The Real Deal: Trouble in Frisco?

A morning routine helps us set the tone for the day, better allowing us to control our schedules rather than our schedule controlling us. There are science-backed benefits of having a morning routine: Past research has shown that a consistent morning routine can reduce stress, boost your energy levels and improve your productivity at work.

My wife and I have a morning routine and my favorite part of it is sitting in front of our bay window reading the paper and having coffee.   However, this morning my wife was not too happy when I spit my coffee out all over the bay window and her new cushions.  What could make me do that?  Well, it was the headline in The Real Deal, an online real estate newspaper that read, “Stillwater Files Bankruptcy on Highland Park’s Mondara Condos.”

What are the Mondara Condos?  The condos were sold as a high-end luxury multifamily living project  in the prestigious Highland Park area.  Jess Hardin who wrote the article notes that today the community is at the center of a legal battle in which the developer, Stillwater Abbott Development, has filed for bankruptcy. 

Harden writes, “The Dallas-based developer filed for bankruptcy protection in the Northern District of Texas on Jan. 12. The filing comes almost four years after the Mondara Condominium Association sued the developer – and related entities Stillwater Abbott Management and Stillwater Abbott Development – for construction defects.  In the bankruptcy filing, Stillwater wrote that it had fewer than 50 creditors, less than $50,000 in assets and less than $50,000 in liabilities. The paperwork was signed by Robert Elliott, the manager of Stillwater Capital Investments. 

Why would the association sue the developer?  According to The Real Deal, in a 2020 lawsuit the association claimed the property was “negligently constructed!”    Oh yeah, the lawsuit states it was poorly constructed causing leaks, floods, and was a fire hazard.  The Real Deal also reported that the lawsuit alleged, “The roof, stucco cladding, windows, doors, fireplaces, interior and exterior walls, parking garage and courtyard must be extensively repaired or replaced. 

You are probably wondering, what does this have to do with Frisco, Texas?  If you read our blog Anatomy of a Friendship we did a very deep dive into the relationship of Mayor Jeff Cheney and Robert Elliott.  In July 2016, Robert Elliott created The Associates, a full-service residential real estate brokerage that Mayor Jeff Cheney joined in November of 2017, right before the big “FRISCO PGA DEAL.”  The same Robert Elliott who is a founding partner of Stillwater Capital.  His own bio from the company’s website reads, “Through the company’s custom home building brand, Robert Elliott Custom Homes (RECH), Elliott leads one of Dallas’ premiere single-family builders.

In 2021, Clay Roby represented Robert Elliott and Stillwater Capital when asking our council to approve The Link project that connects to the PGA.  At one point in the discussion it was clear Clay Roby was tired of the delays and truthfully they felt this should have been a no brain vote after what they did for us bringing the Frisco PGA to town. When the council members got caught up on apartment multi-family the Mayor Jeff Cheney tried to even redirect the conversation, saying what else will it offer?

Stillwater Capital has a large investment in Frisco starting with The Corvalla, The Link, PGA Frisco, Link Multifamily Phase 1, and Greenway Village at The Link.   All the projects were approved while Cheney has been on council or up at the pulpit as Mayor.  The projects Stillwater Capital pitched here are no different than the Highland Park project based on the pictures they presented to the council on the Frisco Cottage development was to look like.   SHOULD WE BE WORRIED ABOUT THESE PROJECTS? 

Credit: The Real Deal Real Estate News By Jess Hardin & Researched by Christian Bautista

Anatomy of a Friendship

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 18, 2021: Council Approves The Link

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

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

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

The Cost of Doing Business

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

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!

Fields West Dynasty

I remember as a teenager sitting around the living room with my family once a week to tune in to our favorite family show Murder She Wrote. Jessica Fletcher played by Dame Angela Lansbury was not cocky, but she did know her own skills.  She knew to ask questions when she didn’t understand something and how to rely on others who may have the expertise in an area she didn’t.   My favorite thing she used to say episode after episode was “Now, I may be wrong, but frankly, I doubt it.” She taught me to be curious and to ask questions which is why once my interest was peaked I could not stop diving into what I believe is the Shady Shit happening in Frisco.

As I said in my last blog I had all these questions about how Mayor Jeff Cheney could represent Fehmi’s Fields lots and advocate for Universal at the same time.  In my humble opinion, there is a clear conflict of interest and that made me want to deep dive into Fields.  To start, you must understand that the PGA, The Link, and Fields are 3 separate world-class developments, but one would not have happened without the other.  Hunt is who identified and purchased the 2544 acres of land on the DNT.  Hunt has partnered with Stillwater Capital to do the PGA and The Link.  Hunt then announced its partnership with Fehmi Karahan (Legacy West Developer) to do the Fields West development.  Fields website states it will be home to restaurants, businesses, ten thousand homes, schools, parks, and open spaces.  It will also be home to the PGA headquarters and the University of North Texas.

Now we have identified two players in the Fields project: Hunt Realty Investments and Fehmi Karahan.  The investors are Chief Partners and CrossTie Capital, and the development team is led by KDC Architects.  Home builders will include Darling / Taylor Morrison, Britton / Perry, Highland Homes, Olivia Clarke, Shaddock Homes, Toll Brothers, and several more custom home builders.  Mario Sinecola & Sons will probably be doing the excavating and FCS Trucking will also be involved.  In a nutshell, there are a lot of players in the overall project.  So how does Jeff Cheney fit into this?

Let’s follow the social media trail. On October 13, 2022, the Cheney Group announced The Preserve at PGA was teeing off.  It went on to read the Cheney Group would be the Fields Experts. Just days later October 16th the Cheney Group released a video with Jeff Cheney presenting all things PGA. You can check it out on the Cheney Group YouTube Channel.  On October 17th Jeff Cheney led Monument Realty’s Roadmap 2023 event where they shared tips and tricks with top agents.  The same day on social media the Cheney Group released a video of the Championship Holes 14 & 15 the Preserve lots overlooking them.  On October 19th they announced they just got their hands on the first set of floor plans for Brookside South at PGA and they had several more upcoming builder meetings planned and could not wait to fill us in!  Fast forward to Nov 2nd Capital Title hosted a knowledge session for Realtors in North Texas at Stonebriar Country Club led by Jeff Cheney.  On Nov 8th they meet with architects involved at The Preserve to learn about the level of standards they would be bringing to the Preserve.  We could keep going but I think you get the idea!

Just following the social media trail, we are left with several questions. Does the Cheney Group have an exclusive to the lots?  If so, is that because they are a top-producing team or because Cheney is mayor, and when was the deal made?  The Monument Realty Roadmap Show was that for Monument agents only or were other agents outside the brokerage invited?  How did other brokerages in DFW learn about the PGA’s future homesites? Did other brokerages get to have exclusive sit-downs with the architects?  Can any agent go out to the 14th and 15th holes and take photos of The Preserve homesites overlooking the course?  Did other brokers and agents get their hands on the floor plans the same day as the Cheney Group or after? The Capital Title knowledge session that was held for local realtors, was the Fields representatives, home builders, and developers there, or was this led by Mayor Jeff Cheney or Jeff Cheney of the Cheney Group?  It makes me curious, why are other agents and brokerages not outraged by the exclusive access Cheney seems to have?

Just the other day I visited my favorite coffee shop and two agents sitting next to me were talking in low whispers about how they felt it was a massive conflict of interest that the Cheney Group has an exclusive.  I wanted to jump up and say, me too but I didn’t.  I just sat quietly with my head tilted back reading the paper and listening to them vent their frustrations.  I don’t fully understand if Cheney has an exclusive right to these lots but it is clear that the Cheney Group has a leg up on any other brokerage or realtor when it comes to the PGA which is one of the most notable developments to hit North Texas. If the Cheney Group does have an exclusive and he is profiting from his position and connections as Mayor then an argument could be made there is a serious conflict of interest and Mr. Cheney should recuse himself from all talks, votes, well anything that has to do with Fields West.  

Someone told me once “It would be better for us to have some doubts in an honest pursuit of truth than it would be for us to be certain about something that was not true.” So in my search for transparency, and the need to know the truth, I decided to file a PIR to obtain more information.  That is where I found some shady shit!

Dynasty of A Development

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.