City Updates Lawsuit Against Developers for Fraudulent Efforts to Evade City Council Oversight
February 12, 2025
The City of Bee Cave has updated its lawsuit against the developers of the industrial warehouses off Highway 71. The amended lawsuit introduces fraud allegations and adds former City Manager Clint Garza as a defendant in the case.
The updated lawsuit alleges a pattern of deceitful actions by Wheelock, KBC and Velocis designed to keep the City Council in the dark about the project. Specifically, the developers are accused of relying on Garza to withhold information about the warehouses from the City Council, while being able to claim the City was on “notice” of the development because they emailed Garza instead of going through the proper channels.
In addition to concealing the development plans from the City Council, the lawsuit details how Garza allegedly received payments linked to his role in facilitating developments that improperly bypassed council scrutiny.
“These new allegations are deeply concerning and represent a serious violation of the trust the public placed in Clint Garza as City Manager. His role was to serve our community not his own self-interest. The City of Bee Cave is committed to uncovering the truth and holding those responsible accountable for the damage they have caused. And as Mayor, I will not rest until there is justice for Bee Cave,” Mayor Kara King said.
In response to this situation, the Bee Cave City Council acted on Tuesday night, amending the City’s personnel manual to include a whistleblower policy that protects any city employee who reports illegal, fraudulent, or unethical activity. This policy lays out a process that will increase transparency and accountability within the City, ensuring that individuals with knowledge of any unlawful conduct have a clear path to report it.
Link to Mayor Kara King's comments regarding the Whistleblower Ordinance.
The City’s lawsuit seeks to halt the illegal development of the industrial warehouses and to ensure full compliance with the Development Agreement, recover damages, and address the broader issue of developers seeking to skirt regulatory oversight for financial gain. Anyone with information about such developments may contact the attorneys representing the City at [email protected]
Link to City's Amended Lawsuit