CORPUS CHRISTI, Tx — All law enforcement agencies that investigated potential criminal conduct related to the $2 million Homewood Suites incentive have closed their investigations and will not file charges against developer Phillip Ramirez, his attorney told 6 Investigates.
Jeff Lehrman, attorney for Ramirez, said he has been informed by relevant law enforcement agencies—including the Corpus Christi Police Department, FBI, and Texas Rangers—that their investigations have concluded with no findings of criminal conduct.
In a statement, C-C-P-D said they have not yet formally closed the investigation.
"In reference to the criminal investigation of Homewood Suites, the Corpus Christi Police Department has not formally closed the investigation. While we anticipate the formal closure of the investigation soon, detectives are still working to finalize their reports."
"All law enforcement investigations into any potential criminal conduct on the part of Phillip Ramirez, those investigations have closed, and there are going to be no criminal charges filed against him by any law enforcement agency," Lehrman said.
Lehrman said the allegations were "a political weaponization" brought by competing hotelier Ajit David.
"This entire ordeal was unfortunately brought against my client, Phillip Ramirez, and Elevate," Lehrman said. "Law enforcement agencies have completely exonerated Mr. Ramirez."
When asked to clarify whether he had direct confirmation, Lehrman said he has been told by law enforcement agencies that all investigations have closed and the district attorney will not pursue charges.
"I have been provided that information by the relevant law enforcement agencies, and as counsel for Mr. Ramirez, I'm in a position to be told that information," he said.
The controversy surrounding the $2 million taxpayer-funded incentive for the downtown Homewood Suites by Hilton has evolved over more than a year, involving allegations of document alteration, city auditor findings, and ongoing civil litigation.
Project developers Deven Bhakta and Phillip Ramirez of Elevate QOF, LLC sought the Type B sales tax incentive in 2023 for their five-story, 126-room hotel at the corner of North Chaparral Street and Lomax Street. It marked the first time such public funds had been used to subsidize a hotel in Corpus Christi.
During presentations to the Type B Corporation board in December 2023 and the City Council in February 2024, developers claimed newly finalized FEMA flood plain maps caught them off-guard and resulted in unexpected additional costs. They said the maps, which became effective October 13, 2023, threw "a wrinkle" into the project from both constructability and cost perspectives.
However, competing hotelier Ajit David alleged that a FEMA document screenshot presented to city officials had been altered. The FEMA news release was dated April 13, 2022—months after the property was purchased in January 2022 and before construction began.
6 Investigates obtained a recorded phone conversation in which City Manager Peter Zanoni acknowledged the document was altered, telling David that developers "hatch(ed) the scheme that, okay, FEMA floodplain, that's infrastructure, fixing the bottom floors, it meets the floodplain."
When asked about Zanoni's recorded comments, Lehrman said Zanoni "is not a lawyer, and he's not in law enforcement," and was not qualified to give an opinion on criminal conduct.
"I don't think Mr. Zanoni had all of the relevant information at the time he made that comment," Lehrman said. "Law enforcement agencies had all of the relevant information at their disposal, including the depositions."
David responded to KRIS 6 News via a written statement. His statement, in part, reads, "Law enforcement has explained to me that whether or not strong evidence indicates commission of a crime, politics may control the outcome. We all know this to be true."
The City Council initially approved the incentive on first reading in February 2024 by a 7-1-1 vote. After concerns surfaced, the second reading was delayed for two months. In April 2024, City Attorney Miles Risley and Zanoni presented information about the allegedly altered document to the entire City Council during executive session. On April 23, 2024, council approved the incentive on second reading by a 5-3-1 vote, with the ordinance language amended to remove references to FEMA requirements.
David filed a civil lawsuit in October 2024 seeking to invalidate the City Council's vote, alleging the city failed to follow its two-reading rule, used an altered federal document, and violated the Texas Open Meetings Act.
Lehrman said the civil lawsuit remains pending, but the conclusion of criminal investigations vindicates his client.
"The chapter as to the alleged crime on the part of Mr. Ramirez for the PowerPoint presentation and otherwise, that chapter is now concluded, and there was no crime committed," Lehrman said. "We can conclusively and emphatically tell the public that the law enforcement agencies agree with us."
Attorneys for Elevate QOF, LLC have consistently denied any wrongdoing, calling the accusations "baseless, meritless, and slanderous." The law firm Anderson, Lehrman, Barre & Maraist has stated that at no point did Elevate intend to deceive or defraud the Type B Board, City Council, or citizens.
The Homewood Suites hotel continues construction across from the Executive Surf Club. The civil case remains pending in district court.
