Examiner's Reed details METRO's "Houston Way" real-estate dealings (updated)
IN SOME OUTSTANDING REPORTING for the Houston Community Newspapers, Michael Reed details an interesting deal put together by the outgoing board at the "old" METRO for its real-estate agency. Among other fascinating tidbits, he notes:
- A sweetheart deal between the "old" METRO and its real-estate agency that increases commission amounts AND specifies that all acquistions -- through donation, swap, eminent domain, it doesn't matter -- will earn the new "sweetheart" commissions.
- An apparent discrepancy between the actual deal amounts and the amounts reported in METRO's financial statements.
- A METRO vice president who, interestingly enough, is a partner at the real-estate agency.
- The daughter of a partner at the real-estate agency who is also apparently listed as a broker at the firm and just happened to find herself employed at METRO as an associate vice president for real estate services.
Be sure to check out the story in its entirety, as Michael Reed ties together all of that and more. It's yet another fascinating chronicle of The Houston Way and a rogue transit agency.
Apparently, Mike Snyder's celebratory piece that all the problems are fixed at the "new" METRO was premature (as this bad deal and these persistent apparent conflicts of interest are ongoing concerns)! Of course, as Cory Crow notes, METRO's response will almost certainly appear shortly in the Chronicle. And it would not surprise if the Chronicle's new media-criticism department turns its fire on Michael Reed!
The only really good news to come out of Reed's story is this:
Under the terms of the agreement, the contract can be dissolved by Metro at any time the agency feels its best interest is no longer being served.
Mayor Annise Parker acted decisively in getting rid of some of the bad apples at the "old" METRO, and George Greanias acted decisively recently in firing some bad bus drivers. Will they take on this latest instance of The Houston Way in a similarly decisive manner?
UPDATE (06/23/2010): Does anyone recall the original, stated purpose for the contract with McDade Smith, the real estate firm that just scored this sweetheart deal with the outgoing METRO board?
Fortunately, our archives provide some guidance. Both the Chronicle and Houston Business Journal reported back in 2005 that David Wolff/Frank Wilson brought the company on board for two major purposes: Transit-oriented development and helping METRO to sell unneeded properties.
Only one of those purposes (selling unneeded properties) really strikes us as legitimate or proper for the area's transit organization. Clearly, the outgoing METRO board's decision to expand the real-estate firm's role AND to give it a sweetheart deal goes WAY beyond any rationale or justification that was ever presented to the public. It's another example of David Wolff/Frank Wilson/Bill White arrogance and the Houston Way "bidness" model that Mayor Parker and her new METRO board should correct as quickly as possible.
BLOGVERSATION: Harris County Almanac, Swamplot, Texas Watchdog.
Posted by Kevin Whited @ 06/22/10 06:53 PM | Print |
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