The Universal Mystery Machine (updated)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

House of Cards

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

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

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

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

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

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

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

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

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

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

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

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

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.

The Silicon Valley of Golf

by | Feb 21, 2023 | Campaign Donations, Campaign Finance Reports, City Council, Developements, Developers, Fehmi Karahan, Fields West, Mayor Jeff Cheney, Omni PGA Resort, PGA Frisco, Politics, Robert Elliott, Robert Elliott - The Associates, Taxpayer Dollars, The Link, The Preserve & Fields

Rain, rain go away, come again some other day!  Many were hoping and wishing for that back on August 22, 2022.  The metroplex had a few days of intense rain and the overcast sky gave off a humble gray tone.  By mid-morning to everyone’s delight a glorious glow from the sun appeared from behind the two-tone gray moving clouds.  This was going to be a monumental day for Frisco as the PGA of America unveiled its new $33.5 million dollar headquarters.  Along with the new headquarters, Forbes Magazine reports the 600-acre campus will include two 18-hole courses, Fields Ranch East and Fields Ranch West, plus The Swing, a 10-hole, par-3 short course.

There is no doubt the PGA was an extraordinary WIN-WIN for Frisco.  It was reported that the deal included a $90 Million abatement, which means the PGA won’t pay property taxes for at least two decades.  The economic impact is expected to be $2.5 BILLION over the next 20 years for North Texas according to a State of Texas study.  PGA President Jim Richerson said, “the new HQ will be a first-of-its-kind golf laboratory that offers the best in professional development for our nearly 28,000 PGA professionals.”  The big draw for the PGA was the opportunity to create a destination instead of the standard office development. 

Surrounding the PGA campus will be the Omni PGA Resort which Texas Monthly reports will be the second largest resort in Texas at a cost of $520 million.  A pedestrian promenade will link the PGA to its neighbor, The Link, a $1 Billion-dollar mixed-use development featuring office space, dining options, and green park space.  The 240-acre master-planned project is the brainchild of Dallas-based investor/developer Stillwater Capital. 

The entire project is nothing short of extraordinary and I wanted to know how did it end up in Sports City USA?  I found an amazing article by LocalProfile.com that talked about how in 2014 a local dad convinced The PGA to move to North Texas.  David Ovard’s two sons had a natural talent for golf but there were a limited number of courses available for teen boys to practice.  He felt like Sports City USA forgot one major sport, Golf!  It started with a napkin, some connections to important people, and a father’s determination to give his two boys and other teens a chance to achieve their golf dreams. I was stunned to learn that one man had the idea and the golf drive (a long-distance shot) to make it happen. 

I had no idea the project dated back to 2014 or that the first visit by a PGA official to tour sites was in 2015. In 2017 city officials and local movers and shakers traveled to North Carolina for a championship PGA event to talk with PGA officials. The turning point was in 2018 when Omni Hotels & Resorts,  local Dallas-based developer & investor Stillwater Capital, and Woods Capital came together and committed to the project. This commitment is what helped to solidify an amazing win for so many.

Stillwater Capital is a co-owner in PGA Frisco today and is owned by Robert Elliott. In reading several articles that name stuck out to me. Elliott also owns a full-service real estate brokerage called The Associates which was formed in July 2016. While sitting in my favorite lazy-boy recliner, I glanced at a timeline I had written on a little notepad with my old teeth-marked pencil (old habit) sitting on the side table.  In November 2017, just a few months after that official visit to North Carolina, Cheney’s Real Estate Group joined The Associates, owned by Robert Elliott. Based on that relationship, Cheney had to file affidavits to recuse himself from discussions in executive session.  Filing the affidavit was 100% the right thing to do!  There was one thing that puzzled me, did the new relationship give Cheney behind-the-scenes access to these 3 world-class developments since he shared an office with Stillwater Capital and worked with The Associates?  Did he recuse himself as Mayor from all conversations or meetings with developers and did he recuse himself from council discussions, due to his relationship with Stillwater Capital?  What is the city’s policy when it comes to conflicts of interest?  What is the State of Texas policies when it comes to politicians and potential conflicts of interest? 

There is one thing for certain, after the Win-Win of the PGA the goal to become Sports City USA was complete. Its fantastic for local residents, businesses, future teen pro golfers and for the City of Frisco and the State of Texas.

Field of Dreams

by | Feb 19, 2023 | Campaign Donations, Cheney Group, Fehmi Karahan, Fields West, Matt Sapp - President of FFFA, Omni PGA Resort, PGA Frisco, Politics, The Preserve & Fields

Ralph Waldo Emerson once said, “Curiosity is lying in wait for every secret.” One of the driving forces behind human discovery is curiosity. What if Galileo never bothered to look through his telescope? He would have never observed celestial bodies proving that there were objects in space. A person’s curiosity to look at something and then want to know the story behind it is what changed the world thousands of times. I am no Galileo, but my curiosity is what drives me to investigate to find the truth.

For years drivers along the DNT, Panther Creek and 380 roadways wondered “what will these fields develop into one day?” I don’t think Frisco residents ever expected 3 world-class developments centered around the PGA & Golf. There is no doubt about it, the deal is a win-win for Frisco and its residents. The portion that intrigued me was Fields, a 2100-acre master-planned community. Plans for villages (neighborhoods) and a network of trails built around the natural topography sound brilliant! It soon became clear with the Cheney Group announcement of being the Fields experts, that he had access to information, homesites, and builder information before anyone else in real estate and that was a red flag for me.

I am not the first to ask questions or have the hair on the back of my neck stand up. Take a moment and browse social media and you will see residents ask questions in regard to Cheney profiting personally from his position as Mayor. In May of 2018, Texas Scorecard released an article by Ross Kecseg asking will the Mayor profit from the PGA deal. On June 25, 2018, Texas Scorecard writer Ross Kecseg released another article regarding the Frisco mayor lashing out at PGA deal coverage and that he has threatened to sue Texas Scorecard to uncover their sources. The articles questioned the conflict between Stillwater Capital, The Associates and the closely tied relationship to Cheney.

In going through documents from a PIR request, I came across a series of emails. The first email was August 1, 2019 and it was written to Mayor Cheney from Holly McCall, Admin Assistant to the Mayor & Council. It reads
On Thu, Aug 1, 2019 at 11:23 AM Holly McCall wrote:
Mayor Cheney,
A gentleman named John Baumgarten, from (redacted) (investors group), came by the office this morning to invite you to attend a dinner on Sept. 10 at 6 pm at Del Frisco’s, Legacy West. Beau Welling plans to speak about building golf courses, including the PGA project. They would love for you to participate in a Q&A at the end if you are willing. Mr. Baumgarten says this is a group (of @ 25 investors) with an interest in golfing and the PGA Project, and that they “are not selling or promoting anything.”
They have also invited some of the Omni Group and Joe Trahan from Channel 8.
John Baumgarten
Principal, Private Wealth Management

The same day at 10:13 pm, Lorie Medina who was known as Mayor Cheney’s Chief of Staff responded. It’s important to note that Lorie Medina was not a city employee, she was paid by the Mayor $5000 a month from his campaign.

On Aug 1, 2019, 10:13 PM -0500, Lorie Medina , wrote:
Would you like me to ask Jon McCary about this firm? This could be a good discussion since we are trying to attract VCs and PE firms to Frisco for Inspire Frisco. Also, it might be good to include him at the meeting, if possible.

VC standards for Venture Capital Firm and they invest in industry startups and PE stands for Private Equity Firm and they buy companies and overhaul them to earn a profit. Capital for investments comes from outside investors. Inspire Frisco helps to build a network for Frisco entrepreneurs.

August 2nd the Mayor replies from his Cheney Group personal email where he was a Broker Associate with The Associates Realty and it reads
On Fri, Aug 2, 2019 at 12:58 PM Jeff Cheney wrote:
Would love his input if he thinks it’s a worthwhile use of time. I do not normally want to kill an entire evening unless necessary.
Jeff Cheney, CPA
Broker Associate
The Associates Realty
One Cowboys Way
Frisco, Tx 75034
www.CheneyGroup.com

Were the emails a big deal? We didn’t think so until we hit another email sent from John Baumgarten to Jeff Cheney on September 11, 2019. It reads

From: “Baumgarten, John”
Date: September 11, 2019 at 11:24:14 AM CDT
To: Jeff Cheney JCheney@friscotexas.gov
Subject: B & B dinner

Jeff,
Cannot thank you enough for carving out some time for us last night and sharing the history and vision of this spectacular project. Congratulations for putting this audacious project together.
As a small token of my appreciation, I would love to make a donation to a charity that is connected to this project – let me know what you suggest. I would also like to get on the unofficial lot list – let me know what is involved in that.
Thank you again. Maybe we can host another event as we get closer to the next phase being completed. Again, thank you for participating. My guests really enjoyed it based on the early feedback.
John

To understand why this email is important you must rewind to the Facebook post on 10/13/22 where the Cheney Group announced they had been working on something special for the last year. They were excited to announce the Cheney Group team were the Fields Experts and that The Preserve at PGA was teeing off and lots were going fast. The Perry Mason in me had some serious questions.

First, the email above was from 2019 and John asked how to get on the unofficial lot list mentioned at the dinner and what was involved in that. What unofficial lot list and were these lots for the Preserve village? Was Mr. Cheney the only one with access to sell these lots? How many of the unofficial lots were sold prior to the public announcement lots were available? The post said his group had been working for the last year, but the emails were from 2019 so did he work on it for more than a year?

Second, John also mentions making a donation to a charity connected to the project and we safely assumed he meant the PGA/Fields project. We were surprised that Mr. Cheney forwarded that to Lorie Medina to ask her thoughts. She responded with how about we send him to www.giveforfrisco.com and he can pick a charity of his choice. Wait a minute! Was the donation part of getting on that unofficial lot list? Was there an expectation that if a donation was made the person would have more access to the unofficial lot list? The fact that he forwarded the email to Lorie asking for her thoughts, does that display his willingness to accept a donation?

Third, the thank you email was sent to the mayor’s official email address. However, we did not see a response to it! Does that mean the mayor never responded to the gentleman’s two questions? Does it mean he replied through his private email since he knew any communication could be a public record? To give the benefit of the doubt, we are going to assume it was not included since it was out outside of the scope of the PIR.

Truth and Transparency are what residents want and it seems like we always moving in circles without an end or satisfactory answer. The emails by themselves seem like little concern but the emails as a whole have very shady implications. Even if nothing wrong took place, the appearance of impropriety is enough to cause doubt that shady shit is happening in Frisco.