San Benito Shakedown
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The city manager and others are accused of trying to hijack a multi-million dollar shopping center at taxpayers expense! That’s right! We are back in the Rio Grande Valley!!!
“Mayor… I’d like to talk to you about this investigation involving your brother,” I asked.
The mayor’s brother had been accused of retaliating when his brother was accused of sexual misconduct but first, we had to get around that guy.
“Dude don’t do that… Don’t do that… Why are you blocking me?”
His name is Mario Palomo, and he apparently thinks investigating into nepotism, abuse of power, and violations of state law is real funny.
Minutes after we were done playing with Mario, this guy showed up…
The mayor’s other brother… who would get charged a few minutes later for assaulting me.
We’ve since learned that Mr. Palomo is now the number two guy at the San Benito Economic Development Corporation…
“I love San Benito.”
City manager Freddy Sandoval is his boss… he plays the bully in this crazy Rio Grande Valley town.
“Aren’t you an investigative reporter, why don’t you investigate the facts? You’re an investigative reporter. Get the facts,” said Sandoval on the same occasion.
Here’s a fact Freddy… Hidalgo District Court Judge Benjamin Euresti has now issued a court order accusing you and Mario of being part of an illegal civil conspiracy…
“I love San Benito.”
A shakedown in San Benito.
David Favila (San Benito Director of PR): “I will call the cops.”
Wayne: “Go ahead, call the cops.”
When we first arrived in the Resaca Village last May the city called the cops on us just for the crime of wanting to see campaign finance records…
But a bigger shooting war was already underway at the Cameron County Courthouse…
We watched as lawyers for the city of San Benito tried to evict the developer of this multi-million dollar shopping center being built on land owned by the city’s Economic Development Corporation.
The judge said no.
We were already getting a dose of the lack of transparency that would later trigger calls for a recall of the mayor and city commission.
Secrecy that would scuttle a city charter election wasting 23,000 grand of taxpayer money…
To this day the EDC has refused to let us see a ledger of their payments in violation of Texas law.
“Doesn’t the public have a right to know this stuff? Doesn’t the public have a right to see these records? What are you hiding?” I insisted.
There’s no dispute the Resaca Village project had faced long delays… after the first two buildings were completed on time COVID hit… we all know the problems that caused.
It also exposed the consequences of a city where nepotism is allowed…
Jose Morales… his commissioner wife had appointed him to the EDC.
Deborah Morales wanted a bigger payday from Varco… the developers called it a shakedown. Apparently, it was just the first one.
“They either want to kick us out and give it over to somebody they know, it could be a family member, a friend,” expressed Varco Real Estate CEO Paul Serafy.
Morales would resign after refusing to turn over his phone records to us… but the EDC and Varco agreed to a new deal… daily damages every day if the construction wasn’t done.
But the city changed suddenly its mind.
“They were the ones who sued us,” argued mayor Guerra.
Varco did sue first… accusing the city of trying to squeeze them out of a shopping center they had already invested millions of dollars into.
The city wasn’t finished trying to put up roadblocks.
After a subcontractor was caught using city water by mistake… Sandoval issued a stop work order in August… and has refused to lift it.
Before Christmas, a judge told the city they couldn’t use the water dispute to stop Varco from finishing the shopping center.
The city appealed… San Benito taxpayers have already spent more than $100,000 in this legal fight.
“And now we know that while the rest of us were drinking eggnog and making cookies for Santa, Fred Sandoval was busy… trying to take over Resaca Village another way.
It started with a phone call to the owner of Calacas Tacos.
Sandoval on the phone: “Hey Oscar, Fred Sandoval here, at the city of San Benito. I have a couple of things brewing with Calacas here in San Benito.”
Minutes later the owner got a call from a guy named Ruben Cortez on behalf of Sandoval.
The city won’t tell us if they are paying Cortez… all we can see is that he’s a failed politician from Brownsville who has lost the last three elections he ran for.
Here are pics from one of Ruben’s fundraiser… mayor Guerra was there… Jose and Deborah Morales’ family were supporters too.
Why won’t the mayor hug me like he does Ruben?
But we now know Freddy Sandoval wasn’t calling the owner of Calacas to talk about their famous brisket tacos… I’m a big fan. He was calling to get their money.
A court order signed by Cameron County judge Benjamin Euresti accused Sandoval… Mario Palomo and others of demanding that Calacas start paying their rent to the EDC and not Varco.
The judge declared Sandoval and others falsely told the owner of Calacas that other stores in the shopping center had already agreed to start sending their rent money.
Turns out they hadn’t… a lawyer for Stone Cold Creamery in the shopping center accused the city of interfering with their lease with Varco.
This text from Ruben Cortez exposed the plot.
“He (Sandoval) believes the city will likely own the building by summer of next year.”
Judge Euresti called the city out.
“The court finds that SB EDC attempted to shake down of Varco’s tenants at Resaca village, has no legal basis, and it is plain violation of state law.”
We’ve been arguing for months the city has no business running a shopping center… even if it was legal… this conduct will scare off other developers…
We’ve found no evidence the city commission ever voted to interfere with rent payments in a public meeting… but with their secrecy that’s not surprising. Taxpayers deserve to know… it’s their money. Is it a shakedown in San Benito?
Mayor Ricardo Guerra once told the local newspaper he wanted to beat me up… he was mad at me.
We had just busted the convicted child molester the mayor appointed to the city economic development board…
On his application he said he was the mayor’s cousin… the mayor denied it.
Our last report prompted San Benito police to finally respond to a former housing authority employee who filed criminal complaints on the mayor’s brother.
But to this day the San Benito housing authority is still hiding records.
By now the shopping center would have been finished.
That would have been good for the city… more jobs… sales tax money.
Instead, taxpayers are now on the hook for the legal fight Varco says the unfinished building is open to the elements and is deteriorating…
A court hearing is scheduled for January 14th.
