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Tuesday, January 25, 2011

Jacob's Well land deal may come with a million-dollar tax write off


Commissioner Conley had gone on record at the November 23 Commissioners Court meeting as saying that he would not change the deal to give a tax write off to the sellers


Note: This is the second story in an exclusive RoundUp series called Big Money Environmentalism in Hays County: What You Should Know by citizen journalist Lenee Lovejoy of San Marcos. Scroll down several stories to read the first report. Lovejoy has spent considerable time scouring county public records and otherwise covering her reporting bases. Here, she examines contracts and other official records to reveal more of a complex purchasing arrangement of those famous 50 acres adjacent to Jacob's Well for $1.7 million than what the tax paying public has been led to believe. It takes a fair amount of hutzpah to try to pull some of the apparent end runs we're seeing revealed in this tangled deal – and some familiar names are involved. Why are we not surprised. The taxpayers deserve more transparency and honesty in how their money is being handled, always, and especially when accompanying an iconic and revered natural water feature as Jacob's Well.

Send your comments and news tips to roundup.editor@gmail.com, to Ms. Lovejoy at
LeneeL@centurytel.net or click on the "comments" button at the bottom of the story

By Lenee Lovejoy
Special Report

Problems seem to have arisen with the County’s controversial deal to purchase 50 more acres for conservation near Jacob’s Well. Those close to the court say that the terms for the deal were changed after County Commissioner’s Court approved the contracts last year.

Any changes would have to be presented to Commissioners’ Court at a public meeting, and approved by at least 3 votes. If that did not occur, the deal that took place on December 20 may have been executed without the proper authorizations required to conduct County business.

The contracts that Commissioners’ Court approved last November 23, among other things, called for Hays County to buy 50.199 acres for $1,700,000 from Westridge Joint Venture, LLC, and Robert L. Haug and Vinson J. Wood.

It appears that what may have taken place, however, was the purchase of roughly 30 acres for $1,700,000. This transaction was apparently used to set a per acre value of $56,666 on the remaining 20 acres. These 20 acres would have been gifted to Hays County in a second transaction that would show up on paper as a gift worth $1,133,320.

It appears that Westridge Joint Venture, LLC has asked the county to sign an IRS document acknowledging this gift.

Other than the County Judge, very few (if any) are authorized to sign the contracts required to buy and sell land on behalf of the County. Former County Judge Liz Sumter reportedly refused to sign the contracts for the modified deal.

Final verification of all of this has not been received, but it is true that the “Assignment and Assumption Agreement” that was signed on December 16, and the various deed transfer documents signed on December 17, show the signature of County Attorney Mark Kennedy, rather than that of Judge Sumter.

The option agreement for the deal identifies Precinct 3 Commissioner Will Conley as the county’s designated representative. Commissioner Conley had gone on record at the November 23 Commissioners Court meeting as saying that he would not change the deal to give a tax write-off to the sellers.

Former County Judge Liz Sumter had voted against the Jacob’s Well deal last November, citing that it would use public money for private use, which was wrong; that due diligence had not been done to ensure the County’s best interests were protected, and that it involved too much liability for the County.

Judge Bert Cobb, who took office earlier this month, had gone on record as opposing the deal because the contracts did not meet the desired objective, which was to ensure the land around Jacob’s Well would be conserved. County Commissioners who voted for the deal were Mr. Conley, Debbie Ingalsbe, and former Commissioners Karen Ford and Jeff Barton.

Further controversy has arisen since certain residents of Hays County analyzed the contracts on this and previous land buys at Jacob’s Well.

More on this in the next installment.

Lenee Lovejoy is a 15 year resident of San Marcos. After 20 years working in global corporations and public education as a systems analyst and web programmer/consultant, she decided to make a change. Today she runs a ranch with her husband and has her own web design/consulting business.

7 comments:

Anonymous said...

Excellent exposé. Conley makes one representation about the way the transaction will occur in open court. Moreover, Conley claims the County won't involve itself in such a scheme.

Then behind closed doors the transaction was carried out in a manner other than what was represented in open court. Then the transaction took place in the manner that Conley said it would not.

Apparently the means is okay so long as Conley achieves his objective of pouring money from the taxpayer coffers into Baker's/WVWA's bottomless cup.

Baker's "executive director" paychecks off this deal will be coming in well after Conley's current term in office expires. Time to cut off the trough feeding frenzy and to elect a different gatekeeper.

JJ said...

Looks like there are no sacred cows and shady deals that the Roundup won't expose. Part of me says shame on the Roundup for dragging Jacobs Well in the dirt. But the better part of me says Thanks. This story and others in the Roundup show that Mr. Baker and the rest of the WVWA crew will go any length to protect the precious Well. A laudable goal, but only if it is being done in the light of day, without manipulation and circumventing the legal process. It is looking like there is plenty of shame to go around.

Anonymous said...

I agree JJ, this is the one thing that the Roundup does that I feel is most important and it does it very well. I will hazard a guess that Messrs. Conley, Baker and Kennedy do not presently share my enthusiasm for this Blog. I am for the most part a conservative but I have found since moving to Texas that things here are not as they seem. Where did these people go to school or church to have so little regard for integrity and honesty?

I don’t know the whole story or even if it is all true but there seems to be a pattern of actions with the above mentioned players to believe it is indeed true. I do hope that Lenee keeps the pressure on and reports back often.

The two office holders will probably face stiff opponents and defeat in their upcoming elections.

Anonymous said...

"Other than the County Judge, very few (if any) are authorized to sign the contracts required to buy and sell land on behalf of the County. Former County Judge Liz Sumter reportedly refused to sign the contracts for the modified deal."

So if Sumter didn't sign it, is the deal legal?

And what about this line: "Final verification of all of this has not been received, but it is true that the “Assignment and Assumption Agreement” that was signed on December 16, and the various deed transfer documents signed on December 17, show the signature of County Attorney Mark Kennedy, rather than that of Judge Sumter."

So is Kennedy authorized to approve the deal? If not, rescind the deal. If so, let's move on.

This article has a whole bunch of innuendo and not enough solid legal expertise. Either the deal is legally valid - or it isn't.

If anything, it's a good bashing article for the WVWA and Baker haters and the fair weather Conley voters.

Wondering said...

Whom can we ask whether the purchase of land around Jacob's Well was legally done? Can the
County Attorney or District Attorney review the contracts and
see whether they are legal and
don't overstep any bounds? Can
the CA or DA say whether the proper
official signed the papers?

It's too expensive for a private
citizen to bring lawsuits against
officials and/or the county (which
is one reason unethical officials
know they can evade the law with
impunity), but maybe a public
judiciary person can investigate
the matters.

Anonymous said...

Wondering said let's ask the DA if it is legal. Well, that would be a good idea if Mark Kennedy didn't work directly for the DA. I doubt the DA would find anything wrong with what her employee did. Kennedy should work directly for the commissioners court which would leave the DA 'without conflict' to investigate the matter.

Anonymous said...

@Wondering,

Since it was apparently the County Attorney, Mark Kennedy that signed the papers for property transfer etc. he would not be the one to ask. Even if he hadn’t signed the he was up to his neck in this mess from the start. I would think the County Judge, Dr. Bert Cobb might be our only hope since he is thought to be squeaky clean as far as ethics are concerned. I think Lenee Lovejoy is doing a very good job for those of us that don’t have time or are too lazy to investigate this type of thing.

Thank You Lenee!

Showing up and speaking at the Commissioners Court is also a good way to at least let them know you are concerned about the deal.