Monday, October 05, 2009

Gene Locke and the Sports Authority - A Timeline

Something just doesn't sound right.... Texas Watchdog has a post about a possible conflict of interest with Houston mayoral candidate Gene Locke's work with the Harris County-Houston Sports Authority. Locke has touted his work as general counsel for the Sports Authority both on his website and tangentially in his first TV ad. Texas Watchdog asks if Locke becomes mayor, what happens when matters involving the Sports Authority come before City Council?
They also ask, when did Locke step down as general counsel to the Sports Authority? Was he acting as general counsel after he began running for mayor? Here is a statement from Locke's political director:
Dickerman added that Locke last attended a sports authority board meeting in the capacity of board lawyer in February, two months before announcing his candidacy.
But, that's not exactly true. Locke filed for an appointment of a campaign treasurer with the City on January 30th, as the campaign stated in this press release on that date:
"I (Locke) took the step of designating Jacob Monty so I could begin using money for my campaign to succeed Bill White as Mayor.
This is the real date someone announces their intention to run for office, not the date they throw a kick off party. The media picks up on it and everyone takes note - there's another person running for mayor.
The timeline:
Jan. 30, 2009: Locke files for a campaign treasurer with the City, enabling him to raise money for his mayoral campaign
February 2009: Locke begins raising money for his campaign for mayor (see his campaign finance report here, on the City Secretary's website)
February, 2009: According to Locke's campaign, Locke attended his last Sports Authority Board meeting in his capacity as lawyer to the Board.
March 26, 2009: Ch. 13's Miya Shay reports that Gene Locke announces for Mayor.
April 18, 2009: Dickerman, Locke's political director claims this is when Locke announced his candidacy. I assume he is referring to his kick off party at Minute Maid park.
April 2009: Locke resigned as general counsel for the Sports Authority, giving up his $640-an-hour fees , according to Sports Authority Executive Director Janis Schmees, who says he gave his resignation verbally, not in writing. (from Texas Watchdog)
April 23, 2009: Locke continued to sign invoices for Kurth after announcing his candidacy; in a letter accompanying an invoice dated April 23, he advised his client to call him with “any questions or concerns.” (from Texas Watchdog)
June 12: Locke also remained involved in communications between Kurth and the Authority. He was copied on a collections letter from Kurth’s receivables department to the Authority dated June 12. (from Texas Watchdog)
July 2009: Locke was copied on on e-mails involving a perceived discrepancy in pay from the Authority in July. Correspondence to the Authority from Arnold, Locke’s replacement, was written on Locke’s Kurth letterhead as late as July. (from Texas Watchdog)
So, what is wrong with this? His law firm, Andrews Kurth, would stand to benefit from any legal work they have representing the Sports Authority while Gene Locke was mayor. In other words, City dollars would flow to Locke's place of business - where he is a partner - enriching his own pocket.
What's the real problem with Locke mixing his legal representation of the Sports Authority at the same time he was running for Mayor? Sports Authority board members are prohibited from raising money for political candidates, yet their general counsel, Locke, was raising money for himself while he was representing them. It's legal for him to do so, but the real timeline vs. the response from his campaign and the Sports Authority's Executive Director, seems to indicate he knew this could be considered a conflict of interest - or at least raise the question of a good old boy network and pay to play in the minds of the voters.
More interesting info:
Another note of interest - the mayor appoints positions 1-5 and 11 on the Sports Authority Board. Current board members can be found at this link.
Read about the City Code prohibiting Sports Authority board members appointed by the City from soliciting political donations here (these are instructions for the May special election, but they apply all the time - Sports Authority board members can themselves donate to a political candidate, but they cannot solicit donations from anyone else.)
Locke has publicly stated he will be successful in getting a new Dynamo stadium built in the East End. He was involved in the stadium deals that were not supposed to cost taxpayers any money, but now may require a possible $4 million from the tax payers.
Ch. 13's Wayne Dolcefino had a two-part expose on the Sports Authority which can be seen here and here. Those are worth a quick perusal.
I would think if there is a conflict of interest with the Sports Authority, the same would apply with Andrews Kurth's work with METRO and The Houston Port Authority. The mayor of Houston nominates five of the METRO board members. The City appoints two of the Port Authority Commissioners and jointly appoints the chair with Harris County. If you have info or opinions on how this would work with Locke as mayor, please leave those in the comments.
Locke's response to Texas Watchdog's report:
“When I am mayor every decision I make will be based solely on what is best for Houstonians,” Locke wrote. “… When I am elected my only debt will be to the people of Houston.”
I think if you like Locke, you trust him, you support him . . . you have to take him at his word. If you are still deciding on your choice for Mayor, Texas Watchdog gives you a little more to think about.
It's always good to bring more transparency to the political process, and Texas Watchdog does that very well. What I've tried to do here is give a little more background.

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