09-07-2017 (Board of Ethics) Agenda Packet ittWylie Board of Ethics
CITY f F WYLIE NOTICE OF MEETING
Regular Meeting Agenda
Wylie Board of Ethics
September 7, 2017 - 6:00 p.m.
Wylie Municipal Complex
City Council Chambers/Conference Room
300 Country Club Road, Bldg. 100
Wylie, Texas 75098
William Martin Board Member
Steven Wright ... . .... ............................. . ... Board Member
Brian Atwood„ ..... Board Member
Quincy Johnson... Board Member
Tim Gilchrist ... ...... .............. .... .... ... Board Member
Eric Yanou .. ... ................ .... ... .... Alt. Board Member
Danyella Lanier............ .... ........ ... Alt Board Member
Mindy Manson Board Liaison
Carole Ehrlich .. ....... ........ ... Secretary
In accordance with Section 551.042 of the Texas Government Code. this agenda has been posted at the Wylie Municipal
Complex, distributed to the appropriate ne►rs media, and posted on the City website. ucwi,'.wylietxas.gov within the
required time frame. As a courtesy, the entire Agenda Packet has also been posted on the City of Wylie website:
www.s{ylietexas.Lag
The Chairman and Board request that all cell phones and pub=ers he turned off or set to vibrate. ,Members of the audience
are requested to step outside the Council Chambers to respond to a page or to conduct a phone conversation.
The itilic Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled
attendees must be requested 48 hours in advance by contacting the City Secretary's Office at 9'2.516-6023 or TD
9"2.516,6026.
CALL TO ORDER
BUSINESS ITEMS
1. Consider and act upon the appointment of a Chair of the Wylie Board of Ethics for a term of July
2017 to June 30, 2018.
Executive Summary
Resolution 2015-11 was approved by the City Council April 14th, 2015 and established the Rules of Procedure for
the Board of Ethics The Rules state that at the first meeting the Board shall select a Chairperson.
September 7,2017 Wylie Board of Ethics Meeting Agenda Page 2
2. Consider and act upon the appointment of a Vice-Chair of the Wylie Board of Ethics for a term
from July 2017 to June 30, 2018.
Executive Summary
Resolution 2015-11 was approved by the City Council April 14,h, 2015 and established the Rules of Procedure for
the Board of Ethics. The Rules state that at the first meeting the Board shall select a Vice-Chairperson
3. Screen and consider action on Code of Ethics Complaint 2017-01.
Executive Summary
On August 8th staff received a formal complaint relating to alleged violations of the Code of Ethics as specified in
Ordinance 2014-19 Per the established procedures. the complaint was reviewed by the City Attorney prior to
review by the Board.
4. Consider approval of a Complaint or Inquiry Form
Executive Summary
Ordinance 2014-19, Section 7 (H) (2) states that complaints or inquiries are to be submitted in writing on a form
approved by the Board
ADJOURNMENT
CERTIFICATION
1 certift. that this Notice of,tleetwg was posted on this day of September. 2017 at 5.00 p.►n. us required by law in
accordance u.,th Section 551.042 of the Texas Government Code and that the appropriate news media was contacted. "is a
coat-test. this agenda is also posted on the City of Wylie►rehsite: uww.Wv/tetexas.Wov.
Carole Ehrlich,City Secretary Date Notice Removed
.A. OF hip,.G t
�; , • Board of EthicsIt AGENDA REPORT
1.r4h887--$
Meeting Date: September 7. 2017 Item Number: 1
Department: City Manager
a-21'.Secretary's Use 04 )
Prepared By: Mindy Manson Account Code:
Date Prepared: August 31, 2017
Exhibits: Resolution 2015-I 1
Subject
Consider and act upon the appointment of a Chair of the Wylie Board of Ethics for a term of July 2017 to June
2018.
Recommendation
Motion to appoint as the Chair of the Wylie Board of Ethics for a term of July 2017 to June 2018.
Discussion
Resolution 2015-11 was approved by the City Council April 14th, 2015 and establishes the Rules of Procedure
for the Board of Ethics. The Rules state that at the first meeting, the Board shall select a Chairperson and Vice-
Chairperson to serve for a period of one (1) year.
The Chairperson will preside over all meetings and perform all duties as required. The Vice-Chairperson
assumes all duties of the Chairperson in their absence.
(Rev 01.2014) Page I of 1
RESOLUTION NO.2015-11(4
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WYLIE, TEXAS ADOPTING RULES OF
PROCEDURES FOR THE BOARD OF ETHICS
WHEREAS, the City Council of the City of Wylie desires for all of its citizens to
have confidence in the integrity, independence, and impartiality of those who act on their
behalf in government;and
WHEREAS, this proposed Rules of Procedure for the Board of Ethics sets out
the guidelines by which the Board of Ethics will review and act on all inquiries;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF WYLIE,TEXAS:
SECTION I: The following rules shall govern the Board of Ethics:
A. Creation and Membership
The Board of Ethics(Board) is created by Wylie Ordinance 2014-19 and serves at the will of the
City Council.The Board shall consist of five(5)regular members and two(2)alternates who will
serve no more than one(1) term of two (2) years,with the exception of the inception to achieve
staggered terms. The members will be resident citizens of the City and may not serve on any
other Council appointed Board or Commission during their term. City of Wylie employees may
not serve on the Board.The Board members are required to complete Open Meetings Act training
and receive Certificate of Completion by the first ninety(90)days of first year appointment.
B. Powers and Duties of the Commission
In response to an inquiry, the Board shall issue advisory opinions and waivers on ethical issues
arising under Ordinance 2014-19. In response to a complaint,the Board shall issue findings and
recommendations to the City Council regarding alleged violations of Ordinance 2014-19.
C. Officers
The Board shall select from among its members in the first meeting(and at such other times as
these offices may become vacant), a Chairperson and Vice-Chairperson to serve for a period of
one(1)year. In the absence of both the Chairperson and Vice-Chairperson,the Commission shall
elect an Acting Chairperson.
D. Officers Duties
The Chairperson shall preside over all meetings and perform all duties as required by law. The
Vice-Chairperson shall assume all duties of the Chairperson in the absence of the Chairperson.
E. Quorum
A quorum shall consist of three(3)members. No matters may be handled without the presence of
a quorum and all votes shall be by a majority of members present.
Rrsolraion No.2015-11(R)
Adopting Rules of procedures for
The Board of Ethics
F. Conflict of Interest
Should any member of the Board feel they have a conflict of interest with an agenda item before
the Board,they should fill out a conflict of interest form prior to the meeting and openly declare
same before discussion proceeds. The member is thereby prohibited from discussing the item or
voting on the question.
G. Abstention
Should any member of the Board choose to abstain from voting on any question before the
Commission, where no declared conflict of interest exists, their vote shall be recorded as an
affirmative vote in the official minutes of the City of Wylie.
H. Agendas
An agenda shall be prepared by the City Manager or his:her designee for each meeting of the
Board. The agenda shall be posted as required by law seventy-two (72) hours prior to the
meeting.
1. Meetings
The Board shall meet as necessary at 6:00 pm in the Council Chambers of the Wylie Municipal
Complex, unless noted otherwise. All meetings shall be open to the public, and the public is
encouraged to attend. The unexcused absence of any Board member from three (3) consecutive
regularly scheduled meetings, unless excused by the Board for good and sufficient reason as
determined by the Board,shall constitute a resignation from the Board.
All meetings shall be held in full compliance with the provision of state law, ordinances of the
City and these rules of procedure.
J. Minutes of Meetings
Minutes of all meetings shall be kept by the City Secretary, and are subject to amendment and
ratification by the Board at a regular meeting. The minutes of the Board proceedings shall show
the overall vote or if absent or failing to vote,shall reflect that fact.
K. Complaint or Inquiry Form
Complaints or inquiries shall be in writing on a form approved by the Board. Complaints or
inquiries shall be signed and show the home or business address and telephone number of the
person who submitted it. The form shall contain a statement that must be signed and which states
that, to the best of the person's knowledge, information, and belief formed after reasonable
reflection, the information in the complaint or inquiry is true. The complaint or inquiry shall
describe the facts that constitute the violation of the code of ethics in sufficient detail so that the
Board and the person who is the subject of the complaint or inquiry can reasonably be expected to
understand the nature of any offense that is being alleged.
L. Complaint or Inquiry Process
1. The Board or its designee will not accept complaints or inquiries about actions that took
place or became known to the complainant more than 6 months prior to the date of the
filing of the complaint.
Resolution No.2015-11(R)
Adopting Rules of Procedures for
The Board of Ethics
2. The Board or its designee shall notify the person who is the subject of the complaint or
inquiry that a complaint or inquiry has been filed in a timely manner, but no more than
five (5) days from the day the complaint or inquiry was filed. The notification shall
include a copy of the full complaint or inquiry;a copy of any portion of Ordinance 2014-
19 that is alleged to have been or that may be violated; and the Board's rules for dealing
with complaints or inquiries. The Board or its designee shall provide the subject of the
complaint or inquiry with a copy of the complaint or inquiry before it provides copies to
any other parties.
3. The distribution to the public of a complaint or inquiry prior to screening by the Board as
required could harm the reputation of an innocent person and is contrary to the public
interest; therefore,the public release of the complaint or inquiry shall be prohibited until
the screening process has been completed.
4. Prior to the review by the Board,the City Attorney shall first determine:
a. If the Board has jurisdiction over the alleged violation;and
b. If the alleged violation, if true, would or would not constitute a violations of
Ordinance 2014-19.
M. Action of the Board
The Board shall meet within thirty-one(31)days of receiving a complaint or inquiry to screen the
complaint or inquiry.The Board shall schedule the hearing at a time that is reasonably convenient
to both the person who submitted the complaint or inquiry and the subject of the complaint or
inquiry. The Board may alter the time line upon the request of the subject of a complaint or
inquiry for more time to prepare.
1. The Board may immediately dismiss a complaint or inquiry if
a. The alleged violation is a minor or de minimis violation;
b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for
purposes of harassment;
c. The matter has become moot because the person who is the subject of the complaint
or inquiry is no longer an elected officials or board/commissions member,
d. The person who is the subject of the complaint or inquiry had obtained a waiver or an
advisory opinion under Paragraph F of Section 7 of Ordinance 2014-19 permitting
the conduct.
e. The person committed the violation due to oversight and comes into voluntary
compliance;
f. The person who submitted the complaint or inquiry does not appear at hearing and if,
in the opinion of the board, it would be unfair to the subject of the complaint or
inquiry not to have the opportunity to examine the person.
2. If the Board dismisses a complaint or inquiry,the reason for dismissal shall be in writing,
submitted to the person who submitted the complaint or inquiry, and made available to
the public.
Resotuuon No 2015-11(R)
Adopting Rules of Procedures for
The Hoard of Eth ies
N. Hearings
The board shall have hearings at meetings, which are open to the public, on complaints or
inquiries which have not been dismissed pursuant to paragraph G of Section 7 or resolved under
paragraph F of Section 7 of the Ordinance 2014-19.The Board shall allow any person who is the
subject of a complaint or inquiry to designate a representative if he or she wishes to be
represented by someone else, to present evidence, and to cross-examine witnesses. The Board
shall give the person who submitted the complaint or inquiry and the individual who is subject of
the complaint or inquiry sufficient time to examine and respond to any evidence not presented to
them in advance of the hearing.
Hearings will be conducted following the general guidelines listed below:
1. Introduction of agenda item by the Chairperson;
2. Report by the City Manager,City Attorney or designee;
3. Presentation by complainant;
4. Presentation by the individual,or their representative,who is subject to the
complaint;
5. Questioning by the Board of the complainant;the individual,or their representative,
who is subject to the complaint;witnesses with information relevant to the complaint;
6. Commission query of Staff;
7. Commission discussion and action pertaining to the issue of the hearing.
0. Evidence
Only relevant evidence and testimony will be received. Information and other physical evidence
should be submitted to the Chairman of the Board or designee prior to the meeting. Any Board
member having new factual information regarding agenda items shall make that information
known to all Board members.
P. Deliberations and Findings
Deliberations on complaints or inquiries are to be conducted in open session. Board members
who have not been present for the hearing shall not participate in formulating a finding or
recommendation.
In determining their findings or recommendations,the Board shall:
1. Base a finding of a violation upon clear and convincing evidence.
2. Take into consideration the severity of the offense; the presence or absence of any
intention to conceal, deceive, or mislead; whether the violation was deliberate,
negligent,or inadvertent;and whether the incident was isolated or part of a pattern.
3. Have the option to issue an advisory opinion in response to a complaint or inquiry,in
lieu of making findings and recommendations,where deemed appropriate.
If the Board finds that a violation of Ordinance 2014-19 Section 5 or Section 6 has occurred, it
shall make one of the following recommendations to Council:
Resolution No 201S-I l(R)
Adopting Rules of Procedures for
The Board of Ethics
I. If the Board finds that the accused has committed a minor violation,the violation was
unintentional,and the accused fully cooperated with the investigation,the Board may
issue a notice titled "Notice of Minor Violation" and shall state the findings of the
Board.
2. If the Board finds that the accused has committed a major violation, acted
intentionally, or failed to cooperate with the investigations, the Board may issue a
notice titled"Notice of Public Censure",and shall state the findings of the Board.
3. If the Board feels that corrective action may be necessary, it must make its
recommendations to Council in writing.
All findings shall be in the form of a motion. A motion to approve any matter before the Board
or to recommend any action shall require a majority favorable vote of the members present.
Failure of the Board to secure a majority concurring vote to approve or recommend action shall
be recorded in the minutes as a failed motion.
SECTION 2: This Resolution shall take effect immediately upon its passage.
RESOLVED this the 14th day of April,2015.
ERIC HOGUE, Mayor
ATTEST TO:
CAROLE EHRLICH,City Secretary
RcsoIulion No 2015-11(R1
Adopting Rules of Proccduras for
The Board of Ethics
0.
�1. OF Wy��
. . Board of Ethics
gr, a �L_
iii .1887. 1' AGENDA REPORT
Irdix n1 rtsx
Meeting Date: September 7, 2017 Item Number: 2
Department: City Manager (C hr.Secretart 's se a�th)
Prepared By: Mindy Manson Account Code:
Date Prepared: August 31. 2017
Exhibits: N/A
Subject
Consider and act upon the appointment of a Vice-Chair of the Wylie Board of Ethics for a term of July 2017 to
June 2018.
Recommendation
Motion to appoint as the Vice-Chair of the Wylie Board of Ethics for a term of July 2017 to June
2018.
Discussion
Resolution 2015-11 was approved by the City Council April 14t. 20I5 and establishes the Rules of Procedure
for the Board of Ethics. The Rules state that at the first meeting the Board shall select a Chairperson and Vice-
Chairperson to serve for a period of one (1) year.
The Chairperson will preside over all meetings and perform all duties as required. The Vice-Chairperson
assumes all duties of the Chairperson in their absence.
(Rev 01/2014) Page 1 of 1
r,ct OF t1rytlt¢
..
i
ti: Board of Ethics
ir �._ -
w. :.T' AGENDA REPORT
��.1887 I
Meeting Date: September 7, 2017 Item Number: 3
Department: City Manager WinSecrelan 's Lse O�rrr,
Prepared By: Mindy Manson Account Code:
Date Prepared: August 31, 2017
Attorney letter; Complaint
Exhibits: 2017-01
Subject
Screen and consider action on Code of Ethics Complaint 2017-01.
Recommendation
•
N/A i
Discussion
On August 8th staff received a formal complaint relating to alleged violations of the Code of Ethics as specified
in Ordinance 2014-19. Per the established procedures, the complaint was reviewed by the City Attorney prior
to review by the Board. The City Attorney is charged with determining the following:
1. If the Board has jurisdiction over the alleged violations; and
2. lithe alleged violation, if true, would or would not constitute a violation of Ordinance 2014-19.
The City Attorney's review of the complaint is included within the agenda packet and states, in short, that their
finding is that the allegations, even if true, would not constitute a violation of the Ethics Ordinance.
Within 31 days of receiving the complaint or inquiry, the Board is required to meet to screen the complaint. At
that time, the Board may immediately dismiss a complaint if:
a. The alleged violation is a minor or de minimis violation;
b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for purposes of harassment;
c. The matter has become moot because the person who is the subject of the complaint or inquiry is no
longer an elected official or board'commission member;
d. The person who is the subject of the complaint had obtained a waiver or an advisory opinion under
Paragraph F of Section 7 of Ordinance 2014-19 permitting the conduct;
e. The person committed the violation due to oversight and comes into voluntary compliance;
f. The person who submitted the complaint or inquiry does not appear at the hearing and if, in the opinion
of the board, it would be unfair to the subject of the complaint not to have the opportunity to examine
the person.
If the complaint is not dismissed, the Board may schedule a hearing which will procedurally follow the general
guidelines listed in Resolution 2015-11, Section 1, N. Hearings.
(Rev 01'2014) Page I of 1
ARBH
ABERNATHYROEDER
BOYD Hu LLETT
EST 1876
MEMORANDUM
TO: City of Wylie Board of Ethics
DATE: August 29, 2017
FROM: Richard M. Abernathy and Ryan D. Pittman, City Attorneys
RE: Review of Ethics Complaint submitted by Mr. Jal Dennis
We are in receipt of a copy of the complaint submitted by Mr. Jal Dennis on August 8, 2017 (the
"Complaint') pursuant to Section 7(G) of Wylie Ordinance No. 2014-19 (the "Ethics Ordinance"). The
Complaint concerns an alleged "failure to disclose conflicts of interest and self-dealing" by Mr. Marvin
Fuller, president of the Board of Directors of the Wylie Economic Development Corporation ("WEDC"),
and Mr. Sam Satterwhite. executive director of the WEDC. in connection with a 2015 "incentive award"
from WEDC to Panta Properties LLC. which owns or owned certain real property in Wylie.
We have reviewed the Complaint as required under Section 7(G) of the Ethics Ordinance and
Section 1(L)(4) of Wylie Resolution No. 2015-1 1(R) (the "Rules of Procedure") for the purpose of
determining: "(l) if the Board of Ethics has jurisdiction over the alleged violation: and (b) if the alleged
violation, iftrue,would or would not constitute a violation of[the Ethics Ordinance]." Consistent with the
Ethics Ordinance and Rules of Procedure,our review was limited to the allegations made in the Complaint
and the information submitted by Mr. Dennis in connection with the Complaint. For the purposes of this
review, we have assumed that the allegations by Mr. Dennis in the Complaint are true; we have not
reviewed any extrinsic evidence or otherwise conducted an investigation into the accuracy of the
Complaint's allegations. That is the function of the Board of Ethics, if applicable.' Our analysis of the
Complaint is summarized below.
I. Complaint against Mr. Marvin Fuller
The Board of Ethics has jurisdiction to consider the Complaint against Mr. Fuller because he is a
"City Official" as that term is defined in Section I of the Ethics Ordinance.2
The Complaint against Mr.Fuller provides insufficient evidence to state a violation of any actionable
'See Ethics Ordinance§7(G)-(ll).Rules of Procedure a I(M)-(P).
See Ethics Ordinance ti I (defining"City Official"to mean "a member of the City Council. an Administratite Board, or an
Adt isory Board"and defining an "Administratit e Board"to include a board or other organized body "created as a non-profit
economic development corporation by the City Council under the authority of the Development Corporation Act of 1979. as
amended"): Ethics Ordinance§§'2.
Page 1 of 2
provision of the Ethics Ordinance. For example, the Complaint states that Mr. Fuller vtias absent at the
November 20.2015 meeting in which the WEDC Board of Directors voted to approve the"incentive award"
to Panta Properties LLC.3 Mr. Fuller thus could take no"official action"with respect to such approval at
the November 20. 2015 meeting. The Complaint goes on to allege that Mr. Fuller was "present in the
discussions ofthe project prior to this approval and has been in all ofthe meetings since the approval of this
aw and when this award was discussed." However,merely being present in meetings at which discussions of
a project or transaction in which the City Official ma) have an interest does not, without more, state a
violation of an actionable provision of the Ethics Ordinance.
Accordingly,we find that the allegations of the Complaint against Mr. Fuller,even if true,would not
constitute a violation of the Ethics Ordinance.
II. Complaint against Mr. Sam Satterwhite
The Board of Ethics does not have jurisdiction to consider the Complaint against Mr. Satterwhite
because he is not a "City Official" as that term is defined in Section I of the Ethics Ordinance.'
Accordingly.we find that the allegations of the Complaint against Mr.Satterwhite. even if true,would not
constitute a violation of the Ethics Ordinance.
Please let us know how we may be of further assistance to the Board of Ethics with respect to the
Complaint.'
Section 7(11)ofthe I thics Ordinance and Section 1(L)(1)ofthe Rules of Procedure prohibit the Board of l.thics from accepting
"complaints or inquiries about actions that took place or became known to the complainant more than six(6)months prior to the
date of tiling"of the complaint. Although some or all of the allegations in the Complaint relate to alleged conduct that occurred
more than six months before the date of filing of the Complaint.Mr.Dennis states in the Complaint that"unti:1 located the(deeds
of trust'sometime in'larch ot'2017'J,there was no concrete information for an ethics complaint."
See Ethics Ordinance § I (defining "Official Action" to mean "(I) any aftirmath.e act (including the making of a
recommendation)w ithin the scope of,or in 4 iolation of.an official's duties;or(2)any failure to act.if the official is under a duty
to act and knows that inaction is likely to affect substantially an economic interest of the official"). It should be noted that Mr.
Fuller is not subject to the conflicts disclosure and abstention requirements oiChapter 171 of the Texas Local Government Code.
See Op. l'ex. Att'y Gen. No. JC-0338 (2001) (concluding that economic de►elopment corporation board members are not
considered"local public officials"under Chapter 171 of the Texas Local Go%ernment Code and therefore are not subject to the
requirements of that statute/.
5 Notably,the Complaint does not allege or pros ide sufficient e%idence to find that Mr.Fuller has or had a"financial interest'"or
an"economic interest"in Panta Properties LLC,as that term is defined in Section 1 of the Lthics Ordinance
See Ethics Ordinance§§ 1-2.
See Ethics Ordinance§ 7(E)(providing that the Board of Ethics may consult ith the City Attorney regarding"legal issues
which may arise in connection w ith this article and may request adh isory assistance from the City Attorney in conducting hearings
on inquiries during any stage of the process").
Page 2 at 2
225432o
RECEIVED
AUG 0 8 2017
OFFICE OF THE CITY MANAGER
Ethicsicom 8 afilednt
• ionline via ema on 31 , u
2017 .
To the best of my memory, knowledge, information, and belief formed after reasonable
reflection,the information in this complaint is true. All attachments to the complaint filed by
someone in Richardson are available online and I have a copy saved that I downloaded from
the Internet. If a printed copy is desired, please let me know. I have attached all of the
information available to me which formed my opinions other than the minutes and
recordings of all EDC meetings which are available at the City and the EDC. All recordings
and minutes have been emailed to me via City Email from Stephanie Smith and can be
retrieved there if they were not stored at the EDC.
Timelines are disclosed throughout the attached documents. In my opinion, until I located
the Deeds, there was no concrete information for an ethics complaint. Everyone needs to
understand that I am a concerned citizen, I am not an attorney nor do I profess to be an
expert in municipal law. I seek for an honorable, ethical, transparent, independent and
impartial city government and officials in which I personally can have confidence in. May all
citizens be fearful of those in government who employ deflection to hide unethical behavior.
Jal Dennis
811 Crestview Lane
Wylie,TX 75098 .01.- 1- ilif;
972-977-6401
ei X
Subject Ethics Complaint
From. jalray@yahoo corn
To. council@wylietexas.gov;eric.hogue@wylietexas.gov; ketth.stephens@wylietexas.gov;jeff.forrester@wylietexas.gov;diane.culver@wylietexas.gov;
candy.arnngton@wylietexas.gov;toby.wallis@wylietexas.gov: david.dahl@wylietexas.gov;sam@wylieedc.com;mindy.manson@wylietexas.gov;
carole ehrlich@wylietexas.gov;dpdawkins@verizon.net; bcbrokaw@gmail.com
Mate. Monday,July 31, 2017,4:38:47 AM CDT
Sirs,
Please accept this ethics complaint against Mr. Marvin Fuller and Mr. Sam Sattenvhite. I tried to talk with Eric Hogue to share this information to avoid a
public complaint and he will not return my calls . I then contacted Mr. Stephens and Mr. Forrester and was informed by Mr. Stephens they are
uncomfortable meeting me at my office. I suspect it is because someone that does not know me is telling rumors and Iies about me. Attacking my
character is a good way deflect attention from facts. Because I have no other avenue to bring following issue to light, the ethics complaint seems like the
next best avenue. My request is for everyone to study the facts in this communication and to be fearful of those who spread lies and rumors to try and
hide facts. Please forward this communication to all members of the Wylie EDC Board as I don't have all of their email addresses.
I began following the activity of the Wylie EDC after a newspaper article in the Wylie News in 2006. I have attached that article for your review. I have
read the Ethics Ordinance in place at our City (1 have attached a copy for your review). About 4 years ago I began listening to and storing the recordings
of the meetings since they are held at a time which is not convenient for most citizens to attend and I also get and keep the minutes of all meetings. Their
fiduciary duties should be taken eery serious.
The complaint is "failure to disclose conflicts of interest and self-dealing." Please follow this link to the property records of a piece of property in
Wylie Collin CAD - Property Search which is owned by Panta Properties. This is a building behind the Exxon at the corner of 544 and I-Iwy 78. A
S30,000 incentive award was granted to this project and it was funded by Inwood Bank of Wylie.
Collin CAD - Property Search
Search for properties appraised by die Collin Central Appraisal District.
If you search the Deed Records of this property on the Collin County Records site (I have attached these for your convenience) you will find the this
property and the building are financed through Inwood Bank. One of the Notary's on the Deed is Mr. Fullers administrator at the Wylie Branch of
Inwood Bank, Robin Gray, this tells me that the documents were processed in Wylie. There is a Deed in October 2015 when the construction of the
building began and another in June 2016 when construction was finished, the best I can tell by looking at the timeline.
Attached are the minutes of the WEDC meeting on November 20, 2015 which is the meeting when an incentive grant was voted on and approved by the
Board of the Wylie EDC between Panta Properties and the Wylie EDC. Mr. Fuller was absent in this meeting but was present in the discussions of the
1/2
project prior to this approval and has been in all of the meetings since the approval of this award when this award was discussed. As per the bylaws he is
a voting member as the President of the Board. Also as President of the Board, he has the opportunity to steer the activities of the Board.
For your convenience, next I have attached the page from the Collin County Records which shows the dates of the filings and the lender of the property
being discussed. Please notice the date of the award of the performance agreement and the date of the Deeds.
My complaint is there has been no disclosure of conflict of interest by Mr. Fuller to the board who voted to issue an award to this project. Mr. Fuller is a
bank representative and his job is to loan money and acquire banking clients for Inwood Bank.
I have all of the recordings and minutes of the WEDC meetings prior to this incentive being approved through today. This incentive is still and ongoing
activity by the Wylie EDC which makes it timely(within the 6 month time frame of the ordinance). The absence of disclosure of conflict of interest is
disturbing. I have included Mr. Satterwhite in this complaint because he has informed me in the past that nothing goes through the Wylie EDC without
his knowledge and at a cost of over$150,000 per year(plus benefits) I expect that he should know all details of all activities. I don't know that Mr.
Satterwhite is or was aware of the conflict of interest but I would think that it would be one of his responsibility to know where funding for projects come
from and with his close relationship with Mr. Fuller and Lawyers Title I see areas of concern. Lawyers Title rents office space to the Wylie EDC and
processed the Deed and Loan documents that arc attached.
I found and read a complaint which was posted online recently. This complaint was filed by someone in Richardson but it's contents are disturbing. The
complaint seems to be valid as the supporting documentation is included. I have attached it for your review.
All of this information together appears to me to disclose a pattern of activity. In my industry, when an incident happens one time and is corrected, it is
viewed as an oversite or mistake_ When a pattern of activity occurs, there is a serious problem. Mr. Fuller has been the President of the Wylie Economic
Development Board for over 20 years and is aware of the requirements of disclosure of conflicts of interest with this position as is Mr. Satterwhite. The
attached documentation seems to show there have been issues with the nondisclosure of conflicts of interest over many years. I, as a local resident and a
taxpayer, find it difficult to believe that this failure to disclose conflict of interest is an oversite. you can dismiss talk and actions but patterns never lie.
All projects of the Wylie EDC are discussed in Executive Session prior to any vote being made in an open meeting and this project has been on the
agenda many times prior to and after the incentive grant was voted on so there were lots of opportunities to disclose this conflict of interest.
The Wylie EDC answers to the City Council. The City Council serves to protect the tax payers and tax dollars of our community. I hope the City
Council takes this issue serious. I want a City Government that is transparent and operates with the highest possible morals, ethics and values.
Respectfully,
Jai Dennis
972-977-6401
jalray®yahoo.com
212
' ECEIVED
AUG 0 B tYl]
OFFICE OF THE CITY MANAGER
Collin County Website
Information shown to
me in January, 2017 .
scanned this document
for future review at
that time . At that time ,
I was unaware you
could see a deed
online .
Results Page 1 of 1
Records 11 to 201 of 54 0.03125 Seconds
Certified from 02/1411974 through 12f1012016.
,.;e I v .f 3 V_..____
Drag a column header here to group by that column
# Instrument .Image Ver Dat Name Role OtherName OtherRole Type BookType Legal
# Rec Desc
Lot 6 Blk ABkM
10/28/2015 PATNA INW'Jt L Pg 17
1015102840136481¢1. .r 2 35 33 PM PROPERTIES Grantor NATIONAL BANK cranter DEED TRUST Sub MARTINEZ
L.0 s3 WYLIE
REPLAT
Lot6ElkABkM
10R8/2015 PATNA INWOOD Pg 17
j{7151028001364822} 2 35 33 PM PROPERTIES Grantor NATIONAL BANK Grantee h5 Fr= Sub MARTINEZ
Li:: 43 WYLIE
REPLAT
Lot 6 Blk A Bk M
:.ih/2:115 PATNA Pg 17
3 2015102800136480Q J^ Y 1 If.33 PM PROPERTIES Grantee OOAMA FALZIA •;rai'1. DE EC. Sub MARTINEZ
LLC *3 WYLIE
REPLAT
Lath Blk A Bk M
6.16/2016 PATNA INW07P Pg 17
4 j016061600075492¢i " 8 55 36 AM PROPERTIES Grantor NA';[NAL DANK 'mote• DEED TRUST Sub MARTINEZ
LLC s3 WYLIE
REPLAT
Lot 4 Blk B Bk J
10/2/1997 Pg 593
5 la 71002000838680 e Y la 00.00 PATNAIK Grantor GREAT WESTERN Grantee DEED TRUST LR Sub•LEGACY
AM RAKESH FINANCIAL MILLS 04
PLANO...
Lot 4 Blk B Bk 1
10/2/1997 PATNAIK TAYLOR PAUL Pg 593
6 )997100200083065Q - V 12 00 00 RAKESH Grantee HOMES LTD ".'Sr'i}, 3FFE. _a Sub LEGACY
AM HILLS Y4
PLANO...
Lot 4 6Ik B Bk.)
10/2/1997 HEARTLAND Pg 593
7 39971007000838660 e Y 12 00 00 PATNAIK Grantor MORTGAGE Grantee DEED TRUST LR Sub LEGACY
AM RAKESH CORPD MILLS IA
PLANO...
10/2/1997 PATNAIK NORWEST
8 19471002000133867Q Y r 12 00 00 RAKESH Grantor MORTGAGE INC Grantee ASSIGNMENT Lit
AM
Lot 4 Blk B Bk 3
10/2/1997 Pg 593
9 19971002000835690 Y r 12 00 00 PATNAIK Grantor LANK ONE ';rar,tee ASSIGNMENT LR Sub LEGACY
AM RAKESH
HILLS a4
PLANO...
Lot 4 BIk B Bk)
12/302002 Pg 593
PATNAIK WELLS FARGO
10 200212300019+2420 a L2 00 00 RAKESH Grantor HOME MORTGAG Grantee DEED TRUST LR Sub LEGACY
AM HILLS 44
PLANO .
1/6/2003 PATNAIK
1.1 2003010600002282Q) 1 12 00 00 RAKESH Grantee BANK ONE Grantor PEiFAsE LR
AM
tote Blk B Bk 1
1/7/2008 PATNAIK IPMORGAN CHASE Pg 593
12 j0080107_00.002a630>" r 1 56 O7 PM RAKESH Grantor BANK Grantee DEED TRUST Sub LEGACY
HILLS a4 PLAN)}
Lot 4 Blk B Bk
117/2008 PATNAIK
Grantor "_'" HOMSTD Pg 593
17 j0080107000024550' 1 56:07 PM RAKESH }�'t DESG Sub LEGACY
HILLS*4 PLANO
4/3/2001 PATNAIK
14 Z0010403226009030 e C 12 00 00 RITIK Child Parents BIRTH CERT VI
AM
Lat 2 Blk P
12/2/2013 PATNAIK PULTE MORTGAGE Rk 2012 Pg:385
15 7011170200159227G} Y B 15 43 AM R.AKESH Grantor LLC Grantee DEED TRUST Sub WATERFORD
PARKS*9 ALLEN
Lot 2 BIk P
16 2013120204159221Q} r 12/2/2013 PATNAIK Grantee PULTE HOMES Grantor DEED Bk 2012 Pg:385
8:15 43 AM RAKESH TEXAS L/P Sub WATERFORD
PARKS a9 ALLEN
17 711i40607070053410 i v 6/2/2014 PATNAIK Child VURITY TRUPTI Parents BIRTH CERT
3:26:21 PM ANIKA RAMCHANDRA
18 Z0150203020011680 A. w 2/3/2015 PATNAIK Parents DAS SAIYASH Child BIRTH CERT
4 18 26 PM LUCY
19 Z0150203020011730} .1 Parents PATNAIK Parents CAS SHEVALLY Child BIRTH CERT
4:18 26 PM LUCY
Lot 1t Blk C
3/11/2015 Bk H Pg 398
20 Z015031100026549¢1- r 11:16 16 PATNAIK Grantor 'hE1 MORTGAGE vraritee DEED TRUST Sub HUNTERS
AM ROMAN CORPORATION GLEN NORTH 2
PLANO
Page 1171 GI 1 tpill
httn:.icountvclerlaecords.co.collin.tx.us.webinuuirv'results.asnx 12/29/2016
RECEIVED
AUG 0 8 201?
Online records shown` "`"'
to me sometime in
March of 2017 . This
was the motivation to
try and meet with
Council Members
Stephens and Forrester .
( First effort to file a
complaint . )
1'lSe 20151028001364810 10/28/2015 02:35:33 PM DT 1/7
GF#licto 1 T` ' f&10 CONSTRUCTION DEED OF TRUST
RECORDATION REQUESTED BY:
INWOOD NATIONAL SANK
7121 INWOOD ROAD
DALLAS;TX 75209
WHEN RECORDED MAIL TO:
IMV000 NATIONAL BANK
7521INWOOD ROAD
DALLAS.,TX 7520E
SEND TAX NOTICES TO:
Patna Prepettlas LLC
3201 MONSTIE LANE
PLANO.TX 75025 SPACE ABOVE THIS UTE IS FOR RECORDERS USE ONLY
THIS DEED OF TRUST Is dated October 27,2015,among Pattie Properties LLC,whose address is 3208 MONETTE
LANE, PLANO, TX 75025 rGLantor"); INWOOD NATIONAL BANK. whose address is 7621 INWOOD ROAD.
DALLAS,TX 75209(referred to below sometimes as*Beneficiary"; and Gary L Tipton,whose addra.. Is 762E
Inwood Road,Dallas,TX 75209(referred to below as"Trustee").
CONVEYANCE AND GRANT. Far ramble ac raldarodah.GNAW emcees to Truster in trust,with mown of ado for tel . :'r' . ... a
Ssnedelery,Ere to0owing daelbed reel properly,lagether with mg mdetlng or subsequently eroded of dared Width" .. . .+Lnle d
eas banes:and ag easements,name of way,end appansneneru;ell water end water rights;and Oa Other rights,royaibca.and Droab -. .,• -
the reel property,Including with id lbnhtl7on suds rights es Grantor may have In it remote,all,gas,geothermal and abnder matters.
"Real Property")located In COLUN County,Male of Texas:
LOT 8. BLOCK A, OF IIOARTINEZ ADDITION, PHASE III, AN ADDITION TO THE CITY i 1"+'Lt �_
COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLU i:" 7 sty F
THE PLAT RECORDS OF COL.LIN COUNTY,TEXAS. L
The Real Property or Its address Is commonly known es 815 S HWY 78,WYLIE, !. •.,98.
Grander hereby absolutely assigns to Lander Cello known as eenaeoiary In this Deed of That)an of- �► end 'In end to ail
prawnall l Cods
ode Monad In Persons!Properly erde Rennp eats from the Prgpeny. to eddtlon,Gantor m -.
THIS DEED OF TRUST,INCLUDING THE ASSORTMENT OF RENTS AND THE EECUIETY -,.,..- DI THE REFITS PROPERTY,
IS OMEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS MO (B) PERFORMANCE•'ANY AND ALL 0 AT', UNDER THE NOTE.
THE RELATED DOCUMENTS,AND THIS DEED OF TRUST. THIS DEED OF TRUST,IN, DING THE AWN r, : OF RBRTM AND THE
SECURITF INTEREST IN THE RENTS AND PERSONAL PROPERTY,IS ALSO GIVEN 70 •r' ANY AND ALL•'GRANTOR'S OSUSATIONS
UNDER THAT CERTAIN CONETRUCTTON LOAN AGiiI:BIBeT BETAISEN ORAMOR 'rt'- OF EVEN DA J i-,'- , ANY EVENT OF
DEFAULT UNDER THE CONSTRUCTION LOAN AOREEIISNT,OR ANY OF THE _•• , , TO THOM,SHALL ALSO
EV DEAN ENT OF DEFAULT UNDER THIS DEED OF TRUST. THIS DEED OF y •-•A i•• THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE. Ea epl as ateae tee pnm tiled In Nile Deed• T .. • ,'•• • .•' - esker ad meanie aeand by this
Deed of Tara as they beans due,and ehal.lsicdy and in e away . . absgeaona under the name,that Dead of
Tent and the Related Doarmeas.
PURPOSE OF LOAN.The Nate In the amaot of 5704.701.00 - . 'to•...- In whole,-. •V.. linenried sttLnurrodsbape advanced
or commirtsd by Lander to Grantor on Oaobar 27.2015 attire ••.. - .• of `y' •Granmr ),,..• atlmoniedoes rndpL
CONStRUCTION MORTGAGE. This Deed I Trust lee -• .• -• r the• ••-- 'd Beaked 0334 and 2430E at the Urtlbnn
Cannurelal Cede,an those,.than.hew been adopted by the ,of •
AND OF THE PROPERTY. • ,• get•• .•. and we of Ste Prosody Mel be gowned by following
Liz
PelassNaa sod Um. Unlit the Ocanteno,of sn ' ,• . ,`,. roman In pos aeten and control of the Rowe; (2)
use,opera.or menage the Pmpert:.and (3) -•• - . . •,y,. • '..
Daly to Maintain. Grenlor shall mama' the •- . . condition end promptly perform d repots,reptsceicenta,end
maInt nm a nerasaary to preserve as vakte.
ContpSattce With Enshoraoenar!Laws. R. and „ •-to Lender theta (1) Curing the period of Grantor's oweeelttdp of
ttw Properly,Them hoe been no tai,..� ration, .._ ,treatment,deposal,release ar Saddened release of any Harendar
Sabana,by any person on,under. .•.. .or from 'ef''*,• ) Grantor has no knowledge of,or mason 1e banana that there ha
bean..seep►as proviome dtepaed"end manned ����iirr,,rr,,• Lender In weird. (a) any broach or vla eUon d any Fitvborenesdel Lawn,
(b) any use.goaeteda4 •.. _. s.etmelt, L•- - name or threatened release of any Harardeus Dubstome en,ender.
abod et tram the Peoperty by. . • tie or•-- -••u d the Piapety.or (C) my WOO or tvestmed idoatlain or dabae of any
kind by�ry person mfsdng :�1- ,• • . (31 -.-•. as pestrloudy dhdased to end edunwledged by Lender In madam N)rrel then
Candor nor any tenant.•• -. •yard the Property steal we,generate.menureduts,.tors,bvai deppee of
or Meuse any Hatedano '7,�- ad, r from the Propely,end (b) any much=hay OM be cadged In aauplence
with as appEw' 'cadre,solo. Owe,- .. •.•. sad oedtneruse,bdrndng without limitation al Envk Gander
dea aulras Lander and its egerds to , .T •.- the- •- to rate such Mapenkes and mob,at Geocora amends.es Lander rney dicta
appropriate'to• with thin exam of See Dead of Trust My Inepadlaes or WM mode by Larder sfesf
De for Undies ••� ••• „• .. .... ._.-..... , •to aoos any resparudiy or IlabOty an the pert of Linder to Grantor or m my
other peraan. • - .. a end warmness Caaakned toren We based on Grader's mass degauss In inves0gtling the Prppsety for
Hazardous = busby (I) relwass and Waives tiny Mae Climb egatnei Lander for lideaady or eMdbuton In the .
e vent ."k -• • • •.-t a other ruts under any each!BM and (2) agrees to indemnify,defend,end raid hand me
L amar •-•.. "t• ad am - .. Ueettdes,damages,waiter.ifd mensal wool Lliedr may dboeiy or Indirectly numt.or
Peter rend:bag •-�breaah .�'��sedkrr of the Deed of Trim or es a oonsenuenm of try use,gennrrdlan,manufadurs,storage.
release R .red oeearteg prior to Granite ownastip a inners k the Prop/ty.whether or not the same woe or
I lore.been • - ".'•Gorr:. The provisions of this section of the Deed of Trutt.bnardkrg the abegatlare to kdemNM and Ostend,
the payrrent,TM lndapedneaa and the aedafsdan and remnreyanae of the lien of this Deed of Than and sluD not be
'"- We of any Interest In Chit Ptopeny.whemr by tcradmrae or euhrsdee.
We •a7 not arena,conduct or permit any rertmca nor rarnmlL perralt,or amen any warm;of or waste on or to
TM- of the Property. Without Smiting the gormodity of the foregoing.Orantr wit not remove,cc grant to any other
pay the - • . ,- any Mbar,mturals ltna egne d and gas),met day,merle ski.grovel orrock products without Le der%Prior
written aransri I reetrldi00 wig not apply b eights and easements(such a gas and eft)not owned by Grrhtor ad of whlph Grarmr •
Ma inhumed Larder In writing odor to Grantor's signing of ads Deed of Trust. •
Removal of Improvements. Grantor sill not gereollit or remove are improvements from the Rod Property without Lender's oar vmmen
cement. Al a aondtdoe to die rennovd or any I mprove/nem,Larder rimy leqube Gutter to ream monoemeetts sstidedory to Lander to
replace such Impwamema Wet Pmprovamaw of et taut goudl value. •
Lenders Right to Endf, Lender end Lender's aphis and WPtasentedvm may enter upon the Red Property at ell reasonable Amos to Moral
b Larder',acmes ref to cowl the Red Property for purposes of Grnntos Co miltince with the tame and CatdDkrn of Ms Deed of
Tnul
Campdosee watt Gaemiw nbl iktutenaenbt. Grantor shed prorepuy comply MTh di laws.arataerraa,and mgulriane.now or haaehea
to seed,d all gavemmmtd authollea applicable TO the ass or mummy of tea Property,Inducting without Arrnation.tit.Americus
With Disabilities Act. Crane"may madaod in pond bath any such law,ordure,,or mgulallen end withhold rnmpasnoe during arty
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DEED OF TRUST
Loan No:104405704 (Continued) Page 5
Trustee. It addition to the fights and remedies set fort above,with=pact la eA or any put of the Property,the Tnalee that have the
anted t the full to
at providedby nodal
aids and
Lender
w
shag Iwo the right to bndoee by a�eew, case either se in aoeordenco wan
Substitute Mateo. Lends,at Lenders option.from tires to time,and more than once.may appoint in writing a simonises or eubedtrte
trustee,with or without cows,inclwarg the regional/an,absence,death,Inability.tetrad or Wham to ad of the Trustee. The successor or
abatttie tonne may be eppohted without ewer cocaine the resignation of the fanner bugles end without troy lamtsllty accept for the
era iton end acknowledgment of the appalebnent by the banefdLry of this Deed of Trust- The successor or substitute trustee shalt Men
succeed to aA rights,cbltgatons,end duke of the Trustee. This appchnbnere may be mode on Londe.behalf by the President,any Vice
President.Secretary.or Cashier of Lender.
NOTICES. Any lotto required to be elven under this Deed of Trust,Including without Tina atlon any nation of default end any notice of sets
anal be given In writing,end Mal be effective when Wanly Named.when actually received by l lafaethrdls(unless*thereto required by
law),when deposited with a Wotan uecoordnd overnight cooler,or,if noted,when deposited In the United Steles ruse.a and due,
ecnEed or registerd real postage prepaid.dimmed to as addresses shown near the beginntrg of this Deed of Tent Any party may dame
he addtsts for notices under this Deed of Tent by gable formal written nadce to the other parties.aperelyng met the ptapeee or the notice is
to chime the partys address. Fcr notice pupates.Grantor anon to hamp Lander hdbneed et at times of Oraniora cumuli address. Undoes
otherwba famed or requiem by tow,If them n nine time one Grader,any no glean by Lender to any Grafter is deemed to be nodes given
to ell Grantors.
DUE ON SALE-COHABIT BY LENDER..LENDER MAY.AT LENDERS OPTION.DECLARE IMMEDIATELY DUE AND PAY = YAU.SUMS
SECURED BY THIS DEED OF TRUST UPON THE SALE OR TRANSFER.WITHOUT LENDER'S PRIOR WRiTTER CONSENT.OF "St* PART
OF THE PEAL PROPERTY,OR ANY INTEREST IN THE REAL.PROPERTY. A'SALE OR TRANSFER'MEANS THE '1'T* REAL
PROPERTY CR ANY RIGHT,TITLE OR INTEREST iN THE REAL PROPERTY:%ETHER LEGAL,BENEFICIAL OR L,
VOLUNTARY OR INVOLUNTARY:WHETHER BY OUTRIGHT SALE,DEED,INSTALLMENT BALE CONTRACT,LAND CONTRACT. •••• I., _
FOR DEED,LEASEHOLD INTEREST.LEASE-OPTION CONTRACT.OR BY SALE,ASSIGNMENT,OR TRANSFER OF ANY BENEFICIAL
IN OR TO ANY LAND TRUST HOLDING TTRE TO THE LIABILITY COMPANY,TRANSFER ALSO INCLUDES ANY CHANGE IN OW IE•- •
MORE THAN TWENTY-FNE PERCENT (25%) OF THE VOTING STOCK. PARTNERSHIP INTERESTS OR UNN -. UTY COMP
INTERESTS,AS THE CASE MAY BE OF SUCH GRANTOR. HOWEVER.THIS OPTION SHALL NOT BE .. -, - =' IF SUC
DEMISE IS PROHIBITED BY FEDERAL tAW OR BY TEXAS LAW.
MISCELLANEOUS PROVISIONS.The following miscellaneous d aneous provisions are a pa this Deed d Trout:
Amendments. Tide Dead of Trust together with any um Related Doeatta,constitutes the entire • .. ., .and •of the.
as to the mates col forth In this Deed of Test. No steretian of or amendment to this Deed• • .NSA be -. unless given in
writing and signed try SW levy or parties sought to be charged or bound try the allamlbn orA rom II l Reports. the Property le hard for purposes other than Glamor's residence.G .. Le der adeed es as
corned ttamrnnt of net operable income received hen the Property doling Grantor's
Lender shag require. 'Nei operaarg income OM mean it cash receipts from the . . . '..t ... In connection
with the oprata of the Property.
Captlru H eadingt. Caption hor&gs In this Deed of Torn ere for aowenlenm. .. Tory and are not te Interpret or define
the previsions of lids Deed of Trust.
Merger. There shall be rm raga of the Interest or omen created by this Daod T any other In J or eareta In the Property et
any limo held by or for the bend'of Lander In any capacity,without the r-. en . -
Govendng Law. Res Deed of Toni will be governed by bdoral taw egg-, not preempted by federal law,
the taws d the Sate of Tana mai
d ard to its overacts of law. '�!''. Deed -. . .. ban accepted by Lander In the
Site of Taco.
Chaim of Vanua. If them lea b soul,and If the trenaecliort• .. by this Deed- • •••nod In DALLAS Courtly.Gunter egress
am upon Lendeds mammal to submit to the'wis ed=of the mats- r - •`cry.State -
rik
Ne Waiver by Lender. Lando awl not be deemed lo lune ., ••• this• •�. Treat thine such waiter is pen in wddne
and shed by Lender. No deiay r agdseion on the pan of '".. . . any right •. operas a a waiver of such right er any
other rloht. A waiver by Lander of a Podebn d We• . . . 1 pmbrrtse or oonaltde a weaver d larder's right otherwise to
dsmer d stirs cent it rum with teW prevision{rot
a y• a • _•d Teti No prior waMt by Linder.+nor airy cowls of
dosing between Lander and Omar,shall sons ieme f -- of any of or d any of Mentor's obitgadona es m any future
traneacbon- VMwtwar lie consent of Lander b • -•hide,.•le Deed- " Waning of such eorsent by Lauder to any bhaahm
shell not eostbrle conanudrg corral to f,! - such ., -•• it required aid in el eases audt canard may be
granted or withheld In the sale discretion d •- �
9evmbl ty. I a court of competent petadtdlon Ands '74'" • of this Deed of Trust to be Regd.Invalid.a tneebaeable as to any
churmstanco.thel near.;On not mete to-.. ... - . bead.or unenforceable ls to any ether eircurnmerne. t haasede.
the offending pmviaon ahel ba-. . - I h• •-- raid and enforceable. If the offending provision rand be ea
readied, it sine be mneWmad d :f�hont . of , Undssa otherwise requited by law. the Sagethy, Invalidity, or
uhmNp�abley of any pranlslms of• Deed of Tm- net 7 - ems tags*,validity or snfoeosibthy of any other amnion of this
Deed of Trust
Sueassan end Assigns. Sum(e=to Pk • .- - stadedd • Deed of Trust on transfer of Grantor's Interest elle Deed of True*deg be
binding upon and hope to the• eat pa •
nt panne.their . . - and salons.. I owoerabip of the Property becomes vested In a person
otter than Grauer,Lander. Grimier. I sa
do Gra 's dot with ntor euaelsaore with refetenee to lids Deed of Teat and the
indebtedness by wry or ..• a - !. —Grantor from the obllgedam of eft Deed of Trust or liability under the
indebtedness.
Time Is of the Essence. Time is d..- on hi the pertommaea d this Deed of Tnuat
OEVI811ONS. The .. `0 • torus ash have too following meanings wten used In thin Deed of Teal. Unless
'pedhmaly stated to.; . •,.. unmade anal mean mama In lawful money d tli Wilted Stabs d Ar ante. Words
and terms used in.. . . 'h Include the plural,and the plural sill Include trio singular,a the contend may require.Wands and tame not
gta+rdes. . j� •+ .dust shall have the meerriga autthuted to each term'In the Uniform Onernad t Code
—� 1 • - , roars tNWOOO NATIONAL SANK end b successive end amigos
Borrower. The •. �u;'_•. Pees Pmpettee LLC and includes el aosiWsn and co-makers signing the Nam and all tnab'
redo.. . J
•Neat The •and d Truer mean tide Dead of Trust among Orarrree.Lender,and Trustee,and thanes wMnout limitation at
.. aid security •i -prodtiane relating to the PeeonW Property and Rena.
De• mown the Default set forth In this Deed of Tract In the sedan titled'Defadr.
�rnorrda'EetvitorermruW Lame mean any and al afro.Ward and local amtntas,rapmaWoes and erdt wimal
relating to the •.-,_ d wing heath or the enviorrrwnt.Induding without Mulligan the Ootoralwnsrer Eradn>mrnental Response.
Compcn* . • • LIMO/An of 1980.as amended,42 U.S.C.Seelen a601,et rum.(CERCLA'1.tie teethe A sendmeres end
Remehorkethth Act of 1 SSA.Pub.L Ne.99.499 CSARAL the Hazardous Mated=Trartspmtedon Act.49 U.S.C.Seddon 1501,et sad-
gm Resource Canervedon end Recovery An 42 U.S.C.Sidon 6901, at seq..or Who applicable=te or bderd lawn,nd s,or
maunder*adopted putuam thereto.
Evrd of Default The wads'Event of Defeulr mean any of the wares of default set forth In this Deed of Trial is the events of default
section of tub Deed d Tent
theater.The weed'Grantor means Pabm Properties LLC.
Gusrenter.The word'Guarantee memo any 1Furardr,entry,or aaoamn edatlst party of any or all of the Indebfedrsaa.
Gusmay. The word'Guaranty moms the guaranty hem Gurenmr to Lender,including without Aral a gumnny of slier pm of ire
Nola.
. -- .. s
DEED OF TRUST
Loan Ho:104405704 (Continued) Page e
Hazardous Substances. Tha word, Hnardow Substances'moan m tw s dm1,because of shot quantity.ooncanaadon or pfyalral.
chemical or Inadbus ehhreetedatinau,may coma or pose a plasm or pagoda'hazard to human With ar t u anvbcntnent wean
sn{uepeny used. awed. lamed disposed af, 4energad, msnufacawad,transported or otherwise hand ad. The words'Hazardous
Bubetan00a'are used In the any broadest serer sad Include without Sedation any and ad hazardous Cr lode atMsncea,Materide or
wade as cleaned try dratted wear the Environmental Laws. The tarn'Hazardous substances•also Includes,withal imitation.petroleum
and petroleum by.pradurds or any fraction therm'and asbestos.
Improvements. The word'Improvements'means et asisti g and future hrmrozarrwnts.buildings.structures,mabaa lionise abed on the
Rod Property.bum.addition.lepfeomlarra and aeterconabudfon an the Rail Praparry.
Ihdebtednaa. The word'Indabtadnas'meads It principal.kdersst end other amounts,coed and ahgrosea mode under the Nate or
lidded Dowmsna.together with all renewals of,esdeeflora of,modelohkne of,srnatldadata of and andsddsdlone for the Nate or
Palatial Oadentur s and any amount§"amended ar advanced by Larder to discharge Grantor's abegatlwn or sspunaa Incurred by Trustee
or Leaded to enforce Grantor's cbcgadaa under the Coed of Trust,together with Maraat on such smsuna as piowdad In this Dead of
Trust.
Lander. Thu ward'tandor marts INW00D NATIONAL BANK.Ito surnuaore end assigns.
New. The ward-Note'moans the[swift :ay note dated October 27,tore,la the original principal amount of$704,70140
from Gramor to Lender,together wee se renewola of,aavmhns of,maddtgaans of,re0nantdngs of,corwddadana at and ...
for the promfasary nmla or agroernardL
Paused)Properly. The worth"Permed Properly'mean at equipment thmee0.sad other arddea re paraandl Property 4.honseter
owned by Greats%and now or herader attached or armed to the Red Properly,together with di accessions.pants. ' to ail
meplaesmente or end ae substitutions for,any of such oropety:end legenhsr witlh Cl proceeds(Including oilman Ihnaahee 'If- - -
proceeds and refunds of ptomains)ham any sole or other dtepmtlan of the Property.
Prepat r.The word'Properly'means aaderwely me Rad Frowsty and the Personal Property,
Real Properly.The wants'Real Property'model ma real property.lee:rests end radrte.es Mawr demoted In .. Trust.
Mead Dectarura. The wads'Related Doanante'mom all promissory notes,meet age,loot ..,,, "',,+W«,,
sg earnerta,ghafentea,mostly egremhena,moutgogaa,deeds al bust leanly dude,collateral mortgages, ...lop
eg rhorts and doaamnt%whether now or heroafsr twisting.ardieuad In connection with the Wontedness. ` 7
Routs. Thu twat'Pens'means ad present and future rents, manure%beam issues.wands,p;'..,and other Nit.. . d. ..tour
Ira Properly.The word'Rents'shell also mean as'Rena'as dented In Chapter94 of the Tensa , Code.
Trude.. The word"nortee•means Gary L Tipton,whoa.address Is 7521 Sn000d Road •I1 •`' S?A9 wW Wale or
orooessof trustesa.
GRANTOR ACIDIOWLEDOEI HAVING READ ALL THE PROVISIONI OF This OM OF TRUIT. • • •R 0 r,•.TTERMS.
GRANTOR: 7
PATNA:plifttlfsa tiC /144 . ` - /y1
TASs• ial .aOY: "noax //` ��c.rr -r
TiLIMITED LIABILITY CO y'' g'''•.OW •Fc MENT
STATE OP l 1
•
At
ewer(OPCor \
Tele Indbennere woe -• • .. .before y a: P ,20� by TANVIR ARMAD,Manager of mans
P1e0erdae tt.G,, .
.41P
►w •1111 • GATHER.N QCl!GPM'
,aic,"lt.....
�' 7 Li7. VG HoaeyPhdhll.00fToms
-Li - • �i- =ILITY COMPANY ACKNOWLEDGMENT .
STATE Of ram %, t
COt1NTY rIlk: I la
i
nos Pest ore= ...•• esters ma on Oat.. rz[ + I06 by FNMAPiOSAMA Manager of
A1141111
Pan
s Prowess - . on bandy of Pabu Prop.rdeee LLC.s warded Ilsbally company.
})CFrTHERINE COOKPUBLIC II:fi! adiZ
/ STATE Of TEXAS
y%mi S a or
My Carhm Ewa p1-01•+r1•*
tasaPro,Ver.16.2.10.002 Capt.D+H USA Corporation 107,2015. NI Rants Resorued. -TX HACFIILPIAGO1.PC TR.280010 PRaa
1901351500320
Acciri,46%;
Filed end Recorded
°Mal Pabuc Records
Stacey Kemp.County Clerk
fkrCoMa County.TEXAS
`- 10128/2015 02:35:33 PM
c4 I 350.00 CJAMAL
20151028001364810
�• L 1 Jb 4 `I '' k
Gr 20151028001364820 10/28/2015 02:35:33 PM N2 1/3
Immeit
UCC FINANCING STATEMENT
FO-LOW;NSTRUCTIONS
A NAVE&PHONE CF CON'A;TAT FILE.0ptibnatl
Loan/1104405704
?.E•VAL CONTACT AT FILER(oplona!)
C.SEM ACitNOV'tECGMEN-TO; (Name and Add':aa)
Inwood National Bank 7
7621 Inwood Road
Dallas,TX 75209
L THE ABOVE SPACE IS G OFFICE US LY
1 DEBTOR'S N.W.E. ?•cults any tl.5 -Motetrr ne;1 a x lel hue rand NI rams;CO no:Tit nod y.ar anarav:a:a*nr Part:r Ms D 4 cry avidual Dap:Ys
nrnsstill n3l RI L.-Lae 1c.trove ea:I Rat I bark dreei Mn ❑an:pro%de the Irdeedual:eater�h'3�manai n:ten 1:d the r'nenorg S F . 'etJCC'Aal
10 ORCANILIT ON NAME I
Patna Properties LLC 1
OR e/C.,'b W01'/'O:.AL'S SURNAME =£BST P3RSC WL WVa= 'd iO'AL NRb4(5) SUFFIX
A
•c. r INCCCRESS G,1 - -
w - - 5-ATE .CtiSTAL CODE C3'A7RY
3208 MONETTE LANE PLANO 25 USA
0.DEBTORS NAME:Pror Se Fehr OCa Oettorname(2a or 23.)(,.se load red rwrw do rot and.rro dy r an serf par:arthe tars woo;.Ir arty part of ate.nav'dtal Dabrnrs
^ama WI ia,r:in dna 22.tam at d:On 2 blank 744 i Mee C std p'av:da the I vlmral Cate=pc ix r'• data Flu. Sadenrr:t Adderld.rm;Fain UCC1MI
•2a.CRCA.'a-IOA'SNAME �
OR
e.7 wCUp_55 aNA1rE FIRST PE NAL NAVE .cOr.QML nArrE(StMl IAL(S) SUFFIX
7a AA LAGAJLINESS ——di 5'A1F I POSTAL COCE CDUI."TRY
I
3 SECURED PARTYS NAME: %WE ad ASSIGNEE of ASSIGNOR SE - P TYI c S,?ged Parov none(;a or 3dI
3a ORGANRATON S NA:1F
INWOOD NATIONAL BANK
OR 34.IIlD,V1ZUA_S SURNAME • RSONAL r1AtAE .L:r1ONAL NANE(SiAYRJtL(51 SUFFIX
l.7MAIUNBAGGRESS / re STATL PCSIat CODE CC-RORY
7621 INWOOD ROAD L TX 75209 USA
A.COLLATERAL. "ha fsancnc er:atmrert deters the 'ee :arM'
—
Purchase Money Security Interest In urns, h of the foregoing Is owned now or acquired rata;all accessions,additions,
replacements,and aubatitutions relating to of rig;all records of any kind relating to any of the foregoing.
5.Chedr Rai if aper-abls and Ich ya7t Pal ma.Camara is ❑eaJd Ina mat owl s.CCIAl ram 1 r arse Iretnrcaons) II stair"amturlslsred by a Dedo:srfs?ennui RsresentaLYa
8a_Clem p:hl"appreatte red ena:yt tI ere ben Sb.Cam=d apdrable rid mom=Jr aria tar
C PUCIl.Frmnx Tranaaobal I:J Mu.da;r.taa.H:r.Trriaeran 0 A CMkr u a Tram:a:rp LaiCn 0 Asrauhurat Jan 0%ROI=Mg
7.ALTERNATIVE CESi3wtTICN II wracea r): l Les»uLeswr 0 CmprraaCceslpr,e Q SaescS,rhr l] Btdlsuaaw 0 Likeueett orser
8.OPTIONAL FILER REFERENCE DATA:
COLLIN COUNTY CLERICS OFFICE
SECURED PARTY COPY—UCC FINANCING STATEMENT;FS•rn UCC1)(Rev 04l2Cl51) 041.1
S.W.400 Eui Avenue,Pbrtrand,Oregon 97204
I
UCC FINANCING STATEMENT ADDENDUM
FOLLOW INSTRUCTIONS
S.NAME OF FIRST DEBTOR: soma es are 1s or is on FI.lusm10 StetIA at It In,lb Ass ENE error
sums hlleldrial Oohmr nuns NO na IL aseru nerd ❑
sa ORGANIZATIONS NAME
Patna Properties LLC
OR 11 ENDIVIOUALS SURNAMEE FRRST PERSONAL M 1
MOTIONAL tuoistspurtam SUFFIX
THE AROVE SPACE• ."�•, • --. USE ONLY I
10.DEBTOR'S NAME:Proviso(t0s er 104 crib gg adrJNand Mbar sons a Ikhor rams eras di rid R ar he lb or 2b d the drip •--•• !,-'• MN sad,IV7 rmrsrs
—
to not milt mod,Of s>mrnlars arty um of as Oaetds none)sod ilia 0s me3n0 sad-cm In Oro Mt
10a.ORGANIZATIONS NAME
C.)
OR 1tlg t Vi1 I IALS SURNAME
1
INOIMOUALS FIRST PERSONAL MAME
{
IOIVIDUAL'8 MOTIONAL NANEIsyINffML(S) SUFFIX
10c MAILJNG ADDRESS .CITY / STATE POSTAL CODE COUNTRY
1
11. ADDITIONAL SECURED PARTY'S NAME Or ❑ASSIGNOR S- -Ms P :+� S PRAM*ON pm MM.MO or1101
Ills.CRGAMZAi1Ot(S NAME
OR 11s.INDIVIOUAL'S SURNAME FIRST RSOr1AL ,a/ MOMONAL NAMIF;SpalfAt(S1 SUPRX
11a MAILING ADDRESS 7 STATE POSTAL CODE COUNTRY
0.—
\\V.-
12 ADDETTONAL SPACE FOR ITEM 4{Cc ):
'
13.tAa'Ws FINANCING STATER // p h0 ... ra 1i1 or seeded)in es 14.Ter FINANONG STATEMEEM
REAL ESTATE RECORCs , _. ■moss amber to as ad ■caws ss4atracced oollsterst ®I+Red as s gssaza%Mg
. Nuro mrd••--.. . a •• • •"wl• • NM. .•74—�"' •.-el lien 15 15.D... I tlen al roar sera
sr Om1o•dos►se me a -- •tram* / LOT S.BLOCK A,OF MARTINEZ ADDITION,PHASE III,AN ADDITION TO THE
CITY OF WYLIE, COLLIN COUNTY,TEXAS ACCORDING TO THE MAP OR
PLAT THEREOF RECORDED IN VOLUME I1, PAGE 17, OF THE PLAT
RECORDS OF COL IN COUNTY,TEXAS.
17.MISCELLANEOUS:
SECURED PARTY COPY—UCC FINANCING STATEMENT ADDENDUM(Form UCC1Ad)(Rev-04r20111) 400Sys.MR Assume,Posited,Orgies 27204
1901351500320
Flied end Recorded
Oldelal Public Records
�--t� Slacey Kemp,Conaly Clerk
Cansf211 C01anly.S:3TEXAS
•�`;'- 10f1812015 02:3Sc33 PM
fS7.00 CIAMAL
201510211001364120
LTIC#1901351500320 20151028001364800 10128/2015 02:35:33 PM DI 113
WARRANTY DEED ,
"NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL
PERSON, YOU MAY REMOVE OR 5TRII E ANY OR ALL OF THE
FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT
TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR
RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER
OR YOUR DRIVER'S LICENSE NUMBER S
Date: Octobe 9l,20I5
Grantors: Fauzia Osama and Tanvir Ahmed
3208 Monette Lane
Piano,TX 75025
\-,.....74V
Grantee: Patna Properties LLC
3208,Queue L5ne
Plano, 75025
Consideration: $10.00 and other good and valuable consi a recei. .d
sufficiency of which is hereby acttaowledged and confessed by -•tor.
Property(including any improvements:
Lot 6, Block A, of MARTINEZ ADDITION, PHASE :: n addition .)the City of
Wylie,Collin County,Texas according to the map or..'at . • recorded'. Volume M,
Page 17,of the Plat Records of Collin County,T-
Reservations from and Exceptions to Cam' r.tee and ' w, See Attached
Exhibit"A"
Grantor, for the consideration and 3+31_ to , .•as from and exceptions to
conveyance and warranty, grants, and con ..~ t ,.t.- the property, together
with all and singular the rights .. •• . . es .-•7in any wise belonging,to have
Aliand hold it to Grantee, , . __ a7rr ...... . . .rs, successors, or assigns
forever. Grantor binds Grantor and sr :. • a executors,admisystrators,and successors to
warrant and forever defs,.•s[+ a property to Grantee and Grantee's
executors, edmini- r and gas against every person whomsoever
lawfully claiming or • aim the . •r :. part thereof,except as to the reservations
from and exceptions:. nveyance ... .ty.
This con :. ! . . _._ subject to all liens. mortgages, encumbrances,
easements and other1.. . of record.
LTIC#1901351500320
When the context requires,singular nouns and pronouns include the plural.
t:au sauna
Tanvir Ahmed
STATE OF TEXAS )
COUNIY OF COLLIN )
The foregoing instrument was acknowledged before me on this I7 day of
October,2015 by Bauzia Osama and Tanvir Al mad.
CI AT
CCM GINN410 '
NDTFgr Plfa'.;Cs r ,
A AI":
CC „E441s w4+-231f Notary Public,S '. ?�
LTICi1901351500320
Exhibit"A"
Exceptions to Warranty of Tide
1. All restrictive covenants appearing of record
2. Visible and apparent easements on or across the property.
3. All casements appearing of record.
4. Any rights,interests,or claims which may exist or arise by reason of the
following matters disclosed by survey,
Job No.: 513-0810
Dated: September 3,2013
Prepared by: J.T.Thompson,Land Surveyor
Matters shown: Concrete Encroaches along West side of the Property
AFTER RECORDING RETURN TO:
Patna Properties LLC
3208 Moncttc Lane
Plano,TX 75025
Pled..a Rena.,
Daher Po&Rama.
Cacy
.[ CAP Camay,T C Mj\• toinnots atrial PM
sum GAMAL
�I IeInorsoousuoo
20160616000754920 06/16/2016 08:55:36 AM DT 1/7
CONSTRUCTION DEED OF TRUST
RECORDATION REQUESTED BY:
tNw000 NATIONAL BANK
Tall INWOOD ROAD
DALLAS,TX 7•iMOS
WHEN RECORDED MAIL TO:
DiMIGOD NATIONAL BANK
7021 MOOD ROAD
DALLAS,TX 732OS
SEND TAX NOTICES TO:
Pahl208 Properties ETTE LLC
PLAN 0 E1 TE LAM
PLANO.TX 75021 SPADE ABOVE TWO UxE IS FOR RECORDER'S USE ONLY
THIS DEED OF TRUST Is dated May 31.2018,smon0 Patna Properties LLC,whose address b 3208 MONETTE
LANE, PLANO, TX 75025 ('Granter"): INWOOD NATIONAL BANK.whose address Is 7821 INW•• ROAD,
DALLAS,TX 75209(referred to below sometimes as'Beneflefaryr');and Gary L Tipton,whose .•• 4 la 7821
Inwood Road,Dallas,TX 75209(referred to below as'Trustee").
CONVEYANCE AND GRANT. FOr Valuable oonddattllan,Orator canny,Is Tease b Oust,with power d seN,for to WWII M
Su sSdby,the foaawleq desamod and property.toDepar PhDs ed udsdnO or subeer erdy erected or dead bublow, •.. . . ... .
Mures;aM ed emmanb.sp1ia of bey,Ord othiortanommE ed wale and wafer Vas:end W sew d di.Mye0k0,old Woes .•
the real properly.4rdudlrg without antaatlon such Mtn es Grantor may has In at nemamhs,dl,Sus.Oeathaned set ebder mbTem, ..
"Real Property")located In COLON County,State of Tease:
LOT e. BLOCK A, OF MARTINEZ ADDITION. PHASE III, AN ADDITION TO THE CITY 1
COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOW '" ■F
THE PLAT RECORDS OF COLLIN COUNTY,TEXAS.
The Red Property or Its address Is commonly known es 815 S HIGHWAY 78, 75098.
-;1111
Granbrbaby absdwdy assigns b He
ie Lander(mho arst.,Banrtctery In the Dead dinar)ea- a,and o to all
promo ere Mum thaw d Oa Papaw and at Rods b the
e Properly. In'dalon. • • to f - Cods
sorrily aroma In the Psiwal Property mid Rents.
TWO DOM DF TRUST.INCLUDING THO AIsONNOIT UI RENft AND THE sacuenT IN THE RENTS •.. PROPERTY.
Y.
1S GIVEN TO SECURE (A) PAYMENT OF THE INOESTEDNESS AND OS' PAIPOAl1ANCE•.ANY MO AU.• • • ••-WIDER THE NOTE,
THE Dame DOCUmENTt,AND THIS D®Of TRUST. Tfta DEED or TRUST. •..r,-T Doe THE ••••••' '• OF eons AND THE
SECURITY meow et THE RENTS AND PERSONAL PROPERTY,,S ALSO GIVEN TO • -'�1,ANY AND ALL GRANTORS 081UGATIONS
UNDER THAT CERTAIN CONSTRUCTION LOAN AGENT BETWEEN D -'T1•
OF EVEN DA NERERaRR MY EVENT OF
DEFAULT WIDER THE CONSTRYCTTON LOAN AGREEMENT,OR ANY OF THE TED •• y: ,.•TO DIER®e.SHALL ALSO
SE AN EVENT OF DEFAULT(RIDER THIS DEED OF TRUST.THIS DEED OF N • . - THE FOLLOWING TERMS:
PAYMENT AND PERFINMTANCE. Enwpl as otherwise prodded In thle •. •d T `• d arlarmis soused by Ida
Deed of Tent ea Guy become duo.awl shall artily ly and In Dist' arm obllpeea s under the Now,OW Deed of
Tryst,and the Relabel Dooanarda.
pURPOSE OF LOAN. Th.Nora to the erase of L58.541.11I .• . •. In.,.� In whole. other enandal amorrunodetIorn advohced
or committed To Gwadar an May]t.2015 at Graatos l .j of •• gas rem*.
CONSTRUCTION MORTGAGE.TN.Dad of Tap b m'-• . . ••'~ of Sedlons 0-334 and 2A•300 of the UrDf mr
Comma/dal Cade.a Thom Mdiba ham beers Waded by• s.
P0110ESet)N AND MAINTENANCE OF THE PROPERTY. ^•row• possession and we of The Prapmiy OW be premed by
the fa0owbtg provtdom:
Peaswekn and Use. (Intl the o0awmrhea or m d• -'IC...! ) nenai h posses:1mi ant eonbd of the Property. (21
uaa. •Wwe4►or musses Ow PropsaY,rd (3l : the• .. • .
Dray to Matrdsen. Grantee Nat mabealn Da . .. . toriantaba mnealon and pdompdr carbon sin wake.nplecrnentr.and
mslntanoew naaaaay to cream Its aim
Cowinmrr__Eneronmental ..411111111 . . - •• to La diet (1) During the pared of Grantors aewahlp of
the Uvperty them hoe bon no we . . .•• . - trss ratchm.dtrpod,release oraweele feed Massa of arty N csandous
Substance by any parson an. ../slow or from r) Granter has no bnowledyn of.or mason to beams that Wee hos
been,ararpt as prmvbudy•• _._ •to atd . . b WIDIy : • In W n, (a) e y breads or videdoe of cry Erndonnuned Lowe.
Rum) any u /aaraeon. • !! ,rage.. •.1 ratemae or Osesttanad amass d any Haardous Subarea on.order,
road or bans the Prapedy T remora or•.-- - of the Property,or (c) any aemd or thmatand>dlpadan or deans of any
bind by ow prime - arld (3) -r• Au praWeudy dlsdoed to and edmsetadeed by Lander In wdtlne,(s rather
Grantor nee any sweat; ". '�T•�it ..•�.••-.•war ol the Property WO or..generals,mahufeeaae.Non,but diaper d
a miaow ay Howdy h. 8•.-'! . -•�+LwAi,+ front Ito Prapenr end 0)• • mid ° l such Wirral Ili Oil
E e a:r nlst Lows. Grantor
Wm ed IpLUsa Wheat
aYfioriiw Lads ad ti naOeMc �'� ,pow We PmoPsttM b roster suds ImsPsdbrb and testa,a Gransore umpawa,as Lader Amy loam
appap/lee to Papery wdtr Dia section of the Deed of Trust My bapedtens or testa mode by Lander.hull
be for Land . oantmbd to slats try reverie/ayt or AabiBy on ate purl d Lender to Grantor or b shy
other. . ../ .u ,_ • • . . oo<rabud tomb os based en Gemnba's due dRlwan=In breaail5a ne the Properly far
- &ardor Mosby (1) mimes end waives any Arturo dabna west alder far Indoor*or contrtbuton his Use
want • '1 far desrap or other opus radar any suds laic and (2) somas to Indenmyy.defend.and held hemdeaa
old asses.eatledw,damps,panddas,and swarm which Lander may Greedy of Itdbsofy swan or
actor .-• •.. '1 a a wean of the Deed al Twit or as aconsequence of any use.Denem m do. anedsehre.WSW.
- a• rve . - awunbg prier to Ownsarr areanhip or Interest In to Properly.whether or nal the mime rhea or
••hem been •L,K to .'..- The prmreiare d the esdbt d the Deed of Trust,lnddlg the mar to Indemnify ad ridged.
Deed and aurae the ... d Si.IndeUednws old the agar sod reeonnyano,of the Osn d Site of Tent dam real be
• •by i urdtry - • ..-. of ay Mood In the Property,whether by foreclosure or at ensiss.
:'"T sub. Gm aloe nil OWL arrduet a any para.ponds o nubbin nor ccerrilt.p .or wafer ay Unocal;of a wane on or to
the �f- • any•.• • of the Pmprty. Whorl IMOOM We gram y of them the Imabg,Omar eta not remove,or omit to any other
poly• y in` say •miner*(tndredn0 or and past red,day,scoria.ON,Omd or wady p:oduee without Lendeee prior
written toe mhaaw
trn will not apply to delft end saaads(such as gasand dl)net owned by Omar and of Wilds Guenterhas Wormed Larder In wrIane prig to Omen's doles or the Deed of Than.
Removal d lbpavaemm. Want"she not domain i or remove any bnprovaswma from the Rash Property without Lender%prow widen
mwent De a m idd en To Ws rerowal of any Imermementa.Lander map maim QMador to rake omngemmds ssdsfscony to Lender to
replace such dnprovarama with knmcwirrants of at Mast squat ohm.
Leaders Math to EMet Lender and Lambda agirth utd reprommothes may ohaupon the Rad Mammy se Ill resumes times to road
b tandde Interests ad 10 Inspect the Roil Properly lot purposes at Grantors oompllasob with the Tema old oadlaom of Oda Deed of
TerraL
Cana=with Governmental itsodremente.d S authoress appapltlstoo the oreGmaowY of the Propay.Indudhe without ambitiontor WO pitagety amply vedi an laws.ordinances.ard .now or hereadm
In admitthe Mwde:aw
With CiadOltiw Act Granter rimy contest In rood Nth any such Ines.ordnenca,or reeuufan IN withhold completna during any
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DEED OF TRUST
Loan NO:104408148 (Continued) Page 8
;pedantry salad to the raneery,as references to dollar errands chat meal enounte In lawful money of the UMW Series of Americo. Wade
end roans did a the sbtgider whet lndude the Plaid,and the plural shag Indude the angular,es an t context may realmWards and tares not
otherwise WaalIn ids Dead ofTrustdal hero the msaifr a egdbuted to midi
tie India Worm Consrrerd+t Cady.
8asfiduy.The word'Banelldery means INW000 NATIONAL BANK,sad as successors and ssstgis.
Bamwer. The word*Borrower"mans Peon Propatln LLC and Indian ad coetgnora and madam alining tiro Nola and dl Oak
sueaesaas and assigns.
Deed of Trust.The wads'Dead of Tnrer man thla Dead of Truer dreg abeaor,Lander,aid Tr stee.and includes without IIadtitlon all
nslgnmend end security tnlveat provisions n ada;to the Penang'Proaeny and Reels.
Default.The word'Default means Pa Default sat data In this Deed of Trust In to sedan tlaad•Ool ur.
Enrbomoarhe Laws. The words'rndrenmaihp Laws'mean any sad d ace.federal aid teed dada.ngWaSss and addenda
rdadng to to proledon of human halat or the arrsirrurent.6rdudtng walnut tirdtstirn the Cemprehsmlvs Enrkarorront•l Reeponsa.
Carpansatton,and Lte11114 Pun of 1080.as amended.42 U.BC.Sedan 9601,at sod.l'CERCLA1.to Supafrud Amrdmeme and
Reauthorization Ad of 1006,Pub.L No.09.999 r9ARA1.the Neaardous Metaled Transportation Act.49 U.S.C.S.Cdon 1601,at seq..
the Reeautce CGmrvatiri and Raewery Ad.42 U.S.C.Seddon 8001,et sae..or other aypdnbhs sale or Waal lone,mtak or
ropvaters adopted pursued shwa.
Event of oshulL Tiro words*Event of Odour man any of the evards of Wadi sat forth in this Dead of Trust in Cue of default
sedan of the Deed ci That.
Edging trtdsbkdmess. The wrds'Exdting indebtedness'raw the tnddatddnae described In the Wang Dens of
TNat.
Grantor.The word Manta'new Patti Propartlos LLC.
Ouasnter. The ward'Guar ntor'mass any guarantor.surety,or accommodation party of cry or as et the
Gummy. The word'Guaranty*mar
*pia prima from Guarantor to Lander,InWGng MamaMamaI mItaton a. ..,.. .. ., . pat of
Gat
Ilstoders Subslanew. The words'Nuaedaw Su eluima'mow mdabile Chet.bemuse of their quasety. —. ^�& •
dleniteal or Infectious dwvmistlea,may puss a pod a prima r parade!heeud to halo or . . '�.•-"7".a.Y _ '
fhrpropedy red,hosted,sarsd,dhdrdsed d,gawsted, mdrOad eu+sd,terepoesd or .., L horded. r • •Namwdaua
Substance era wad do Mak very taoedeed sage r d Include without tmdte ion ay and d .-f or etc .. .�... wands or
waste a Planed by a fated under the EmaraimenW taws.This Lean 7tsmdats Subside="•'*7"'1 ...without w • psbdatm
and petroleum by prcdud.or any fraction threat end asbestos.
Red Rowdy.Improveme ed. The word Shctlons�replecenveMs ind mains dcaw conW edsdng sumon future the Rad- : " + Mixed m Cu.
Indebtedness. TIr word'bid.tdsdnas'mew ea pelndpd,iraeresL and other •..,.�., costa and -- • •�.. . aide lira Nolo or
Raided Documents,bgarm with dt mamma of,estensiens of,mopscatirre Weldon of : . • •• • . • forere
e Note or
Ridded Doodads end any sn oned,eapendad or advanced by Lander to d• - catgadrs •'ammo blamed by Topes
or Lander to enforce Grantor's obligations under tide.Deed ofTnrat,tog with -• on such es provided In bhte Dad of
Tot
Lander.The word'Lander means INIMXICI NATIONAL BANK.a •-
Nets. Trha word'ache mass ne prmdenay node dead May 31, .• 6.1R • .1 •• -- adnound of$58,541.18 from
Grantor to Larder.tsdgaaer with as rarotwts of.mansions of, . , .... .. - of.mrrdtdslam d of,a rub4 a for
ordee the prory note a stosenrril. //•'
Pausal Property. The words VararW wan an dl +'•• and . .. r.�- - W personal property now or Wader
owned by Grantor,and now or harodtr sterhed or rased.. •. Reel . • ., m aaoaseles.pals.and adders to,sit
replacements of,and a wbadhdans Par,my of arch .... • •• ••••••_. . ; all .. . ... (badudkn walnut Ladtidan at insurance
proeeeds sod rotunda of pmnlsas)from any sale or. .. Property.
Fropry. The word*Property'mans rdladive y • ill' •... I Property.
Red Property.The words'Red Properly'mean r l. .. •. '. '- ,as further deeatbed In air Deed of Trust.
lidded Oseumeba. The words'Raided •. ( :• )...�promysa dada agreements.bat agnereds,andro mean
.its.Bw+�es,security ere . tend. •. duds.easatad rooftops,end ad other Instenemis.
agreements and documents,whether now or •. .•aterded In eoemedfon with to Indabadnar.
New
. Tin 'R word ants*means di• - future • .Income,issues.irod9n profits,a n
4 Geer bonsai derived born
the Properly.Tie won!Tanta*did, -. . Dada 04 dais Tess Property Code.
Twain The word'Trustier - WOis 7021 Inwood Wed.Dallas.TX 75209 and any substitute or
enmeaar busload
GRANTOR ACKNOWLEDGES HAVING- • -OF THIS DEED OF TRI1Sy,AND IMANTOR AOREEB TD ITS TERNS.
GRANTOR
•
PATNA LLC•�' /
hi.� -ncR.cCGtY OCZ14,,tp
Br I i._►rli�t✓r�L'e. �i RY
- t•... ` BeAasA,ate aegdr of Pans lwpaWa
LLC
DEED OP TRUST
Loon No:104400146 (Continued) PSOo 7
LIMITED LIABILITY COMPANY ACKNOWLEDGMENT
STATEOF ' eitac 1
Colli+n 1
Q mean�nuc
COUNTY OF 541
} r..• Cato.Noires 2316
This Insaument was sdato 1sd low Ood be it on ,3 U n� W T ,20i10 by TANYIR NOlAn.Wneger of Psin.
Ripostes LLC,a mombor on Wan d Pabw Proprdai LLC.a umlud WNW mnpuny. ,
fel 4 A
Air-
Natary Pule, • d T
LIMITED LIABILITY COMPANY ACKNOWLEDGMENT
'111)11111111/>
STATE OF O S 1
Ile
COUNTY OF LatViiy\ 1 \:77
l
This bnbumanl IA=a ickno aladaed bdo o mo on / ` a 1 �' by F,-• ., Wow of
Patna Properdsi LIB,a mambor on WWI at Pools Piapodfaa LLC,• n._.. T.v, ..
• �� c
c, .... FA GRAY
Rota of Ttns .
. Conan.Ewa e.p.=Ot6
Los0Pro.Vor.16.2.10.002 Copy D•li USA Cao.praOon I . F - HscFN.A.10e1FC TR.26W2 PRA
'1111111111111116649
gild and Undid
Omdd Fob6r Reatds
I`"
�__ OHISg6l6 6is2k2i AM
t ' floAO C1ANAL
' . 0I! 201610620oa1SA20
20160616000754920 06/16/2016 08:55:36 AM DT 1/7
CONSTRUCTION DEED OF TRUST
RECORDATION REQUESTED BY:
INWDOD NATIONAL BANK
7621 INWOOD ROAD
DALLAS.TX 75209
WHEN RECORDED MAIL TO:
INW000 NATIONAL BANK
7E21 INWOOD ROAD
DALLAS,TX 75209
SEND TAX NOTICES TO:
Patna linsperts1.1.0
320E ONETTE LANE
PIANO,III 7SQg5 SPACE ABOVE THIS Luis IS FOR REcomers USE ONLY
THIS DEED OF TRUST Is dated May 31,2015,among Patna Properties LLC,whose address IS 3208 MONETTE
LANE, PLANO,TX 75025 roranlotl; INWOOD NATIONAL BANK, whose address Is 7021 NNW••• ROAD,
DALLAS,TX 75209(referred to below samadntes as"Benallelaty");and Guy L Tipton,whose .•.. • is 7621
Inwood Road,Dallas,TX 75209(referred to below as'Trustee').
CONVEYANCE AND OMNT. For vuIi 1e amldsudon,Granter conveys to Tame=I.bust,with pewar of sale,for me bwMR v
Dauaettry,Ms fdmo+ring described rut property.lagetina m Mh el adsang or.ubsequeney erected cc aeM�ad buildings. ... .m�prop hndudehg orR arm si sesarrnsts woos ta *cn such Grsnt 1 sswater �=swots.end edo,wea W sineW mod
"Real Property"}located In COLLIN County,State of Tease:
LOT 6. BLOCK A, OF MARTINEZ ADDITION, PHASE III, AN ADDITION TO THE CRY 1 �,
COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUM `;,�- F
THE PLAT RECORDS OF COWN COUNTY,TEXAS.
The Real Property or Its address Is optionally known as 515 S HIGHWAY 78, 75098.
Gnala booby absabtoly=lens to Lander(oleo eorwk as aeMaaelaryIn this Deed of Trust)d•• • ,end In art to el
=sant era Muse Noses nf the Property and el Rode horn the Property. In addition, • } to Code
aacoNy Interest In the Personal Ptapeny and Rants.
THIS D®OF TRUST.INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY 4'• IN THE RENTS PROPERTY,
IS GIVEN TO SECURE (A)PAYMENT OF THE OIDEETEDNEaa AND (I PERFORMANCE• ANY MID ALL WIDER THE NOTE,
THE RELATED DOCUMENTS,AND TIES DEED OF TRUST. THIS D®OF TRUST, .. TIE OF RENTS AND THE
SECURITY INTEREST IN TNT AN RENTS D PERSONAL PROPERTY.IS ALSO GIVEN TO . ;•ANY AND ALL , OROJIMIE8 OBLIGATIONS
UNDER THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN . OF EVEN OA.-HEREWITH.ANY EVENT OF
DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT.OR ANY OF THE•• TED • • r"TO TT 11.MALL ALSO
SE AN EVENT OF DEFAULT UNDER Tlas OM OF TRUST.THUS DEED OF • ' +' THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE EmmaEm as oatenefw prodded In Edo• of T• • • as.a4adt sassed by this
Osed of Trust as Say bears d m,and slid strledy end In a Emory ... • remora obagWWors under the Nate,dill Deed of
Trust.and lh.Reim=Doeurrime 1 •
PURPOSE OF LOAN.to Larder to GranNato tor m ernoura of M ,201$a�'Orantars,• d ` m whore. /other EranceU tiers adVartmtl
arrinined CONSTRUCTION MORTGAGE. Ths Deed of Truer Is a"-. • ' ...T W•• of Sailors 11.334 Dad 2A-300 of Ore Udlonn
Cone edsi axle.es those seedcase hire been adopted by•Ai
PO49FRSION AND MAINTENANCE OF'THE ...
PROPERTY. p and use of the Properly stunt be g ow=by
the Iloilo/Wry mobilorm: /1
Possession and Use. Ara the occurrence of as ^ of ; • 1) remahr In possession aret coned of the Proper1. (2)
use,operas or into a to Propertyand (3I .-.-- ' , the• ..-• .
Duly to W ntubi. Grantor trust mintasu are - •• v tenantable condtlen ertd promptly perform ill repose.replace gala,end
msintansia nseeNmly to Drowse No
pliance With doWennstr ul m Lender that (t) Dor=the penal of Grunters oreetaldp of
aim Memory.More his Well no me .. DOsuserd.disposer.Meese or thwsuned Wiese of arty Hmtudorw
Substance by any Person cm • • 1 about or born r. Griner has no luwdedge of,or tsuen m bellows this Oven hes
been.auospt a prpfomusy•' .• m are .. . - by In wilting, NI any Meath or dulid n of any Emdonmsasl Lowe.
(b) any to.,SuneruMon, . st Mo... .. . dfipost,Meese as threatened Memo of any Hasardoua Stfituoa an.under,
about or Born die Propaay omen or•-.• d lh.Property,as (c) any.aml a tMooMned ltlpndun or dolls of any
kind by any parson • . . end (3) L.•r• es prsMmolly Badoved es and idmowledgsd by Loader In w/Eng,(a)nether
Omnmr nor say wad, .._ ._ , .•..wu of the Frowsty shell use,genets*rmrrdemrn.sere.tat,*vow of
or Maass y• • hen ens Plaper ,fM Qt) any such aatMly abet Me out aw m d h apNernae
with +pp cable sy, . . ._. +` ": �. , end ordbmwsto.Indul thg walkout Reunion a0 EneMw.ne l WWI. Orator
sat an Nerds
rortres Lender d Ns upso the Property to make such Iaspedou end tote,at Graders erenee,as Larder rosy deem
approplse to. . ... • Properly with Yds secsbn or t e Dead of Trust My Inspeadau or tests nada by Lender slid
be for • nallened In male any rospatf@Ugr as Usbay on Duo pert of Lander to Giormr or to any
•.. conmhud herein me booed an Onntah due duper=b I nvesdgedrg the Properly for
Nam• ' \Omdor hereby (I) n oleul end wales any future skims matron Larder for Indemrty wrro art muten b Om
Weed • A .. , . Moosuper r Moosup or eth rot mk a der a es y such trim end (2) mien to hndor nlly dotard,ere)told
d hamde
• !�^`. and ... .. . baass,Nsba des.damps,per t se and muma Midi Lander rosy'drwWy or Memory sustainsustaina
sutler. . •- s '• medal of Mee Dad of Trust a e ap
s a aonaupue nos of any use.geuamUon,muutae t*.alonga.
.- rehtme oawmog price to Grerdofs owrhettstp Of kdeM r Ii 010 Frowsty,wrother or not the Una was as
..Mel been . ,W••... The prwlmmns of this sector al Sn Dead of Trust.inducting the abDgi d
an to MdsnrdtL�and Wald,
�-• vtse Pm .. + of the Indebtedness and lie sstoud ant mrwyerah on aoons of the Ian of this Deed of Tryst ea st Nrd t not be
/'e 4, martby Laken - • . of any Merest in the Property,Miens by foredoom or etkarvrlw.
N.' • . • that not agues.conduct or pemdt any rrdsewe nor hermit.penult.or tuner any WOOS or or wets an ar
t m
e•+r• any..!. d the Property. Withal ureic g 1Ne geosflty of In f r,g e ,Mirka WE not=we,or rant m my deer
pony Our •. . . . any Isobar.mina=IbrduW an
i ea d gas), de po
),coil,day.saria,sot, or roc* en a waho.a Lender's Prior
mitten--..... reultMor cola not oppy to dgW end sasseurrs(such as 9•s ad ea)not owned by Grad*and of ttateh Grantor
hss Informed Lender el writing poor m Wanton signing MOM Deed of Trust.
Removal e1 taprevonerl. Grouter shall not dame*or remove any Improvements hoot the Real Property%Nthout Wadi prlar written
MoMI. Asa conmdan to the femoral of any Impsvernuaa,Lander reay roqubs erase*m nnsbe urenpenwrub stltaday to Larder to
rapIsaa mil Improvements with Improvements of et best equal m em.
Leaden Rlgis to Eider.Lender and Lenders swots end momenta/as nmy aaer upon the Rad Property t.I n000nlble dorm to sMend
to Landers Insre=and to stsped the Rood Prom=for pommel of Grentore compiekn with to tarns and=Mons of this Deed of
Trust.
Caaagara with Gerienonsrdel Ram berate te. Grantor ImaD promptly comply with at Iasi,are nanws.are reguttane.now or Immafter
in effect.of MI govenmewl aNhatles appthasse to the use or omrpancy of the Property,Inda:Omg without ambtfon,the Amenaao
WMh DWbESIs Act Grs+ier may omtast In good filth any still low.calmness,or mouth=aM withhold eemplam a Owing my
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DEED OF TRUST
Loan No:104406146 (Continued) Pip 6
epedllwly'lead to the contrary,at!gfaan:es to dollar smuts shell MMN'mount&N Wrad money of the Unwed States of kneels . Wads
end semi used In the slndWar shall Ndude the pbral.and the p urst shag Include the stnoutar,as the wiled lily reohdra. Wads old bans nol
otherwise defined In ads Deed of Taut still hens the maydays MIrrbutad to such two In the Uniform Canes ctiI Coda•.
Beneficiary.The word'Beneninclere means INWOOD NATIONAL.BANK and is shhmsuas and melons.
Barowar. The word'Borrower raw Palm Properties U.0 and Includes all caelphas and ci.malhete depth.the Note and w melt
succemers and asef9+hs.
Deed of Taut.The words'Creed of Trust'mean this Deed of Trust am rq grantor,Lender,and Trustee.and Indudm without dndlet.on eg
ssalgnmant end security Interest poistons Wean to she Personal Property and Rena.
Odsult.The weed'Detour Meets the Default sat bath In this Oast of Trust In the section Med'Datsur.
Emrlrmmuntd Law. Thu wards'Endronmentd Laws'mean any and ell sate.federal end loaf statutes s end adheres*
aletng to la protstden of room health or the owhonmenl.including without IlmIte on the ComprehwmNee Response,
Corpaheulon,and Loudly Ad of 1910.es amended.42 U.S.C.Sedan 9601,eI up.FCERCLA'J,the Soperhand Amahhtmads end
Rermthwgsdon Act of 1988,Pub.L No.99-499 rSARA'}.the tfamdaw Materiwl Tra grandon Act.49 U.B.C.Sedan 1801.et no..
the Resource Conservator and Recovery Act,42 U.S.C.Section 6901.el um..or other eco'able sate or federal Isms,rules,or
reyhdadmhs adopted paauerd thereto.
Ewa of Deland. The words'Event of Default'mom any of the events of default sat forth In Ids Deed of Trust in the of datsult
melon of ode Deed of Trust.
Meng Indebtedness, The words'EdWrto Indebtednsu'mien the bndeetedrau dssalhed a the Esistlr9 Lane m of
Trust
Orsal r.The word'Grantor meats Para Pr pelte LLC.
Ouwndor.The word'Ousantor means my guaador.suety,or scconewodadah panty of any or of of the• .
Gusranty The wad'Lluasmyr Tuna to gushily hen GuaranMa to Lander.Including without amtafian s. . pat of
Natardous SubsOwse. The words'tlasardous Substmces'Tenn ram 111i*that.battle of shah quanfly.`•" y
Carried our idedous dhsaede a.may caws or pose a proem or colander hated to r:. health or k • when
it-apedy used. treated,stored deposal of, gahaaled.maadugaed,gimbaled a .• • r herded. r . . 'tlaserdous
SubiWo,a'ere treed In their very bhasdes scrag end bUda+Memel anWallmn any end d or redo '•. ..... matartets or
worts n dented by or lead under the Envienranal Laws.The term'itswsdcus Subteen:es" . ,MAMMA` . predawn
and petroleum*products at am heddon thereof and mmemes.
Improvement& The word Irnprovernientr means el wed
Red Properly,lad ices.ads orm upteeemed*end ether . m ion t he Real- .•...!, he an die
T ... .
tedabtsd4eee. The word'hdahtadnaa'mean at prMhdpd Interest and Me •. caste phi wrier the Fiala or
Related Dowunenb6 mother with el renewal'of,eeewlons d,moelantons • of • . !•. ,. • for the Nets a
Related OocoraiU and amp amouma aparded Cr advenad by Lander b••' - eb9gelara•j eapwass Inured by Truss
or Lander to Waco Onerdols ettcedaa under th a Owed of Trust,-.. . _ with " en such • . • es prodded In Oda Deed of
Trust.
Lender.The ward'Lender maw INWOOD NATIONAL.BANK.he Note. The word'Rohr moans the proedee ry note dated May 31, ; a.In •,. • .Ifts . tunOYRL of SSS,S41.18 elan
Granter toLadar.bget of rigs et reraw is of.seenians of. . et,eawotdaltons of.end aubatthdtarn for
the poralseary nuts or.leement
Paschall Property. The words"Personal Properly mesh st .F•• • and ••. . r(.'• of personal property now or hareem
anal by Gr-.m argil now our Irfaaller meshed our sinew•.• Reel- : , •, el eeasslchs,pone.aril sddldone b,at
replacements d,end at subattadens for.any of such . •. •. - •. •..•�;..•_ , erg ....... big wdtlhad[inflation MI Murano,
proceeds and refunds of pamimn)ham any side or., . .°.•-•. - •..Properly.
Property. The ward'Propeny'weans ooftsdraly, /in- • •Property.
Rut Props y.The words'Real Property"mien.r . a further described le Ohs Deed of Trust.
Rotated Decimate. The wards'Ralabdd • �..� . met eynenhenm.loin syreemena,enek naahtal
agreements.Waanee,weawty .. . .. trust - •. deeds,eogalsal eattpges,ad sou owe Instruments,
egrecnarah and documents.ts.whether now our •41;iii.r• ere riled in cennend wIwth the Indebtedness.
Rams. The wad'Rents'mama w• „•future income,Imes,apothem,prolix.old Other benefits derived from
the Property. The word"Rage dish ...' • ampler 9d d the Yam Property Code.
Usage. T 'Trosaa' � r •.. ....In Tb21 Inwood Reed.Dale,TX 76209 and any substituteor
GRANTOR AWO/OrWLFDO881GYMNO ..OF THIS DEED OF TRUST.AND GRANTOR AOREES TO ITS TERM&
CRAfITOih /
PATNA• 1,-LLC ./`\y,1,fi.0i,ii_
I►:� CC�a[cc�n 4)acf4
rrr•i
al�tir..►• �w AYZIA MAMA.M mMe/ Pr.P.Uss d Path
LLC
DEED OF TRUST
Loan No:104406148 (Continued) Page 7
UMITED LIABILITY COMPANY ACKNOWLEDGMENT
STATE OF f ixo S 1 wlrsaL wrote
�nt{ 1 V1 Is 4
COUNCY OF C"•ki ' ` I Q0 5 $mf
•T..,' Comm.Nana 7+2016
Tide wed wan.dmorAe d befog ma on J tint_ 0 201 b by TANVIR A)OIAfl.Manigar of Pam.
Plap ardn belief LLC,■member an beli of Paine Properana U.C.a umbod Oddly many. delfr'
Ord I` •
Notary Publla.:.,.a!7.I
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UMITED UABILITY COMPANY ACKNOWLEDGMENT
STATE OF C. 1 1
CouNTY OF ( al.7I n 1
a. of
TMs In i ganef was advnaRe09ed Worm me an ::
Paine Propelling C.9 maebar on belief of Palm Plapee!>a U.C.a Ibnite0
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'N 4' 79140414900751910
RECEIVED
AUG 0 8 2017
Emails to Councilman ""MANA`"
Stephens and Forrester
in an attempt to
disclose the perceived
ethics violations in
private with my
representatives .
B/5/2017 (2 unread)-ialray@yahoo.com-Yahoo Mail
Find messages, documents, photos or people
F Back 41k <« r♦ r Archive ra Move m Delete. d Spam ••• '""' X
Inbox Re: meeting with my representatives. Inbox
Unread Keith Stephens <stephens@verrzon net> Apr 19 at 5:38 PM
Starred W To:Jal dennis
Cc:jforrester98@yahoo corn
Drafts 1
Sent I'm not available, I have a meeting scheduled tomorrow evening.
Archive Sent from my'Phone
Spam On Apr 19. 2017. at 5'31 PM,jal dennis <jalrav( yahoo.com>wrote:
Trash
I can sit down tomorrow evening if that works for you guys here at my office.
V i E?wS 1 1.dt.
Photos Jal Dennis
972-429-0603
Documents jalray niahoo.com
Tutorials
On Wednesday,April 19,2017 3:06 PM,jal dennis <jalravevahoo.com>wrote:
Folders
+ New Folder I want to make it easy on you guys. You are volunteers and I respect that.
AAA Saturday mornings are always quiet and I am an early morning guy. Don't
know if you both will be available, if so, we can use my office.
Accuhealth
Amazon
American Jal Dennis
Atmos 972-429-0603
jalrayQyahoo.com
815/2017 Pnnl Window
el X
Subject. Re: meeting with my representatives.
From. jalray@yahoo.com
To: sephens@verizon.net
Cc: jforrester98@yahoo.com
Date. Wednesday,April 19, 2017, 5:48:52 PM CDT
That's ok Keith, don't worry about meeting. I did not want the information I was going to give you shared in public and a restaurant will have the ability
for others to hear.
God Bless you and thank you for your time.
Jal Dennis
972-429-0603
jalray@yahoo.com
On Wednesday,April 19, 2017 5:35 PM, Keith Stephens<stephens@verizon.net>wrote:
Saturday mornings are usually good with me. I would prefer that we meet in a public setting, maybe coffee at one of the local
establishments.
. . . Keith
Sent from my iPhone
On Apr 19, 2017, at 3:06 PM, jai dennis <jalrayla.yahoo.com> wrote:
I want to make it easy on you guys. You are volunteers and I respect that. Saturday mornings are always quiet and I am an early morning guy.
Don't know if you both will be available, if so, we can use my office.
Jal Dennis
972-429-0603
8I512017 Print Window
jalray(a.!yahoo.com
On Wednesday,April 19, 2017 3:00 PM,JEFFREY FORRESTER <}forrester98@vahoo.com>wrote:
Jal,
I can sit down with you one evening to discuss. Let me know a day and time that is convenient.
Regards,
Jeff
Sent from Yahoo Mail on Android
On Wed,Apr 19, 2017 at 2:14 PM, jai dennis
<jalrayeyahoo.com> wrote:
I would like to sit down with the two of you and review some information that I think the City needs to know. I have sought council and have
been informed that as my City Council Representatives you have the ability to hear what l have to say and then carry this to the council if you
deem it appropriate.
Pm trying to find a way to put sonic things to bed.
Let me know if this is something you are willing to do.
Jul Dennis
972-429-0603
jalray ayahoo.com
nECf/VED
AUG 0 8 zon
Ethics Ordinance : u
2014- 19
2015 - hR
ORDINANCE NO.2014-19
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS,
ESTABLISHING A CODE OF ETHICS; PROVIDING FOR A
PENALTY FOR THE VIOLATION OF THIS ORDINANCE;
PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY
CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS
ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF
THE CAPTION HEREOF.
WHEREAS, the City of Wylie desires for all of its citizens to have confidence in
integrity, independence, and impartiality of those who act on their behalf in government;
and
WHEREAS, this proposed Code of Ethics to define the bounds of reasonable
ethical behavior by the City Council and all appointed City Offices.
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF WYLIE, TEXAS that this Ordinance be adopted in order to promote
confidence in the government of the City of Wylie, and thereby enhance the City's ability
to function effectively.
Section 1. Definitions.
In this article:
Administrative Board means any board, commission, or other organized body: (1)
That has, by law, final decision-making authority on matters within its jurisdiction
and that is either: (a) established under the City Charter or by city ordinance, or (b)
whose members are all council members or are appointed or confirmed by the City
Council; or, (2) Created as a non-profit economic development corporation by the
City Council under the authority of the Development Corporation Act of 1979, as
amended.
Advisory Board means a board, commission, or other organized body other than an
Administrative Board,that was created by an act of the City Council whose members
are appointed or confirmed by the City Council and are charged with making
recommendations to the City Council on matters within its jurisdiction.
City Official means a member of the City Council, an Administrative Board, or an
Advisory Board.
Economic Interest means a legal or equitable property interest in land, chattels, and
intangibles,and contractual rights having a value of more than fifty thousand dollars
($50,000.00). Service by a City Official as an Officer, director, advisor, or otherwise
active participant in an educational, religious, charitable, fraternal, or civic
organization does not create for that City Official an "Economic Interest" in the
Ordinance No.2014-19—Code of Ethics Page 1 of 11
property of the organization. "Economic interest" does not include the contract
and/or business relationship that the City Manager, City Secretary, City Attorney
and/or his law firm, and/or the Municipal Court Judges and Magistrates and/or
their respective law firms have with the City."
Official Action means:
(1) any affirmative act (including the making of a recommendation) within the
scope of,or in violation of,an Official's duties; or
(2) any failure to act, if the Official is under a duty to act and knows that inaction
is likely to affect substantially an Economic interest of the Official.
Review Panel means the body charged with reviewing and acting on complaints and
requests for declaratory relief filed under this article.
Section 2. Covered officials.
The rules of ethical conduct contained below apply generally to City Officials unless
otherwise specified.
Section 3. Officials required to comply with both state and local law.
Where a City Official's conduct is regulated by a provision of this article and a
similar provision of state law, and it is possible to comply with the requirements of
both,a City Official shall comply with both.
Section 4. Education.
The City shall provide training and educational materials to City Officials on their
ethical obligations under state law and this article. Such training shall include at
least one formal classroom session in each calendar year.All City Officials shall must
annually attend the formal training session offered by the City or equivalent training
sessions conducted by the Texas Municipal League or similar organizations.The City
also shall prepare and distribute written materials on the subject to each City
Official at the time of his or her election or appointment to office.
Section 5. Ethical values.
It is the official policy of the City that:
(A) City Officials shall be independent, impartial, and responsible to the citizens
of the City;
(B) City Officials shall not have a financial interest, and shall not engage in any
business, transaction, or professional activity, or incur any obligation that
conflicts with the proper discharge of their duties for the City in the public
interest.
Ordinance No.2014-19-•Code of Ethics Page 2 of 11
(C) The principles of personal conduct and ethical behavior that should guide the
behavior of City Officials include:
1. A commitment to the public welfare;
2. Respect for the value and dignity of all individuals;
3. Accountability to the citizens of the City;
4. Truthfulness; and
5. Fairness.
(D) Under such principles of conduct and ethical behavior,City Officials should:
1. Conduct themselves with integrity and in a manner that merits the
trust and support of the public;
2. Be responsible stewards of the taxpayers' resources; and
3. Take no official actions that would result in personal benefit in
conflict with the best interests of the City.
(E) To implement the principles of conduct and ethical behavior set out above,
the City Council has determined that it is advisable to enact rules of ethical
conduct to govern City Officials. It is the purpose and intent of City Council to
assure a fair opportunity for all of the City's citizens to participate in
government, to adopt standards of disclosure and transparency in
government,and to promote public trust in government.
Section 6. Rules of Ethical Conduct for City Officials.
The rules of ethical conduct contained below, are intended not only to serve as a
guide for official conduct, but also as a basis for discipline of City Officials who do
not abide by them.
(A) Appearance on behalf of private interests of others.
(1) A member of the City Council shall not appear before the City Council,
an Administrative Board or an Advisory Board for the purpose of
representing the interests of another person or entity. However, a
member of the City Council may, to the extent as otherwise permitted
by law, appear before any such body to represent the member's own
interests or the interests of the member's spouse or minor children.
Ordinance No.2014-19-Code of Ethics Page 3 of 11
(2) A City Official who is not a member of the City Council shall not
appear before the body on which he or she serves for the purpose of
...1representing the interests of another person or entity, and shall not
appear before any other body for the purpose of representing the
interests of another person or entity in connection with an appeal
from a decision of the body on which the City Official serves. However,
the City Official may, to the extent as otherwise permitted by law,
appear before any such body to represent the City Official's own
interests or the interests of the City Official's spouse or minor
children.
(B) Misuse and disclosure of confidential information.
(1) It is a violation of this ethics code for a City Official to violate V.T.C.A.,
Penal Code,§39.06 (Misuse of Official Information), as amended.
(2) A City Official shall not disclose to the public any information that is
deemed confidential under any federal, state, local law, or council
rules, unless required by law.
(C) Restrictions on political activity and political contributions.
(1) No City Official or candidate for City Council shall meet with any
employee or group of employees of the City for political campaign
purposes while such employees are on duty.
(2) No City Official shall, directly or indirectly, coerce or attempt to coerce
any City employee to:
(a) Participate in an election campaign, contribute to a candidate
or political committee, or engage in any other political activity
relating to a particular party,candidate,or issue; or
(b) Refrain from engaging in any lawful political activity.
(3) The following actions by City Officials are not prohibited by this
section:
(a) The making of a general statement encouraging another
person to vote in an election;
(b) A solicitation of contributions or other support that is directed
to the general public or to an association or organization; and
(c) The acceptance of a campaign contribution from a City
.1
employee.
Ordinance No.2014-19 -Code of Ethics Page 4 of 11
(4) No City Official shall use, request, or permit the use of City facilities,
L personnel, equipment, or supplies for the creation or distribution of
materials to be used in a political campaign or for any other purpose
in support of a political campaign. However, meeting rooms and other
City facilities that are made available for use by the public may be
used for political purposes by City Officials under the same terms and
conditions as they are made available for other public uses
(D) Use of cell phones or electronic devices during meetings.
City Officials shall refrain from using cell phones or electronic devices during a
meeting unless it is for the purpose of accessing agendas and information relevant
to the agenda. Cell phones shall be turned off or put on vibrate during meetings.
Should it be necessary to use a cell phone, City Officials shall step out of the meeting.
Text messaging,emails and other written communications shall not be sent during a
meeting unless it is an emergency.
(E) Use of City letterhead and logo.
The City's name, letterhead and logo are not to be used for non-City business or
purposes. City Officials shall not use the City letterhead or other materials for
personal correspondence, in connection with non-City business such as personal
L fund raising for charitable causes, endorsements, or other types of personal
business.
Section 7. Board of Ethics.
(A) Creation and appointment.
There is hereby created a Board of Ethics to consist of five members and two
alternates.The purpose of the Board shall be to issue advisory opinions and waivers
on ethical issues arising under this article and to hear inquiries or complaints and
issue findings and recommendations regarding alleged violations of this article.
Prospective Board of Ethics members shall be interviewed by the entire City
Council.
(B) Qualifications.
(1) All members must live within the city of Wylie city limits.
(2) Members may not serve on any other Council appointed Board or
Commission during their term on the Board of Ethics.
L (3) No City of Wylie employee can be on the Code of Ethics Board.
Ordinance No.2014-I 9-Code of Ethics Page 5 of 11
(C) Terms of appointment.
No Board of Ethics member may serve more than two (2) consecutive years (with
.1
the exception of the inception to achieve staggered terms.)
(D) Removal.
The unexcused absence of any member of the Board of Ethics from three (3)
consecutive meetings, unless the Board has excused the absence for good and
sufficient reasons as determined by the Board, shall constitute a resignation from
the Board.
A member may be removed for inappropriate conduct before the expiration of the
member's term. Before removing a member, the Board of Ethics shall specify the
cause for a recommendation of removal and shall give the member the opportunity
to make a personal explanation. Then the recommendation shall be brought to the
City Council for an official vote by Council. If the recommendation is regarding a
City Council member that member shall be exempt from the vote.
E. Consultation with city attorney.
The Board of Ethics may consult with the city attorney or a designee of the city
attorney regarding legal issues which may arise in connection with this article and
.1
may request advisory assistance from the city attorney in conducting hearings on
inquiries during any stage of the process.
F. Advisory opinions and waivers.
(1) Any current elected officials or board/commissions member or
anyone seeking to become an elected officials or board/commissions
member may submit a written request to the Board of Ethics for
advisory opinions on whether any conduct by that person would
constitute a violation of the Code of Ethics. The Board of Ethics shall
render an advisory opinion pursuant to written rules adopted by the
Board, but in no case shall the Board take longer than six (6) weeks
from the time it received the request to issue an advisory opinion or
to give written notice explaining the reason for delay and stating an
expected issuance date.
(2) Any current elected officials or board/commissions member or
anyone seeking to become an elected officials or board/commissions
member may submit a written request for a waiver of any provision of
the Code of Ethics. The Board of Ethics is empowered to grant a
waiver if it finds that the waiver will serve the best interests of the
City. The Board shall issue appropriate notice of its meeting on the
waiver and its meeting shall be open to the public. The Board shall .1
Ordinance No.2014-19—Code of Ethics Page 6 of 11
either issue or deny the waiver within six (6) weeks of receiving the
L request.
G. Complaints or inquiries to the Board of Ethics.
Any person may file an official written complaint or inquiry with the Board of Ethics
asking whether a current elected officials or board/commissions member has failed
to comply with this code of ethics.
Prior to review by the Board of Ethics, the city attorney shall first determine the
following:
(1) If the Board of Ethics has jurisdiction over the alleged violation,and;
(2) If the alleged violation, if true, would or would not constitute a
violation of this article.
Subject to the rules adopted by the Council pursuant to section 7.H., the Board of
Ethics shall:
(1) Conduct a hearing in a meeting, which shall be open to the public on
L all official written complaints or inquiries which have not been
dismissed pursuant to paragraph G of section 7 or resolved under
paragraph F of section 7.
(2) Except as otherwise provided in this article, make public written
findings and recommendations, if any, on complaints or inquiries.
Board findings should characterize the seriousness of the violation, if
any.
(3) The City Manager or the City Attorney shall inform the person who is
the subject of the complaint or inquiry and the person who submitted
the complaint or inquiry of the Boards' findings, and
recommendations; and
(4) If the Board feels corrective action may be necessary, it must make its
recommendations to the City Council in writing. The Board may
propose actions appropriate to the finding, ranging from a
recommendation that the person abstain from further action on the
matter or seek a waiver, to adopting a resolution reprimanding the
person.
(H) Procedures for complaints or inquiries.
L
The City Council shall adopt written rules to govern the Board of Ethics in order to
create a process that is fair both to the person who submitted the complaint or
Ordinance No.2014-19-Code of Ethics Page 7 of 11
inquiry and the person who is the subject of the complaint or inquiry. In addition to
rules which the Board may in its discretion adopt,the rules shall:
(1) Establish time lines for all aspects of its handling of complaints or
inquiries. The time lines shall be sufficiently long to enable a person
who is the subject of a complaint or inquiry to have adequate time to
understand the complaint or inquiry and prepare a response. The
rules shall allow the Board to alter the time lines upon a request of the
subject of a complaint or inquiry for more time to prepare;
(2) Require the complaint or inquiry to be in writing on a form approved
by the Board, to be signed, and to show the home or business address
and telephone number of the person who submitted it. The form shall
contain a statement that must be signed and which states that, to the
best of the person's knowledge, information, and belief formed after
reasonable reflection, the information in the complaint or inquiry is
true. The rules shall require the complaint or inquiry to describe the
facts that constitute the violation of this Code of Ethics in sufficient
detail so that the Board and the person who is the subject of the
complaint or inquiry can reasonably be expected to understand the
nature of any offense that is being alleged;
(3) Prohibit the Board from accepting complaints or inquiries about
.1
actions that took place or became known to the complainant more
than six (6) months prior to the date of filing;
(4) Require the Board to notify the person who is the subject of the
complaint or inquiry that a complaint or inquiry has been filed. The
rules shall require the Board to provide the notification in a timely
manner, but no more than five (5) days from the day the complaint or
inquiry was filed. The rules shall require the notification to include a
copy of the full complaint or inquiry; a copy of any portion of this
article that is alleged to have been or that may be violated; and the
Board's rules for dealing with complaints or inquiries;
(5) Require the Board to provide the subject of the complaint or inquiry
with a copy of the complaint or inquiry before it provides copies to
any other parties. The rules shall recognize that distribution to the
public of a complaint or inquiry prior to screening by the Board as
required in below could harm the reputation of an innocent person
and is contrary to the public interest; therefore, the rules shall
prohibit the public release of the complaint or inquiry until the
screening process in below has been completed;
(6) Require the Board or a committee of the Board to meet within thirty-
one (31) days of receiving a complaint or inquiry to screen the
Ordinance No.2014-19—Code of Ethics Page 8 of 11
complaint or inquiry. The rules shall allow the Board to immediately
L dismiss a complaint or inquiry if:
a. The alleged violation is a minor or de minimis violation;
b. The complaint or inquiry is, on its face, frivolous, groundless,
or brought for purposes of harassment;
c. The matter has become moot because the person who is the
subject of the complaint or inquiry is no longer an elected
officials or board/commissions member;
d. The person who is the subject of the complaint or inquiry had
obtained a waiver or an advisory opinion under section 7.F.
permitting the conduct.
The rules shall require the dismissal and the reason for dismissal to be in writing
and available to the public.
(7) Require the Board to have hearings at meetings, which are open to the
public on complaints or inquiries, which have not been dismissed
pursuant to paragraph G of this section or resolved under paragraph F
of this section.
(8) Allow any person who is the subject of a complaint or inquiry to
designate a representative if he or she wishes to be represented by
someone else, to present evidence, and to cross-examine witnesses,
The rules shall allow the person who submitted the complaint or
inquiry and the subject of the complaint or inquiry sufficient time to
examine and respond to any evidence not presented to them in
advance of the hearing;
(9) Require deliberations on complaints or inquiries to be conducted in
open session;
(10) Allow the Board to dismiss a complaint or inquiry without a finding
for or against the subject of the complaint or inquiry if the person
committed the violation due to oversight and comes into voluntary
compliance;
(11) Allow the Board to dismiss a complaint or inquiry if the person who
submitted it does not appear at hearing and if, in the opinion of the
Board, it would be unfair to the subject of the complaint or inquiry not
L to have the opportunity to examine the person. The rules shall,
however, require the Board to schedule the hearing at a time that is
reasonably convenient to both the person who submitted the
complaint or inquiry and the subject of the complaint or inquiry;
Ordinance No.2014-19—Code of Ethics Page 9 of 11
(12) Require the Board to base a finding of a violation upon [clear and
convincing evidence];
(13) Require the Board to inform the person who submitted the complaint
or inquiry and the subject of the complaint or inquiry in writing if it
believes a complaint or inquiry is frivolous, groundless, or brought for
purposes of harassment;
(14) Prohibit members who have not been present for the hearing from
participating in a recommendation;
(15) Require that findings and recommendations be made only by a
majority of the Board;
(16) Allow the Board to consider, when it makes findings and
recommendations, the severity of offense; the presence or absence of
any intention to conceal, deceive, or mislead; whether the violation
was deliberate, negligent, or inadvertent; and whether the incident
was isolated or part of a pattern;
(17) Allow the Board to issue an advisory opinion in response to a
complaint or inquiry, in lieu of making findings and
_I
recommendations,where deemed appropriate by the Board.
Section 8. Other Obligations.
This Code of Ethics is cumulative of and supplemental to applicable state and federal
laws and regulations. Compliance with the provisions of this Code shall not excuse or
relieve any person from any obligation imposed by state or federal law regarding ethics,
financial reporting, lobbying activities,or any other issue addressed herein.
Even if a City Official is not prohibited from taking official action by this Code of Ethics,
action may be prohibited by duly promulgated personnel rules, which may be more
stringent.
Section 9. Effective Date.
This Code of Ethics shall take effect on May 28, 2014, following its adoption and
publication as required by law. Every person shall be provided reasonable opportunity to
review this Code of Ethics as a condition of their candidacy and/or application to be a
City Official. Individuals seated as City Officials on the effective date of this Ordinance
shall be bound by it and shall sign a written acknowledgement of receipt and
understanding of this Code within 30 days of the effective date. All City Officials
elected, appointed or retained following the effective date of this Code shall sign a
written acknowledgement of receipt and understanding of this Code before performing
any of the duties or functions of the City Official's position.
Ordinance No,2014-19—Code of Ethics Page 10 of 11
Section 10. Distribution and Training.
(A) At the time of application for a position of City Official, every applicant shall be
furnished with a copy of this Code of Ethics. No application shall be considered
complete without a signed acknowledgement of receipt and understanding of this
Code by the applicant.
(B) The City Attorney or City Manager as designated by the City Council shall
develop educational materials and conduct educational programs for the City
Officials on the provisions of this Code of Ethics, Article XI of the City Charter,
and Chapters 171 and 176 of the Texas Local Government Code. Such materials
and programs shall be designed to maximize understanding of the obligations
imposed by these ethics laws.
Section 11. Severability.
If any provision of this Code is found by a court of competent jurisdiction to be invalid or
unconstitutional, or if the application of this Code to any person or circumstances is
found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not
affect the other provisions or applications of this Code which can be given effect without
the invalid or unconstitutional provision or application.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE
CITY OF WYLIE,TEXAS,on this 20th day of May, 2014.
Eric Hogue, M y
ATTESTED AND -- -
CORRE LY RECO E : ,t4 OFWI
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DATES OF PUBLICATION: May 28.2014 In the Wylie News
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Ordinance
Ordinance No.2014-19 -Code of Ethics Page 11 of 11
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STATE OF TEXAS
COUNTY OF COLLIN
Before me, the undersigned authority, on this day personally appeared Chad Engbrock,
publisher of C& S Media,dba The Wylie News,a newspaper regularly published in
Collin County,Texas and having general circulation in Collin County, Texas, who being
by me duly sworn, deposed and says that the foregoing attached:
City of Wylie
Ordinance No. 2014-19
was published in said newspaper on the following dates, to-wit:
May 28, 2014
Chad Engbrock, Publisher
Subscribed and sworn before me on this,the ' day of , 2014
to certify which witness my hand and seal of office.
t.
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Sonia A.Duggan / Notary Public i for
Co,,,,,, ,BpiresThe State of Tex s
09-02-2016
My commission expires
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May 28 -May 29,2014 {
ORDINANCE
NO.2014-19
AN ORDINANCE
OF THE CITY OF
WYLIE, TEXAS,
ESTABLISHING A
CODE OF ETHICS;
PROVIDING FOR
A PENALTY FOR
THE VIOLATION
OF THIS ORDI-
NANCE; PROVID-
ING FOR REPEAL-
ING, SAVINGS
AND SEVERABIL-
ITY CLAUSES;
PROVIDING FOR
AN EFFECTIVE
DATE OF THIS
ORDINANCE ;
AND PROVID-
ING FOR THE
PUBLICATION
OF THE CAP-
TION HEREOF.
3-lt-26-339
RESOLUTION NO.2015-11(R)
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WYLIE, TEXAS ADOPTING RULES OF
PROCEDURES FOR THE BOARD OF ETHICS
WHEREAS, the City Council of the City of Wylie desires for all of its citizens to
have confidence in the integrity, independence, and impartiality of those who act on their
behalf in government; and
WHEREAS, this proposed Rules of Procedure for the Board of Ethics sets out
the guidelines by which the Board of Ethics will review and act on all inquiries;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF WYLIE,TEXAS:
SECTION 1: The following rules shall govern the Board of Ethics:
A. Creation and Membership
The Board of Ethics (Board) is created by Wylie Ordinance 2014-19 and serves at the will of the
City Council. The Board shall consist of five(5) regular members and two(2) alternates who will
serve no more than one (1) term of two (2) years, with the exception of the inception to achieve
staggered terms. The members will be resident citizens of the City and may not serve on any
other Council appointed Board or Commission during their term. City of Wylie employees may
not serve on the Board. The Board members are required to complete Open Meetings Act training
and receive Certificate of Completion by the first ninety(90) days of first year appointment.
B. Powers and Duties of the Commission
In response to an inquiry, the Board shall issue advisory opinions and waivers on ethical issues
arising under Ordinance 2014-19. In response to a complaint, the Board shall issue findings and
recommendations to the City Council regarding alleged violations of Ordinance 2014-19.
C. Officers
The Board shall select from among its members in the first meeting (and at such other times as
these offices may become vacant), a Chairperson and Vice-Chairperson to serve for a period of
one(1) year. In the absence of both the Chairperson and Vice-Chairperson,the Commission shall
elect an Acting Chairperson.
D. Officers Duties
The Chairperson shall preside over all meetings and perform all duties as required by law. The
Vice-Chairperson shall assume all duties of the Chairperson in the absence of the Chairperson.
E. Quorum
A quorum shall consist of three(3) members. No matters may be handled without the presence of
a quorum and all votes shall be by a majority of members present.
Resolution No.2015-11(R)
Adopting Rules of Procedures for
The Hoard of Ethics
F. Conflict of Interest
Should any member of the Board feel they have a conflict of interest with an agenda item before
the Board, they should fill out a conflict of interest form prior to the meeting and openly declare
same before discussion proceeds. The member is thereby prohibited from discussing the item or
voting on the question.
G. Abstention
Should any member of the Board choose to abstain from voting on any question before the
Commission, where no declared conflict of interest exists, their vote shall be recorded as an
affirmative vote in the official minutes of the City of Wylie.
H. Agendas
An agenda shall be prepared by the City Manager or his her designee for each meeting of the
Board. The agenda shall be posted as required by law seventy-two (72) hours prior to the
meeting.
1. Meetings
The Board shall meet as necessary at 6:00 pm in the Council Chambers of the Wylie Municipal
Complex, unless noted otherwise. All meetings shall be open to the public, and the public is
encouraged to attend. The unexcused absence of any Board member from three (3) consecutive
regularly scheduled meetings, unless excused by the Board for good and sufficient reason as
determined by the Board,shall constitute a resignation from the Board.
All meetings shall be held in full compliance with the provision of state law, ordinances of the
City and these rules of procedure.
J. Minutes of Meetings
Minutes of all meetings shall be kept by the City Secretary, and are subject to amendment and
ratification by the Board at a regular meeting. The minutes of the Board proceedings shall show
the overall vote or if absent or failing to vote,shall reflect that fact.
K. Complaint or Inquiry Form
Complaints or inquiries shall be in writing on a form approved by the Board. Complaints or
inquiries shall be signed and show the home or business address and telephone number of the
person who submitted it. The form shall contain a statement that must be signed and which states
that, to the best of the persons knowledge, information, and belief formed after reasonable
reflection, the information in the complaint or inquiry is true. The complaint or inquiry shall
describe the facts that constitute the violation of the code of ethics in sufficient detail so that the
Board and the person who is the subject of the complaint or inquiry can reasonably be expected to
understand the nature of any offense that is being alleged.
L. Complaint or Inquiry Process
1. The Board or its designee will not accept complaints or inquiries about actions that took
place or became known to the complainant more than 6 months prior to the date of the
filing of the complaint.
Resolution No.2015-1 l(R)
Adopting Rules of Procedures for
The Board of Ethics
2. The Board or its designee shall notify the person who is the subject of the complaint or
inquiry that a complaint or inquiry has been filed in a timely manner, but no more than
five (5) days from the day the complaint or inquiry was filed. The notification shall
include a copy of the full complaint or inquiry; a copy of any portion of Ordinance 2014-
19 that is alleged to have been or that may be violated; and the Board's rules for dealing
with complaints or inquiries. The Board or its designee shall provide the subject of the
complaint or inquiry with a copy of the complaint or inquiry before it provides copies to
any other parties.
3. The distribution to the public of a complaint or inquiry prior to screening by the Board as
required could harm the reputation of an innocent person and is contrary to the public
interest; therefore, the public release of the complaint or inquiry shall be prohibited until
the screening process has been completed.
4. Prior to the review by the Board, the City Attorney shall first determine:
a. If the Board has jurisdiction over the alleged violation; and
b. If the alleged violation, if true, would or would not constitute a violations of
Ordinance 2014-19.
M. Action of the Board
The Board shall meet within thirty-one (31) days of receiving a complaint or inquiry to screen the
complaint or inquiry. The Board shall schedule the hearing at a time that is reasonably convenient
to both the person who submitted the complaint or inquiry and the subject of the complaint or
inquiry. The Board may alter the time line upon the request of the subject of a complaint or
inquiry for more time to prepare.
1. The Board may immediately dismiss a complaint or inquiry if:
a. The alleged violation is a minor or de minimis violation;
b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for
purposes of harassment;
c. The matter has become moot because the person who is the subject of the complaint
or inquiry is no longer an elected officials or board/commissions member;
d. The person who is the subject of the complaint or inquiry had obtained a waiver or an
advisory opinion under Paragraph F of Section 7 of Ordinance 2014-19 permitting
the conduct.
e. The person committed the violation due to oversight and comes into voluntary
compliance;
f. The person who submitted the complaint or inquiry does not appear at hearing and if,
in the opinion of the board, it would be unfair to the subject of the complaint or
inquiry not to have the opportunity to examine the person.
2. If the Board dismisses a complaint or inquiry, the reason for dismissal shall be in writing,
submitted to the person who submitted the complaint or inquiry, and made available to
the public.
Resolution No.20154 1011
Adopting Rules of Procedures for
The Board of Ethics
N. Hearings
The board shall have hearings at meetings, which are open to the public, on complaints or
inquiries which have not been dismissed pursuant to paragraph G of Section 7 or resolved under
paragraph F of Section 7 of the Ordinance 2014-19. The Board shall allow any person who is the
subject of a complaint or inquiry to designate a representative if he or she wishes to be
represented by someone else, to present evidence, and to cross-examine witnesses. The Board
shall give the person who submitted the complaint or inquiry and the individual who is subject of
the complaint or inquiry sufficient time to examine and respond to any evidence not presented to
them in advance of the hearing.
Hearings will be conducted following the general guidelines listed below:
1. Introduction of agenda item by the Chairperson;
2. Report by the City Manager, City Attorney or designee;
3. Presentation by complainant;
4. Presentation by the individual,or their representative,who is subject to the
complaint;
5. Questioning by the Board of the complainant; the individual, or their representative,
who is subject to the complaint; witnesses with information relevant to the complaint;
6. Commission query of Staff;
7. Commission discussion and action pertaining to the issue of the hearing.
O. Evidence
Only relevant evidence and testimony will be received. Information and other physical evidence
should be submitted to the Chairman of the Board or designee prior to the meeting. Any Board
member having new factual information regarding agenda items shall make that information
known to all Board members.
P. Deliberations and Findings
Deliberations on complaints or inquiries arc to be conducted in open session. Board members
who have not been present for the hearing shall not participate in formulating a finding or
recommendation.
In determining their findings or recommendations, the Board shall:
1. Base a finding of a violation upon clear and convincing evidence.
2. Take into consideration the severity of the offense; the presence or absence of any
intention to conceal, deceive, or mislead; whether the violation was deliberate,
negligent,or inadvertent;and whether the incident was isolated or part of a pattern.
3. Have the option to issue an advisory opinion in response to a complaint or inquiry, in
lieu of making findings and recommendations,where deemed appropriate.
If the Board finds that a violation of Ordinance 2014-19 Section 5 or Section 6 has occurred, it
shall make one of the following recommendations to Council:
Resolution No.2015-1 1(R)
Adopting Rules of Procedures for
The Board of Ethics
1. If the Board finds that the accused has committed a minor violation, the violation was
unintentional, and the accused fully cooperated with the investigation, the Board may
issue a notice titled "Notice of Minor Violation" and shall state the findings of the
Board.
2. If the Board finds that the accused has committed a major violation, acted
intentionally, or failed to cooperate with the investigations, the Board may issue a
notice titled"Notice of Public Censure",and shall state the findings of the Board.
3. If the Board feels that corrective action may be necessary, it must make its
recommendations to Council in writing.
All findings shall be in the form of a motion. A motion to approl,c any matter before the Board
or to recommend any action shall require a majority favorable vote of the members present
Failure of the Board to secure a majority concurring vote to approve or recommend action shall
be recorded in the minutes as a failed motion.
SECTION 2: This Resolution shall take effect immediately upon its passage.
RESOLVED this the 14th day of April, 2015.
ERIC HOGUE, Mayor
ATTEST TO:
CAROLE EHRLICH, City Secretary
Rcso.ution No 2015-11(R)
Adopting Rubs of Procedures for
The Board of Ethics
4'eceve.0
AUG 0 8 201?
afiFiae afi rNe cRy MgHaGE
Wylie EDC Minutes
November 20, 2015
Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, November 20,2015-6:30 A.M.
WEDC Offices-Conference Room
250 South Highway 78-Wylie,'Texas
CALL TO ORDER
Announce the presence of u Ouorum
Vice President Mitch Herzog called the meeting to order at 6:30 a.m. Board Members present
were Demand Dawkins and Todd Wintters.
Ex-officio members Mayor Eric Hogue and City Manager Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite and Sr. Assistant Angel Wygant.
CITIZEN PARTICIPATION
Lynn Grimes was in attendance and reminded the Board about the upcoming Wylie Arts Festival
on December 5th. She encouraged the Board to attend and thanked them for their support. With
no further citizen participation, Mr. Hering proceeded to Action Iterns.
ACTION ITEMS
ITEM NO. 1 - Consider and act upon approval of the October 16, 2015 Minutes of the
Wylie Economic Development Corporation(WEDC) Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by
Demond Dawkins to approve the October 16, 2015 Minutes of the Wylie
Economic Development Corporation as amended. The WEDC Board voted
3 - FOR and 0-AGAINST in favor of the motion.
ITEM NO. 2 - Consider and act upon approval of the October 2015 WEDC Treasurer's
Report.
MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins
to approve the October 2015 WEDC Treasurer's report. The WEDC Board
voted 3-FOR and 0- AGAINST in favor of the motion_
ITEM NO. 3 - Consider and act upon a First Modification to Loan Documents between
The American National Bank of Texas and the WEDC.
Staff reminded the Board that on September 23, 2015 the WEDC executed Loan Documents
associated with the borrowing of S1,685,000 to fund the purchase of the Linduff property on
WEDC—Minutes
November 20, 2015
Page 2 of 6
Business Way and the Edge property on State Highway 78. At the time the Loan Documents
were drafted and subsequently approved, the WEDC was going to fund both the acquisition and
sale simultaneously and perform the modifications to the Linduff property post-closing. Under
that described structure, The American National Bank of Texas (ANB) was going to fund the
loan upon execution of the Loan Documents.
As the project was renegotiated during the closing weeks prior to WRDC/Edge approval, the
WEDC closed on the Linduff property but will not close on the Edge property until on or about
March 21, 2016. Staff requested of ANB to only draw down on the purchase of the Linduff
property and fund the remaining S750,000 at a later date so that interest would not accrue.
Presented for the Board's review was a modification to the Loan Documents clarifying the
WEDC loan as a `draw note' and that interest will only accrue on the current principal balance of
the loan, which may change from time to time, up to the inaxiniuni amount of$1,685,000_
Staff recommended that the WEDC Board of Directors approve a First Modification to Loan
Documents between The American National Bank of Texas and the Wylie Economic
Development Corporation.
MOTION: A motion was made by Demond Dawkins and seconded by Todd Wintters
to approve a First Modification to Loan Documents between The American
National Bank of Texas and the Wylie Economic Development Corporation.
The WEDC Board voted 3—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and act upon ratification of a Commercial Contract between the
WEDC and McClure Partners,LLC.
Staff reviewed a Commercial Contract for the purchase of a 1.433 acre lot (Ferrell Property)
from the WEDC by McClure Partners, LLC for $250,000. The Contract calls for McClure to
simultaneously close on the adjacent 0.69 acre Jacobs tract and 1.66 acre Goldenberg tract,
remove all improvements on the three properties including the Goldenberg building and the
Jacobs billboard, and construct median improvements to be located near the northwest corner of
the Ferrell property. Finally, the WEDC has committed to participate financially in median
improvements for a turn bay into property on the north side of F.M.544.
Staff recommended that the WEDC Board ratify a Commercial Contract between WEDC and
McClure Partners, LLC.
MOTION: A motion was made by Demond Dawkins and seconded by Todd Wintters
to ratify a Commercial Contract between WEDC and McClure Partners,
LLC. The WEDC Board voted 3 — FOR and 0 — AGAINST in favor of
the motion.
WEDC—Minutes
November 20, 2015
Page 3 of 6
ITEM NO. 5 — Consider and act upon issues surrounding a Performance Agreement
between the WEDC and Patna Properties, LLC.
Staff explained that Dr. Tanvir Ahmad has purchased a 0.57 acre lot near the intersection of F.M.
544 & State Highway 78 (fronting Kirby behind Exxon). L7r. Ahmad intends to construct a
4,283 square foot office building within which he will utilize 3,100 square feet for his medical
practice. The remaining 1,183 square feet will not be finished out until a tenant is identified. Dr.
Ahmad had previously inquired as to any available assistance from the WEDC.
Dr. Ahmad has a construction budget of $700,000 (S 163.44 psf). Pulliam Construction
Management has been working with Dr. Ahmad to develop construction plans and a construction
budget. Should the project move forward, construction will begin within the first quarter of 2016
with an estimated completion date within the third quarter of 2016.
In developing an incentive package to present to the Board, staff is hesitant to utilize a S163.44
psf appraised value being that medical construction costs may not translate into appraised value.
Also, a more conservative psf cost/value requirement will reduce the opportunity for there to be a
default within the Performance Agreement. Therefore, staff is utilizing a $130 psf valuation
requirement. Further, staff typically utilizes a 3 year factor when developing an incentive based
upon the amount of new property taxes that %4ilf be generated over that period of time. However,
similar to the Tony Snider project, additional credit is warranted in the form of a 4 year factor for
creating value on a property with marginal access and visibility.
Using a 'new value' assumption of$557,000 generating$7,500 per year in property taxes to the
City of Wylie(86.89 cents) and the WISD l&S (47 cents), a 4 year factor creates a total package
valued at S30,000. Within the attached Performance Agreement, staff proposed to fund S20,000
at CO and the remaining S10,000 upon a certified valuation of$707,000 ($557,000 new value
plus existing S 150,000 in real property).
Staff recommended that the WEDC Board of Directors approve a Performance Agreement
between the WEDC and Patna Properties, LLC as presented.
MOTION: A motion was made by Todd Winters and seconded by Dernond Dawkins
to approve a 1 crlbrmance Agreement between the WEDC and Patna
Properties, LLC. The WEDC Board voted 3 FOR and 0 AGAINST in
favor of the motion.
ITEM NO. 6 — Consider and act upon issues surrounding the redevelopment of WEDC
properties located on Industrial Court and Cooper Drive.
Staff made an oral presentation surrounding proposed infrastructure improvements impacting the
Exco/Mann Made properties which may require demolition at' WEDC buildings located on
Industrial Court.
Staff made no recommendations and the WEDC Board took no action on this item.
WEDC—Minutes
November 20, 2015
Page 4 of 6
DISCUSSION ITEMS
ITEM NO. 7 — Staff report: review issues surrounding Performance Agreements between the
WEDC and: Woodbridge Crossing, Ascend Custom Extrusions, CSD Woodbridge, Excu
Tooling Solutions, Von Runnen Holdings, All State Fire, WEDC Staffing, 106 N. Birmingham
and regional housing starts.
Woodhrids;c Crossing
Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all
sales taxes received through August 2015 within Woodbridge Crossing for the City General
Fund, the WEDC, and the 4B. As a reminder, the City and WEDC reimbursed 85% of all sales
tax generated within Woodbridge Crossing through September 2013 with the reimbursement
percentage reduced to 65% thereafter. Due to the default under the Amended and Restated
Perliyrmance Agreement, Woodbridge Crossing is only eligible to receive up to $6 million in
sales tax reimbursement through September 2021 as opposed to the maximum reimbursement of
S12 million originally contemplated.
S3,157,963.71 in reimbursement has been earned through October 2015 with net receipts of
S2,341,181.81 after reimbursements. As well, it is estimated that $3.5 nun has been paid in ad
valorem taxes to the City of Wylie(excluding the WISD).
As shown on the Sales Tax Reimbursement Report, S104,666.76 was generated in sales tax in
August 2015 versus S93,677.52 in August 2014. This increase represents a 12% gain over 2014
receipts.
Ascend Crinrmerciai Lease and Performance Agreement
Attached for the Board's review was the Ascend Custom Extrusion Critical Dates Analysis and
Performance Agreement Monitoring Procedures. Payment#4 of 5 for the Economic Incentives
has been funded with Ascend meeting all Performance Obligations within Sections A and B of
the attachment.
Also attached for the Board's review was the summary of a second Performance Agreement
between the WEDC and ACE which was approved in December 2013. Payment #2 of 4 has
been funded with Ascend meeting all Performance Obligations within Section A of the
attachment.
CSI) Waodbridt'e Performance Agreement
On July 15, 2013 a certificate of occupancy(CO)was issued for Kroger Marketplace. Beginning
October 1,2013 and ending October 1, 2023,Clark Street Development is eligible to receive a Vz
cent sales tax reimbursement from the WEDC (City of Wylie not part of sales tax reimbursement
agreement). Quarterly payments will be made to Clark Street based upon the data provided by
the Comptroller. In addition to the$100,000 reimbursement incentive paid by the WEDC at CO,
WEDC—Minutes
November 20, 2015
Page 5 of
Clark Street is eligible to receive cumulative incentives of $1,100,000 over the Iife of the
Agreement.
Along with a summary of the Performance Agreement, a Sales Tax Reimbursement Report was
included for the Board's review.
Exco Tooling Solutions
Exco has begun construction of its 30,000 square foot facility within Premier Business Park. All
indications point to a temporary CO being issued by November 30, 2015 and Final CO is
anticipated by December 31, 2015. As provided in the Summary of Performance Obligations,
the WEDC will fund an $87,000 incentive upon issuance of a CO followed by four payments of
S20,000 over the following four years.
Von Runnel, Holdings
Von Runnen Holdings has encountered no significant delays in their construction schedule and
anticipates a Certificate of Occupancy (CO) being issued no later than January I, 2016 as
required by the WEDC Performance Agreement. Upon issuance of a CO and confirmation of
S1.25 mm in construction costs, the WEDC will issue Incentive Payment No. 1 of$20,000. Two
additional payments of$10,000 each will be issued over the following two years.
Al!Stow Fire Equipment
All State Fire Equipment was issued a building permit on July 2, 2015 and held their Ground-
Breaking ceremony on September 18, 2015. Work is progressing well and ASFE appears to be
on track to receive a Certificate of Occupancy by the August I, 2016 as required in their
Performance Agreement.
WEDC Staffing
Staff is preparing to interview four individuals for the Assistant Director position the week of
December 7th. While response to the job posting did not result in as strong a candidate pool as
staff desired, there are at least two qualified candidates that are being interviewed and two
additional individuals who warrant an additional look. Should the pool be narrowed to a single
or even two candidates, staff will involve a Board Member in a second interview. However, if
none of the candidates present a quality option for the WEDC, staff will discontinue the process
and start over.
106 N. 8irmineham
Staff continues to discuss options with local developers for redevelopment of the K&M property.
Preliminary discussions have resulted in demolishing the building not being a preference at least
with Mr. Bob Heath and Mr. Gary Taylor. Both individuals arc however developing their plans
for redevelopment in writing which will be presented to the Board for its review.
WEDC—Minutes
November 20, 2015
Page 6 of 6
Re.einnnl Hnusine Starts
Thirty-two homes were permitted in Wylie for October 2015. Sachse, Lavon, and Murphy
permitted a combined Thirty-six homes over the same period.
No action was requested by staff for this item.
EXECUTIVE SESSION
Recessed into Closed Session at 7:34 a.m. in compliance with Section 551.001, et.seq. Texas
Government Code, to wit:
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act). Consider the sale or acquisition of properties located near the intersection
of:
• Cooper Drive&State Highway
• Ballard Street and Oak Street
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:54 a.m. and took no action.
ADJOURNMENT
With no further business, Vice President Herzog adjourned the WEDC Board meeting at 7:54
a.nt.
,.. •
Marvin Fuller, President
ATTEST:
,.,,--
•
Samuel Satterwhite,Director
ECE1 V D
AUG 0 g 2017
OF fi'HE
O Om,MANAGES
Complaint
against Wyl
Economic
Development
Corporation
I—ttl \. (: Slliti. fil5c�., 15. 611 ,5i5I to.t:l,utiltctlti�5tnnuhtit.c-t,11i
Suite 1 l!t{t "!—?: 61-1 515ct I,Itrlct cr>11�tIti551nI1ttI7ti LCul11
Ittc}t.trcitinn,'1'c�..ts i{151t
Table of Contents
I. Summary 3
Summary of Specific Transactions and Decisions Raising Conc�.rns
Introduction to the\1}lie EDC Board,\X y,lie [SD Trustees and Other
Play,ers
I[. Sale of Land to Wylie EDC Board Member's
Family 6
Background of the Land
Transaction Timeline
Concerns Regarding the Tran:ac jin
I I[. Use of Tax Revenue for Dairy Queen Loan 11
Transaction
Concerns Ree,4 r.l:ne the Tran.iart:,:-.
I\'. Use of Tax Revenue for Movie Theater 12
Transaction
Concerns Reprclir:4 the I ran-. cri ,n
V. Use of Tax Revenue for Flower Shop 13
Transaction
Concerns Regarding Transact:.)n
VI. Conflicts of Interest 14
Mitch 1-lerzog
Marvin Fuller
V11. Requested Remedies 15
Vill. Appendix 16
Appendix 1: 1 '\he EDC. Formation Informatik:.n&Btlau
Appendix 2: Minutes of the EDC dated September 15,2!!11
Appendix 3: Collin County Central Appraisa:District inf.,rmauon
Appendix 4: Minutes of the Wylie EDC dated October 21, 2011
Appendix 5: Minutes of the\X'}•lie EDC dated January, 16,2''12
Appendix 6: Minutes of the Wylie EDC dated February, 1—, 2012
Appendix 7: Minutes of the Wylie [SD dated March 19,2012
Appendix 8: Public Notice of Bidding Process Ady,erusements
Appendix 9: Appraisa of the\VISD Property dated March 6,2012
Appendix 10: Minutes of the Wylie EDC dated March 23, 2012
?AGE I 1
Appendix 11: Minuus of the Wile ISD dated April 16,2012
Appendix 12: Minutes of the Wylie EDC dated April 2-,2012
Appendix 13: Minutes of the Wylie EDC dated November 16,2012
Appendix 14: Wylie EDC Memorandum dated July 7,2016
Appendix 15: Detail Listing
Appendix 1'i: Minutes of the Wylie EDC dated July 15, 2011
Appendix 1-: Minutes of the Wylie EDC dated July 29,2011
Appendix 18: Minutes of the Wylie EDC dated August 19,2011
Appendix 1:': Minutes of the Wylie EDC dated October 28,2016
PAGE 12
Summary
The Wylie Economic Development Corporation :the "Wylie EDC"; is a Texas nonprofit economic
development corporation in Wylie, Texas.' Since at least 2011, a review of the minutes of the Wylie
EDC Board of Directors .the "Wylie EDC Board"} appears to show a pattern of. (1:: self-dealing by
the Wylie EDC Board members, ,2, undisclosed conflicts of interest and 1 3! uses of funds
unauthorized bt statute.
Due to the nature of economic development corporations and nonprofits,independent citizens whose
cities send their taxpater dollars to an economic development corporation lack standing to address
these concerns in a court of law.. lccordingh, the nonprofit status of such entity places an
investigation or review of the practices of such entity in the province of the Office of the Attorney
General and an} potential criminal investigation into the indniduals involved within the province of
the District Attorney.
The objective of this complaint is that the Office of the Attorney General look into this matter
independently and determine whether the \X the EDC is operating within the confines of the law and
to take steps to protect the taxpa}er ref cnues of the citizens of Wt he, Texas from being used to
generate mere financial and personal benefit for the V1 the EDC and the individuals associated with
the Wylie EDC Board, as opposed to the City of\X t lie itself. A sccondart objective is for the Collin
County District .\ttorney to review whether any laws have been violated by the members of the\X'vlie
EDC Board.
Summary of Specific Transactions and Decisions Raising Concerns
• Sale of Real Propertt Owned bt 1l vlie ISD to \X vhe EDC Board member's Father-in.Law
• Loan for a Dairy Queen
• Movie Theater
• Renovations to a Flower Shop
• Potential Conflicts of Interest Issues
See the\\'slie Economic DI.A clopmcnr Corporation SLcrerary of State Formation informauon and First Amended
Btlaws at Appendix 1.
Vey Tran r. Hoa, ,481 S.\\.3d 313,316-I- (Tex..lpp.--Houston fist Dist.20151;.
PAGE 13
Introduction to the Wylie EDC Board, Wylie ISO Trustees and Other Players
• Mitch Herzog
802 Forest Edge Lane
likt Wylie,Texas 75098
r. f. Telephone: :972, 429.2344
` Email: mitch.herzogna wy1ieisd.net
Wylie ISD Board Member
/1\
/. Former Wylie Economic Development Corporation Board Member
Resigned October 28, 2016
Occupation: Commercial Real Estate, Parker Real Lstatc
Stacie Gooch
2404 Drain Drive
\X clie,Texas -5098
Telephone: (972:� 42': 234.S
Email: Stacie.gooch a,w liuisd.nct
Wylie ISD Board Member
Occupation: RLaltor, Ebbs l-iollicias
•
Joe Stooksberry
Telephone: •:972:. 429..2346
.:::4:.ii
Email: jne.stooksberrt a,w5lieisd.net
'• ` Wylie ISD Board Secretary
;r * Occupation: .lccoun•
ting Manager, Firetrol Protection Systems, Inc.
Ili* .
Marvin Fuller
North Texas Municipal Water DiktrlLt, Admin. Buildirr
501 East Brown Street
Wylie,Texas 75098
w Telephone: .972' 442.54r:5
•
Wylie EDC President
Occupation: Banker,Wylie Branch President of Inwood National Bank
PAGE 1 4
- --- Sam Satterwhite
\ EDC Offices
250 S. Highwa) 78
`. r Wylie,Texas -5098
- - Telephone: ..9-2: 442--901
Email: sam@wylieedc.com
,, Wylie EDC Staff Liaison
'' - Occupation:
x,
Richard Parker
Richard Parker, Inc.
�{ 2555 W. FM 544,\C}'he,Texas -5098
.� `...`' Telephone: i 972 442 5114
Father-in-law to Mitch Herzog
:.,. Occupation: Realtor, Employs Mitch Herzog at Parker Real Estate
PAGE 15
Sale of Land to Wylie EDC Board Member's Family
Background of the Land
Since 2011, the Wylie ISD has previously owned a 2.9453 acre tract of land (the "WISD Property':.
The \VISD Property is situated within the following boundaries: North— Hwy 544; East and South
—33 acres owned b} an entity controlled by Richard Parker, the father-in-law of ditch Herzog, who
was at all pertinent times a Wylie EDC Board member and Wylie ISD Trustee; and on the West,—a
creek,separating the\VISD Property from Wylie High School. About half of the 1VISD Property was
in a flood zone, resulting in references to the \V SD Property as only 1.5+/- acres throughout the
Wylie EDC Board minutes.
,ate,..
}lei,J Afae..0
w)1re
LA-4 Philter,„r,.r lm
owNed
I'igrnr I. Tens Aldo..r. nfras t n:•.ershap•.•Ix land that us the slily it of the transaction The properri I uded tit.gray is the[f'7 y D Prapertj The
propert)maned by R::lnard Parker, ^le f rth.r to:lass of Math 1lertroi,a II jl:r f DC Board ntrrnhrr and Ii"ylrr I tO Trrutrr,a labeled as'Land Parker
_-Already Onlned"
Transaction Timeline
• As early as 2011, Richard Parker' inquired about purchasing the \VISD Property.`
• Prior to July, 2011, Sam Satterwhite, in his capacity. as Executive Director of the Wylie EDC,
approached Dr. John Fuller, the then current Wylle ISD Superintendent, inquiring of the
potential sale of the 1VISD Property. to the 1Vy he LDC.'
• Dr.John Fuller and the Wylie ISD Trustees responded by stating that it had determined the
minimum price for the \VISD Property was S5.00 to 5,.00 per square foot.
Richard Parker is the father-in-law of Mitch Herzog. In add:tion,Mr Herz.:g is also employed by Parker Real Estate,
an entity owned by Richard Parker.
Yee the Minutes of the\' ylie EDC dated September I3,2011,attached is :Appendix 2.
'gee the Minutes of the 1(t°ie F.DC dated September :;,2011,attached as Appendix 2.
PAGE 16
o Dr.John Fuller was the Wylie ISD Superintendent from 1993 until July, 2011.
o In or about July, 2011, a new superintendent was hired for the Wylie ISD.
• According to the Collin County Central Appraisal District, the market value for the 1t 1SD
Property in 2011 was S 109,060.00.`
• During September, 2011, the Wylie EDC Minutes reflect a position that the Wylie FDC
developed the position that the 1ii'ISD Property should be sold by the Wylie ISD and that the
likely sole bidder would be the adjacent land owner,an emits owned by Richard Parker. The
discussions included by an argument in support of a low and decreasing value of the WISD
Property, as well as an offer to pay for a survey and an appraisal to assist the Wylie ISD in
selling the property•' Although Mitch Herzog excused himself from this portion of the 11t he
EDC Board meeting, Marvin Fuller presided.'
• In or about October,2011, the Wylie EDC staff,along with its President,Marvin Fuller,made
a presentation to the Real Estate Committee of Wylie ISD to present the Wylie EDC's interest
in assisting the 1t\lie ISD to sell the WISD Property.The Wylie 1SD President,Stacie Gooch,
who is also a local realtor, instructed the Wylie EDC to make the presentation before the full
Wylie ISD Board in January,201.2.14i
• During the Jarman 16, 2012, meeting of the Wylie ISD Board, Sam Satterwhite, Executive
Director of the 1\\lie EDC, made the presentation to the 1X.ylie ISD Board staring that the
Wylie EDC's only interest was for the WISD Property to be part of a master planned
communist. Mr. Satterwhite continued the position developed by the Wylie EDC that the
WISD Property would have no value if it was not sold at that time.
o Mitch 1-lerzog a trustee for the Wylie ISD, a board member of the Wylie EDC, and
son-in-law of the eventual purchaser of the WISD Property was present at this Wylie
EDC meeting and there is no indication that he excused himself during such meeting
due to a conflict of interest or otherwise disclosed the potential conflict during this
meeting.
• As of February 1-, 2012, the \\\lie ISD Board had authorized the commencement of the
public bid process for the 1\TSD Propert and started the appraisal process.
o Wylie EDC pre iously offered to pay the upfrrint costs of the appraisal and survey,
but no response had yet been provided as to whether the Wylie ISD was accepting
such assistance..:
See the Collin Count} Central Appraisal District Records,attached as Appendix 3
See the Minutes of the\Xthe EDC dared September 15,2011,attached as Appendix
n.Vet the Minutes of the 1V.lie WC dared September 15,2011,attached as Appendix 2
9 S;e the Minutes of the\' he EDC dated September 15,2011,attached as Appendix 2
1 See the Minutes of the\`•1ic EDC dated October 21,2011,attached as Appendix 4.
11 See the Minutes of the 11C lie ISD dated January 16,2012,attached as Appendix 5
12 Sec the Minutes of the\X he [SD dated Januan 16,2012,attached as Appendix 5
1i Sec the Minutes of the\V\lie ISD dated January 16,2012,attached as Appendix 5.
i+ See the Minutes of the Wt lie I.DC dated February 17,2012,attached as Appendix 6.
15 See the Minutes of the Mile EDC dated February 17,2012,attached as Appendix 6.
PAGE 17
o There again is no indication that Mitch Herzog,whose father-in-law is considered the
only potential bidder, excused himself from this discussion.`'
• On March 19, 2012, the Wylie ISD voted to approve the sale of the 2.9453 acre WISD
Property and to publish public notice in accordance with Tex. Local Gov't Code §272.001.'al,
to receive open and sealed proposals and to present said proposals to the Wylie ISD Board.-
o Mitch Herzog abstained from this vote.
• The only known advertisement of the 1t'1SD Property, occurred on two occasions, March 28,
2012 and April 14,2012, in the classified section of the local paper.19
o The classified advertisements failed to properly identify the location, provide an
address or gic e a full legal description of the WISD Property.Z"
o There was no signage on the Property itself providing notice that the WISD Property
was for sale, informing of the bidding process or who to contact if interested.
• The Wylie EDC voted to authorize the expenditure for a surrey and appraisal of the WISD
Property.'
o The appraisal concluded that there was no market for the 1`i'ISD Property aside from
Mr. Parker, the adjacent landowner."
o The appraisal did not consider the potential increased value of the WISD Property to
Mr. Parker, especially considering that the purchase of the Wylie ISD Property would
allow Mr. Parker to consolidate it with the substantially larger adjacent tract.
• On April 16, 2012,Wylie ISD authorized the superintendent to execute a contract for the sale
of the WISD Property
o Mitch Herzog abstained from this cote.
• During the April 27,2012,1X.‘lie EDC meeting,ins rec ealed that the sole bidder on the WISD
Property was Richard Parker.
• On June 7, 2012, the 16: ISD Property u as sold to an entity owned by Richard Parker for
S27,000.00 '.or S0.21 per square foot;.
• On April 29, 2015, the WISD Property, and an additional portion of land was sold by the
entity owned by Richard Parker to the Episcopal Diocese of Dallas.''
o Through an admission by Mr. Parker, it was learned that he sold the WISD Property
to the Episcopal Diocese of Dallas at S9.00 per square foot.
16 See the Minutes of the Wylie hDC dated l-ebruar} 17,2012,attached as 1ppendix 6.
1".See the Minutes of the Wylie ISD dated March 19,2012,attached as Appendix 7.
1�See the Minutes of the Wylie ISD dated March 19,2012,attached as Appendix-.
i"See the Public Notice of Bidding Process Advertisements,attached as Appendix 8.
.See the Public Notice of Bidding Process Advertisements,attached as.Appendix 8.
21 See the Minutes of the Wylie ISD dared September 15,21;11,attached as Appendix 2.
--.Sre the Appraisal of the'WISD Property dated March 6,2012,attached as Appendix 9,see alto the.Minutes of the V lie
EDC dated March 23,2012,attached as Appendix 10.
23 See the Minutes of the Wylie ISD dated April 16,2012,attached as Appendix 11
21 See the Minutes of the Wylie ISD dated April 16,2012,attached as Appendix 11.
-'See the Minutes of the Wylie EDC dated April 27,2012,attached as Appendix 12.
25 See the Collin County Central Appraisal Distnet Information,attached as Appendix 3.
Sec the Collin County Central Appraisal District Information,attached as Appendix 3.
PAGE l 8
o In addition to foregoing the substantial profit on the resale of the land, the \USD
Property. is now tax exempt,generating no propern tax revenue for the City of Wylie.
Concerns Regarding the Transaction
Wylie EDC Foregoing Purchase and Assistance of Board Member Family in Purchase
One of the most substantial concerns regarding this transaction is that it appears as though the Wylie
EDC was aware of the potential profitability and value of the WISD Property in light of the "master
planned development" pitched to the \Vt he ISD by Sam Satterwhite, and rather than purchasing the
\\'ISD Property itself to then sell at a profit,it assisted a family member of a Wylie EDC board member
to make such purchase and realize the substantial future profit,which profit would have benefited the
economic deg clopment and financial position of the City of\V)lie and its citizens.
Mr. Satterwhite's representations to the\X vlie 1SD Board,that the\L ylie 1SD needed to sell the\\'lSD
Property to avoid holding property with no value, is of concern, especially when considering that
such assertions n ere made prior to the appraisal and prior to obtaining any independent assessment
of potential uses of the\VISD Propern. Further concerns arise from Mr. Sattenvhite's claim that the
Wylie EDC's only interest was to utilize the \VISD Property in a "master planned development."
Additionally, both the Collin County propern tax records and position of the prior Wylie ISD
superintendent as to the value raise concerns about Mr. Satterwhite's statements. The position was
not consistent with: . 1; the ability to regain usable acreage of the WISD Property in the flood plain by
adding fill dirt, essentially doubling the usable acreage of the\\ISD Property; (2) the development of
adjacent property spurring further development and increasing the \alue of the WISD Property; (3)
the value of the \VISD Property due to its frontage along FM544; (4) the potential development for
Wylie High School after removing the creek; or, (5) the value of holding real property that had
substantial value to the development of the adjacent landowner's property, Mr. Richard Parker.
Whether Marvin Fuller and the \t'ylhe EDC was truly acting as a steward and for the economic
development of the City of Wylie, as opposed to assisting the famih member of Mitch Herzog, a
Board Member whose father-in-law owned the property adjacent to the \XISD Property, is a subject
for serious consideration and investigation to ensure that opportunities that would better the City of
\X'ylie and public good are not being usurped or passed over to benefit certain individuals.
Marketing and Timing of Sale Practices
Pursuant to §272.001 of the Texas Local Gov't Code, certain content must be contained in a public
notice of sale. One portion of such information is the location of the property. Tex. Local. Gov't
Code §272.001(a). Under the doctrine of pari materi, noncompliance with the bidding statutes renders
such sale void. Collins z. Corey, of El Paso, 954 S.\.X,2d 137, 146 (Tex.App.—El Paso 1997). In this
instance, although there is a basic,general legal description of the WISD Property in the Public Notice
of Sale, the notice is wholly silent on the location of such propert•.'s Moreover, as there are other
-�See the Public Notice of Bidding Process Advertisements,attached as -‘ppendi\8.
PAGE 19
potential bidders who missed the opportunity due to the defective notice,whether such sale is void is
a question for further inquiry.
It appears from reviewing the records that the Wylie EDC,under the guidance of its President,Marvin
Fuller, reached a conclusion regarding the disposition of the WISD Property prior to any survey,
appraisal and actual information related to its potential value to the Wylie EDC, the Wylie ISD or the
City of Wylie. The WISD Property has frontage off of a major artery in the arca and with the size,
was sufficient to support its own commercial development, such as a building and development of a
medical facility, as well as other potential growth opportunities that were not seriously investigated,
but instead were represented to the Wylie ISD as a "master planned development." The lack of
marketing efforts, though not statutorily required, evidence a breach of fiduciary duties owed to the
citizens of Wylie. The fact that only one bid was received is more likely directly related to the lack of
marketing of the WISD Property,as opposed to its lack of marketability. Moreover,the questionable
objectivity of the appraisal entirely disregarded several comparable sales that shared the FM 544
frontage, and were at a value substantially higher per square foot than the appraisal value. Upon
information and belief, the profit earned by Mr. Parker upon the sale of the WISD Property was
substantial and a lost opportunity for the City of Wylie and or the Wylie ISD.
In addition, the essentially closed bidding process, the failure to market the WISD Property in
accordance with industry standards, the exclusion of the ad valorem tax data for purposes of the
appraisal and the sale of the \X'ISD Property at a value far below market value all cause concerns
regarding the propriety of the transaction for which an investigation is warranted to protect the public
interest in the Wylie EDC. Although it is understood that an appraisal is conclusive of the fair market
value pursuant to §272.001 of the Tex. Local Gov't Code, whether such appraisal was objectively
prepared is a material factor in discerning whether it is worthy of thi deference given under the statute
and in the public good.
Ste the Appraisal of the\ 1SD Property dated March 6,2012,attached as .-appendix 9.
PAGE 1 10
Use of Tax Revenue for Dairy Queen Loan
Local Gov't Code ;505.I51 authorizes only certain projects with the use of tax revenue from a Type
A or Type B tax. Chapter 505 authorizes an economic development corporation to engage in projects
related to recreational or community facilities that the board determines to be useful for professional
or amateur sports, athletic, entertainment, tourist, convention and public park purposes, and more.
Local Gov't Code 503.152. In addition,it permits a store, restaurant and concessions related to such
venues to be considered part of the project as well. Id.
An economic deg elopment corporation generally cannot lend its credit or grant public money. or
another thing of value in aid of a corporation. Local Gov't Code §505.152. However,a municipality
may grant public money to a corporation under pursuant to a contract authorized by Tex. Local Gov't.
Code §380.002. Id.
As is apparent from the statute, loans from tax revenues are to dev elop an area around such
communit) or recreational activities to generate revenue anti further economic development. With
specific reference to the Dairy Queen located at 420 TX-78,Wylie,Texas 77)098, that is not the case.
Transaction
The Wylie EDC approved a loan in the amount of S93,950.00 to 11}lie Ice Cream Holdings LLC
d/b/a Dairy Queen i."Dairy Queen"),who then assigned the loan proceeds to Texas Mezzanine Fund
.."TGIF where the Wylie EDC sent payment on November 13, 2012. As of Jul% -, 2016, Dairy
Queen has made 42 payments and a balloon payment in the amount of S33,248.44 is due on December
15, 2019;
Concerns Regarding the Transaction
There is nothing demonstrating that this project was for recreational or community purposes. This
project does not appear to meet the qualifications of an authorized project as described in _;505.151
of the Tex. Local Gov't. Code. Based upon its location, there is nothing to support such position. In
addition, it is assumed that Type B tax revenue was used to fund this loan. However, there is nothing
demonstrating that the procedural requirement of public notice to allow a citizen to object was
properly followed. Tex.Local Gov't Code§505.160,.303. Furthermore,prior to funding this project,
it does not appear that any public hearing was held. In 2012, the City of Wylie had a population of
44,1323 exceeding the 20,000 population threshold that would allow it to act without such a public
hearing. Local Gov't Code §505.159(b).
" See the Minutes of the Wylie EDC dated November 16,2U12,attached as Appendix 13,,ee also the\X t lie EDC
Memorandum dated July 7,2016,attached as Appendix 14
",See the Wv1ie EDC Memorandum dated July 7,2016,attached as Appendix 14.
Seethe United States Census Bureau.
PAGE I I
Use of Tax Revenue for Movie Theater
Transaction
The Wylie EDC also provided
5251,3-2.38 to B&B Theater
located at -11 1\oodbridge -etct
Parkwa% \V, s lie,Texas ,5098. Such x � ! F Fk
amount included an amount equal ~ W. t
to the taxes paid b} B&B Theater. • ` � J " 1
The B&B Theater shows motion ��` z1) # mei
•
pictures. n .+ rrr►r— �^'��� "�
Concerns Regarding the Transaction
Economic development corporations authorized to use Type B tax revenues are governed by Chapter
505 of the Local Government Code. Local Gov't Code §501.00216 .
Though §505.152 permits the use of the Type B tax revenue for recreational or community facilities,
such authorization does not include movie theaters. The use of Type B tax funds is permitted for
business enterprises that create or retain "primary jobs." Local Gov't Code ,501.155. The concern
with the use of funds for this project arise,' from the use of such funds for a project that not create a
"primary job." Local Gov't Code .;'5(11.002(12}fa;.ui. The definition of "primary job" expressly
excludes motion picture theaters. Id. Therefore,the\X'vlie EDC does not appear to have the authorit\
to provide such funding to B&B Theater.
The Wylie IF.DC does not appear to have such authority under Local Gov't Code §505.156, as the
revenues for the preceding two fiscal years exceeded S50,000.00. Sr: Loc. Gov't Code 5505.156 l).
Finally, Wylie EDC does not qualify as a landlocked community. Loc. Gov't Code §505.157. Such
provision is drafted so as to apply only to Dallas County and I larns County.
PAGE 112
Use of Tax Revenue for Flower Shop
Transaction
On or about February 19, 2015, the Wylie EDC paid S26,627.00 to the
Wylie Flower & Gift Shop to remodel the store's facade."The Wylie
Flower& Gift Shop is located at 129 N. Ballard Avenue,Wylie, Texas i •
75098. Wil"! I
Concerns Regarding Transaction
•
Economic development corporations authorized to use Type B tax 1
revenues are governed b\ Chapter 505 of the Local Government Code. • - .
Local Gov't Code §501.002.IG;. r `ice
Though §505.152 permits the use of the Type B tax retenue for recreational or community facilities.
The use of Type B tax funds is permitted for business enterprises that create or retain "primary jobs."
Local Gov't Code §501.155. The concern with the use of funds for this project arises from the use
of such funds for a project that not create a "priman- lob." Local Gov't Code 501.002r12:'. It does
not qualify as a priman :ob as the products and services are not ultimatelt exported to regional,
statewide, national or international markets infusing new dollars into the local economy. Local Gov't
Code §501.1)02(12)(A.i*. Further, none of NAICS codes specifically included in the definition of
"primary job"expressly include flower shops. Id Therefore, the\X`ylie F.DC does not appear to have
the authority to provide such funding to the Wylie Flower and Gift Shop.
As stated previously, the 1t'ylie EDC does not appear to have such authority under Local Gov't Code
§505.156,as the revenues for the preceding two fiscal years exceeded S50,000.00. See I.oc. Gov't Code
§505.15G(1). Finally, Wylie EDC does not qualify as a landlocked community. Loc. Gov't Code
§505.157. Such provision is drafted so as to apply only to Dallas County and Harris County.
;;Sir the Detail Listing attached as Appendix 15.
PAGE I -i
Conflicts of Interest
Mitch Herzog
As previously stated, Mitch Herzog is the son-in-law of Richard Parker. Richard Parker had an
ownership interest in propern near the intersection of F.M. 344 and Sanden Blvd. through an entity
called Parker/Scholz Properties LTD :the "Parker/Scholz. Propert} On July 15, 2011, the Wylie
EDC Minutes reflect a discussion regarding Parker/Scholz Property.' The Minutes do not reflect,
however, Mr. Herzog excusing himself or signing an Affidavit Stating Conflict of Interest related to
the property and transaction discussed.' At a subsequent meeting on July 29, 2011, the notes state
that Mr. Herzog did execute an Affidavit Stating Conflict of Interest regarding Parker/Scholz
Property.' 1-lowever, during the meeting on August 19, 2011, he again participates in the meeting
wherein they discuss Parker Scholz Property,an entity where there is an admitted conflict of interest.'
No Affidavit Stating Conflict of Interest from Mitch Herzog was included in any of the notes that are
made publicly available. In addition, Mr. Herzog is a member of the Wylie ISD Board and although
he abstained for votes on the sale of the WISD Property, he was present at all meetings of the Wylie
ISD Board discussing such sale. Mr. Herzog's position on the\X vile ISD Board, the W' he EDC and
his relationship to the purchase of the W1SD Property raises concerns.Of further note is Mr. Herzog's
recent resignation from the 1E vhe EDC Board.'
Marvin Fuller
Marvin Fuller is the 1C‘lie EDC Board President and presided over each and ever} meeting de%eloping
the position to coinince the 'the Wylie ISD to sell the 1l ISD Property at a low price. Mr. Fuller remains
the President of the \\* lie EDC to this date. I le is also the President of the local branch of Inwood
Bank. The correlation bent een persons and entities receiving tax funds from the 11 vhe EDC and
financing via Inwood Bank should be investigated.
u See the Minutes of the W'he [DC dated July 15,2011,attached as 1ppendix 16.
35 See the Minutes of the W%he EDC dated July 15,2011,attached as Appendix 16.
See the Minutes of the\V%he EDC dared July 29,2011,attached as Appendix 1
3"See the Minutes of the Wylie 1.DC dared August 19,2011,attached as Appendix 18
'"See the Minutes of the\X t lie EDC dared October 28,2016,attached as Appendix 19.
PAGE 114
Requested Remedies
Citizens of Wylie,Texas have valuable tax dollars that it has authorized to be used by the Wylie EDC
in accordance with the governing and applicable law. If,as is suspected, the taxpayer funds are being
used on unlawful projects, for projects that are to the personal benefit or gain of the \Vvlie EDC
Board Members as opposed to the City of 1X.vlie and conflicts of interest are not being disclosed, the
Attorney General is authorized to step in and institute adequate remedies to safeguard the taxpayer's
funds and take whatever steps are necessary to deter future misconduct and reestablish trust. The
removal of all Board members of the \Vvlie EDC who participated in these transactions would be a
good start, specifically including Marvin Fuller and Sam Satterwhite. The recent resignation of Mitch
Herzog is interesung regarding its timing, but is not enough to protect the taxpayers of Wylie.
PAGE 115
Appendix
Appendix 1: Wylie EDC Formation Information & Bylaws
Appendix 2: Minutes of the Wylie EDC dated September 15, 2011
Appendix 3: Collin County Central Appraisal District Information
Appendix 4: Minutes of the Wylie EDC dated October 21, 2011
Appendix 5: Minutes of the Wylie EDC dated January 16, 2012
Appendix 6: Minutes of the Wylie EDC dated February 17, 2012
Appendix 7: Minutes of the Wylie ISD dated March 19, 2012
Appendix 8: Public Notice of Bidding Process Advertisements
Appendix 9: Appraisal of the WISD Property dated March 6, 2012
Appendix 10: Minutes of the Wylie EDC dated March 23, 2012
Appendix 11: Minutes of the Wylie ISD dated April 16, 2012
Appendix 12: Minutes of the Wylie EDC dated April 27, 2012
Appendix 13: Minutes of the Wylie EDC dated November 16, 2012
Appendix 14: Wylie EDC Memorandum dated July 7, 2016
Appendix 15: Detail Listing
Appendix 16: Minutes of the Wylie EDC dated July 15, 2011
Appendix 17: Minutes of the Wylie EDC dated July 29, 2011
Appendix 18: Minutes of the Wylie EDC dated August 19, 2011
Appendix 19: Minutes of the Wylie EDC dated October 28, 2016
NaE I
THE WYLIE NEWS, March 22, 2006
Report calls for changes in WEDC accounting practice
By Patty Montagno
An audit report released last week questioned some of the accounting practices of the Wylie Economic
Development Corporation.
The report was presented at last week's city council meeting by auditor Lewis Crain of Rutledge Crain and
Company, P.C.
In his summary letter,Crain said the WEDC is a"discretely presented component unit"in the city's
combined financial statements.
The WED is financed with a voter-approved half-cent city sales tax. Its purpose is to aid,promote and
further the economic development within the city. According to the report,the WEDC is a government-
fund type u ith a Sept.30 fiscal year end.
The audit identified several "reportable conditions that we believe to be material weaknesses" in the
WEDC's accounting procedures,Crain said.
"A material weakness is a reportable condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that errors or fraud in amounts
that would be material in relation to the basic financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned functions,"
he said.
Auditor concerns included missing board meeting minutes,deposits of public funds deposited in another
financial institution other than the city depository, related party transactions and accounting and
administration practices.
In a memo to WEDC Executive Director Sam Satterwhite,City Finance Director Larry Williamson wrote
that the finance department has raised a number of issues regarding the WEDC.
"Other issues have been brought to our attention by the city auditors and others by different city
departments," Williamson said."These issues include questionable expenditures.violations of the Open
Meetings act, violations of the Public Funds Investment Act, improper bidding procedures and evaluations
of bids,conflicts of interest and related-party transactions and financial reporting."
Williamson also stated that although the finance department is"in a glass house and has a lot of work to
do," they still have city-wide responsibilities that must be addressed.
''The Open Records Act requires that the WEDC keep minutes of its board meetings and that they be
available for review,"he said."The finance department and the city auditors have requested these minutes
and have been informed that a number of the required board are not available."
Satterwhite said the WEDC simply got a little behind in taking minutes.
I admit to poor minute taking when we were in complicated negotiations regarding the sale of Extruders
and were meeting every 10 days or so,"he said."There was a time when I was the only staff.
"We have recognized this concern and have been working to rectify the situation and one of my
recommendations would be to electronically record all the meetings."
Referring to a deposit in the amount of S154,490.61 to Inwood National Bank, Williamson said the Public
Investment Act prohibits an individual from making investments of government funds without being a
'Certified Investment officer' and requires deposits to be collaterized for amounts over FDIC insurance
limits.
He also cited Section 11. Depository of the city that states: "All monies received by any person,department
or agency of the city for, or in connection with,the affairs of the city shall be deposited promptly in the city
depository or depositories, which shall be designated by the city council in accordance with such
regulations and subject to such requirements as to security for deposits and interest thereon as may be
established by ordinance and law. Procedures for the withdrawal of money or the disbursement of funds
from the city depositories shall be prescribed by ordinance."
"All funds should be in the city's depository and part of the city's pooled cash accounts," he said.
Although Williamson told the council Satterwhite had failed to address the issues brought up in the audit,
Satterwhite said after receiving Williamson's memo he met with the finance director for more than an hour
to address the concerns.
The two thoroughly discussed every issue.Satterwhite said.
"The$154,490.61 was a money market account that was set up in Inwood National because the interest
rates were more favorable and the transaction was signed off on by myself and Gary Boni land who was
board treasurer at the time,"he said.
The transaction was also highlighted because WEDC board member Marvin Fuller is president of Inwood
National Bank, Wylie."Mr. Fuller did not take part in any discussions regarding his bank,"Satterwhite
said.
Fuller said there was a period of 14 days in which the S 154,490.6I WEDC funds were not properly insured
and that internal oversight was corrected immediately upon discovery.
"The$154,490.61 was the year-end(9-30-05)balance in the account in question and from 2-28-05 through
9-30-05 the account balance had S 1,200,000.00 in securities properly pledged to this account," Fuller said.
"However, from 2-14-05,when the initial deposit was made to the account, through 2-27-05 the account
was not adequately secured."
Satterwhite said Williamson asked if he had the proper licensing or certification to make public
investments."I said I didn't know I needed that certification saying that I should sign up for the appropriate
courses,"he said."He said that wouldn't be necessary because he would act as our investor."
Satterwhite said the city attorney advised the economic development board that all WEDC monies did not
have to deposited in the city depository although the majority of WEDC monies are.
Mayor John Mondy said after reading the auditor's report he met with all parties to get a handle on the
situation. He said the work the WEDC has done over the years had contributed to the growth and success of
the city.
"We'll need to look at another legal opinion regarding some of these issues and the WEDC is forming a
corrective plan and will submit it to the city,"Mondy said. "The city approved staffing for the WEDC quite
a while ago,so we are partially responsible for the lack of record keeping."
Mayor pro-tens Eric Hogue said the auditor's report did identify certain areas in which the city as well as
the Wylie Economic Development Corporation can improve.
"As a member of the city council, I would like more information on each of those concerns before
commenting on any specific issue or how each might be resolved," he said.
Satterwhite said the WEDC strives to adhere to all policies created by the city.
"The WEDC recognizes that the more closely we adhere to the city guidelines and procedures the more
fiscally responsible we will be,"he said. The most concerning issue to me is that there could be a slight
perception of impropriety existing at the WEDC and I want to assure everyone that we take these concerns
very seriously and we value the close working relationship with the city. The WEDC prides itself on its
relationship with the city and we realize we are ultimately responsible to the taxpayers.
"I may be guilty of being somewhat disorganized, but I am not unethical."
WEDC board members are, Fuller. Gary Bartow,John Yeager and councilman Merrill Young.
-In reference to WEDC activities, we are open to scrutiny in our success as well as our shortcomings and I
welcome any and all questions into the operations of the WEDC and believe that the Wylie City Council
will be satisfied with the WEDC Board of Directors response to these inquiries," Satterwhite said.
"Any procedural or operational changes which need to be made will be implemented swiftly and
comprehensively.
"As well, we will continue to perform our number one objective of creating jobs and expanding the local
tax base."
The WEDC budgets for the last five years show any unexpended fund balances of the prior year will be
included in the current year budget. FY 01 02 -S787,700; FY 02 03 -$688,220; FY 03 04-
S822,820;FY 04 05 -$949,863 and FY 05 06- $1,449.549.
According to Fuller,the WEDC, in conjunction with the City Manager's office, has participated in funding
a new secretary position.
"This individual is providing increased clerical assistance so that the issue of incomplete minutes will not
reoccur,"he said
Fuller said the WEDC and City of Wylie have formalized this assistance in the form of an interlocal
agreement.
"I have full confidence in the WEDC staff and past actions of the WEDC Board and I believe that all
concerns,both actual and perceived,will be explained to the full satisfaction of all involved," Fuller said.
"My fellow Board members and I,have contributed countless hours to an organization which has a long-
term impact on the positive growth of our community.
"The WEDC Board and City Council will jointly resolve all concerns so that the business of economic
development can continue and achieve even greater success than we have up to this point."
♦'t•; OF WI,
• : - Board of Ethics
mr,= r r:
AGENDA REPORT
tsar s,'4h nl iI
Meeting Date: September 7, 2017 Item Number: 4
(City Secretary's ('-se Only)
Department: City Manager
Prepared By: Mindy Manson Account Code:
Date Prepared: August 31, 2017
Exhibits: Draft complaint form
Subject
Consider and act upon a Complaint or Inquiry Form.
Recommendation
Motion to approve a Complaint or Inquiry Form.
Discussion
Ordinance 2014-19, Section 7. (H) (2) states that complaints or inquiries are to be submitted in writing on a
form approved by the Board. The form is to contain the following information:
- The signature of the individual making the complaint;
- The home or business address and phone number of the person who submitted it;
- The statement that,to the best of the person's knowledge, information.and belief formed after reasonable
reflection, the information in the complaint or inquiry is true;
- The facts that constitute the violation of the Code of Ethics in sufficient detail so that the Board and the
person who is the subject of the complaint or inquiry can reasonably be expected to understand the nature
of any offense that is being alleged.
- The date the actions took place or became known to the complainant. (For clarification, actions that
took place or became known to the complainant more than six months prior to the date of filing a
complaint will not be accepted).
Staff has drafted a complaint form which is attached for the Board's review.
(Rev 01'2014) Page i of 1
Board of Ethics
Complaint/Inquiry Form
Submitted by:
Name
Address Phone#
Indicate below what portion of Ord. 2014-19, Section 6. Rules of Ethical Conduct for City
Officials that you believe the individual(s) has violated. Check all that apply.
Appearance on behalf of private interests of others
_ Misuse and disclosure of confidential information
Restrictions on political activity and political contributions
Use of cell phones or electronic devices during meetings
Use of City letterhead and logo
Facts and Nature of the Complaint/Inquiry(information may be attached):
Date that the action took place or became known to the undersigned:
To the best of my knowledge, information and belief formed after reasonable reflection, the
information contained in this complaint or inquiry is true.
Signature
Printed Name
Date