HIT: on the City Council, Wendy Davis Voted to Give

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HIT: On the city council, Wendy Davis voted to give tens of millions of dollars in tax breaks to large corporations, while personally profiting behind closed doors as her title company brokered sales that helped facilitate the deals.

BACKUP:

In 2002, Davis voted to give a tax incentive package worth $2 million over 30 years, for a total of $60 million, to bring the new Radioshack headquarters to her district, all while her title company helped broker a related sale to allow the Radioshack move:

• In July 2002, Davis voted to give tax incentives to bring the new Radioshack headquarters to Fort Worth.

(“Economic Development Agreement with Radioshack Corporation,” Fort Worth City Council, Page 4 and 5, 7/9/02)

• The agreement would give Radioshack a $2 million tax break every year for 30 years. “RadioShack Corp. announced last year that its headquarters would remain downtown, but city and business leaders still aren't taking any chances. They held a news conference Monday to urge passage of an economic development agreement that would return the company about $2 million in property taxes a year for 30 years on its downtown headquarters. The City Council will consider the agreement Tuesday. Last fall, officials with the Fort Worth-based consumer electronics giant announced a $ 124 million restructuring that included the sale of its high-profile Tandy Center headquarters. The company committed to build a new, campus-style office complex on another downtown site overlooking the Trinity River.” (Laurie Fox, “FW creates RadioShack incentives; Annual tax rebates proposed in a bid to keep retailer downtown,” The Dallas Morning News – Lexis Nexis, 7/9/02)

o Also included in the deal was a requirement that Radioshack would invest $200 million in real and personal property by the time the headquarters opened in 2005, hire workers from Fort Worth, and spend $3 million on businesses in Fort Worth or owned by women or minorities. “To receive the full rebate each year, RadioShack must invest $ 200 million in real and personal property by 2005, hire Fort Worth workers and spend almost $ 3 million a year on businesses that are either in Fort Worth or are owned by women or minorities.” (Laurie Fox, “FW creates RadioShack incentives; Annual tax rebates proposed in a bid to keep retailer downtown,” The Dallas Morning News – Lexis Nexis, 7/9/02)

• The headquarters was in Davis’ district. “In summer 2002, one of Fort Worth’s biggest employers, RadioShack, was moving its headquarters within Davis’ council district, which included downtown.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

o The headquarters was a $200 million, three building, 42 acres campus with a common area and parking garage. “The $200 million corporate campus is located on 42 acres and consists of three six-story towers—each approximately 200,000 square feet—plus a retail store, commons area and parking garage” (“RadioShack® Riverfront Campus, Fort Worth, Texas,” Johns Manville, Accessed 5/10/20)

• Safeco, a title company Davis ran with her then-husband Jeffrey Davis, closed Radioshack’s $34 million sale of its downtown technology center to help broker the headquarters deal, which it received $133,784 for. “While city officials met regularly with RadioShack about its plans, Safeco was working with RadioShack to close a related sale of the corporation’s downtown Fort Worth technology center. About a week before the apartment controversy erupted, Safeco closed the RadioShack technology center’s $34 million sale to Tarrant County. The closing costs, paid by RadioShack, included a $133,784 title insurance premium, county records show. Two months after the sale, Davis moved for the City Council to approve the incentive program for RadioShack. The plan was approved, 7-2.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

o Davis was the part-owner of Safeco from 1999 to 2004, and the CEO from 2004 to 2009 after Republic title company bought it and named her head of the Fort Worth division. “In 1999, she became part owner of Safeco Title Co., which was later acquired by Republic Title. Davis became Chief Executive Officer of Republic Title's Fort Worth Division in 2004, where she served until 2009.” (“Attorneys,” Newby Davis, Archived 3/8/14)

Jeffrey Davis paid her $40,000 a year to help him with Safeco, but her coworkers claim she was never involved. “Because she was paid almost nothing and because Jeff Davis was proud of the mark she was making on their city, in 1999 he decided that his title company, Safeco, would pay her an annual salary of $40,000. Davis told Wayne Slater of The Dallas Morning News that she had been ‘a vibrant part of contributing to our family finances’ during the decade after she graduated from law school. When I asked one of the company’s top supervisors at the time what Davis did in her four years with Safeco, this person replied: ‘Nothing. She was never in a strategy meeting, a marketing meeting, an escrow meeting or a compliance meeting. I never once saw her on the premises of our office. There was no reason for Safeco to have her on the payroll.’” (Robert Draper, “Can Wendy Davis Have it All?” The New York Times, 2/12/14)

• In 2017, Radioshack scrapped the headquarters to move back downtown to a warehouse because of financial issues. “RadioShack, a mainstay of the downtown business community for decades, is leaving its riverfront home this week and will consolidate what’s left of its operations at a distribution center in north Fort Worth. The bankrupt company’s headquarters staff, down to about 50 people, will relocate from the west end of a campus it built along the Trinity River, now owned by Tarrant County College, to space in a warehouse on Terminal Road north of the Fort Worth Stockyards, which it also once owned… It has steadily reduced its headquarters space at the sprawling riverfront campus, down to about 4,000 square feet. It leases about 120,000 square feet at the north-side distribution center, where it employs about 20 people. The company’s only remaining store in North Texas, in Weatherford, is expected to close soon.” (“The 50 people left at RadioShack HQ will be moving out of downtown Fort Worth,” The Dallas Morning News, 9/28/17)

In June 2004, Davis voted to give up to $40 million in tax incentives to Cabela’s while her title company, Republic Title of Fort Worth, completed the deed work:

• Davis was the part-owner of Safeco title company from 1999 to 2004, and the CEO from 2004 to 2009 after Republic Title bought it and named her head of the Fort Worth division. “In 1999, she became part owner of Safeco Title Co., which was later acquired by Republic Title. Davis became Chief Executive Officer of Republic Title's Fort Worth Division in 2004, where she served until 2009.” (“Attorneys,” Newby Davis, Archived 3/8/14)

• According to the Texas Comptroller of Public Accounts, Republic Title of Fort Worth was active in Texas from 1971 to 2017.

(“Old Republic Title Company of Fort Worth,” Texas Comptroller of Public Accounts, Accessed 8/30/20)

o Republic Title of Fort Worth dissolved in December 2017.

(“Republic Title of Fort Worth,” Open Corporates, Accessed 8/30/20)

o Davis was paid up to $180,000 per year while at Republic Title. “Wendy Davis’ initial five-year employment contract was to take effect upon the June 1, 2004, sale of Safeco. It said she would receive $120,000 in salary plus up to $60,000 in incentive pay based on the company’s profitability. But that would soon change, as she and the company navigated potential conflicts of interest. It was a concern for Republic Title, said William Kramer, then the company’s chairman. “Because many of our customers have to appear before the City Council, we vetted the contract … with the city attorney,” Kramer said. “He suggested she should not be incentivized. So the idea is you have to pay her a flat fee. She makes the same thing no matter what she does.” Republic revised the contract. Davis would be paid a flat salary of $180,000.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

• On June 8, 2004, Davis voted to give tax incentives to Cabela’s.

(“Cabela’s Retail, Inc.,” Fort Worth City Council, Page 21, 6/8/04)

• The tax incentives were worth “up to $40 million.” “Fort Worth officials recently signed off on a tax incentive package that could be worth up to $40 million to lure the popular retailer to the city. The store is expected to provide up to 500 full-time and part-time jobs. ‘Cabela's represents a $50 million investment in north Fort Worth, and will serve as a catalyst for over $700 million during the next several years,’ Fort Worth Mayor Mike Moncrief said, while wearing his newly acquired Cabela's ball cap.” (David Giddens, “Cabela’s Coming to Fort Worth,” Dallas Business Journal, 5/14/14)

• Davis’ Republic Title company was responsible for the deed transfer of Hillwood, the development company. “Davis did not disclose that Republic Title would help close Hillwood’s sale of 50 acres to Cabela’s, just as Republic had helped Hillwood with previous transactions.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

o Hillwood is a real estate developer founded by Ross Perot, Jr. “Established in 1988 by Ross Perot, Jr., Hillwood is one of the largest private real estate developers and investors in the U.S.” (“The Hillwood Story,” Hillwood, Accessed 8/30/20)

• Months before the City Council voted on the tax incentive, Davis and “several city leaders” flew aboard a Hillwood jet to tour a Cabela’s in Kansas City, a trip the city would reimburse Hillwood for. “Hillwood began touting to city officials the idea of wooing the superstore. Late in 2003, Davis was among several city leaders who flew aboard a Hillwood jet to Kansas City to tour a Cabela’s operation. The city reimbursed Hillwood $800 for the trip. Davis and the others returned enthusiastic about the plan, and they began touting it. The council approved the deal 8-1 on June 8, 2004.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

Editor’s Note: The Dallas Morning News, which ran a critical article during Davis’ 2014 gubernatorial campaign on Davis’ title work intersecting with her city council work, admitted that “she appears to have followed Fort Worth’s ethics policy.”

In February 2006, Davis voted to give a $25.1 million tax incentive to Presidio Hotel while her title company, Republic Title of Fort Worth, did the deed work:

• At the time of the deal in 2006, Davis disclosed on her personal financial statement for the Fort Worth City Council that she worked for Republic title company.

(Wendy Davis Personal Financial Statement, Office of the Fort Worth City Secretary, 2006, Accessed 5/11/20)

• According to the Texas Comptroller of Public Accounts, Republic Title of Fort Worth was active in Texas from 1971 to 2017.

(“Old Republic Title Company of Fort Worth,” Texas Comptroller of Public Accounts, Accessed 8/30/20) o Republic Title of Fort Worth dissolved in December 2017.

(“Republic Title of Fort Worth,” Open Corporates, Accessed 8/30/20) o Davis was paid up to $180,000 per year while at Republic Title. “Wendy Davis’ initial five-year employment contract was to take effect upon the June 1, 2004, sale of Safeco. It said she would receive $120,000 in salary plus up to $60,000 in incentive pay based on the company’s profitability. But that would soon change, as she and the company navigated potential conflicts of interest. It was a concern for Republic Title, said William Kramer, then the company’s chairman. “Because many of our customers have to appear before the City Council, we vetted the contract … with the city attorney,” Kramer said. “He suggested she should not be incentivized. So the idea is you have to pay her a flat fee. She makes the same thing no matter what she does.” Republic revised the contract. Davis would be paid a flat salary of $180,000.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

• On February 28, 2006, Davis voted to give tax incentives to Presidio Hotel.

(“Presidio Hotel Fort Worth, L.P.,” Fort Worth City Council, Page 11, 2/28/06)

• The tax incentives totaled $21.5 million, and Davis’ Republic Title company was responsible for the deed transfer. “In one instance, developers wanted to transform an aging hotel in downtown Fort Worth into a three-star Sheraton in 2006. They asked for a $21.5 million incentive package from the city. Davis moved that the council approve the tax breaks, and the vote was unanimous. She did not disclose her title company’s role in the hotel’s sale. The same day as the vote, a deed was filed at the county courthouse transferring the hotel to its new owners, the California-based Presidio Hotel Group. Printed on the document’s corner was the name of Davis’ title company, Republic Title of Texas. She was then chief executive of its Fort Worth division, a position she had obtained in the 2004 sale of her and Jeff Davis’ title firm. It’s not clear how much Republic earned from its role in the $11 million hotel sale. The title insurance would have cost about $46,000, according to rates set by the state.” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)

• Davis maintained that she worked closely with City Attorney David Yett to ensure that everything was legal. “’I was very careful when I was on the City Council,’ Davis said in an interview in January. ‘I worked with our city attorney, David Yett, to make sure I never crossed that line, and I kept in my file formal legal opinions from him when I would confront decision-making as a city councilperson to make sure I was always on the right side of the line.’” (“Wendy Davis voted on city projects where she had title work,” The Dallas Morning News, 9/14/14)