CORPUS CHRISTI, Texas — Following serious legal allegations against Tim Leiweke, the CEO of Oak View Group (OVG), city leaders are raising concerns about the integrity of ongoing business relations with the group.
OVG develops and provides a variety of services to live entertainment venues, including the American Bank Center. The group has been at the center of the controversial naming rights decision for the venue.
On Tuesday, July 15, councilman Eric Cantu opened the dialogue, questioning the absence of OVG at the meeting and inquiring about the potential costs associated with terminating the city's contract with the group.
"I think they screwed over the tax payers and then this happens," Cantu said. "This should be a loophole to get rid of them. We talk about the morals of Thomas J Henry, but look at them here."
City attorney Miles Risley informed Cantu that their contract with OVG isn't set to expire until 2027.
"What they negotiated with us was a substantial amount," Risley said. " Any effort to part ways would need to be planned at least a year in advance."
Corpus Christi Mayor Paulette Guajardo said they will continue to monitor the situation closely and inform the rest of the council. Councilman Carolyn Vaughn echoed Cantu's concerns, emphasizing the unsettling nature of doing business with OVG amidst the unfolding legal troubles.
"I think it's really concerning," Vaughn said. "I've been getting calls and this is nothing on a reflection of the Hilliards. It's unfortunate we're doing business with a company like this."
Councilman Kaylnn Paxson echoed the same sentiment.
"It's very difficult to hear so many allegations of why to or not to enter a partnership with someone with a "foe" reputation and then in a couple of weeks this comes into light," Paxson said. "Nonetheless, this was a top member of the company. It's a lot to sit back and not have an action item in front of you. I understand that it would be incredibly costly. However, that's the position that we're in. It's time to make it clear that we really need to start cleaning it up in a professional matter and that we need to communicate there's some displeasure in how we're doing this. I'm with them. This has just become a whole lot of drama for this business."
Cantu further questioned how the city might re-engage local promoters and vendors, suggesting the formation of a committee to explore these options. He also mentioned his difficulties in reaching OVG representatives.
"I've tried calling them several times and they never return my phone calls," Cantu said. "I guess they're upset with me, but that's okay."
OVG is expected to present an update to city leaders on August 15. They're expected to discuss the status of the naming rights for the American Bank Center, as well as subsidizing costs for non-profits interested in hosting events, potentially helping to alleviate some financial barriers.
KRIS 6 will continue to keep you informed on this developing story.
