Projects would do venue tours to gather data and talk to venue operators. We “the taxpayers” are paying for all this travel, plus we are paying for the additional travel cost for the Theatre Projects team to attend.  In case you are wondering that additional expense is not included in the $1.4 million agreement we have with them for consulting services.

According to the Frisco Enterprise, the visits included the Steven Tanger Center for the Performing Arts in Greensboro, North Carolina, the Denver Performing Arts Complex, the Dr. Phillips Center for the Performing Arts in Orlando, Florida; the Straz Center for the Performing Arts in Tampa, Florida; the Buddy Holly Hall of Performing Arts and Sciences in Lubbock, Texas and the Blumenthal Performing Arts Center in Charlotte, North Carolina.

We figured since they were on this whole “Sell It to The Public” Road Show, we would file a Public Information Request for more information.  We asked for the complete copies of the performing arts center studies and any associated documents related to the reports including those from consulting groups or 3rd parties like Frisco ISD or Hall Group.  We asked for all 6 of the previous studies they have done that we were able to find in meeting minutes.

We assumed that it would be no issue getting any documentation because of how badly they want to “Sell It Like a Cheap Cheney Piece of Real Estate” to Frisco taxpayers.  Imagine our surprise after paying $16.74 yesterday and today the status changed to “SENT TO AG FOR A RULING.”  The did release the 7 studies to us, but the “other supporting documents” are subject to copyright and will be available in the City Secretary’s Office for viewing only.  Who wants to go review the documents for us and report back what is in them?  Email us at FriscoWhistleBlower@protonmail.com

What did they send to the AG for review?  How much are they withholding from US, THE TAXPAYERS, whom they are going to pitch a tax increase to soon so they can spend hundreds of millions of dollars for a performing arts center which will be city owned and operated.  Then we always hear them quote “copyright” as a reason to withhold things.   We are just confused, when does copyright matter to the city?  They made it clear during the recent political election when council members were using the “copyrighted” city logo in their campaign materials they did not care and in fact they said they could not do anything about it.  Strange because the city websites states in black and white they CAN NOT USE THE CITY LOGO for political campaigning so why have a rule you can’t enforce about a copyrighted logo?  Now when it comes to documents related to the Performing Arts Center, they want to say copyright matters. It seems they use that word copyright when it is convenient to withhold information, they don’t want you or me to see. 

The way we see it is simple!  The city is spending millions of bond approved tax dollars on studies for a PAC, then they want to claim copyright to withhold those details from those of us who are paying for it!  Just release all the documents and stop trying to play games because it is getting really old.

Oh, one last thing, Frisco ISD got tired of the games a year or so ago, and they are currently building their own Performing Arts Center because outside influences kept delaying the project. That means you, the taxpayers will be paying for multiple Performing Arts Center. Feels like an episode of Oprah, where she yells “You get an arts center, you get an arts center, and you get an arts center!”

Transparency Failures

Wouldn’t the world be such a simple place if someone’s nose really grew when they told a lie?  Think about it for a moment, we wouldn’t have to spend so much time trying to determine if someone is telling the truth or a lie.  It is much easier in person through verbal and non-verbal ques to tell if someone is lying or withholding the truth from you than it is through filing a Public Information Request.  However, PIR’s are all we have here at Frisco Chronicles to get to the truth.

Recently we filed several PIR’s based on leads we received from “whistleblowers” to see if the city would disclose “The Truth” to us through PIR requests.  One of the PIR requests read, We would like the list of the complaints made about political signs to code enforcement or the city secretary for the period of 1/1/2024 to present.  We would like a copy of any complaint made about electioneering at the election polls from April 20th to May 5th.”  It is a very simple request and after we paid the $6.30 we thought we would get a handful of responses.  Instead, we found that the city left a lot of complaints out of our request.  We know this because many folks sent us copies of their complaints to the city and they are not in the disclosed information given to us even though it fits the criteria of the request.

The first email we received a copy of was from Councilman John Keating, sent to Kristi Morrow on May 4th, Election Day.  It states “poll greeters are playing loud music at FS 8 (they turn it down, then turn it back up).  Also, this truck passed through the parking lot several times.  Within 30 minutes of receiving the email Kristi Morrow forwarded it to Amy Moore in Code Enforcement who made her way out to Fire Station 8.  This is the incident we reported about in our blog Election Playbook: Code Enforcement

The interesting thing about this email is that John Keating failed to mention to the City Secretary his own team including himself, The Cheney’s, and his friends were electioneering in the parking lot for almost four hours that morning.  It is documented with pictures in our blog and proves our point that it is okay for John Keating to break the rules, but others can’t.  Just “PAR FOR THE COURSE” in the city council world.

The next email we received in our PIR was about “Illegal Signs” that was sent by Judy Adams on May 3 to City Secretary, Kristi Morrow.  It states, “These signs are placed by polling stations all over the city.  It is in violation since there are no disclaimers.  Very sad that ‘these people’ are claiming to uphold the law and order but are breaking the law by doing the things they accuse others of.  I believe they should be removed immediately.”  The picture just barely shows the corner of a sign, but we did recognize it.

Why did we recognize the sign?  It is a Frisco Chronicles sign!  Now to be clear we did not buy these signs, we did not put them out, and we have no clue who did.  With that said we do love them, and they gave us a good laugh!  We received an anonymous email from a whistleblower that they put them out to spread the word of our site.  They did confirm they were all placed on private property and none of them were placed on city property or at any fire station.  Lastly, it is not a political action committee, it does not support a candidate, so it does not need a disclaimer. 

Judy, think about carpet cleaner signs or we buy ugly houses signs, do they need disclaimers?  We suggest Judy Adams focus on what she does best which is blowing people aka blo me!  Now get your mind out of the gutter! We are referring to her focusing on her new Blo Bar she just opened for those who need a good blow, or maybe her real estate career, or her closed coffee bar instead of silly illegal signs on private property. Better yet maybe she should make her own BLO ME signs with a phone number to make an appointment, if she does, we will make sure to have readers call them in for being illegal signs.

The third email we received was from April 22 from Jeff Cheney to City Secretary, Kristi Morrow.  It is important to note the email was sent from JCheney@friscotexas.gov so clearly, he wrote this as the “Mayor of Frisco” and not as an individual resident.  It states, “Pretty clear this is not in compliance with the maximum size of 10×10” referring to the Firefighters tent at Station 7.   Kristi Morrow sent the email to Amy Moore in Code Enforcement and Amy replied Justin was on his way to the station.  Then Kristi Morrow replied and asked Amy to call her when she gets a chance.  Wonder what they talked about?

The next email we received was on April 25th, from Councilman John Keating (JKeating@friscotexas.gov) to City Secretary Kristi Morrow and Assistant City Manager, Henry Hill. He questions if “these are allowed as they are showing up at polling stations.  He specifically notes the one at Fire Station 7 in the picture he submitted.  He is referring to a Voter Guide Stand that is put out at every election by a political conservative group called Red Wave.  You can see at the bottom of the voter guide it says Pol Ad Paid For Red Wave Texas. 

Why does Keating not like the voter guide stand?  Oh, that is because it has listed for Place 1 Mark Piland and for Place 3 John Redmond.  We want to know how often John Keating votes in elections.  These have been at polling sites during several election cycles.  If he is just now seeing it, then we are curious if he has been doing his civic duty to vote?  Maybe he just didn’t like it because it was not his name on the guide!

Lastly, we received an excel spreadsheet of complaints.  Not sure what to make of it!

Here is the problem, our request was very simple and straightforward which states, “We would like the list of the complaints made about political signs to code enforcement or the city secretary for the period of 1/1/2024 to present.  We would like a copy of any complaint made about electioneering at the election polls from April 20th to May 5th.”  We have several emails sent to us which reported about in our blog, Breaking All The Rules related to John Keating, Angelia Pelham and the Safety-First Frisco PAC putting up signs at 9am on Sunday April 21st which was 6 to 9+ hours earlier than they were allowed.   We have several emails about the 4 x 4 political signs at Station 7 and questioning if they are on city property that were sent to us.

We also have several emails sent to the city secretary regarding electioneering occurring at the polls, some even documented with videos and pictures.

Yet none of these emails and others we have were given to us in our Public Information Request.  They fit the issue, time frame and criteria of the request we made so why don’t we have them from the city.  What other emails have they withheld that we don’t know about?  Readers and have sent them in but our own city will not be forthcoming and turn them over in a Public Information Request.  We have proof the city HAS WITHELD PUBLIC RECORDS…AGAIN!   The city claims TRANSPARENCY, yet they can’t even be honest with a public information request and fulfill it as they should.  WHY DOES THE CITY LIE AND HIDE INFORMATION FROM TAXPAYERS? 

We have a PIR out right now for the body cam footage from the Code Enforcement cameras worn during the election, but they have sent that to the Attorney General.  Why do they not want us to hear the conversations they had at the polls with the political candidates or the firefighters regarding code enforcement complaints called in? 

Most concerning is how our Mayor and Councilman Keating act like winey children when it is something they don’t like so they use their city emails and position to make complaints which are acted upon immediately by the city.  However, the numerous complaints about the signs being put out early at the fire stations by these same folks had no action or fines taken against them for clearly violating the rules.  Rules that they should know as they are sitting active council members.  Remember John Keating has 16 years on council so if he does not know the rules by now, then he truly is dumber than a bag of rocks.  In fact, those complaints are not even documented apparently, or they would have been in our public information request.   This is Frisco folks!  Rules for thee but not for me! 

Yellow Brick Road to the Texas AG

While the election may be over, the desire to learn more about it, is not.  The Safety First Frisco PAC Facebook page has been deleted and the website removed, literally overnight.  However our curiosity about a few things has not faded and over 2 months ago we filed two PIR’s that today “have been sent to the AG for a ruling”.  We would love to say the City of Frisco surprises us, but truly they don’t. 

The first PIR was filed on 2/26/2024 and was very simple in nature.  We asked for a copy of any PIR requests and the corresponding documents made from the following: Bill Woodard, Mike Simpson, Dick Peasley, and the Safety-First Frisco PAC from 1/1/2022 to Present. 

The second PIR was filed on the same day.  We asked for emails, texts, or handwritten correspondence between city officials, including the city manager’s office, assistant city managers, deputy city managers, city council, and department directors regarding the Frisco Fire Association Prop A & B regarding Civil Service and Collective Bargaining.  Including emails or communications marked as confidential or with a code name for Prop A & B from 1/1/2022 to Present.

The response to both The City of Frisco has reviewed its files and has located documents responsive to your request. However, due to issues of confidentiality, the City has chosen to seek a ruling from the Office of the Attorney General regarding the release of the responsive documents. You will be receiving a letter from Abernathy, Roeder, Boyd & Hullett, PC, attorneys for the City of Frisco, informing you of the City’s decision to seek a ruling from the Office of the Attorney General. The Office of the Attorney General has up to 45 business days in which to make a ruling regarding your request.

Ask yourself, why would the city be holding this information from the public?   If the city had correspondence with the PAC in any way, would that be considered electioneering?  It is interesting to us that two separate PIRs are being held back but the Mayor hosted a Sheryl Sculley who spoke against the measure.  Councilman Bill Woodard went on the news and did a full interview with Channel 11 as his title in that broadcast was not Bill Woodard (citizen) it reads “Councilman Bill Woodard” and he specifically talked about how the measures could hurt the city.  Technically if you ask us, he was speaking on from his experience on the council and using his knowledge acquired as a councilman so therefore he was representing the city talking against measures on the ballot.  Is that against the city’s own Code of Conduct? 

The city and the council want to claim they are transparent, and residents can trust them, but if they expect us to believe that then they need to release the PIRs sent to the Texas Attorney General.  Better yet vote on it at a council meeting to release it like you did a in 2023. We strongly feel something underhanded has happened here and we are considering filing our own complaint with the AG. They can’t use city information to fight propositions then say its confidential later when the citizens ask to see it.

Furnishing Emerald City

Did you think we were done talking about the upcoming City Council meeting and the published agenda?  Think again, it is time to continue our journey down the yellow brick road.  The consent agenda is often used to streamline the approval process for items considered routine or non-controversial.  Consent agenda items are typically approved without individual discussion unless a council person requests to pull an item for discussion.  This means important matters may be approved with little to no public discussion or debate and we would argue it can be used to obscure or hide certain matters from public scrutiny. 

We identified another item on the upcoming consent agenda for the Frisco City Council Meeting on May 21, 2024.  Under the consent agenda we noticed Item 22 which is to execute a proposal from GL Seaman and Co to provide and install furniture worth $140,999 for Fire Station #10.  It said funds are available through “BONDS” related to this project.  We will come back to this.

A little history, since 2006 over the course of 4 bond elections (2006, 2015, 2019, and 2023) the city has asked residents to approve $258,900,000 for public safety.  We detailed out the Bond information our previous blog Bond, Frisco Bond! 007.  If you have not read it, then you should because you will be surprised you paid for some items twice.

Typically, bonds are used for large expensive and long-lived capital improvements & projects such as road or street improvements, parks, water treatment facilities, and building of new facilities or updates to public buildings (libraries, police stations, fire stations).  Investors who buy municipal bonds are lending money to the issuer in exchange for interest payments and the return of the principal at maturity. 

According to a 2023 report in Munichain, the City of Frisco, Texas, sold almost $233 million in bonds to fund municipal improvements. The bonds will finance improvements to Frisco’s roads, waterworks, parks, and municipal center, as well as the construction of a new garage in the city’s downtown area, among other projects. The city issued the bonds in three series.

  1. The Series 2023 bonds, consisting of $161.5 million, mature between 2024 and 2043, yielding between 2.8% and 4.14%. 
  2. The Series 2023A bonds, consisting of $18.5 million, also mature between 2024 and 2043, yielding between 2.85% and 4.15%.
  3. The Series 2023B bonds, which are taxable, mature between 2026 and 2038, yielding between 4.35% and 4.875%. 

Using these bonds responsibly is important because the money was subject to voter approval and must align with legal requirements for municipal bonds.  Bond funds are generally intended for long-term capital improvements, so we asked ourselves, is furniture a capital improvement?  We pulled up the purchase order and compared it to the actual Knoll Omnia Partners contract referenced in the agenda memo.  Technically if it is a permanent structural change then it would be considered acceptable but surprisingly several of the items listed on the purchase order are “Freestanding” furniture items on casters. The items on the po that are “system furniture” are those you see in most offices around the country, of course could be paid for by capital improvements as they permanent furniture systems. 

Why are we pointing this out?  Well, we support using bond money to build a new fire station for our hard-working men in the FD.  It is a place where many of them spend holidays away from their families while we enjoy the comfort of home.  We have no problem with top-of-the-line amenities for our PD and FD.  We just want to know why we would use bond money for movable furniture over the city’s general fund.  Why would we pay interest for years for movable furniture which could be replaced before the bond ever hits the maturity date.   

Do you think is furniture a good use of bond money or not?  Leave us your opinion in the comments.