A Room With A View

by | Apr 19, 2023 | AT&T Stadium Arlington, City Council, Community Development Corp, Economic Development Corp, Jerry Jones, Mayor Jeff Cheney, Politics, Taxpayer Dollars

In real estate you will always hear buzz words which are words or phrases often used to impress or persuade the person reading it to act now.  Location, location, location is a common mantra used in real estate and the truth is location can be key to the value of some real estate.   When I was a kid we lived on the outskirts of the countryside overlooking a scenic vista of hills and vineyards.  One evening I saw my dad outside sitting on the deck smoking a cigar and I went outside and asked, “why do you always sit out here?”  In his deep Sean Connery voice  he said, “Son, one day this will be yours if you want it.  You will grow grapes that make wine on this land and that will feed your family.  At night after working, you will sit here like I do watching the sunset. As you gaze across this valley and those vineyards you will realize this view is spectacular and that will remind you how damn lucky you are.”   My brother still runs those vineyards today and when we get to go visit I enjoy sitting on that deck like my dad did and enjoying the view.   

So, what constitutes a view?  Well, depending on who you ask that varies and can mean different things.  One might like a view of a lake or ocean, mountains, or city skylines.  There is no doubt that a view will cost you more to buy but it is for your enjoyment or future investment.   If you asked Jerry Jones what he likes about his office at The Star I am pretty sure he will say it is the view of the new training facility and practice fields.   If you asked Jerry what he likes about his view from his suite at AT&T stadium we are pretty sure you will get a different answer. What if you found out that your tax dollars were paying for a room with a view? 

Before we answer that, let’s discuss The Development Corporation Act of 1979 which gives cities the ability to finance new and expand business enterprises in their local communities through Economic Development Corporations (EDCs).   Based on the Texas Comptrollers website, “Type A EDCs are typically created to fund industrial development projects such as business infrastructure, manufacturing, and research and development.  The Type B sales tax may be used for any project eligible under Type A rules and several other project types, including quality-of-life improvements like parks, museums, sports facilities, and affordable housing.  Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure, and improvements.  One of the best things EDCs can do is increase tax revenues, add additional jobs to a community and supply opportunities for residents, and promote sustainable growth.   The Frisco EDC website says, “Frisco is Innovation Focused” and it says Frisco’s public-private partnerships exemplify why the city excels on every level of economic development and is highly competitive with major markets across the country and around the globe.  Its mission is the creation of jobs, increasing economic opportunities, and improving the quality of life for all Frisco residents and their families.

Simply put you must spend tax dollars to make money which brings important things to a city.  As a resident, I am okay with the concept to a point, but I was shocked when a reader sent us a link to a CBS 11 news article from 2015 that mentions city leaders were enjoying the lap of luxury in a season-long suite at AT&T stadium.   The article asks if city officials are taking advantage of the Cowboy’s relationship for personal enjoyment and how it is a slap in the face to taxpayers.   The article quotes Frisco resident Bret Sanders who said, “This is our money that they’re spending, and it doesn’t seem like they have any regard for how they are spending it.”  Then Frisco EDC President, Jim Gandy said, “It is our job to promote Frisco,” and “It was used for business prospects and allies that we work with on a regular basis.”   The article mentions it was sold as a recruiting tool but how was the suite a recruiting tool for businesses when AT&T Stadium is in Arlington?   

What do you think the Frisco EDC would pay for a room with a view?  The answer is 160,000.00!  The suite benefits per the license agreement states the licensee shall receive 18 admission tickets for the seats in the suite.  It also allows them to purchase 8 standing room tickets in the suite and it came with 5 parking passes for a preferred parking lot. The license agreement also states that the licensee will be provided with $1500 “hospitality allowance” towards food and beverage.  Yes, “We The Taxpayers” paid $160,000 for a suite for 8 games which means we spent $20,000 a game to wine and dine, I mean recruit business.  With the city contributing $130 Million to the construction of the new Dallas Cowboys headquarters in Frisco couldn’t Jerry have thrown in a suite. 

So who enjoyed the “Lap of Luxury” on the tax payers dime?  Well game 1 against the New York Giants included Dan Bollner and his wife (FEDC Board Member),  County Commissioner Hugh Coleman and his wife, Steve Bahl (Gearbox CEO/CFO) and his wife, Jim Gandy (FEDC Staff) and his wife, Dave Quinn (FEDC Staff), Gary Carley (FEDC Staff) and his wife, Tim Nelligan (The Hartford) and his wife and two guests.  It shows they enjoyed Texas Barbecue, peach blackberry cobbler, Deja Blue bottled water, soda and Unsweetened Iced Tea.

Game 2 against the Atlanta Falcons included Jim Gandy (FEDC staff) and his wife, John Bonnot (FEDC staff) and his wife,  City Councilmen  Bob Allen canceled but his guest Geneva attended and brought a plus one, Marla Roe (Visit Frisco) and her husband, Steve Ewing (Edge Realty) and his wife, George Galloway (Next Realty Mid Atlantic) and his wife, Amanda Kronk (SWA) and her husband, and Bennett Bark (Retail Connection) and his wife.    There are some special notes that Kevin Case with Thomas Land Development was sent 8 tickets and 2 parking passes for him to share with his clients.  While enjoying the game they dined on the Tex Mex Combo and the same drinks as in game 1. 

Game 3 against New England Patriots included Bob Allen (City Council) and his wife, Victor Almeida (President Interceramic – Prospect) and a guest, Jesse Pruitt (Somervell Commercial Realty), Chris Grottenthaler (True Health Diag) and his wife, John Harkey (CEO of CRO – Prospect), James Snell (EVP of CRO – Prospect and two guests, Jim Gandy (FEDC staff) and his wife, and David Quinn (FEDC staff) and his wife.   They dined on the Gridiron packaged.

Game 4 against the Seattle Seahawks included Jim Gandy & Dave Quinn (both FEDC staff) and their spouses, Bryan Dodson (FEDC staff) and his guest, Ed & Melina Cimler (Adaptive Biotechnologis), Zenobia Adi (WorldLink), Barjis Ghadially (WorldLink) and his wife, Bill and Brenda Sims (UNT), and J. Casey Wehr (CEO – PVP Live) and his wife.    The enjoyed the fine Texas BBQ and peach blackberry cobbler and drinks like game 1.

Game 5 against the Philadelphia Eagles  included Jim Gandy (FEDC staff) and his wife, Marla Roe (Visit Frisco) and her spouse, Project Turtle had 8 tickets, but no names listed, Rick Fletcher (FEDC staff) and his wife, Jason Young (Visit Frisco Board Member) and his wife, and Councilman Jeff Cheney and his wife.  They duplicated the game 2 Tex-Mex package for eats and treats.

Game 6 against the Carolina Panthers included Jim Gandy (FEDC staff) and his wife, Mark Thompson (Foundry Club) and his wife, 10 people from the Japan-American Society, and Taylor McQuestion, Shawn McQuestion, Caden McQuestion, and Quinn McQuestion (all listed with Schneider Optical).  They dined on assorted cheeses, veggie crudité, party mix, popcorn, artichoke ranch dip and seven-layer dip, sirloin beef sliders, apple pie, and beverages.

Game 7 included Harry Whalen (FEDC staff) and his guest, Paul Sheldon (FEDC Board) and his guest, Maureen Gutierrez (CVB Sales Manager) and her guest, Anne Keough, MPS and Andre Mathews with the Catholic Diocese, Terry Young (Dir of Mktg with Catalyst Corp Federal CU) and his wife Mike Williams (Pres & CEO Summit Conferences) and a guest, Jim Breitenfeld and Dan Spika (Brokers with Henry S Miller) and a guest,  Carlo Morando (Mktg Mgr with Ace Hardware) and two guests.  The Texas BBQ and peach blackberry cobbler were up for eats and treats this time.

Game 8  against the Washington Redskins included Jim Gandy (FEDC staff) and a guest, Harry Whalen (FEDC staff) and guest, Jim Riggert (NGKF – Prospect) plus 3 guests, and Moon Management (4 tickets) and Scott Lark (Prospect no company name)

Do you agree with the city spending $160,000 for a room with a view?  How much is too much?  Based on what Jim Gandy, President of Frisco EDC said in the article this was to recruit prospects or to retain important businesses that are considering leaving our city.   It appears we courted a lot of commercial real estate folks and some non-profits.  We also wined and dined Chris Grottenthaler the founder of True Health Diagnostics who was later one of the 21 charged in connection with multistate healthcare kickback fraud.  I have no issue spending $160,000 a year ($20,000 a game) for a suite on America’s Team if we are recruiting the likes of Amazon, Costco, Cigna, XTO Energy, Home Depot, Target, or any other Fortune 500 company.   That is not what happened here, I mean Jim Gandy, President of the Frisco EDC, and his wife enjoyed almost every game.  When you’re spending tax dollars and you are “working” as you call it then why are you bringing your spouse?  Why are we inviting county commissioners, do they pay sales tax in Frisco?   Why are we inviting non-profits and churches when they are exempt from franchise and sales taxes?    When it comes to citizens’ tax dollars I question a lot of what this city does when it comes to spending and incentives.  These are glaring red flags that citizens should be up and arms about but residents have given in to they have no say in our city.  I guess this is Frisco Innovation Focused at work.

The Promised Land

by | Mar 13, 2023 | City Council, Community Development Corp, Developements, Developers, Economic Development Corp, Jerry Jones, Jerry Jones - Blue Star Land, Politics, The Star

Margaret Mitchell, the Author of Gone With The Wind said “Land is the only thing in the world that amounts to anything, for it’s the only thing in the world that lasts. It’s the only thing worth working for, worth fighting for..”  Mitchell was right which is why for anyone who resides here or immigrates here, it is considered the American Dream to own just a slice of the pie.

Now imagine it is 1987, your name is Dan Lansing and you are living on a farmstead that your grandfather and his descendants owned since 1906. You spent the day on the tractor like many other days and now you are relaxing when you hear a knock at the door of your farmhouse.  Is your first instinct to think this knock could change my life forever?  Probably not, but for Joe Lansing, the knock would change his life forever.  Standing before him was a woman who worked for the local film office, and she had been deployed to drive the dusty gravel roads in search of just the right eye candy when she spotted what she later would tell the film studios was the “holy grail!”  A white clapboard, two-story farmhouse nestled against a hillside with the iconic red barn nearby and plenty of cornfields.  Sue Riedel introduced herself and said she was a scout for Universal Studios and that they might want to come here and film a movie, would that be OK?   Lansing responded, “Are you crazy?”  That day changed everything for the Lansing farm located at 28995 Lansing Road. 

What would happen next is the Field of Dreams. Iowa farmer Ray Kinsella is inspired by a voice he can’t ignore as he walks through the corn fields doing a regular inspection.  “If you build it, he will come.”  Kinsella plows his field and builds a ballpark which will later save his family farm.  The final iconic shot of the film showed the ghost players emerging from the corn fields for a ballgame.  Dan and his wife Becky later sold the land for a rumored $5.4 million to Ballpark Heaven who wanted to turn it into a $74 million baseball and softball complex to draw tournaments from all over the country.  Even today, the mythical Field of Dreams has spawned thousands of people to visit Dyersville, Iowa every year and it is one of the top 10 attractions in the state.  The movie Field of Dreams changed life for the Lansing family forever and residents of Frisco would be surprised to learn that Dan and Becky lived in Frisco for a period after selling the Iowa property. 

Land in Texas is undergoing a fundamental change, one that has implications for rural economics, food security, and the conservation of water and other natural resources. Texas Land Trends reports that from 1997 to 2017 the Texas population increased by 48% which means we continue to see land loss as urban development takes over.  The land value of a piece of property includes both the value of the land itself as well as any improvements that have been made to it.  So many different factors can affect land value such as an increase in demand that exceeds the supply of land, if a movie is filmed on it, oil can be found under the soil, or because of nearby developments.  

Remember in our blog, Frisco, Are You Ready For Some Football we said to make a mental note of a land deal that took place in February 2019.   Remember the timeline, The Star was approved in August 2013, and the Dallas Cowboys moved into the new corporate headquarters and training facility with a 12,000-seat stadium in August 2016.  The following year in May of 2017, the city council approved 12 Cowboys Way, The Stars luxury high-rise community.  The Entertainment District at The Star held its grand opening weekend-long event in March 2018.   

In February 2019, the council had two agenda items before them relating to Jerry Jones and his Blue Star companies which included,

  1. Consider and act upon a contract of sale by and between Blue Star Land Phase III, LLC and the City of Frisco for the purchase of a 2.4933-acre tract of land.
  2. Consider and act upon a Chapter 380 Agreement by and between Blue Star Land Phase III, LLC and the City of Frisco related to the purchase of a 2.4933-acre tract of land.

First question, where is the 2.4933-acre tract of land?  If you drive up The Star Boulevard you look directly at the Tostitos Championship Plaza which replicates a football field and directly behind it you see The Ford Center a 12,000-seat stadium.  To the left of The Ford Center are the two practice fields that sit directly behind the Dallas Cowboys World Headquarters.  Directly behind those fields is a 2.4933-acre tract of land (along Hall of Fame Lane) that the city owns and is allowing the Cowboys to use as a player’s parking lot only.   

Second question, what is the benefit to taxpayers?  According to Ron Patterson, President of the Frisco Economic Development Corp., the estimated value of the proposed future office building will be approximately $190,000,000. Blue Star Land committed to having the project done and ready to move into as early as 2021.  

Doesn’t sound like a bad deal right? Well, you have not heard the kicker yet which will talk about in our next blog after the Halftime Show. Stay Tuned!

Frisco, Are You Ready For Some Football?

by | Mar 10, 2023 | 12 Cowboys Way, Campaign Donations, Campaign Finance Reports, Community Development Corp, Developements, Developers, Economic Development Corp, Jerry Jones, Jerry Jones - Blue Star Land, Jerry Jones - Dallas Cowboys, Politics, The Star

Click Bait is an eye-catching headline designed to entice a reader’s interest, so they click on a hyperlink that redirects them to some interesting or exciting content.  It can be innocent or sinister depending on how it is used. For example, you would likely click on a headline that read World Naked Gardening Day vs a headline like Weekend Gardner.  The headline is meant to drive traffic, therefore increasing readership or potential revenue from advertising.  So what did you think when you read the headline, “Frisco, are you ready for some football?” Surely after reading some of our blogs, you probably thought we might be about to drop some shady shit on the King Pins of Football, and you could be right.  As Jimmy Johnson would say, “how bout dem cowboys!”

Enigma is a person that is mysterious, difficult to understand, or hard to explain. For years at local watering holes (bars) in the DFW area, the Enigma of J.R. Ewing and Jerry Jones has often been talked about.  While we know J.R. is only a character in the hit show Dallas, the rise of Jerry Jones and his empire is very real!  Most know Jones for his ownership of America’s Team the Dallas Cowboys but there is much more to the billionaire businessman.  It has been reported that in the 1970s Jones made his first millions in oil.  In 2018, Jones became the controlling shareholder in Comstock Resources which is a publicly traded Texas oil and gas company.  In 2013, local TV news station WFAA reported Blue Star Land owned by Jones had at least 1200 acres across Frisco, Prosper, and Celina.  According to its website Blue Star Land and Development is a full-service real estate brokerage. Rex Real Estate brought the Jones family to Frisco in 1994 when they purchased the land for the master-planned community Starwood.  They have since developed two other communities with Star Creek in Allen, and Star Trail in Prosper.  Blue Star is also the developer behind The Gates of Prosper a major regional shopping area. On the industrial / commercial side Blue Star Land purchased Star Business Park off Rockhill and Preston in Frisco which is home to a new merchandise distribution center for the Dallas Cowboys along with The Star in Frisco.  In 2015, Jones opened Blue Star Payment Solutions with the goal of offering first-class merchant services.  Lastly, it is rumored that Jones is an avid art collector and his rare collection includes a few Picassos,  Renoir, Matisse, and Norman Rockwall’s “Coin Toss.”  At 80 years old Forbes estimates his net worth to be around $13 Billion.  Not bad for a kid who grew up in Little Rock, Arkansas, and played football in college for the Arkansas Razorbacks. 

In 1989, Hank Williams reworked his country-rock song to include the catchphrase “are you ready for some football!”  The catchy phrase soon became an NFL viewing tradition at the opening of Monday Night Football.  Well Sports City USA was ready for some football! Frisco was ready for a seat at the table in 2013, when Stephen Jones, CEO of the Dallas Cowboys realized it was time to move because the team had outgrown the Valley Ranch facility they had called home since 1985. So, how did the Cowboys end up coming to Frisco? 

There are several variations to the story depending on whom you ask.  What we have heard is two men, Rex Glendenning and Matthew Kiran of Rex Real Estate had a longtime relationship with Jerry Jones and the Dallas Cowboys.  It is believed Rex Real Estate helped Jerry Jones’ companies like Blue Star Land buy up land in Denton and Colin County for years. A Dallas Morning News article in February of 2023 called Rex Glendenning the “king of land sales” in North Texas’ fastest-growing communities. Rex Glendenning and Matthew Kiran attended a meeting at Valley Ranch and learned the Cowboys were quietly looking for a new home.  On a drive back from Valley Ranch The Rex Real Estate duo had an epiphany as they crossed 121 and looked at each other and said this is where the future “Gridiron” Cowboys project needs to be.  Made sense the City of Frisco owned 91 acres just off the Tollway and they knew the city had no plans after the negotiations fell apart in the “Red Zone” with Nebraska Furniture Mart.  It was time for the Wildcat play which is where the quarterback lines up as the wide receiver and the running back take the snap from the center.  The Rex Real Estate team made their pitch to Jim Gandy, President of the Frisco Economic Development Corporation.  The Super Bowl moment came late in 2013 when the parties reached an agreement and America’s Team officially announced Frisco’s Sports City USA would be their new home.

The 91-acre mixed-use project included 66 acres of retail, a 5-acre headquarters, a 20-acre multi-use event center, and a hotel. In the deal, the city pledged $60 million and would retain ownership of the indoor stadium and Frisco ISD contributed $30 million.  The final price tag for the total Ford Center was more than $263 million.  Talk about a “win-win” for Frisco, Texas when five years later The Star celebrated its grand opening with the pomp and circumstance befitting of the one and only Jerry Jones.

As usual, we were curious about the play clock (aka timeline) of the project compared to any campaign contributions received by those on the council. We reviewed the campaign finance reports which are public records on the City of Frisco’s website. 

August 12, 2013: Frisco CDC, City Council, and Frisco EDC approve The Star

2016: Ford Center @ The Star has Grand Opening

May 11, 2017:  Cheney receives a $10,000 campaign contribution from Rex Glendenning (Rex Real Estate)

August 22, 2017: P&Z Approves 12 Cowboys Way

What is 12 Cowboys Way?  It is a joint venture between  Jerry Jones and Dallas developer Columbus Realty which is owned by former players Roger Staubach and Robert Shaw.  The stunning architecture of the 17-story luxury residential tower, the first of its kind in Frisco, will have 160 urban units where rent begins at $2700 per month.  Amenities include 24-hour concierge service, covered parking, dog park and dog wash, valet parking, grocery delivery service, and dry-cleaning service.  Not to mention discounts at restaurants at The Star and a Cowboys Club membership. 

September 9, 2017: City Council Approves 12 Cowboys Way

January 25, 2018: Mayor Cheney receives a $1000 campaign contribution from Matthew Kiran and $2500 from Rex Glendenning (Rex Real Estate Team)

March 5, 2018: Mayor Cheney receives a $500 campaign contribution from Rex Glendenning (Rex Real Estate)

March 5, 2018:  Councilman John Keating receives a $500 campaign contribution from Rex Glendenning (Rex Real Estate)

April 6, 2018: Councilman Keating receives $2500 from Jim Williams (LandPlan – Founder)

Who is Jim Williams?  Williams played football with Jerry and Jimmy at Walton College. His partner Bruce Smith was Vice President & General Manager of Blue Star Land (Jerry Jones company). 

May 6, 2018: Councilman Keating receives (2) two $1000 donations from Rex Glendenning (Rex Real Estate)

August 2018: City Council Approves Cowboys 400,000 Sq Ft. Dallas Cowboys Merchandising  Distribution Center

**The city approved a 50 percent ad valorem tax grant and a 50 percent sales tax grant for a 10-year period.

February 19, 2019: City Council Approves Cowboys Land Deal – Office Building

**Make a mental note of this one because it will be important later.

March 7, 2019: Councilman Keating receives a $2500 campaign contribution from Jim Williams (LandPlan – Founder)

March 19, 2019: Mayor Cheney receives two campaign contributions, one for $2500, the second for $100 from Jim Williams (LandPlan – Founder)

October 17, 2019: Mayor Cheney receives a $1000 campaign contribution from Rex Glendenning (Rex Real Estate)

January 30, 2020: Mayor Cheney receives a $2500 campaign contribution from Robert Shaw and $1000 from Richard Reupke

Who is Robert Shaw and Richard Reupke?  Shaw is also a Managing Partner of Columbus Realty Partners and he was a first-round draft pick for the Dallas Cowboys in 1979 where he played for three years.  Reupke is a partner and Chief Financial Officer at Columbus Realty Partners.  Both are advisors for Staubach Capital (12 Cowboys Way). 

2020: Robert Cox then Planning & Zoning Commissioner running for Council received $350 from Kiran and $1000 from Hickman

January 25, 2021: Angelia Pelham received a $3000 campaign contribution from Jim Williams (LandPlan – Founder)

In the movie Jerry Maguire, Rod Tidwell played by Cuba Gooding, Jr., is not thrilled with his agent’s performance so he wants his agent Jerry to convince him to stay on as a client.  Jerry asks what he can do to convince him, and Rod said, “Show me the money.”  He then made Jerry repeat it over and over, louder, and louder until everyone in the office had thought Jerry lost his mind.  If only it were as simple as it appears in the movies.  The investigative process is a progression of activities or steps moving from evidence-gathering tasks to information analysis, to theory development and validation.  The goal is to form a reasonable belief based on the evidence in front of you.  The truth is we are not professionals, so we lack the expertise of real investigators but as we said before we are smart enough to follow the yellow brick road. 

First, we looked for donations that occurred within a few months of a vote.  For example, Cheney received $10,000 dollars from Rex Glendenning (Rex Real Estate) roughly 3 months before the P&Z vote in August 2017 and 4 months before the City Council approved the 12 Cowboys Way project in September 2017.  Then about 3 ½ months after the vote, he received another $2500 from Glendenning and $1000 from his partner Kiran.  Depending on the lens someone is looking through the timing could look fine, or it could look like a pay-2-play situation.  Cheney just won the election, so he is not campaigning anymore. Why when there is a project coming before the council did they decide to donate?   Glendenning also donated $1000 in October 2019 but that was not in close proximity to a vote.

In February 2019, the council voted to approve the land deal with Blue Star. Then exactly one month later Williams who has a clear connection to Jones made two donations on the same day to Cheney’s campaign.  The first was for $2500 and the second for $1000.  To those with basic common sense, again the timing of one month looks bad and now we are seeing similar things between different developments.

Keating also received donations from players in these projects.  In March 2018, Glendenning donated $500, and then in May 2018, he made two donations each for $1000 on the same day.  In April 2018, Williams also donated $2500 to Keating’s campaign. The vote for the Blue Star distribution center was not until August 2018 so one could argue there is enough time between the last donation and the actual vote.  However, with a total of $5000 in donations three months before the vote we would argue something doesn’t smell right in Frisco.

Angelia Pelham one of the newest members of the council also received a $3000 donation from Jim Williams in January 2021.  This donation occurred during her campaign and looks completely justifiable as she was not able to vote at the time for any projects.  From our perspective, Cheney needed Pelham on the council because she would vote on future projects with Cheney whereas the other candidate would not have been so easy to win over.  It is also interesting that Pelham who was sworn in on June 15, 2021, became Deputy Mayor Pro Tem so quickly when other council members like Livingston, Woodard, or Keating have years of experience on the council.  In that position, it is her job to stand in for the mayor when they are unable to chair a council meeting or attend an event.  A few more years of experience under her belt on council would make more sense but we can only assume Cheney needed her as his right hand.

What we found interesting is that going back through both Cheney and Keating campaign reports to 2013 we could not find any other previous contributions from these donors, so why now?  Patterns are predictable repetitions that repeat at least once or twice or occur repeatedly at regular intervals.  The legal definition for the pattern of behavior means behavior by one party in a relationship that is used to establish power and control over another person.  One could argue that when you are the mayor you have a lot of power and control to get things done. We are not accusing anyone of doing something illegal but, it is our opinion that there is at least a reoccurring appearance of improprieties and if perception can be the reality then that would not bode well for either of men. 

The Universal Mystery Machine (updated)

by | Mar 7, 2023 | City Council, Community Development Corp, Developements, Developers, Economic Development Corp, Politics, Universal Kids

Imagine yourself in a period of time that was in filled with generational conflict, the Vietnam War, and Nixon was president.  Four teenagers, Fred, Daphne, Velma and Shaggy are driving around in a van with a Great Dane dog looking to solve mysteries.  Little did anyone know that a cartoon called Scooby-Doo, Where Are You? would become a cult classic and last for generations.  Who wouldn’t want to be in a crime-fighting gang with a dog that says “Ruh-roh-Raggy” and has a decked-out van called The Mystery Machine? 

I remember sitting on the couch in the basement watching my favorite cartoon Scooby Doo when my older brother and his two friends came down to join me. They wanted to hide out so they could smoke some dope aka marijuana.  The episode had  Shaggy and Scooby in the mystery machine with smoke pouring out the top.  Inside they were grilling some munchies and the two started to freak out when detectives start banging on the van door.  My brother and his friends were laughing hysterically at the television and I could not help but laugh hysterically at them because I thought they were idiots.  There is no point in me telling you this other than I just loved watching the cartoon gang solve a new mystery in every episode and it had me hooked.

Reading this you are probably wondering what does this have to do with Frisco?  Well on January 11th the City of Frisco and NBC Universal Parks and Resorts made a colossal announcement that a new park was coming to Frisco.  To be honest, since my kids are grown I have not paid much attention to it because I am not visiting a park of that nature anytime soon. But in the last week I have received several notes through the site asking our opinion about Universal, some dropped tidbits on Universal to us, and then today, my wife comes running into my office saying I must read what is on the tweets about Universal.  Tweets are her universal language for social media like Facebook.  I read several different posts talking about the crucial meeting tonight and it was paramount that people show up to have their voices heard. Curious to know more, I spent several hours this morning doing some research looking at old posts, visiting the city’s website, and reading the agenda and documents for tonight’s meeting.

The January 11, 2023 announcement came across as this was a “done deal” which means a plan or project that has been completed or arranged and that cannot be changed.  Truth is the project at that time had not been put before planning & zoning or the city council.  It was truly misleading to the residents and the public far and wide in Texas.  The result was a very mixed reaction, some being happy and some being downright angry.  The city is offering $12.7 million incentive package which is generally normal but based on the split of how residents feel regarding this project I don’t think we should be offering an incentive package.

Representatives of the city on social media sold Universal to the public one way but when reading the Development Agreement attached to tonight’s agenda, they have not been transparent, and the truth is far from what they have sold to the public. Let me give you some examples of what I read on social media from city council members versus what is in the actual agreement being laid out this evening.

  1. The city said the park was aimed at children 3 to 9 years old but the agreement says it was developed for young children 3 to 11 years old. 
  2. The city has said the park hours would be from 10 am to 6 pm and would not have late hours.  The agreement states the “developer’s intent” is to primarily operate the majority of the weekdays with the posted hours of operation for ticketed users between the hours of 10:00 am and 6:00 pm local time.   Residents read it again carefully as the highlighted words are key in this.
  3. However the “actual hours will vary” throughout the year based on demand, seasonality, holidays, peak periods, and weekdays/weekends, but in no event shall the theme park opening time be earlier than 9:00 am (except for hotel guests and annual passholders) which the opening time may be as early as 8:00 am local time.  The theme park closing time will not be later than 9:00 pm local time (except for up to twenty (20) days) during the calendar year when they are permitted to close no later than 10:00 pm local time.  What this means is they can say “summertime” is a peak period and now they can stay open until 9 pm.  They can use July 4, Thanksgiving, and Christmas as peak periods to stay open until 9 pm.  They can stay open late on a holiday (defined as a Frisco ISD school holiday).  Truthfully with the way it is written, they can be open all year until 9 pm if they just claim it to be based on demand, seasonality, holidays, and peak periods.
  4. The city has said no dark rides, no big buildings, and no tall roller coaster rides (40 – 50 feet maximum).  The agreement states all amusement rides, entertainment experiences and all portions of structures designed to be occupied by humans in Theme Park Area A shall not exceed a height of 80 feet.  Structures designed not to be occupied by humans shall not exceed 100 feet.   Just based on a simple google search I learned that 80 feet is equal to a 7-story building.  I am guessing that is not what neighbors were expecting.
  5. The agreement states all amusement rides, entertainment experiences and all portions of structures in Theme Park Area B shall not exceed a height of 100 feet.
  6. The city has said no parades, no fireworks, an inward environment (not outside), and that noise level to the outside would be almost non-existent because the sound would be isolated even within the park.  The city agreement states that permitted uses include parades, outdoor concerts, and shows, amusement rides, and permanent or temporary exhibits.  It also says about the noise they must comply with the City Noise Ordinance (who knows what that is).  I am old but I am pretty sure parades and outdoor concerts are not what nearby neighbors want near their homes.

After doing the research I told my wife I agree with most online users (which is rare) that this is a bait-and-switch to what most folks have been told.  I also saw some other areas of concern that some may overlook such as asphalt parking.  It says they must follow the zoning ordinance which requires parking to be concrete but temporary parking may be of an alternate material when approved by the Director of Engineering Services.  My other area of concern is the delivery hours as we learned the hard way living in Grayhawk near a Walmart. You can hear the delivery trucks all night long.  The agreement states the city cannot restrict public roadways or delivery hours and if residents have a problem with the noise they can call the police department.  It also states Universal will work to reduce the impact on nearby residents. 

One thing is clear, we are still having transparency issues, and it appears the public has been misled about what this project entails.  There are many loopholes and all of them help the city and Universal. The city is hoping residents are too stupid to read the paperwork. Just one old man’s opinion, the residents are being bamboozled and should be extremely angry, especially those living nearby.  

UPDATE: We watched tonight’s Special Joint City Council and Planning and Zoning Commission Meeting on FTVN. I am not sure if I would call it a train wreck, shipwreck, or victory. The meeting lasted several hours. Two residents spoke in favor of passing it but the remaining were all opposed. It was quickly apparent that many residents had many of the same concerns that we did and there was a lot of hostility toward the Mayor. Planning and Zoning passed it 5-0 and then the City Council passed it 4-1-1 meaning 4 yes, 1 no, and 1 abstained.

We were surprised only one resident mentioned the city’s right to free use of the theme park for an employee event on an agreed-upon date. Section 36.02 of the Texas Penal Code makes it a crime of bribery for a person to offer, confer, or agree to confer, or for a public official or employee to accept, agree to accept, or solicit, any benefit as consideration for a decision, opinion, recommendation, vote or another exercise of discretion. Ruh-roh-RAGGY! Clearly, the agreement states the city’s right to free use which could be seen as an offer or benefit for consideration for a decision. Hopefully, a resident will file a complaint with the Texas Ethics Commission.

John Pavle, one of the opposed speakers spoke with passion, vigor and true concern. He pointed out how this was shoved down residents throats, and that the people of Frisco are being exploited for money. He went on to say the evening was a dog and pony show, and for Cheney and the council to stop telling residents what they want and instead listen to the residents who are telling them what they want. The best part was when he actually looked directly at the entire council and told them he would hold each of them accountable when election time came and he promised the Mayor if he voted yes that he would not be sitting in that seat much longer. Mr. Pavle thank you for speaking your truth and for those of us at Frisco Chronicles we agree with you. It is time for residents to make their voices heard at the ballot box.

Jon Kendall Chair of P&Z said this is a destination city and your right it is sir, but it is also our home and that is what you are forgetting. Jake Petras another commissioner spoke and said he spent quite a bit of time reviewing everything for this project and gave it proper due diligence to ensure he understands everything. Well, tonight FC was sent a Facebook post that clearly shows Mr. Petras had made up his mind about 5 days after the Jan 11 announcement which we find interesting since no one knew what the hell was being proposed yet. If that is due diligence we are screwed. Steve Cone another commissioner who is also a resident of one of the nearby neighborhoods spoke and had the most valid pros and cons of the evening. Hopefully, he has a friend named Wilson since he is about to be Cast Away by his neighbors.

The last portion was the council’s input and the one thing repeated over and over was how they all appreciated the neighbor’s professionalism and courtesy in which they approached the situation. It was a little condescending, to be honest, did you think they were going to behave like a group of wild monkeys in the Amazon forest? Cheney said if they had to do it all over again they probably would have rolled it out differently and would have asked for more liberty on what they could share. Really Sherlock? You don’t need to share more but what you do share needs to be accurate. Looking at your very detailed Facebook Post from Jan 20 we see 10 am to 6 pm & no late night hours (actually it is 8 am to 9 pm), 300 room hotel (which can now be up to 600 with a second phase), target audience 3 – 9 (actually 3 – 11), no tall roller coasters max will be 40 – 50 feet (actually 80 feet big difference) and several of these things you mention more than once in that post. Here is an idea, how about you stop grandstanding and trying to oversell a project and just get the accurate information to share? Now you want people to trust your traffic report, trust that the council is doing what is best for residents, and trust city leaders – why should they? It is very clear since Jan 11 that this has been a shit show of false information.

Pelham said we could have done this differently and did we give the impression this was a done deal when it was announced, “Perhaps, Lesson Learned.” She had no empathy in her voice or facial expression like it was not a big deal because they tried to course-correct the situation. With all due respect, not a good enough answer because that announcement traveled around the world far beyond the borders of Frisco. Then you have the audacity to speak to John from Universal about how he gave his word on some concessions to the residents that are not written in the SUP and you hope he keeps his word because you will remember if he doesn’t the next time he appears before the council. Residents remember too Ms. Pelham, they will remember being lied to and misled the next time you stand in front of them and ask for their vote. Telling him his integrity is on the line and that he should honor and respect our home, all the while you are not respecting or honoring the residents before you who are asking you to protect their home and qualify of life is very hypocritical.

Livingston said he liked the project but he could not support the location near Cobb Hill and therefore he would be voting NO! Rummel wanted to table it although we are not sure what that would have done. Keating cried and said how emotionally impacted he was by Commission Cone’s words that evening, wait what? Where was his emotion for the residents who have stood before him pleading to save their neighborhood, and maintain their quality of life? Oh yeah, he went to the beach on vacation and never meet with the residents. Aruba, Jamaica, ooh I wanna take ya, Bermuda, Bahama, come on pretty mama, Key Largo, Montego Baby, why don’t we go anywhere other than Cobb Hill?

The conclusion, everything came back to the economic value the project will bring our city. Yet our city is flush today and will continue to be off the many businesses here so saying no to one business, is not going to destroy our city economically. Money is the best motivator and that is some shady shit!

House of Cards

by | Mar 7, 2023 | Community Development Corp, Developements, Developers, Economic Development Corp, Politics, Wade Park

Growing up my dad and his buddies would always have poker night in the basement that included cards, cigars, and liquor concoctions.  I used to sneak down the stairs to spy on them and was always intrigued by the deck of playing cards.  One night my dad told his buddies that a deck of cards is based on a calendar.  Fifty-two (52) cards represent fifty-two (52) weeks in a year and the card colors red and black symbolize night and day.  The four (4) suits represent the four (4) seasons. There are thirteen (13) cards in a suit to match the number of lunar cycles and twelve (12) court cards that represent the 12 months of the year.  A standard deck of cards has four suits: hearts, clubs, spades, and diamonds and the original card suits were based on classes and can be traced back to France in the 1400s.  Suits include spades ♠ (royalty), clubs ♣ (peasants),  hearts ♥ (clergy), and diamonds ♦ (merchants). 

Once the night was over I would gather up all the cards and the next day I loved to try and build a house out of the cards. Then my brother would come by like a gust of wind and knock it over which always upset me, but I started over each time. House of cards is a metaphor for the instability of the inner workings of what appears to be the perfect partnership, structure, plan, institution, or organization.  In a house of cards, the inner workings are always weak, fragile and in constant danger of failure or collapse.  Watching Frisco grow, I have wondered are some of these developments too good to be true.  Underneath the pomp and circumstance are they just another house of cards?

In August 2014 a crowd gathered including Frisco leaders and officials from Thomas Land & Development for the groundbreaking of the $1.6 Billion, 175-acre Wade Park mixed-use development.  Excitement rumbled among residents when they learned the initial phase would be anchored by a Whole Foods store. Jim Newman, of Newman Real Estate, brokered the land deal for the project and he told the Frisco Enterprise that “having sold and developed land in this city for over 30 years, nothing in North Texas comes close to the future development.”  He went on to say it was difficult getting the Wade Family to sell the land but when they found a partner they could trust like Thomas Land Development they couldn’t be happier.  

In January 2015, the Frisco City Council, Frisco EDC, and Frisco CDC approved $122.75 million in incentives for infrastructure improvements which would be paid from revenue generated by the proposed development as the city collects taxes.  In return, Wade Park agreed to deliver a portion of the development by the end of December 2017. It wouldn’t be long before all that excitement started to dwindle when Frisco learned Thomas Land Development ran out of money and failed to secure additional financing.  Construction froze as contractors began placing liens against the development for unpaid bills and by early 2018 the future of Wade Park was up in the air and Frisco was left with a hole in the ground that locals nicknamed Lake Lebanon. 

Were any alarm bells that the city should have been concerned about so we could have possibly avoided the headache of Wade Park?  A simple google search into Stan Thomas, CEO of Atlanta-based Thomas Land Development is alarming.  The Atlanta Journal-Constitution reported back in 2009 that Stan Thomas had three major projects in bankruptcy protection, and he narrowly averted foreclosure on The Forum Peachtree Parkway development in Atlanta.  He also had projects in London and Orlando that were virtually dead until he could find financing.  He had been sued by former partners and vendors for nonpayment and dozens of liens against him.  His company had gone from 750 employees down to just 50 employees.  Thomas had two other projects in Chapter 11 bankruptcy protection which included The Rim in San Antonio, Texas, and Prospect Park in Alpharetta, Georgia. In 2019 a CBS news story pointed out that while Frisco city officials publicly expressed optimism for the project the I-Team had learned behind the scenes there were concerns early on.  They reported the developer Stan Thomas had a reputation for taking on massive debt to develop massive projects.   The report also talked about how Thomas had plans to turn a development in Sacramento into a multi-billion dollar development but it fell through when he could not pay his loans on the project. 

Again, we ask the question was the writing on the wall the whole time?  Could we have avoided the headache of Wade Park with a little more due diligence?  Was Lake Lebanon avoidable?  How do we avoid doing business with companies that are really House of Cards?  How many other projects are just another house of cards?  

Funny Side Note: While it has nothing to do with our story we wanted to share that in 2015, Universal Orlando acquired 475 acres of land for $27.5 million for a future Universal theme park.  But the previous landowner Stan Thomas (mentioned above) sued Universal claiming he still owned rights to enforce private deed restrictions.  The parties settled in April 2018 but it just shows it is a small world after all since now Universal is looking at Frisco.

Back to the point of our blog, we decided to investigate some other local developments and what we found should have Frisco residents concerned. In 2012 Forest Park Medical Center at Frisco Square opened.  The developer was Neal Richards Group which at the time had developed half a billion dollars of healthcare real estate.  At some point, the company kicked off its first physician-owned project called Forest Park Medical brand. NRG became collateral damage in a fraud scandal involving two of its co-founders who were among 21 people indicted in a $40 million kickback scheme that ran from 2009 to approximately 2013 and generated an estimated $200 million in revenue for Forest Park.  It is complicated to understand but to put it in layman’s terms, the hospitals were set up as out-of-network facilities which allowed them to set their own prices then shell companies were opened to funnel millions in bribes and kickback payments in exchange for patient referrals.  Make sense?

In 2018, Philip Carter, the principal of Texas Cash Cow Investments and North Forty Development LLC who had developed Preston at Wade Crossing was arrested. In November 2018 Carter was facing state fraud charges in connection with defrauding nearly 100 Texas investors out of $17.5 million and in May 2022 he was sentenced to 45 years in state prison. 

Then in September 2022, Tim Barton of JMJ Developments was indicted by a federal grand jury on nine felony counts, including securities fraud and wire fraud.  He is accused of defrauding Chinese investors out of $26 million and if convicted could face up to 60 years in prison.  JMJ Developments purchased 4.5 acres of land in 2020 from Invest Group Overseas (IGO), the master developer of The Gate in Frisco’s North Platinum Corridor.  At the time JMJ officials boasted how it would be “the tallest building in Frisco” and was set to open in 2024.  Barton sold the property in The Gate to Petra Development LLC in December 2022 for an estimated $9 million.

We could make our own movie and instead of calling it The Wolf of Wall Street, we should name it The Wolves of the Frisco or The Wolves of the Dallas North Tollway.  Are we the only ones who are curious why so many of the developments in Frisco are somehow connected to shady businessmen or developers?  Maybe we need to hold our city management and the developers they choose to do business with to higher standards so shady shit stops happening.  

Dynasty of A Development

by | Feb 16, 2023 | Cheney Group, Community Development Corp, Developements, Developers, Economic Development Corp, Fehmi Karahan, Fields - Brookside North, Fields - Brookside South, Fields West, George Purefoy, Hunt Realty, Mayor Jeff Cheney, Omni PGA Resort, PGA Frisco, Politics, Robert Elliott, Robert Elliott - The Associates, Stillwater, Taxpayer Dollars, The Link, The Preserve & Fields, Universal Kids

It started like any other January day residents across Frisco woke up and started getting ready to take on a new day. I stepped out of the shower and could hear the morning newscaster on the television giving the traffic report followed by the weather. The deep voice said, prepare for the warmest January day since 2009 because today we should hit a high of 83 degrees. Texans generally joke about how we hit all four seasons in one day.  Winter starts at 6 am, spring starts at 10 am, summer is at 2 pm and fall starts around 5:30 pm. 

Midmorning sitting at my desk I get a notification that Visit Frisco has gone live on their Facebook page so of course I tune in to see what is going on. Standing behind a podium is Mayor Jeff Cheney announcing all the officials and guests in attendance. He then goes on to quote Dr. Seuss and says “One Fish, Two Fish, Frisco has a new wish and that is to welcome Universal Studios and Universal Kids to Frisco, Texas.” I was thinking about why would we want a theme park, where would it go, and how did this development come about. Mark Woodbury, Chairman & CEO of Universal Parks & Resorts, share a rendering of a bright and colorful theme park geared towards young children with a hotel featuring 300 rooms. Page Thompson, President of New Ventures for Universal announced they just purchased land 97 acres east of the DNT and north of Panther Creek Parkway in the Fields development. Mayor Jeff Cheney takes his position back at the podium to thank Fehmi Karahan of Fields and Karahan Properties as well as Hunt Real Estate who brought PGA here and is now bringing Universal Theme Parks. 

In my head, I was thinking how did this dynasty development come about? The response on social media was swift and it soon became clear not all Frisconians were pleased about the park’s announcement.   Weeks went by and I passively watched everything play out online and at city meetings.  The key message being communicated by our mayor was how excited everyone was to welcome universal, and how the project had been fully vetted by the city and council. The key message from residents, they didn’t want the park.  I was just intrigued by how much our Mayor was trying to sell the project to residents and news channels, and how he advocated relentlessly for the development. 

Then one night while sitting in my recliner, I remembered back in October a post that I had seen from The Cheney Group that said his agents have been working on something very special for over a year now.  They were excited to announce The Preserve at PGA is about to tee off and if someone was interested in building their own custom home reach out to them asap.  He talked about early interest being historic levels and how they were the Fields Experts. My golf buddy in real estate around that same time was pretty upset telling me that The Cheney Group had snagged the exclusive to list The Preserve homesites.  He even showed me an alluring glossy mailer that he had received in the mail from The Cheney Group. The front talked about the residential communities of PGA, living at Fields with renderings of the development. It had an attractive picture of The Cheney Group in front of the Fields boxes we see along the feeder road of the DNT. The back talked about Fields West, from the visionary behind Legacy West referring to Fehmi Karahan and new communities The Preserve and Brookside.   

Growing up I always wanted to be like Perry Mason, Matlock, or Remington Steele probably because of my curious nature. It is that curious nature that leads me to ask how can The Cheney Group be the exclusive Fields Experts and now Jeff Cheney, acting as Mayor is advocating for Universal? Fehmi spoke twice at the February 7th, Special Meeting of the P&Z Commission and City Council meeting on behalf of Universal, so it is clear he has a personal interest in seeing Universal go through as it will be a part of the overall Fields project. I am no legal eagle, but I would think that if The Cheney Group is in any way financially benefiting from representing The Preserve for Fehmi Karahan which is part of the Fields Development then Jeff Cheney should recuse himself from any development talk regarding Fields and Universal as it is part of the same overall project. 

My curiosity had me wondering, is that why when several residents showed up to a city council meeting to speak at citizens input he responded to each of them like he was selling the features and benefits of the Universal theme park. Am I the only one who feels like the mayor is trying to sell this project so hard to the public? Am I the only one with these questions or think they may be a reason to be concerned? Am I the only one who thinks something feels shady about it? It goes back to that little word transparency, and the perception or appearance of a conflict of interest.