SERVING A BIG GLASS WHILE PULLING A FAST ONE?

REGULAR MEETING 
DEVELOPMENT CORPORATION OF HARLINGEN, INC. 
BOARD OF DIRECTORS 

February 22, 2011 

A Regular Meeting of the Development Corporation of Harlingen, Inc. Board of 

Directors was held on Tuesday, February 22, 2011 at 5:30 p.m. in Town Hall, City Hall, 

118 E. Tyler Street, Harlingen, Texas.  
Those in attendance were: 

 Terry Gray  President 

 Ernesto Silva  Vice President 

 Desi Martinez  Treasurer 

 Rick Ledesma  Secretary 

Absent:      Manny Vela 

City Commission present: 

 Mayor Chris Boswell 

 Jerry Prepejchal 

Staff Present:

 Bill Martin, EDC Director 

 Carlos Yerena, City Manager 

 Brendan Hall, EDC Attorney 

 Roxann P. Cotroneo, City Attorney 

 Roel Gutierrez, Director of Finance 

 Raul Sanchez, Senior Accountant 

 Elena Garza, Assistant City Secretary

ITEM NO. 3 – EXECUTIVE SESSION PURSUANT TO CHAPTER 551, 

SUBCHAPTER D., V.T.C.A. GOVERNMENT CODE (SECTION 551.087) 

REGARDING COMMERCIAL AND FINANCIAL INFORMATION FROM 

BUSINESS PROSPECTS WITH WHICH THE BOARD IS CONDUCTING 

ECONOMIC DEVELOPMENT NEGOTIATIONS AND/OR TO DISCUSS OR 

DELIBERATE FINANCIAL OR OTHER INCENTIVES TO BUSINESSES 

PROSPECTS KNOWN AS PROJECT BIG LOT, PROJECT DOWNTOWN 

RESTAURANT AND PROJECT RESIDENTIAL 

Ernest Silva made a motion to go into Executive Session as shown above.  Desi Martinez 

seconded the motion and it carried unanimously. 

The Executive Session convened at 5:58 p.m. and concluded at 7:15 p.m. with no action 

taken in closed session. 

Note:  It was during Executive Session discussion on Project Residential that Ernest Silva and Brendan Hall left the meeting at approximately 6:35 p.m.  (CONFLICT OF INTEREST?)

SPECIAL MEETING 

DEVELOPMENT CORPORATION OF HARLINGEN, INC. 

BOARD OF DIRECTORS 

FEBRUARY 28, 2011 

A Special Meeting of the Development Corporation of Harlingen, Inc. Board of Directors 

was held on Monday, February 28, 2011 at 8:00 a.m. in Harlingen Area Chamber of 

Commerce, 311 E. Tyler Street, Harlingen, Texas.  
Those in attendance were: 

 Terry Gray    President 

 Rick Ledesma    Secretary 

 Desi Martinez    Treasurer 

 Manny Vela    member 

Absent:  Ernesto Silva 

City Commission present: Joey Trevino, Commissioner District 5 

Staff Present:

 Bill Martin, EDC Director 

 Bill Roundtree, EDC Legal Counsel 

 Elena Garza, Asst. City Secretary 

Terry Gray called the meeting to order and stated that notice of the meeting had been 

duly posted according to law. 

CITIZENS COMMENTS:

Yolanda Schoffeit, P.O. Box 697, spoke in favor of public affordable housing.  She stated 

the City of Harlingen is long overdue for affordable housing and the City needs to 

concentrate on tearing down old housing projects.   

Joe Rubio, 2309 Hacienda Road, retired police officer and private investigator, has a 

construction license and was involved with construction of homes back in the 80’s.  He 

stated that in the past three or four years there have been new bank regulations that have 

slowed down new construction of homes.  He stated this new project with 125 affordable 

homes will bring activity to the City of Harlingen.  He feels this is a positive step for the 

City.  It will bring in more new projects and good moral to the City.  He asked the Board 

to consider approving the project.  

Frances de Leon, 1217 E. Bowie, spoke in favor of bringing in the new housing project.  

This is the right opportunity for the City to grow.  It is a very good and successful project. 

Gail Moore, 709 Town Lake, stated that she tries to get involved with apartment complex 

issues no matter where the area is located within the City.  She stated the area that was 

selected for this housing project is in a very good location.  She feels that this project will

bring more jobs and property taxes into the City.  She supports this project.  

Rick Ledesma made a motion to go into Executive Session.  Manny Vela seconded the 

motion and it carried unanimously. 

ITEM NO. 1 – EXECUTIVE SESSION PURSUANT TO CHAPTER 551, 

SUBCHAPTER D., V.T.C.A. GOVERNMENT CODE (SECTION 551.07) 

REGARDING COMMERCIAL AND FINANCIAL INFORMATION FROM 

BUSINESS PROSPECTS WITH WHICH THE BOARD IS CONDUCTING 

ECONOMIC DEVELOPMENT NEGOTIATIONS AND/ OR TO DISCUSS OR 

DELIBERATE FINANCIAL OR OTHER INCENTIVE TO BUSINESS 

PROSPECTS KNOWN AS PROJECT RESIDENTIAL.

The Executive Session convened at 8:05 a.m. and concluded at 8:30 a.m. with no action 

taken in closed session. 

Present during the Executive Session were:  Gray; Martinez; Ledesma; Vela; 

Commissioner Trevino; B. Martin; Bill Roundtree and Elena Garza. 

Terry Gray asked for a brief narrative on Christie’s Cove, LTD.  He informed Rene 

Sierra that a search with State records was conducted for this entity and it did not exist. 

Rene Sierra, General Partner of Christie’s Cove, replied the name was only reserved.  

When the application is submitted the entity has to reserve the name depending on how 

the structure of the subdivision is setup. 

Manny Vela inquired about the next step in the application process. 

Mr. Sierra stated that they will be submitting the final application today.  They expect to 

learn how the project ranks at the end of June or early July.  The State will post the scores 

on their website.  

Manny Vela asked if it was a requirement that Christie’s Cove actually be formed and 

established prior to submitting the application. 

Mr. Sierra replied no, the only requirement is the reserving of the name. 

Manny Vela asked for the name of the parent company. 

Mr. Sierra answered the company name is Sal-Tech and the “Grantors” of the project are 

Rene and Ana (wife).  The other company is called “GDR” which is the developer of the 

project.  Mr. Sierra is a partner of that firm.

Manny Vela asked if these two companies are legally formed entities in Texas.  Mr.

Sierra replied no, they are legally formed in Florida.  The three corporations that reserved 

names will be Texas corporations.  

Mr. Sierra informed the Commission that Economic Development Corporation issued 

Letters of Commitment in the two other Valley Cities.  The timeline on this project starts 

in July 2011 and they expect to break grounds in December 2011.  It will take 12 months 

to open the project and then start leasing the housing units.  Hopefully, they will have 

opening ceremonies in December 2012.  The Developer/Owner will be the one paying 

taxes on the homes.  The property taxes have been set by the State of Texas based on the 

housing tax credit.   

Desi Martinez suggested that Mr. Sierra partner up with EDC with regards to hiring local 

contractors and buying materials from local businesses.  He agreed on working locally.  

Terry Gray stated after reviewing the financial statements it was noted on the footnotes 

that there is a $6 million lawsuit pending. 

Mr. Sierra stated that figure was incorrect the correct amount is $600,000 and he can 

provide the Board with a copy of the settlement that states that figure.  Terry Gray 

commented these are audited financial statements.  He asked if these numbers are correct. 

Terry Gray asked Mr. Sierra how he found out about the proposed property.  Mr. Sierra 

responded that he found out about the property from his realtor, Tony Gutierrez. 

A brief discussion followed on the housing rentals. 

Terry Gray informed Mr. Sierra that no terms have been negotiated in the commitment 

letter and he wanted him to be aware of such.  

ITEM NO. 2 – LETTER OF COMMITMENT FOR AN INFRASTRUCTURE 

LOAN IN THE AMOUNT OF $562,500 FOR THE CHRISTIE’S COVE (PROJECT RESIDENTIAL) SUBDIVISION APPROVED.

Manny Vela made a motion to approve the Letter of Commitment for an infrastructure 

loan in the amount of $562,500 for the Christie’s Cove Subdivision.  Rick Ledesma 

seconded the motion and it carried unanimously.   

AT LEAST TERRY GRAY ASKED A FEW QUESTIONS WHILE HE DRANK THE KOOL-AID!