Council Moves to Add Independent Legal Oversight
City to hire second lawyer as Corpus Christi’s City Council approves a plan to bring in another outside attorney to investigate the awarding of millions in taxpayer funds for a private downtown hotel project. The 5–2 vote on October 7 authorizes city staff to search for candidates from a council-approved list. Supporters believe this move reinforces the investigation’s independence, while critics argue it may duplicate existing legal efforts.
City to hire second lawyer also underscores the council’s ongoing effort to ensure transparency after it previously retained outside counsel to defend the city and mayor in a competing developer’s lawsuit over the same funding grant. The new attorney will focus exclusively on investigating how the grant was awarded, keeping that role separate from the city’s legal defense.
Council Divided, Vote Reflects Deep Disagreement
Council members Carolyn Vaughn, Gil Hernandez, Sylvia Campos, Kaylynn Paxson, and Eric Cantu backed the move, while Roland Barrera and Mark Scott opposed it. Mayor Paulette Guajardo and Councilman Everett Roy abstained.
The decision comes amid persistent controversy surrounding a prior council’s approval of a $2 million subsidy—sourced from city sales taxes—for a proposed Homewood Suites by Hilton project. The project’s developer, Elevate QOF LLC, faces allegations of providing misleading information regarding federal flood-map timing, according to a city auditor’s memo.
Audit Alleges Misrepresentation, Lawsuit Ensues
According to the City Auditor, there is a “reasonable basis” to believe that Elevate QOF misrepresented when flood maps affecting the property were released. That allegation underpins a lawsuit filed by another hotel developer, Ajit David, against the city and Mayor Guajardo. Elevate QOF denies wrongdoing.
Attorney Jeff Lehrman, representing Elevate, has claimed that David’s suit is a tactic to “sabotage … the project.” Meanwhile, council members have diverging accounts about who in city government knew what and when. Some deny any knowledge of the accusations before the grant vote.
In September, the council approved allocating up to $444,000 for legal defense tied to David’s suit.
Why a Second Attorney?
Councilman Hernandez argued that having one attorney serve as both defender of the city and investigator creates a conflict. “It’s hard for an attorney to be representing us while investigating us at the same time,” he said.
City Attorney Miles Risley disagreed, asserting that he sees no inherent conflict. He explained that the existing attorney’s role includes reporting any unlawful acts by city agents or outside parties. He added, “I don’t see an inherent conflict … representing the city while also bringing forward concerns when warranted.”
Cantu, one of the council’s proponents, said the second council would help “ease some people’s minds” amid mounting distrust. Vaughn echoed the need for resolution, stressing that “we represent the citizens … we’ve got to put this to rest.”
Opposition Voices Political Motivations
Councilman Barrera accused the proposal of being a continuation of “inflammatory rhetoric” driven by political agendas. He criticized officials for selectively releasing depositions, arguing they shared only parts of the record to push a specific narrative. He believes they withheld his own deposition because it didn’t fit that narrative.
What’s Next?
During the meeting, council members approved a shortlist of attorneys for possible retention. City Manager Peter Zanoni said that in one to two weeks, the council will receive a written justification for hiring a second attorney, an analysis of proposed candidates, and his recommended choice. Zanoni also noted that the selected attorney’s contract would not exceed $50,000.
According to Zanoni, the council won’t need to vote again to finalize the selection. With tensions high and public trust on the line, the following weeks may prove pivotal in determining both legal outcomes and political accountability in the city’s downtown development saga.