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New email fuels City Hall dispute over controversial hotel incentive

HOMEWOOD pic092225.png
New email fuels City Hall dispute over controversial hotel incentive
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CORPUS CHRISTI, Texas — A recently surfaced email from Corpus Christi’s city attorney is raising new questions about a $2 million incentive granted to a downtown hotel project — and whether city leaders were fully informed about key details before approving the funds.

At the center of the controversy is an altered screenshot, submitted as part of a developer’s application for Type B incentive funding for the Homewood Suites project at 301 N. Chaparral Street. The discrepancy was first flagged by rival developer Ajit David, who later filed a civil lawsuit against the city.

Now, an email obtained by KRIS 6 News appears to contradict sworn testimony given under oath by City Manager Peter Zanoni.

New email fuels City Hall dispute over controversial hotel incentive

Just one day after KRIS 6 aired its initial investigation, City Attorney Miles Risley sent an internal email to council members stating the entire City Council had been made aware of the altered screenshot during an executive session in April of last year. According to At-Large Councilman, Roland Barrera, at the meeting, he asked Risley if "any of this was illegal?" the answer from Risley was no. to add to the confusion, the two snapshots shown at the meeting were not identical.

However, during a sworn deposition, Zanoni testified that no such collective or individual briefing occurred. “I didn’t sit down with all council members, either individually or collectively, to let them know,” Zanoni said.

Because executive sessions are confidential under Texas law, city officials are limited in what they can publicly to confirm or deny about what was discussed behind closed doors. Still, the email adds a new layer of confusion and apparent contradiction to the public record.

Meantime, Mayor Paulette Guajardo responded to the incident during a Sept. 9 council meeting.

“I was never told the document was not legal, no one has said that any document was fraud… no one,” Guajardo said at the time.

Despite the growing scrutiny, Councilman Roland Barrera maintains that the $2 million award was justified because the Type B Board recommended the funding, citing the hotel as an economic catalyst. He says the council’s vote was not about an altered screenshot — and that no one on the dais had the law enforcement expertise to determine whether fraud had occurred.

Barrera also questioned the motives of whistleblower Ajit David.

“I didn’t think Mr. David was credible,” Barrera said. “He has a vested financial interest in the success and/or failure of the competing hotel.” Barrera noted that David’s business partner is now in line to receive a $2 million incentive of his own — for a separate development project on Padre Island. David is not directly involved in that project, but the proposed incentive is scheduled for a City Council vote on Tuesday.

“It’s the same circumstances,” Barrera said. “This is going to be a catalyst for the area — and we want to go ahead and support it.”

As emails, depositions, and public statements continue to surface, the dispute has turned into a broader debate over transparency and accountability at City Hall. City leaders remain divided — not just on the facts of the incentive, but on who knew what, and when.

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