The Amarillo Pioneer

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Amid Controversy, City Council Approves Purchase of Downtown Building

Amarillo City Councilmembers voted unanimously on Tuesday to approve the purchase of a building across the street from the Amarillo Civic Center Complex.

On Tuesday afternoon, Councilmembers voted 5-0 to approve the purchase of a large warehouse at 701 Southeast 5th Avenue. Councilwoman Freda Powell made a motion to approve the purchase, which was seconded by Councilman Howard Smith. City manager Jared Miller told Councilmembers this purchase would help the City “secure property” in the area, as Miller said the City of Amarillo currently owns all the property remaining on that block.

Amarillo Civic Center general manager Sherman Bass also told Councilmembers that the property would be an asset for the Civic Center Complex to use for storage and possible expansions in the future.

“We certainly could see it used in an expansion,” Bass told Councilmembers.

The purchase did not go off without a hitch though, as questions of conflicts of interest were raised prior to the green light being given. Mike Fisher, an Amarillo businessman and activist who frequently speaks at Council meetings, said he suspects a conflict of interest could be attached to the property purchase.

“Since we’re naming the new baseball team today, I thought of a new name,” Fisher said during public comment. “The Conflicts of the Interest, or we can call them the Conflicts. We’ll name them after this City Council.”

Fisher passed out paperwork to Councilmembers during public comment, which he said tied certain members of the City Council to possible conflicts with the property. Mayor Ginger Nelson took issue with Fisher’s documents during public comment.

“I would just like to point out there are many, many factual inaccuracies on this sheet,” Nelson said to Fisher. “Mr. Fisher, I am now putting you on notice.”

As we reported on Friday, Nelson’s husband, Kevin, has previously been a business partner with Joe Bob McCartt, a real estate company owner whose company is involved with the transaction on the property. Neither Ginger nor Kevin Nelson are listed as investors in 701 SE 5th LLC, the owner of the property, from available business documents.

Nelson also attempted to address the conflict allegations during the meeting, saying she refuses to abstain from the vote to purchase the property.

“I want to clarify that I don’t own any interest in this building,” Nelson said. “My husband doesn’t own any interest in this building. There is no conflict of interest.”

Nelson went on to take aim at her political opponents during her comments, saying she refuses to set a political “precedent” by abstaining from the vote.

“We are chosen by citizens to govern and take a vote,” Nelson said. “…As a political reason, it may be easier not to, but I don’t want to set that precedent.”

Mayor Nelson did vote for the transaction, which was set with a price tag of $700,000 plus other costs. This was roughly $100,000 less than the property’s asking price, according to Miller.

This was not the first time Nelson has been accused of having a conflict of interest in an item brought before the City Council. In October 2017, 79101 Properties, LP and 800 S. Polk, LP, both sought tax reimbursements from the Center City TIRZ Board. Some citizens, including community advocate James Schenck, said they believed Nelson had a conflict of interest, as Prana GP LLC was listed as a general property in 79101 Properties LP. McCartt and attorney Alan Rhodes are listed as managers of Prana, according to Corporation Wiki, and both McCartt and Rhodes have previously been reported as business partners with Kevin Nelson on different business ventures.

Councilmembers approved that transaction by a 5-0 vote. In that instance, Nelson also voted to approve the project.

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