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 (Part 2)

by | Mar 14, 2023 | City Council, Developements, Developers, Jerry Jones, Jerry Jones - Blue Star Land, Jerry Jones - Dallas Cowboys, Politics, Taxpayer Dollars

There are two things that interest me: the relation of people to each other, and the relation of people to land. – Aldo Leopold

Remember that 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 or around it, one could assume land around The Star would dramatically increase in value as the development came together and was completed.  Ready for the kicker, would it surprise you that the city sold the piece of land in question which is estimated to be worth $2.7 million to Blue Star Land Phase III for the sale price of $597,912.00 plus the city’s carrying cost of interest over the years?  At the time of the sale in 2019 it was all over the news, but did Frisco residents really pay attention?  Probably not and truthfully I had no clue until my curious nature got the best of me and I started looking into things last year.  Reading this, do you think it sounds like a win?  In theory yes, Frisco sold the land which will yield a substantial potential tax revenue.   

Stop the time clock, it is time for a replay so you can understand why Frisco residents should care.  First, if the city decided to sell that land no matter who bought it and developed it into an office building the city would be taking an asset generating no revenue and turning it into a cash-generating tax site.  We would not have lost an opportunity for the potential $190,000,000 in tax revenue.

Second, the city purchased all this land along the tollway years ago with taxpayer money as a future investment.  Selling it for the price we paid plus carrying costs seems to dilute the point of the purchase.  The Dallas Morning News reported the market value was an estimated $2.7 million and we sold it for $600,000 which means we gave away $2.1 million dollars of taxpayer money.  Anyone looking at this with basic common sense would see the land sale plus the potential tax revenue as a blockbuster achievement.   Sherlock Holmes might say, “Elementary, my dear Watson that is a win-win for the city and residents.” 

On the flip side, if you’re a DFW local then you know Jerry Jones, and his reputation for being a little pompous, arrogant, vain, egocentric, and self-centered.  He is not afraid to say what he thinks, show off or even be offensive at times.  It is “Jerry’s World”, and we are lucky to be in it and it has been that way for years.  He has worked hard, built an empire, and achieved the American Dream and he has every right to act or celebrate that the way he wants.  Keeping in mind Jones’s famous ego if the city did a public sale of the 2.4933 acres of land with direct views of Jerry’s empire including the player’s practice fields, do you think Jones would ever let anyone else buy it or develop it?  He would do whatever he had to do to protect his STAR!  That makes those 2.4933 acres a rare invaluable treasure that is irreplaceable to Jones.   Other developers would also see the value of that land and they would come out of the woodwork, and it could potentially create a bidding war for the holy grail tract of land.  Can you imagine what it potentially could have sold for?

We are left with so many questions, the first being who the real winner in this deal was.  Clearly, it is Blue Star Land.  The city is going to say the potential tax revenue outweighs the loss of profit on the land sale but as a taxpayer, I disagree.  I see the Superbowl moment for Frisco residents being the profit of the land sale and still achieving the potential tax revenue. 

Mayor Jeff Cheney has said multiple times over the years that the Dallas Cowboys moving to Frisco would create a “halo effect” for our local economy.  That means it would form a positive cognitive bias that would increase the city’s presence, brand, and attributes making it attractive to other developers and Fortune 500 businesses, so they would want to be and call Frisco home. That leads to my next question, which is logically thinking if we had to recruit businesses by offering oversized incentives before, then what does the “halo effect” do for us now?  Does it mean we will not have to dole out large incentives or deals as we had in the past?

Then I thought of marketing, the Dallas Cowboys logo, and the brand is one of the most famous in the world, and companies pay big bucks to do partnership deals with America’s Team.  In 1995 Jones had deals with Nike, Pepsi, American Express, and AT&T that were worth more than $60 million.  In 2013, AT&T bought the naming rights to the Cowboys Stadium for up to $20 million a year.  In 2022, it was reported that the Cowboys grossed $220 million in stadium ads and sponsorship revenue.  They also have million-dollar deals with WinStar World Casino, Lincoln Motor Company, Ford, Omni Hotels and Resorts and we could go on and on.  So surely in all these deals or incentive packages the city worked out something where we could put the Cowboy’s famous Blue Star on The City of Frisco webpage with a tagline “Home To The Dallas Cowboys World Headquarters” or when you open the Frisco EDC webpage to show off and increase the so-called “halo effect” to future companies looking to relocate to our great city.  A quick surf of our sites there are pictures of The Star but none of the famous and iconic Cowboys branding.  Nope, nothing, zilch!

What I did find interesting is a 2021 Dallas Morning News article talking about Monument Realty and how they were named the Official Real Estate Company of the Texas Rangers and you guessed it, the Dallas Cowboys.  Dak Prescott is listed as its “chief quarterback officer” and The Cheney Group hangs its hat there.  We are awe-struck really because we know that had to cost them a pretty penny to obtain those deals.  I mean one would assume that based on the millions of dollars other companies have to pay for partnership deals with these sports teams.

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 Cost of Doing Business

by | Feb 27, 2023 | Campaign Donations, Campaign Finance Reports, City Council, Developements, Developers, Fehmi Karahan, Fields West, Jerry Jones, John Keating, Mayor Jeff Cheney, Politics, Robert Elliott, Robert Elliott - The Associates, Stillwater, The Link, The Preserve & Fields, The Star, Universal Kids

Since childhood, I have loved a movie night with the family.  My dad would take me to the corner store where he always got my mom a Bit-O-Honey and then he would look at me and say in his deep voice, kid you can pick a sweet treat too.  I am sure I smiled ear to ear the whole way home looking out the window of the old truck with my $100,000 candy bar in my hand.  Today the candy bar is called 100 Grand and I still pick one up every Friday with a quick pick lotto.  In the movie Other People’s Money (1991), Lawrence Garfield said, “I love money more than the things it can buy…but what I love more than money is other people’s money.”

Our lives center around other people’s money, and we don’t even realize it.  The bank owns the home until you make the last payment.  The car belongs to the lender until you make the last payment.  The new furniture you bought at Nebraska Furniture Mart that is financed over 24 months is not yours until the last payment.  By now you see the connection, until we make the last payment the thing we love is not really ours.  Politicians LOVE other people’s money because it helps pay for costly campaigns.  The more campaign contributions they bring in, the less they will have to take out of their own pockets or through a loan.  Political contributions are a time-honored tradition, and some would say “The Cost of Doing Business.”

In 2019, Sharon Grigsby with the Dallas Morning News did an article about Phillip Michael Carter, who was accused of taking advantage of elderly investors for million dollars, and the relationship he had with both Cheney and Keating’s campaign. Cheney received $15,000 and Keating received $5000 from Carter, both said they were returning the donations which was the right thing to do.  She interviewed Cheney for about 45 minutes and Cheney told her he met Carter sometime after he became Mayor in 2017 and Carter later visited his office at City Hall about a sign-ordinance provision that was causing him difficulties at his Preston Road commercial property. Cheney said it was not unusual and most developers reach out to the mayor and ask for help. Cheney confirmed he helped resolve the issue but was steadfast that the 2018 campaign contribution was not tied to that case and said, “there was never a this for that.” 

Cheney also told Grigsby that his “reputation is everything to me.”  He regrets not looking deeper into the allegations but he is “so busy every single day, from sunup to sundown to the weekends.”  The article goes on to say Cheney first learned of Carter’s state charges and arrest relating to fraud charges on November 14, 2018.  He immediately linked the $5000 donation from Carter but said he had completely forgotten about the entire case until he began reviewing his campaign finance reports in anticipation of his interview with Grigsby.  He admitted in the interview much of what Grigsby was laying out in regard to charges was news to him.  The article was riveting but it never discussed the timeline between his donations and when the “issue” got fixed so we did some research.    

May 24, 2018:  Cheney $10,000 by Carter Family Office LLC (Phillip Carter)

October 10, 2018:  Cheney $5,000 by North Forty Development (Phillip Carter)

October 15, 2018:  Keating $5000 by Texas Cash Cow (Phillip Carter)

October 23, 2018:  P&Z holds a public hearing for Sign Variance: Preston Wade Crossing by Frisco Wade Crossing Development Partners, LLC (Phillip Carter)

**Interesting fact the P&Z Commission in 2018 was led by Robert Cox who was appointed to the Commission in April 2016 with the first motion by John Keating and second by then councilman Jeff Cheney.

January 2019:  SEC Files Charges against Phillip Carter for a multi-million dollar fraud scheme that took place from May 2015 to Feb 2017 and totaled around $45 million dollars and was sentenced to 45 years in prison.

In 2019, Frisco’s population according to the US Census was about 200,907 people. It is hard to believe that someone who is the mayor of a booming and bustling town and also an extremely successful businessman could just “forget” about a fraud case that involved a real estate developer and millions of dollars. At the time it was plastered in local DFW papers and the top story on most local news stations.  To be fair, Cheney and Keating accepted a campaign donation and nothing illegal occurred. They were never named in allegations that involved Phillip Carter and both returned the donations.  Again, this is just another situation that “doesn’t look good” and could lead many to believe that something improper was happening, even if it wasn’t.  That old perception is reality for many folks is a stinker.

Another thing we learned from Grigsby’s March 2019 DMN article was Cheney’s personal policy of not accepting more than $10,000 from a single donor when it comes to campaign contributions. I am not sure when that became his policy because he accepted $20,000 in 2017 plus $6000 in 2020 from Ali Kahla who we believe was a representative for IGO-USA, The Gate developer. I guess he also must have been ridiculously busy and forgot his personal policy almost 9 months after his interview with Grigsby and the article because in 2020 he accepted $15,000 from Fehmi Karahan (Fields).  Again, we want to say there is nothing illegal about the donations (we don’t want to be sued) other than they seem to break his personal policy.  I guess it is good to have a flexible policy that benefits you when needed.

Philip Anthony Hopkins who played Odin in the movie Thor said, “Even with two eyes, you can only see half of the picture.” If that is true, then we should all go to the Ophthalmologist to get our eyes checked out. The problem is repetition, the action of repeating something that you have already done or the recurrence of an action or event.  The repetition of “it just looks bad” starts to become a theme and that can have a detrimental impact on the citizen’s perception of you and the city. The conversation becomes about the lack of trust and confidence in our city, the city council members, and our mayor.

DARK MONEY

by | Feb 22, 2023 | 12 Cowboys Way, Campaign Donations, Campaign Finance Reports, City Council, Developements, Developers, Fehmi Karahan, Fields West, Jerry Jones, Jerry Jones - Blue Star Land, Jerry Jones - Dallas Cowboys, PGA Frisco, Politics, Rex Glendenning - Rex Real Estate, Robert Elliott, Robert Elliott - The Associates, Stillwater, The Link, The Preserve & Fields, The Star, Wade Park

Dark Money is a powerful documentary by Kimberley Reed about a dangerously corrupt campaign finance system that has shifted the power in politics from the people to pay-to-play corporations at the state and federal politicians.  In Texas, Title 15 of the election code regulates political funds and campaigns. It was adopted by the Texas Ethics Commission and applies to candidates and officeholders in local municipalities across our state. In Texas, campaign finance reports are accessible to the public and show how much money is coming into a campaign and how much is being spent.  The Texas Tribune said it best, the disclosure of the reports makes it hard to hide some kind of corrupt bargain.  An individual can make a donation to a campaign, but a corporation is prohibited.  The City of Frisco has campaign finance reports available online at https://www.friscotexas.gov/634/Campaign-Finance-Reports for each candidate or office holder present or past. You can also see mayor and council reimbursement reports.  

I was interested to see if any individuals associated with the PGA, The Link, or Fields projects donated to any of our current sitting city council members. While doing the research it has hard to be sure a specific individual is connected to a specific project but my wife and I did our best to try and piece it together.  We listed it by date, candidate, amount, the person who donated & possible association up through the year-end of 2021.  The donation date, dollar amount, and donor name came directly from the council member’s campaign finance reports.  The “possible association” to the project is based on what we could find from news articles, websites, city council meetings, and online research. 

3/29/17 Cheney $2000 from John Wagner (Republic Property Group) – Fields

3/29/17 Cheney $1000 from John Wagner (Republic Property Group) – Fields

3/29/17 Cheney $2000 from Anthony Ruggeri (Republic Property Group) – Fields

December 4, 2018 – City Council Approves PGA

1/14/19 Woodard $750 from Chris Kleinert (Hunt Corp)

1/14/19 Woodard $750 from Michael Sinacola (Mario Sinacola & Sons – Excavating)

1/14/19 Woodard $500 from Jeff Brawner (Grogan & Brawner PC) Fields Karahan Atty

1/14/19 Woodard $500 from RJ Grogan (Grogan & Brawner PC) Fields Karahan Atty

1/14/19 Woodard $500 from William Vanderstraaten (Chief Partners) Fields Investor

1/14/19 Woodard $800 from Fehmi Karahan (Karahan Co) Fields

1/24/19 Woodard $750 from James Sinacola (Mario Sinacola & Sons) Fields Excavating

** NOTE: Woodard was up for re-election in the May 2019 election

4/3/19 Cheney $5000 from William Shaddock (Shaddock Homes) Fields Home Builder

9/20/19  Livingston $750 from Bill Vanderstraaten (Chief Partners) Fields Investor

9/21/19  Livingston $750 from Chris Klienert (Hunt Corp) Landowner

9/23/19  Livingston $1000 from Philip Rose (CrossTie Capital) Fields Investor

9/25/19  Livingston $750 from both Chris & Constance Kleinert (Hunt Corp) Landowner

9/25/19  Livingston $1000 from Fehmi Karahan (Karahan Co.) Fields

12/1/19 Cheney $5000 from Robert Elliott (Stillwater Capital) – PGA & Link

1/7/20 Cheney $1000 from Robert Rowling (TRT Holdings) Omni Resort

1/7/20 Cheney $2000 from Charles Adams (Stratford Group) Fields Capital Investor

1/13/20 Cheney $1000 from Kerry Britton (Britton Homes) Fields Home Builder

1/28/20 Cheney $1000 from Chris Klienert (Hunt Corp) Fields

1/29/20 Cheney $2000 from John Wagner (Stillwater Capital) – Fields

1/29/20  Cheney $1000 from James Sinacola (Mario Sinacola & Sons) Fields Excavating

1/29/20  Cheney $750 from Michael Sinacola (Mario Sinacola & Sons – Excavating)

1/29/20 Cheney $2500 from John Landon (Landon Homes) Fields Builder

1/29/20 Cheney $2500 from Steven Van Amburgh (KDC) Fields Development Team

1/29/20 Cheney $15,000 from Fehmi Karahan (Karahan Co) – Fields

1/29/20 Cheney $1000 from Chris Klienert (Hunt Corp) – Landowner

1/29/20 Cheney $5000 from Daniel Hunt (Hunt Corp)  – Land Owner

1/29/20 Cheney $1000 from Jeff Brawner (Grogan & Brawner PC) Atty for Karahan

1/29/20 Cheney $1000 from Ryan Griffin (FCS Trucking & Construction)

1/30/20 Cheney $1030 from William Shaddock (Shaddock Homes) Fields Home Builder

1/31/20 Cheney $2500 from Tobin Grove (KDC) Fields Development Team

**Note: November 2020 – Mayor Cheney 2nd Term, ran unopposed for re-election.

Feb 25, 2020, P&Z Approves Fields

March 17, 2020,  City Council Approves Fields

March 12, 2021,  P&Z Approves The Link

3/31/21  Keating $1000 from Chris Klienert (Hunt) Landowner

4/2/21  Keating $3000 from Philip Rose (CrossTie Capital) Fields Investor

April 6, 2021,  City Council Vote On The Link (heldover to 5/4/21)

4/10/21  Keating $1000 from Bill Vanderstraaten (Chief Partners) Fields Investor

4/12/21  Keating $500 from RJ Grogan (Grogan & Brawner PC) Karahan Attorney

4/12/21  Keating $1000 from Collin Fitzgibbons (Hunt Corp) Landowner

4/13/21  Keating $250 from Jeff Brawner (Grogan & Brawner PC) Karahan Attorney

4/15/21  Keating $1500 from Fehmi Karahan (Karahan Co.) Fields

**NOTE: Keating was running for re-election in the May 2021 General Election.

4/22/21  Pelham $1500 from Philip Rose (CrossTie Capital) Fields Investor

4/22/21  Pelahm $500 from Chris Klienert (Hunt Realty) Landowner

4/22/21  Pelham $500 from Bill Vanderstraaten (Chief Partners) Fields Investor

4/22/21  Pelham $500 from Colin Fitzgibbons (Hunt Corp) Landowner

4/22/21  Pelham $250 ea. from Jeff Brawner and RJ Grogan (Grogan & Brawner PC) – Fields Attorneys

** NOTE: Pelham was running for the May 2021 General Election.  She was not a seated member at the time.

May 4, 2021, City Council Approves The Link

7/1/21  Pelham $500 from Bill Vanderstraaten (Chief Partners) Fields Investor

7/1/21  Pelham $1000 from Colin Fitzgibbons (Hunt Corp) Landowner

7/1/21  Pelham $500 from Chris Klienert (Hunt Realty) Landowner

7/12/21 Keating $1500 from Fehmi Karahan (Karahan Co) Fields

7/25/21  Woodard $1000 from Bill Vanderstraaten (Chief Partners) Fields Investor

7/27/21  Woodard $1000 from Chris Klienert (Hunt Realty) Landowner

7/27/21  Woodard $500 from Whitney Grogan (Grogan & Brawner) Fields Attorneys

7/28/21  Woodard $500 from Jeff Brawner (Grogan & Brawner) Fields Attorneys

7/30/21  Woodard $2000 from Philip Rose (CrossTie Capital) Fields Investor

8/1/21  Woodard $1500 from Fehmi Karahan (Karahan Co) Fields

8/6/21  Woodard $1000 from Colin Fitzgibbons (Hunt Corp) Landowner

What did we learn as we followed the yellow brick road?  First, we looked for donations that occurred within a few months of a vote.  For example, Woodard received almost $4500 dollars in campaign contributions from individuals with connections to these projects in January 2019.  That was just one month after the city council approved the PGA. While it doesn’t look good to get donations so close to a vote it could be justified as he was running for re-election in the May 2019 general election. 

The same could be said for Mayor Cheney who in December 2020 received $5000 from Robert Elliott of Stillwater Capital and then in January 2020 received $30,000 + in campaign contributions from individuals associated with these projects. Most of the donations occurred between 1/27/20 to 1/31/20. The largest donor was Fehmi Karahan with $15,000.  Then the city council approved the Fields project in March 2020.  Cheney did run for re-election in 2020 unopposed so the public could justify the contributions.  In general, it is not a good look but that will be up to the public to decide.

Another important “hot” race in 2020 was between Robert Cox, Dan Stricklin, and Laura Rummel.  With them being all new candidates, why was this important?  Robert Cox was Chairman of the Planning & Zoning Commission for the City of Frisco in 2020.  While he did not vote on the decision he did oversee the committee which approved the Fields project on February 25, 2020.  After the vote, he received about $45,000 in campaign contributions before the November 2020 election. The general public has to determine if it looks bad or is justifiable since he was running for council.

Keating & Livingston also has the same dilemma. From the end of March 2021 to July 2021 John Keating received around $14000 from individuals associated with these developments. The vote for the Link was expected to be in April 2021 but it was held over until May 2021. One would say the timing does not look good for Keating, but he was running in the May 2021 General Election. Livingston received around $6000 in September 2019 which was six months after a vote and 6 months before the next vote.  No votes occurred in the immediate proximity to the timing of his donations which bodes well for him.

In a previous blog, I wrote “Pretend for a moment, everything is above board, and there is no shady shit happening but there is an appearance of wrongdoing, that appearance is just as important as reality in the minds of the public, citizens, and voters.” Frisco residents are calling for transparency and that is not an unreasonable request of those “WE” elect to office. Council members push their own personal agenda, and it is time they listen to what “WE” the citizens want. I learned that looking at campaign donations can show who is invested in certain candidates. Donations are not a sign of any wrongdoing or illegal activity, but they can create doubt or a perceived conflict of interest. It is a fine line between a simple campaign donation and a pay-to-play scheme or dark money. Matlock would say to look at it from another angle. Pretend a project is not popular with residents so they speak out against it and the council votes to pass the project. Several months later we find out that the candidate had accepted thousands of dollars from individuals involved in said project, would you believe the candidate voted for it because that is what was best for the city and residents or because they got paid? Residents should call for an end to the shady shit and ask the City of Frisco to adopt a similar policy to the City of Plano which states a campaign contribution of more than $1,000 to any city council member(s) shall create a conflict of interest based on an appearance of impropriety. Problem Solved and peace of mind for everyone!