House of Cards

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

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

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

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

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

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

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

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

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

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

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

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

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!